further to that I have found 2 extra things very helpful.
using \W instead of \w will give you the last part of the path so as not to take up the whole width of the screen.
I try to make the prompt for root a different colour (mainly red) than the normal colour as a reminder that I am still able to screw the system up with a careless command.
I do this with the following *8)
export PS1='^[[1;31m\h \W\$ ^[[0m'
I generally use id or whoami if i need to know who i am logged in as
its a personal choice.
^[ <== <ctrl+v><esc>, then you add the second [ . You should remember to close the colour with ^[[0m or you will change ALL text
hope this is helpful to someone