Source: "The Bogleheads' Guide to Investing"
Before you start investing
1) Graduate from paycheck mentality to net worth mentality. It's not how much you make, it's how much you keep. However, in recent years, high-income earners have gotten much wealthier than low-income earners.
2) Pay off credit card and other high-interest debts because it's the highest, risk-free, tax-free return on your money that you can earn.
3) Establish an emergency fund and carry proper types and amount of insurance. Emergencies always showing up when you're least expected; and bad news usually come in threes.
Start to save early and invest regularly.
Estimate your retirement need. You can't reach your goal if you don't have a target.
Indexing via low-cost mutual funds is a strategy that will most likely outperform the vast majority of strategies in long term.
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