Simple Money: Habits and Rules for Saving and Investing that Build Wealth for Everybody

Simple Money provides straightforward rules and habits that enable all of us to gain financial freedom. At the highest level, the idea is simply to spend less than you earn and invest the difference. Simple Money fleshes out the details of managing costs and selecting investments. Clearly written chapters spell out which investments are acceptable, which are not, and the principles you should always consider. The reader needs no prior financial knowledge other than familiarity with a checking account.

Principles of Acceptable Investments

1. Stay within your risk tolerance
2. Be prepared to suffer a complete loss on any risky investment
3. Know what you are buying
4. All investments must be liquid
5. Make only those investments the values of which you can follow on a daily basis
6. Never borrow money to make investments
7. Diversify your investments