What will be next in the credit crunch?
Linda says:
The time is here to look beyond the beyond the downfall and woes of big speculative players, and apply the same lessons to our own lives and our own finances. Whilst the high flyers are getting the headlines, it is in our own lives that we can make the biggest difference.
While we can’t control the price of oil or the big events in world affairs, the power that each of us has is to take control and see ourselves as chief financial officers of our own small enterprise. Apart from the benefit to our own “balance sheet”, it is the best way to avoid feeling overwhelmed by negative news and sensational headlines.
There have always been better and worse times in the world of money and finance, like in the natural seasons. The idea that we had entered a period of economic sunshine, with growth in asset prices, and speculation replacing old fashioned economic sense has been shown to be false. Unrealistic expectations are always a source of disappointment and heartache.
The Wall Street bankers have caused a world wide mess with excessive debt, and massive bonus levels, that have encouraged a Las Vegas attitude to risk. Unfortunately, much of the money taken to the casino has belonged to ordinary investors and pension funds. Easy money and excess debt is, however, not just a problem for the hedge fund operators.
The other side of the coin is that a season of harder times allows us an opportunity for personal growth, and also an opportunity to build better for the future. If you are weighed down by debt, look at ways to reduce it. If you are in the habit of spending on impulse on purchases that you don’t really need, this is a habit that you need to alter. Sound principles apply equally to the world of money as they do to the rest of our lives. It
was simply a myth that the old rules had altered.
June 19th, 2008 at 11:34 pm
Thank you Linda, for a different angle on all of the current Doom and Gloom, and for reminding me that ultimately I am the one in charge.
It’s a good way to start the morning
August 5th, 2008 at 2:22 pm
Great post
I think if you are struggling at the moment the best thing you can do is keep positive and make sure it does’nt happen in the future.