Atlanta Residents Can Lower Debt By Learning From Money Mistakes
Nobody likes to make mistakes. But making a blunder now and then - or taking note of someone else's - can actually help improve your finances.
At Money Talk News, author Stacy Johnson recently talked about the lessons she learned from her many money mistakes - including one particularly relevant to the recession. Like many folks, she once panicked and sold her investments during an economic downturn - and lost money in the process. When this latest recession rolled around, however, Johnson did the opposite of what most of us are doing - and it paid off.
The point of investing is simple - to grow your money. But people seem to forget this basic concept in times of economic desperation. We see our portfolios drop, we let ourselves listen to the doom-and-gloom economic experts, and before we know it, we're bailing on our investments. Then, when things get a little better and we're feeling more comfortable, we get back in the game. Maybe it makes us feel more secure, but buying low and selling high is financially backwards.
The same can be said for real estate. Most folks want to invest in property when prices are going up because they get greedy. Problem is, when the bubble bursts, home value has nowhere to go but down. On the other hand, if we invest when everyone else is panicking and getting out (which drives prices down), and then sell - or even just hold - during times of economic prosperity (when prices are highest), we can actually make a profit. Sometimes it really is best to go against the flow.
Of course, you might be wondering how you're going to afford to invest in those properties or stocks when you can barely muster enough to pay the mortgage every month. The point isn't that you need to make investments you can't afford - it's that, instead of looking at the economy as a time to hunker down, look at it as a time to get moving. If you can invest some money, do it. Can't afford to invest? Use this time to get your spending in line with you income, whether it means tightening up your budget or lowering debt. If you can't do it alone, find help. When you sign up for a free personal debt analysis, our Atlanta bankruptcy attorneys can identify a plan to reduce your debt - so you can learn from your mistakes, and leave them behind.