Diversify your stock portfolio

Diversify your stock portfolio. A good rule-of-thumb is never invest more than 20% of your portfolio in any one company. Even if the company’s performance is solid you should consider spreading your stock in several different companies that have a good performance record.

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E.I. Tip: Divide Your Paycheck. Ask your company’s HR department to divide each of your paychecks between your savings & checking accounts. Set a specific percentage to automatically deposit into your savings so you’re less tempted to touch it while off work. Also, interest rates are generally higher for savings accounts than they are for checking.

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