Conventional Wisdom for Your Personal Finances
Marco Angioni II
- Published Content: 79
- Total Views: 10,705
- Favorited By: 0 CPs
There are many bad things that you can do with your money or to your money. There are also many goods things you can do with or to your money. What should you do and what should you avoid?
There are three simple steps that many people can do in order to better their financial situation. These three steps are very easy to initiate and even easier to maintain. Many people want to better their financial situation yet they lack the drive and motivation to pursue this goal. These three ste 
ps do not require much motivation and therefore should be attractive to even the most apprehensive person. Keep in mind that these three steps will not make you monetarily rich, yet they will help you obtain extra income and will help motivation you to make more money.
(1) Plan Your Finances - Budgets are very hard to stick to and can cause many headaches, however, planning the big purchases can help protect you from a financial blunder. Always plan out the big purchases before reaching a final decision. This will not guarantee that you will make a wise purchase, but it will make you think out and research all the details before concluding one way or the other.
(2) Always Use Interest Bearing Accounts When Possible - Many banks offer interest bearing checking accounts, and various other interest accounts. While deciding between investment opportunities or for the money you keep in an account to pay the bills, collecting interest on this idle money can quickly add up. You will not become rich, but this is the easiest, risk free money you will ever collect.
(3) Diversify - This is very common and effective advice. The recent volatility of the real estate market is a perfect example. Many people lost everything because they threw all of their investment money into the real estate market during the boom. Unfortunately, like gravity, what goes up must come down, and that is what the market did, with a vengeance. If these people had been diversified (meaning they had spread their investment dollars through various industries and markets) these people would have minimized, and probably offset any loss they received from the real estate market.
There are three simple steps that many people can do in order to better their financial situation. These three steps are very easy to initiate and even easier to maintain. Many people want to better their financial situation yet they lack the drive and motivation to pursue this goal. These three ste
(1) Plan Your Finances - Budgets are very hard to stick to and can cause many headaches, however, planning the big purchases can help protect you from a financial blunder. Always plan out the big purchases before reaching a final decision. This will not guarantee that you will make a wise purchase, but it will make you think out and research all the details before concluding one way or the other.
(2) Always Use Interest Bearing Accounts When Possible - Many banks offer interest bearing checking accounts, and various other interest accounts. While deciding between investment opportunities or for the money you keep in an account to pay the bills, collecting interest on this idle money can quickly add up. You will not become rich, but this is the easiest, risk free money you will ever collect.
(3) Diversify - This is very common and effective advice. The recent volatility of the real estate market is a perfect example. Many people lost everything because they threw all of their investment money into the real estate market during the boom. Unfortunately, like gravity, what goes up must come down, and that is what the market did, with a vengeance. If these people had been diversified (meaning they had spread their investment dollars through various industries and markets) these people would have minimized, and probably offset any loss they received from the real estate market.