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Financial Planning 2011

By Edited May 1, 2015 0 0

It is with trepidation that some people view 2011, as while the main media has been trying to paint a rosy picture of the future, others assert that the true picture is something that is far more different. The true image is one of a global recession that is being more entrenched the more efforts are taken to fight it. Inevitably taxes will rise, and maybe even spread to other parts of the world. Everything favors the rich, who will then pay lip service to the port, leaving the middle class to fend for themselves, on rules and tools enforced by the rich. And this will happen even if you think money isn't important.

Everyone needs money even if you may say "money doesn't bring you happiness". Were you unhappy when you are robbed off your money, or found out your wallet was missing? Money has links to your health and happiness, as some marriage counsellors would have you know. Maybe making more money won't make you happy, but losing money will certainly make you unhappy. And losing money, is basically what is happening each time a government prints out more paper money. You may slog long hours and work hard to make $50,000 a year to provide for your family, the government can print a thousand times that amount in a second, and dilute the effective value of your money.

And being free of constant money problems will definitely make you a happier person. It's hard to not worry about having not enough money when money is needed everywhere. Food, lodging, the bank loan for studies, clothes, water ... and the list goes on. i really like to believe that you can find some wilderness build a home using available materials, hunt for your own food, make your own clothes from fur and drink from streams. It's totally possible but that kind of space is slowly disappearing and being replaced by concrete forests. need i say, concrete forests take in money.

To not be sucked into the swirling money sucking vortex, i think it's common sense to ask, how can i earn more or how can i stop this. You can get out, if you paddle furiously as in what most of us are doing, working till we drop like flies. You can also choose to make a more efficient oar, choosing a form of income that gives better rewards for similar levels of effort, but difficult to make that transition happen. OR, you can get someone else to do the paddling for you by offering something they will need, but you will need to find those people. This can be a viable option if you are a sole proprietorship and is already running a small sideline or a small business.

The first option, which is so popular amongst people, is to work more to get further. However, your efficiency remains more or less than same. You're just working OT (that is Over Time over here) till you're so tired that when you reach home, you have no energy for anything else, like giving your children a hug. Sure, you worry that tiny bit less about making payments next month but your life has totally gone out the window and this can affect your dependents. Even if what you do is your passion, sooner or later, it'll just turn into something you dislike. I'm a huge advocate of having your own life and efficiency. This option simply goes against what i believe and it should be the same for you too

As for the second option, making changes to your work life such that you get better returns. everyone thinks that in a bad economy, it's best to just hold on what you have if not you risk losing it all. I say, it's the best time to drop what you have and look for something that gives you more of what you want. After all, if you stay where you are, when the economy picks up, your salary most likely remains at the lowered rate. however, the one who successfully made the change will find that, when the economy recovers, their incomes grows with it. It's just that when making the change, you're going to get closer to being sucked into the vortex. But as they say, you have to look at the long run. If you can make the change for yourself, you could try some safe ventures. A good way is to start dumping some of your money into hard assets, such as gold bullion. If the rising prices of the gold oz is already beyond your reach, consider picking up cheaper but high potential bullion such as silver panda coins at 1/60th the cost of the equivalent gold.

Thirdly as well as the last, finding people to paddle for you. I think everyone knows that two heads are better than one. similarly, 2 pairs of hands are better than 1. imagine how much further you can go if both of you use the same amount of effort. of course, in this case you have to find that person, and offer him something he doesn't already have. sounds familiar? It's how corporations work isn't it? To push my own company further forward, i'll offer someone who can do so a better pay than he is receiving now. Of course, there are always benefits and costs to be weighed. If benefit offers more than the cost, then i need not remind you to take this offer. It is also similar to that of renting. Since I'm already paying for the house and I can afford let this space out and bring in money, why not?

Money is not about how much you have of it but rather what you do with it. in a sense, the former is the effect and the latter is the cause. a wise usage of money would bring you more money and similarly, foolish decisions with money would take away that money. this is true because of the property of money - it doesn't stay constant in value - thus, it's not an end.

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