How Good of Financial Weather Person Are You?
If most of us really admit we only know it's raining when we look outside and we see drops of water falling from the heavens. We really never knew the rain was coming. Why is that? Most of us have not been trained in the methods needed to analysis weather patterns nor have we been trained to utilize the equipment needed to do this either. The price for not listening to the weather man or not being able to predict the waether yourself will only cost you wet clothing or hair. But if you are not able to predict the "financial weather" it can cost you everything.
How do you become a good financial weather person? I am glad you asked, here are some easy steps on becoming more financially savvy:
(1) Begin to listen to financial news channels like Bloomberg TV, CFNN, etc. All of their talk might sound like another language and make your head hurt but it will begin to make sense as you follow the other steps below.
(2) Begin to read books and magazines about wealth building and finances. This will build your financial IQ quickly and greatly decrease your learning curve. Good books for you here are Mad Money, anything by Mr. Warren Buffet or Rich Dad Poor Dad.
(3) Review key figures in the US like the unemployment rate, be abreast of the DOW Jones Index daily, Fed interest rates, etc. The US economy hinges on the attitude of the stock market, interest rates and unemployment. These numbers tell a story.
(4) Form a team for yourself which should consist of a financial planner and an accountant. If you find the right combination they will assist you in forecasting the financial weather as well. Make sure that your financial planner and accountant know each other and are on the same page though.
It is important that we all understand the financial weather that we face. In seasons where the money is flowing well we should be able to pay down debt and save bountifully. In seasons where the money is not flowing as well we can fall back on some of the savings we built up in order to survive until there is a point where the money is flowing good again.
Bottomline, we must determine whether we are in our:
Financial summer (everything is just marvelous, some rain and wind at times but nothing to worry about)
Financial winter (we need to be as frugal as possible because it is very cold and bare outside)
Financial fall / spring (transition times where we see both summer and winter conditions)
If most of us really admit we only know it's raining when we look outside and we see drops of water falling from the heavens. We really never knew the rain was coming. Why is that? Most of us have not been trained in the methods needed to analysis weather patterns nor have we been trained to utilize the equipment needed to do this either. The price for not listening to the weather man or not being able to predict the waether yourself will only cost you wet clothing or hair. But if you are not able to predict the "financial weather" it can cost you everything.
How do you become a good financial weather person? I am glad you asked, here are some easy steps on becoming more financially savvy:
(1) Begin to listen to financial news channels like Bloomberg TV, CFNN, etc. All of their talk might sound like another language and make your head hurt but it will begin to make sense as you follow the other steps below.
(2) Begin to read books and magazines about wealth building and finances. This will build your financial IQ quickly and greatly decrease your learning curve. Good books for you here are Mad Money, anything by Mr. Warren Buffet or Rich Dad Poor Dad.
(3) Review key figures in the US like the unemployment rate, be abreast of the DOW Jones Index daily, Fed interest rates, etc. The US economy hinges on the attitude of the stock market, interest rates and unemployment. These numbers tell a story.
(4) Form a team for yourself which should consist of a financial planner and an accountant. If you find the right combination they will assist you in forecasting the financial weather as well. Make sure that your financial planner and accountant know each other and are on the same page though.
It is important that we all understand the financial weather that we face. In seasons where the money is flowing well we should be able to pay down debt and save bountifully. In seasons where the money is not flowing as well we can fall back on some of the savings we built up in order to survive until there is a point where the money is flowing good again.
Bottomline, we must determine whether we are in our:
Financial summer (everything is just marvelous, some rain and wind at times but nothing to worry about)
Financial winter (we need to be as frugal as possible because it is very cold and bare outside)
Financial fall / spring (transition times where we see both summer and winter conditions)