Advice that rings true

Cruising about the Internet I came across the BMO Wealth Management newsletter with a link to the BMO Investment Insights. Both, I believe, are published by BMO Nesbitt Burns. I read two bit of advice that rang completely true to my financial ear.

• Don’t overlook the merits of being invested. History has shown that over longer time periods the return of the equity markets outperforms inflation.
  
• Consider keeping a budget. A budget may be especially helpful for those like young investors just starting out. It can help provide a full picture of cash inflows and outflows, and determine which costs are necessary and what adjustments can be made to deal with inflation. Remember, the official measure of inflation, the Consumer Price Index (CPI), doesn’t include such items as gasoline and groceries. These are everyday living expenses incurred by almost everyone.