Sunday, 30 January 2011

How to prevent a personal financial crisis (Part 4 of 4)


These are some lessons to draw from such stories:
  1. Live below your means.
  2. Save some money every month, even if it is a small sum.
  3. Take insurance to cover critical risks, such as major surgery or invalidity.
  4. Conduct your business or profession in a prudent manner.
  5. Choose slow but safe growth over wild and risky expansion.
  6. Diversify your investments amongst many different assets.
  7. Stay away from profligate individuals or businesses. Their tales seldom have a happy end.
The virtues of foresight and saving constitute the backbone of civilized society. Despite the negative stories presented by the media, millions of working men and women possess the habit of planning for the future. In fact, their prudent conduct and the ensuing peace of mind are what render them uniquely able to "enjoy the day."

[Text: http://johnvespasian.blogspot.com]

[Image by Eric Perrone under Creative Commons Attribution License. See the license terms under http://creativecommons.org/licenses/by/3.0/us]