Keep at Least Three Months of Living Expenses in a Savings Account

That’s just a starting point. If you’re self-employed, work on commission, or work in an unstable industry or position, double or even triple that baseline. Many financial planners believe it’s a good idea to have three to six months of your normal expenses stashed away.

Multiply Your Living Costs By 25

This is one way to start estimating how much you may need to retire. To spend $40,000 a year in retirement, you would need to have $1 million saved. Better start cracking!

Save a Minimum of 10% of Your Salary

Start as young as possible, when the power of compounding returns is the greatest. An easy way is to opt into automatic contributions to your 401(k) if your employer provides one. Through compounding interest (the money that your money earns), you’re more likely to reach your retirement goals.

Take Advantage of Your 401k Company Match

Or else you’re not collecting all your hard-earned compensation. The match is essentially free money. If you don’t take advantage, you’re leaving that money on the table. 

Open a College Savings Account for Your Children

It’s never too early, even if your child is still in diapers. With the cost of college rising rapidly, you’ll be thankful you started earlier. 

Make the Maximum Contribution to Your Roth IRA

While you shouldn’t touch the funds in this account until you’re 59 and a half years old, you will avoid future taxes on your contributions, including capital gains tax. It’s a good choice for a retirement investment vehicle.

Spend No More Than 28-33% of Your Income on Your Home

That should include all your home-related costs, like insurance, property taxes, replacing the roof, trimming trees, mowing the lawn, and steam-cleaning the carpets. If you’ve never owned a home before, you’re probably underestimating how much home maintenance will cost. Brush up on what you should expect, so you can budget accordingly. 

Refinance Your Home

Only do this if you can erase at least 1% from your mortgage rate. Otherwise, the closing costs may make this option ineffective. 

The Number 120 Minus Your Age Equals…

The percentage of your portfolio that you should put in stock funds, according to this popular rule of thumb. Keep the rest of your portfolio in bonds. (If that’s too aggressive or risky for your taste, then keep your age in bonds, with the rest in stocks. So if you’re 30, keep 30% in bonds. This is a more conservative alternative.)

Avoid Any Investments You Don’t Understand

For obvious reasons, you shouldn’t invest in anything you’re not 100% sure on. If someone’s using fancy words and making big promises, be cautious. It’s better to stick to tried-and-true, get-rich-slowly methods than to gamble your future on something you’re not ultra-familiar with.

Avoid High-Fee Funds

The highest fee you should pay is 1%, but aim for the lowest-fee quality funds you can find. Vanguard, Fidelity and Schwab, among others, are known for their low-fee ​index funds and commission-free ETFs. There you have it. Eleven solid suggestions to build wealth to create a stable financial future for yourself. Follow these and it’ll help you be on the right path with your money in no time.