Anyone who has spent any time recently watching the global economy teeter has invariably been wondering several things. First of all, what the heck is going on is usually the first question people ask. What can I do about it is the second.
What’s going on is basically the result of the collectively stupid herd mentality that has plagued us all for who knows how long. Trusting big business, big government and big banks to make financial decisions that are in our best interest is foolhardy at best and stupid at worst. This isn’t to say that the people who work for big business, big government or big banks are bad, although some of them certainly are. But like most of us, they will almost always put their own best interests first, even if they tell you differently.
In big business, it’s pretty obvious – a business exists to make a profit. Sometimes they do that well, sometimes they don’t. If you are a stockholder, your risk is that they won’t, which happens all too often.
In big government, it’s about collecting your paycheck and maintaining your job. Even the president, as concerned as he seems about our problems, is more concerned about keeping his job. That’s why he’s out doing fundraisers in spite of an unemployment rate that’s nibbling at 10%.
And as for big banks – enough said. Their greed caused this problem in the first place, and their cozy relationship with big government gobbled up our taxes to the tune of several hundred billion dollars.
That’s what’s been going on. What you can do about those specific problems is pretty clear – not too much. Let’s face it, those problems are out of your purview and clearly out of your control.
The only thing you can really do is to do what they do – look out for yourself first. You need to come to grips with the fact that only you can change your financial situation – nobody else is going to do it for you – and then take action to make it happen.
A big problem though is that many people – if not most – simply don’t know what to do next. They really have never been formally trained to manage money and really don’t have much experience with it. And no, we’re not talking about balancing an checkbook or using TurboTax to do your taxes. We’re talking about creating and implementing strategies that work.
You need to not only preserve the capital that you have – that you’ve worked so hard to acquire – but you also need to put that capital to work for you. That’s the beauty of a good investment – it works for you, regardless of what you are doing from hour to hour and for day to day. A good investment grows over time, creating even more capital, and more investment opportunities.
The key is to find a good asset that will preserve what you’ve got and provide you with a solid hedge against inflation. One good option today is gold. Gold is worth as much today as was thousands of years ago. In fact, it’s worth more.
Certainly something you should consider as you set about figuring out what to do with your money.
Tags: Financial Solutions