Those in the personal finance industry can come up with some very creative thinking. From time to time in different ways to better your fortunes. Of course, we can’t all make drastic changes but it does go to show what can be accomplished. If you are determined enough, no matter what your income. Personal finance is all about living within your means. If you are a pensioner you can’t expect to live like a company executive. And therein lies a large part of the answer for many people who find themselves in financial trouble today. The first thing you must look at is how you can cut back your expenses, do something positive about it and stay out of debt. Once you have this part of your financial life organised you can then look around for ways you can further improve your bottom line.
The following wonders of personal finance will let you make money despite the worldwide financial crisis. As you read through them you will begin to realise that they are not really new. But renewed wonders that had long been forgotten in the mad rush of making money in the good times. Now we are back to basics again, we all have to re-learn these wonders of personal finance:
On top of the list is a reminder. Don’t forego your insurances. Regardless of whether it is car insurance, house insurance, life insurance or disability insurance.
By foregoing any of these you could be running the risk of finishing up penniless. Your first rule of discovering the new wonders of personal finance is to not run such a risk. If a disaster did strike and you weren’t protected against its financial effect you will know why this makes top billing.
#2 Understand your investment
Never invest in something you don’t understand. Investing is complex at the best of times and if you intend investing in the present financial climate make certain you know what you are doing.
If your financial advisor tries to talk you into investing in something you can’t get your head around, walk away from it.
#3 Double check what is safe
If you are on a fixed income don’t stray from government bonds. Government bonds are safe while your government is safe and if your government goes belly up there is the probability you will go the same way anyway, no matter where else you have your money invested.
Make certain that any deposits you have in banks are insured against loss, the same goes for your broker.Don’t take financial risks. Now is not the time to take any investment risks. Even if a share price appears to be at rock bottom and the only way to go is up. Don’t run the risk in today’s financial climate. Leave these investments to the big boys. When you see a bit of prolonged interest in a certain company you may start thinking but for the moment leave it at that.
#4 Don’t take financial risks
Now is not the time to take any investment risks. Even if a share price appears to be at rock bottom and the only way to go is up. Don’t run the risk in today’s financial climate. Leave these investments to the big boys. When you see a bit of prolonged interest in a certain company you may start thinking but for the moment leave it at that.
#5 Don’t predict the future
If you have investments in shares at the moment and a broker advises you to sell before they hit rock bottom. To re-buy again when they finally hit rock bottom, laugh your way out of his office.
Nobody knows what rock bottom is, or how long it will take to get there, if ever. Leave your shares alone for the time being as what goes down must one day rise again. Much of the volatility we are presently witnessing is coming from brokers trying to predict the future then getting cold feet the day after.
#6 Don’t invest by running down cash reserves
You might be secure in your employment and have a good income coming in. However don’t feel you can confidently make your money work for you by making investments. By all means, do so if you can afford to as there is money to be made at any time if you select your markets wisely.
But keep a reserve of cash as a backstop. Some experts tell us we should have a reserve of at least nine months of living expenses stashed away in a bank account somewhere. By having a reserve you won’t be forced to sell your investments too cheaply if an emergency arises.
#7 Clean energy is a good bet
To round off what you should be doing in the present economic climate. It should be given one of the coming rising stars of the future as far as positive investment is concerned. This is in the area of green energy.
Pick your mark carefully here because as certain as night follows day some of these energy efficient companies will succeed and others won’t. Overall we are witnessing a change from the traditional industrial area of steam engines pick and shovels and coal-fired power stations to that of geothermal, wind farming and even nuclear. Keep it in mind.