With the economy in a recession, some of the things you used to do with your money just don’t work anymore.
Not only do they not work, but continuing to do these practices could be disastrous for you financially.
There are more lies than truths when it comes to how to manage your money & funds, and it pays to pay attention.
- You should buy investments and hold onto them for the long haul. This can be disastrous in terms of stocks — because if the value on a stock goes down and you aren’t paying attention, you can actually lose money. So now the advice is to closely monitor your stocks and other investments, and if you notice a trend of their value going down consider selling them and putting the money elsewhere.
- You will be able to retire early. This is untrue for most people now because, according to Ken Dychtwald at Age Wave and Harris Interactive, nearly 60% of our population lost money in the last 12 months, and retirement age people were hit the hardest. Many Americans believe it will take up to 7 years for them to recoup what they lost in the last year.
- You can trust your financial advisor. The fact is you cannot trust anyone but yourself when it comes to your money. So even if you are using a financial advisor for your portfolio, you should closely monitor what he is doing with your money.
- Retirement isn’t all it’s cracked up to be. Many people who retire find themselves getting bored after a month or a year. In most cases, what you need at this time is a break, not to stop working entirely. That being the case, working with your employer to cut your hours, or job share, or work from home can be a better alternative than retiring.
- Saving money is the most important thing you can do, even over investing. Since it is so easy to lose money when it comes to investments like stocks, you should consider only putting a little under half of your money into these types of investments. To make up the rest of your retirement, you should consider opening a savings account and saving more money each month to make up the other part of your retirement money & funds.
Are you worried that saving money will be difficult? Wondering how you’re going to squeeze out another dime to put into savings for your retirement? Worry no more. There are 5 simple things that you can do to save money effortlessly!