Scott Adams (creator of Dilbert) guide to finances

Unlike Scott Adams cartoon, this advice is serious. It is great if you don't have special circumstances and just want a simple way to to invest.

I would insert before 4 to setup an emergency fund that is at least 3 months of living expenses in case you lose your job, car breaks, a/c goes out, family death that require travel, etc. I would also say that if you don't have a 401 (k) available then get an IRA or Roth IRA, or do automatic investment into a mutual fund.

Regardless the list below is good advice.

Do in the order below:

1. Make a will.
2. Pay off your credit cards.
3. Get term life insurance if you have a family to support.
4. Fund your 401(k) to the maximum. Fund your IRA to the maximum. Buy a house if you want to live in a house and you can afford it.
5. Put six months' expenses in a money market fund.
6. Take whatever money is left over and invest 70% in a stock index fund and 30% in a bond fund through any discount broker and never touch it until retirement.
7. If any of this confuses you, or you have something special going on (retirement, college planning, tax issues), hire a fee-based financial planner, not one who charges a percentage of your portfolio.