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Are you nervous about your personal finances?
The irrational exuberance of the 90s that led to
double-digit gains for almost any investment
portfolio is over. Now, you might consider
yourself fortunate if your investments are
losing less than the 500. Add investment worry
to the regular personal finance worries of
meeting your monthly budget, slaying the debt
dragon, and starting/building that elusive
emergency fund. Will your savings and
investments be able to meet your retirement,
children's college funds, and other goals?
Although no one can see the future, there are
things that you can do to reduce your
worries.
Knowledge Is Power
Learn and become more skilled in financial
matters. The best way to improve your financial
education is to read personal-finance magazines,
books, and even newspapers. The educational
materials sent out by mutual-fund companies and
brokerages are also valuable. You may come
across conflicting information and advice, but
if you read widely, you will eventually get a
better idea of how to manage your money.
Do-it-yourselfers are not the only people who
can benefit from learning more. If you use a
financial planner and yet are knowledgeable
about investments, insurance, etc., you are more
likely to end up with a solid financial plan. If
you find yourself teamed up with a inadequate or
unethical adviser, and you have a good
understanding of investing, you are more likely
to recognize bad advice.
Fear Creates Worry
"Greed is good!" says Gordon Gecko (Michael
Douglas) in Wall Street. Recent investment
losses, corporate scandals, and a stagnant
economy refute that statement. Instead, a
warning is emerging in personal finance forums
as we search and hope for indications that
relief is in sight. Fear is bad! Fear has driven
many investors either to dump stocks and load up
on bonds, certificates of deposit and other
conservative investments or, even worse, to stop
saving and investing. This creates new problems.
People will be incapable of achieving their
long-term financial goals because their
portfolio may now be so conservative that it
won't deliver the returns needed to retire in
comfort, or they are simply saving too
little.
Faced with this fear and uncertainty, financial
knowledge is more important than ever. Instead
of reacting to the market's ups and downs, learn
more about the characteristics of stocks, bonds,
and other investments; as well as the broad
array of personal finance and money management
topics.
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About The Author
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This review is courtesy of John Q. Miller at
http://www.JQmarketing.com where you can find
out how to create your own (no writing required)
newsletter and earn multiple streams of Internet
income.
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About the Author
None
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