But if you're looking for an inflation hedge, you might do better with stocks or real estate. Simply stated, spending less of your income is a great savings and investment strategy. Given effective tax rates, keeping an after-tax dollar in your pocket rather than in some merchant's cash register is probably the equivalent of going out and earning two dollars before taxes. The author advises buying in bulk and hard bargaining on big purchases. He takes the reader through the pros and cons of most investment options in an engaging, common sense manner.
Every investor is different, of course.
People should take on levels of risk that are not only appropriate for their income, goals, and stage of life, but also in line with their psychological ability to withstand risk. In other words, you want your investments to allow you to sleep at night. Despite our differences, there are some psychological foibles most of us share when it comes to thinking about money. For example, we more easily fritter away money that was won at the racetrack the night before than we would rashly spend the contents of our hard-earned paychecks. This fun approach makes the issues at hand easy to identify with and clear.