Personal Finance Worries?

Author: John Q. Miller

Article:
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
S&P 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.

About the author:
John Q. Miller created MoneyLighthouse to provide free personal
finance information that can help you navigate through the fog
of money management. Read other articles on personal finance ­
including money savers and money makers, as well as book and
movie reviews at http://www.MoneyLighthouse.com Don’t forget to
register NOW with MoneyLighthouse for a chance to win a Free
hardback copy of The One Minute Millionaire.