Saturday, January 5, 2008

Money, Investments and Emotions... (Part 1)


After enjoying Christmas with our loved ones because we all gather to thank God that for our health, our jobs, etc… emotions flourish when we are proud and happy for another year full of satisfactions but… How about our (and theirs of course!) financial security?

A new year is here but money continues looking as a rather touchy subject in almost every day of our lives, so:

Do we tend to take for granted that our “financial security” is really secure when the new year is already here”? Are we convinced that we are able to analyze and select (or at least to understand) the best (or the less risky) investment / savings option to make our money grow? Are we satisfied about being “smart” enough to avoid being greedy (we love credit cards but… Can we really afford to buy now and pay later?) and keep on the other hand our personal finances healthy?

Let’s consider just for a moment that we want to use “wisely” (How much?) our bonus to invest in the Stock Market (or buy a house, or, or…) More “unpleasant”questions arise:

Are we prepared to make rational and therefore careful investment decisions if we would like to “try” some particular stock because we received “word of mouth” about it as a “reliable” source of earnings? Do we know if some “reliable” stock is really reliable as a source of earnings? If not… Are we able to sell immediately, stay away and keep our emotions (Anger? Don’t get drunk please…) under control because we had to take a loss after investing in that stock? Too many questions? Wait! There are more to come and consider...

From this initial (and a bit scary) frame of reference, it’s never too late to start our journey to think and talk about Financial Education.

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