Managing finances properly is mainly common sense. While we’ve all made financial mistakes, most of those mistakes are easily rectified, particularly when promptly corrected. However, there are some financial decisions that can be much harder to recover from. Here are just a few of them:
Many investors, especially those still reeling from the 2008 – 2011 stock market roller coaster ride, have developed a low tolerance for volatility. As a result they have moved a significant portion of their investments into bonds or other fixed yield vehicles.
When you have excess cash flow and assets to invest, you can choose from a vast number of different types of investments, which can be a daunting task due to the number of options and, in many cases, their complexity. In addition to understanding how different investments work, it is essential for investors to know if they are suitable for their particular needs and risk tolerance.
Money is just one of those things that sometimes brings people as much pain as it does pleasure. As the economy in an up cycle of the recession, things are looking better but just the thought and uncertainty of an unstable economy is often enough to bring the fear back into people’s minds
The first step to managing financial stress is to identifying what is beyond your control.