1. Live within your means or below it. 2. Never use a credit card and avoid the plague it is. 3. Borrow money only for education and housing purpose. 4. Never invest in stocks with the money intended for food and next years college tuition. 5. Invest money only if you have 3 months cash reserve. 6. Invest money that you will not use for the next 10 years. It will give you enough time to defeat the bear and earn a decent profit.