Are you planning your financial decisions based on where you think the economy is headed? Maybe even saving more money, reducing your risk exposure, or avoiding investment opportunities in the hopes of weathering financial crisis? Maybe you feel things are improving economically, and financial rebound is just over the horizon, and so are adjusting your financial decisions accordingly. If either of these are the case, your focus is misplaced and I will outline why.
Your personal financial decisions need to be founded upon solid principles that do not need adjustment based on the financial winds of the economy. Your focus should be on sound, financial common sense, that is unaffected by whether the economy is growing or contracting, principles that are as poignant in a stagnant economy as a booming one. If your personal fiancé focus is on anything beyond spending less than you earn, reducing your expenses and pursuing opportunities you are needlessly overreaching and overcomplicating the issue.
If your personal financial makeup needs adjusting like the sails of a ship to catch the fluctuations of economy there your foundation is shaky. Up or down, maintaining a focus on creating value and service for those you interact with, in good times or bad need not vary. A focus on reducing expenses while maintaining and increasing value to those you service in business, and for services you contract, need never fluctuate to the tune of the economy. A focus on maintaining your personal profitability at all times, by spending less than you earn each month remains unchanged in good times or bad.
It may sound oversimplified to some, but these are the financial secrets of success and wealth building. Keeping it simple, and yet effective, keeps your eyes open and available to see opportunities when they present themselves. The savvy personal finance manager is simply prepared to seize opportunities as they present themselves.
Following the moody swings of the overarching economy serves no purpose but to provide excuses for poor performance during tough times. Sure, times can be tough, but these are also times of incredible opportunity to those who are looking to capitalize and create abundance rather than spread blame and wait out the downswing of the economy. Preparedness is all in personal finance and in business, and keeping things simple will free your resources to seize on the opportunities for money creation that abound around us.