• In case you missed our first issue, take a quick test to find out how good you are at managing your money: The Big Three 
• Learn these basic concepts—compound interest, inflation, and risk diversification—which are the pulse of your financial health. Learn more from the Consumer Finance Protection Bureau (CFPB) glossary of financial terms.

• Keep track of your inflows (labor and other income) and your outflows (fixed, variable and other expenses) to stay in good financial health.
• The budget is particularly useful to help you build a buffer stock of savings. Here is a good example: Write down all of your expenses and sum them up at the end of each week. It will help you understand how easy it is to spend, how much you spend, and find ways to have a positive cash flow to build a buffer stock of savings. 
• Historically, the recommendation has been to have 3-6 months of expenses saved. However, given the uncertainty we observe today, it’s better to have one year of expenses saved up. 
• You can start with small amounts and keep building your buffer (and replenish it, if you have to use it) over time.

• Try to pay off your credit card in full and on time. Credit cards charge very high interest rates and carry a lot of fees. Try to automate credit card payments.
• Make sure that you are able to cover your debt payments.
• If you answer “no” to question 3, look at your budget and try to find room to decrease your debt, for example by considering ways to decrease your expenses or augment your income.

• Think of your credit score as a grade for your financial practices, particularly your debt management. If you have a high credit score, you will have better access to credit and receive more favorable terms on loans. Alternatively, if you have a low credit score, you might be denied credit and face very high interest rates. 
• Keep an eye on your FICO score—the most well-known credit score. It ranges from 300 to 850. A credit score of less than 580 is considered poor, 580-669 is fair, 670-739 is good, 740-799 is very good, and 800-850 is exceptional.

• If you answer “no” to question 4, here are some practices to maximize your credit score:

• • Pay your credit card in full and on time.
  • Keep credit utilization low—Ideally no more than 30% of your limit on any credit card.
  • Don’t open several new credit cards at the same time.
  • Don’t close bank accounts or old credit cards.
  • Have a credit mix—both credit cards and installment loans.
  • See the FICO website for other practices that can improve your score

Keep the following important investing principles in mind:

• There is a relationship between risk and return. Higher returns are normally associated with higher risk; there is no free lunch in finance!
• Do not put all your eggs in one basket. Try to have a portfolio with multiple assets—stocks, bonds, and other assets—to reduce your financial risk.
• Pay attention to transaction fees. High fees can erode long-term returns.
•  Take advantage of the opportunities offered by the financial markets. Academic research suggests that index mutual funds and Exchange-Traded Funds (ETFs) are a low-cost way to achieve diversification.

• Both the government and employers provide many incentives to grow your wealth, particularly retirement savings. Take advantage of your employer pension plan, normally a 401(k). If your employer offers a match, try to contribute up to that match. In addition, make contributions to tax-favored assets, such as IRAs, Roth IRAs, SEP IRAs, HSAs, and 529 plans, if you are capable.
• There are also benefits and programs to support you if you are unemployed, sick, or face other hardships. The government offers unemployment insurance, Social Security disability insurance, and health insurance (via Medicaid), for example. Employers might offer short or long-term disability insurance, paid family leave, and severance packages. 
• Check if your employer offers financial advice as part of your pension plan.

• Prepare for life’s big events and milestones. Children’s education, transitioning to a new job, purchasing a new house, and being able to work less can be important milestones in your financial life.
• Calculate how much you need to save to achieve your objectives – and make a plan for regular deposits.
• Prepare for the unexpected: An important part of a solid financial plan is to have the right amount of insurance. Don’t let your well-being be derailed by chance! Purchasing insurance will help shield you and your loved ones from bad events such as health issues, fires, loss of life, and running out of money when you stop working.