It’s been said that when you take free advice, you should remember that you get what you pay for. I agree that it’s important to evaluate any advice — free or not — before following it, but rejecting all free advice because it is free is a really bad idea. (Unless you paid someone to tell you that free advice is lousy, that advice is itself self-contradictory, declaring itself unsound.) While some free advice is bad advice, most of the great advice I’ve received has also been free. In fact, every one of the ten best bits of personal financial advice I’ve ever received have all been free. I now pass them on to you . . . for free. I hope you will find them far more valuable than the price you pay. 1. Get out of debt and stay out of debt. My father, who is generally reluctant to give financial advice, once offered me this statement as the best advice he could give. Even a moderate level of debt forces the debtor to throw away money on interest; higher levels can lead to extreme stress, loan defaults, bankruptcy and more. Many financial advisors will cite some exceptions to avoiding debt — for instance, taking out a loan to start a business to make money or carrying a balance on a mortgage that has a lower interest rate than current investment opportunities — and most rules have exceptions. Nevertheless, while you might miss out on some extra income by scrupulously avoiding debt, you will not suffer any real harm. A related bit of excellent advice is to live within (better yet, well below) your means, which allows you to save enough money to take advantage of other good financial advice. 2. A penny saved is better than a penny earned. A penny earned will have taxes taken out; a penny saved does not. Plus, a penny saved can earn more money. A penny earned and then spent rarely does. This advice also has a complementary recommendation I like to follow: “Let your money work for you.” Any penny saved is great, but a working penny (in a mutual fund, money market account, or other investment) is worth more than an idle penny (under the mattress, in a regular checking account, or in a coin jar). 3. Never pay full price for anything. This bit of advice has obvious exceptions; there are times that you have to pay full price for things. Nevertheless, most things you buy have variable prices, and many purchases with set prices can be delayed or avoided entirely. Making a habit of paying the lowest price you can find saves a lot of money and makes personal finances much easier to manage. A related, more specific bit of advice to help with this practice is “Don’t pay for the name.” Many brand names, especially designer brands, have lower-priced alternatives of equal quality. The price difference comes from the popularity and image associated with the brand name. The extra price you pay for the brand equates to “paying for the name.” 4. Both offense and defense are important. A football team wouldn’t go on the field with the intent... | 