The Inevitable Rainy Day And Your Finances
It is so hard top think of the future, and this is doubly so when you are constantly reminded of the obligations brought upon by the spending in your past. Why will you think of putting more money into savings when you are still worrying about your student loan? How can you think about the far-off retirement years if you have to worry about mortgages today?
In this time and year, even the current events present problems that will make you think twice before investing for the future. What if the total amount you have from ten years of frugality devalues by more than 50% in the stocks in less than a month? With the recession in full swing, this is unfortunately a very likely scenario.
It is thus very tempting to live for the moment, rather than think ahead and invest. It’s easier to think of this month’s bills, or even this year’s financial situation, instead of worry about what may happen in the years or even decades to come. I don’t blame them for thinking this way, but I also think that this is not the most responsible way of thinking.
You see, one of the fundamental truths of the human condition is the fact that everyone gets old sometime. And when your body has aged and has become weaker than it used to be, you just can’t work as efficiently as you did before. By then, the best course of action would be to rely on your investments.
Even that will be denied from you, however, if all your money has been stored in savings accounts with almost non-existent interest rates. Investing, then, can be summed up as the measure that you take for the inevitable rainy day. It may seem far away right now, but that doesn’t mean that it does not matter. So save up, invest, and be prepared. Who knows? If you do it really well, you may capable of retiring earlier than expected.
Tags: bonds, business, Credit, economy, Finance, growth funds, internet trading, investments, Mutual funds, online trading, stock investments, stock market, stocks
This entry was posted on Friday, May 15th, 2009 at 8:01 am and is filed under Mutual funds. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.