“Simplicity is the ultimate sophistication.” – Clare Booth Luce

Stop what you are doing. Sit down with a 4″x6″ index card and see if you can write down, as simply, as possible, your philosophy on savings, spending and investing. My guess is that for most it will be a difficult task.

A few years ago Harold Pollack published an index card filled with some simple rules that guide his financial life. Now Harold Pollack’s index card is the subject of a book by Pollack and Helaine Olen entitled The Index Card: Why Personal Finance Doesn’t Have to be Complicated. Olen earlier wrote Pound Foolish: Exposing the Dark Side of the Personal Finance Industry which I enjoyed as well. Little did Pollack know at the time but his exercise has spawned a cottage industry in index card finance.

Christine Benz of Morningstar jumped into this game as well. Ron Lieber at the New York Times asked a handful of fellow financial writers including Carl Richards, author of The One-Page Financial Plan, Jonathan Clements author of Money Guide 2016, cartoonist Scott Adams and others to contribute their index cards as well. Lieber does a nice job of summing up some of the lessons and finding some commonalities. Below you can see Richard’s card which, not surprisingly was done with a Sharpie.

Carl_0116

Source: New York Times

One could argue as Felix Salmon does in this podcast with Harold Pollack that these types of rules really don’t need much more explanation like that found in the book. However Olen in a Huffington Post interview said that some readers wanted some more reasoning behind some of the rules and that is why they decided to flesh out these ideas further at book length, albeit short.

The challenge with all of these index cards is that they are all unique. They are all in fact a function of the outlook, disposition and experience of the writer. So read them with a keen eye. See where there are some commonalities. But in the end you will have to come up with your own “index card” because you are a unique individual. That and the fact that no one else cares about your money more than you.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Please see disclosures here.

Please see the Terms & Conditions page for a full disclaimer.