Seeing the current global situation and the economics of the region I inhabit and being partly the source of my income and my future, I decided to offer some humble advice to whomever reads. I tried to draft a constitution-like document however I immediately realized the many different situations, strategies and individual goals and how they fit into the big picture.
One thing is certain and that is risk and reward and the forces that drive the world. Meaning in time of global crisis, with consumer and investor confidence already damaged, it is wise to be cautious and to think ahead. What if tomorrow a catastrophic event, be it econmic, or social, impedes you from using your money due to rising inflation, to a contract you signed, or economic failure. This is one of the main questions you should ask yourself before making a big purchase, signing a financial contract, opening a business or investing your money. Even going on a vacation could mean a narrowing of your capabilties in the short or long term. (a waste of time and money)
Another essential question that is necesary before you even deposit a check into your account is your family and dependents. If you have a child or anyone who depends on you financially or even emotionally they will be primarily affected by your poor decisions and faillure. Sometimes abandoning or not being able to support these individuals could cost you your future, your freedom and even your life. Remeber the most important things in life are eating and drinking water, a roof over your head and then your basic needs like utilities (electricity, gas, trash, water and internet), after that then your transport and then luxuries. There might be extras or less things to worry about but these are the most obvious ones.
As a 30 year old man who studied and lives alone while my mother keeps my dog, I find no need to worry about third parties and usually make decisions that are well thought out, benefit me, and keep me safe, legally, emotionally and physically. This is a huge driving force when it comes to making financial, business and life decisions. And my strategies are custom to those aspects of me. Meaning that what is right for me isn't always going to be right for you and might even be detrimental.
Another important rule is to remain calm and remember this all the time. Financial oportunities come and go at least in the stock market, unless a possitive or negative cataclismic event occurs and even then chances are you will come across several events of smaller magnitude that will either earn you a fortune or ruin you. Other financial oportunities, you might never see, but if your life depends on your savings or capital then you should reconsider that investment or purchase.
You must also rememeber that luck isn't a big factor, therefore it should never be considered when making a financial decision. Most people are not your friend and won't always be explicit when sharing money advice with a friend or family imagine how much different it will be with a stranger. Advice comes from all over the world and from all persons with differing intentions... on the internet and other media channels, which means it isn't always rational or wise to follow such advice and that you wont always be able to hold them accountable for your mishaps. This was one of the frist negative things I learned and experienced when I started investing, which means that if you are not able to think of how it works and it isn't you making decisions then you should stay out.
留言