Twitter   RSS   Email  
 
Home
Admin

 How the Global Economy is Dependent on Christianity


 Why America May Never Recover From the Recession


 Save Money Homeschooling


Personal Finance Is About the Big Picture

By: Steve Johnson

2/17/2009 - 50 Comments

Last week J.D. from the popular personal financial blog, Get Rich Slowly, wrote an interesting article which was somewhat of a follow up article that he wrote a week ago.

He talks about how he is ready to take the next step in his personal financial journey now that he is out of debt and looking for better investment opportunities. 

I have read J.D.'s blog for years and watched him dig his way out of debt and improve his personal finances. Yet, I don’t think he realizes how important understanding the global economy is to understanding how to manage personal finances.  I wish I could say that personal financial planning can be done without respect to what is going on in the nation and globally, but that is just not the case.

Here is the article, The National Economy Versus Your Personal Economy. J.D. starts this article talking about how bad it was during the Great Depression and how paying too much attention to national or international economic news leads to decisions that don’t make sense for your personal economy.

J.D. says,

“When you pay too much attention to national or international economic news, you can find yourself making decisions that don’t make sense for your personal economy.”

“It’s my by belief that a strong personal economy is still built on fundamentals such as these:
• Clear financial goals
• An adequate emergency fund
• Limited use of debt
• The practice of thrift
• Smart investing for the future

I don't think we can use the Great Depression as a measure today because the entire world financial system is much different than it was during the Great Depression. We live in a global economy, which means that national economies and world events do affect our personal finances.

The truth is that fundamental personal finance strategies have been under attack from the government’s policies to manipulate interest rates and the currency supply for decades, whether you realize it or not. Your money is not as safe as you think it is.

Then J.D. said,

“The foundation of a strong personal economy is education. To become a wise investor, you must be an educated investor. ”

Which is very true, but the primary education that an investor needs today is not just about a local business, but with respect to the global economy and the actions of the overextended government. Therefore, the education that an investor needs today is a global investment outlook to protect the wealth of your personal finances.

This is why I talk about the big picture, the global economy and the government’s intervention and central planning in the economy.  These things are directly impacting my investments and my personal finances.  You cannot put your head in the sand with respect to these things if you expect to preserve your wealth in the world we live in today.  My education in the big picture led me to increase my 401k investments last year, while the average investor lost 45% of their money.  Personal finance is about the big picture, no question about it.

Copyright © 2017 PennyJobs.com. All rights reserved.

The New Master Your Money

This book provides a step-by-step plan to financial freedom presented in an easy-to-understand format. Do you know if you have enough? Do you know how much is enough? If you can't answer these questions, The New Master Your Money is for you. Ron Blue extracts principles from God's Word and applies them to your financial portfolio. Ron's professional experience in financial planning will be an asset to you and to your family for generations to come.

Your Money or Your Life

There's a big difference between "making a living" and making a life. Do you spend more than you earn? Does making a living feel more like making a dying? Do you dislike your job but can't afford to leave it? Is money fragmenting your time, your relationships with family and friends? If so, Your Money or Your Life is for you. From this inspiring book, learn how to, get out of debt and develop savings, reorder material priorities and live well for less, resolve inner conflicts between values and lifestyles, convert problems into opportunities to learn new skill, attain a wholeness of livelihood and lifestyle, and much more.

The Hyperinflation Survival Guide: Strategies for American Businesses

The Hyperinflation Survival Guide offers strategies for business managers to keep their enterprise afloat in the midst of runaway inflation. Within this succinct little book are a plethora of sensible business strategies for American businesses. If businesses are to survive they must effectively counter and minimize the ill effects of rampant inflation and/or hyperinflation. The utmost prudence is required in managing accounts receivable, inventory, and production at such a time. A sudden inflationary economic downturn may very well bring a business to its knees leading to insolvency.

Day of Reckoning

In Day of Reckoning, Pat Buchanan reveals the true existential crisis of the nation and shows how President Bush's post-9/11 conversion to an ideology of 'democratism' led us to the precipice of strategic disaster abroad and savage division at home. Ideology, writes Buchanan, is a false god that seeks vainly to create a paradise on earth. While free enterprise is good, the worship of a 'free trade' that is destroying the dollar, de-industrializing America, and ending our economic independence, is cult madness.