As hard as may be to believe, a lot of technically savvy people have never really applied their intellect to learning about finance and financial matters. Here is a list of some important financial rules, in terms techies should understand.
1. The short term stock market is like Kirk, while the long term stock market is like Picard.
2. Buying things on credit is like writing code without requirements or specs: try never to do it, only do it when absolutely necessary, and expect ramifications.
3. Know your own personal net worth like you know your computer’s RAM and proc speed. Which can you rattle off faster?
4. “Burn Rate” is a better term for rocket fuel than companies. If you want to know how well your company is doing, or if you should take that job and the new up-and-coming firm, look at the income, assets and cash flow (if you can). Not to say that taking a startup job won’t pay dividends, but quoting “burn rate” to indicate success is like saying that Spider-Man was able to climb tall buildings because he lived in New York.
5. If your machine crashed, chances are pretty good you already have a backup plan in place to get back up and running without a lot of pain. Do the same for your finances.
Digg This Post!
