1. Cash is king.
2. Get way ahead of your bills, by at least two months. And if you find that you can stretch it to three, do so.
3. Stay far away from leverage! Never, ever, buy stock with borrowed money. Never, EVER, lever up in a down market. Never!
4. Understand that the market is not your “friend” and can go A LOT lower than you can imagine.
5. Never, ever, buy all at once. Rather, buy a little bit at a time, month in, month out.
6. View all unexpected income as something which should be saved and not spent.
7. Expect things to get worse, not better.
8. Get used to saying the word NO, when people ask you to do things or when you ask yourself if you can afford something.
9. Don’t supplement a losing position with capital from a winning one.
10. At least one day a week practice living in poverty. Cut your own hair. Eat the stale bread. Boil some eggs for dinner. Go to the library for your entertainment. Learn to enjoy the taste of tap, water.
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newWorld
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