The Golden Rule is a fundamental moral principle which simply means, “Treat others as they would treat you.” It is arguably the essential basis for human rights. Similarly, in my mind there is a Golden Rule for Personal Finance. Like the moral Golden Rule, it doesn’t encompass everything you need to know but unless you tackle it, the rest is moot.
Golden Rule of Personal Finance: You must earn more income than what you spend.
Sounds simple enough but so many folks don’t follow this rule. Check out this link to an awesome skit on SNL.
Dollars & Sense Education 