Credit Card Review Blog

4 Things the Financial Crisis Taught Me

What the Financial Crisis Taught Me

The great thing about life is that we get to learn from our mistakes. We can learn from the mistakes of others or learn from our own mistakes. Either way, there is a great deal to learn.

Millions of people around the country are beginning to look back and say, “…” Some people are wishing that they would have started a savings account, done better expense tracking or retirement account while they still had a job. Other people are wishing that they hadn’t put so much debt into their home. There is a great deal to learn from the recent financial crisis.

1. It’s not all about investing. Americans, in general, got out of the habit of savings and into the habit of making an investment instead. For almost three decades, we saw better returns coming from the stock than we did at the bank. Instead of putting a reasonable amount of money aside for a rainy day, people bought stocks instead. Financial freedom isn’t all about investing.

2. Less is more. When I was dancing, my teacher would always say, “Less is more girls.” She was trying to get us to realize that it took less force to land a triple pirouette. This adage can be used in the financial realm as well. When it comes to investing, less is more. Simplistic investment strategies will get you farther ahead than complex ones.

3. Believe that you may be wrong. Believe it or not, you aren’t right 100 percent of the time. Unfortunately, there are people that believe that they are right 150 percent of the time. This mentality is all wrong in the financial realm. The most important thing you can do to stay on top of your investments is to constantly reassess your position and admit that you may have been wrong at one time or another.

4. When it comes to market upswings or downturns, be cautious. If the market starts to slow down, don’t rush out and sell all of your stocks. If the market picks up a bit, don’t buy too much stock. Keep a realistic picture and goal in your mind at all times.

Dealing with financial matters and the stock market can be tricky. If everyone understood these principles the way they should, our country wouldn’t be in such a financial disaster. I guess its time to start getting smarter with my credit cards!