Financial Freedom Part 2

Key steps in surviving a recession and coming out on top are diversifying your skills. I know we have all heard this before; except perhaps it pertained to your stock portfolio by diversifying your investments. The same logic pertains. If you are in college now this is the perfect time to do yourself the best good. First start by taking classes that pertain to the real world! Taking random classes that are not closely linked with your major/minor or have no real world potential are in essence just money wasters. Think of college as an investment; who wouldn’t want to maximize their profit? Think of yourself as a normal good that can be bought or sold; if you had a niche that none of the competition had don’t you think you would have a greater advantage? So far everything I mentioned in my blog has been pretty straightforward I want to touch base with the basics before I start going in depth about any specific topics. Suppose college graduation was 20 years ago, what do you do now? Well the same skills can be met, but often they are free. Companies will train their employees more often than not in certain other areas then the employee has been in currently. As anyone who finishes management 101 will tell you a diverse employee and one who is not doing the same task repeatedly will give you a higher performance rate, and often the employee will be happier with their job. So your company doesn’t offer these training courses? Not to worry with your work experience many online Colleges and Universities would love for you to share your knowledge with other students while working towards an advanced degree. During recessions colleges mainly public and community see a rise in attendance. Many people who are not finding their job fulfilling or need a larger pay check will find themselves back in the classroom. This is a great time to get an advanced degree. As the economy picks up you will have a much larger chance at a good job and higher pay. Now let’s imagine you have already done these basic steps to maximize your worth, now what do you do? Have you started a Roth IRA? Do you know how compound interest works? Well to sum it up compound interest is one of the greatest things out there. A Roth IRA is almost a no risk investment that has a maximum investment of $5,000 a year starting at the age of 18. If you max your account out you will have nearly 2 million or more by the time you’re ready to retire. I will write more in the next post about how to maximize your worth, and how to be appealing to employers. Yes I will start to use more economic terms and go in depth soon but I still need to touch the basics first.

Gaining financial freedom in a struggling market

As many Americans are aware we are currently involved in a recession which has been the worse since the 1970's. Many of us are losing money in the stock market, realty and other investments. However don't panic! The monetary policies the United States government uses are set up in order to protect us from such shortfalls in the economy. Something I have noticed recently is panicking individuals who have lost a substantial amount of money in their 401k accounts; so subsequently they are selling or trading their shares or other investments. First off unless your primary stock is in a failing company which is known to be going under, do not sell your investments. The market always has peeks and troth's; however a recession is just a longer troth than in a normal market period. These companies will return your earnings as soon as the market picks up. This may take a year or two but be patient! Unless you are retiring right now and have no emergency funds to live off of, hold on to your investments! I can’t stress enough how when people panic they lose money. I have talked to stock brokers in my family (I am currently training to become one; I will have a MS in economics soon as well) and one laughed at me when I told them about how everyone is trying to get rid of their investments so they don’t lose more. The investor who’s name I will not mention works in Boston; his firm is hiring a lot of the “big shots” out of NYC and making a positive return on their portfolios. Not all stock brokers are losing money; many are still flourishing. Don’t be fooled by the media and rising prices; you can beat the recession and still come out on top I will tell you how.

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