Learning From Money Mistakes Can Help Chicago Debtors Find Financial Freedom
There's a reason the old saying goes "fool me once, shame on you, fool me twice, shame on me."
Mistakes aren't always so bad - if we learn from them. At least, that's the gist of a recent column on Money Talks News. Author Stacy Johnson, a CPA and stock broker, cops to making many of the most common money mistakes - including buying high and selling low. It's what most folks instinctively do when they're struggling to pay the bills during a recession. But as Johnson says, it's not the logical thing to do. By ignoring investor panic and focusing on logic, she finally learned how to turn lemons into lemonade - and hopes to help others do the same.
If investing in stocks is intimidating during the boom times, it's even more difficult during a bust. Not only are you watching your portfolio value decrease, but you've got supposed experts on the TV and radio warning us that the economy is going to hell in a handbasket. Before you know it, you're buying into the investor panic and selling your stocks to pay the bills. But unless you're already retired and have no other source of income, that's just the opposite of what you should be doing.
In order to make a profit, you need to do one thing - buy low and sell high. Do the reverse, and you'll take a loss. That means you need to be making investements, not dumping them, during the recession or any time when investors are fearful and prices are low.
The same goes for the real estate market. When home prices were at their most inflated, everyone wanted to buy and flip properties. But the price of homes wasn't going to go up forever. When the bubble burst, those folks got stuck with homes worth a third or less of what they paid. Since homes will always have inherent value - at worst, they still offer a roof over your head - they will always appreciate in the long run. Which means that now - after the bust - is the ideal time to buy.
I realize that many of us are barely able to pay the mortgage, let alone invest in the stock market or buy an investment property. But remember, this is about learning from our mistakes. If you can't afford to invest now, adjust your finances so that you can start saving. If you can't do it alone because of too much debt, bankruptcy can help. Our Chicago bankruptcy attorneys can identify a plan that meets your needs during a free personal debt analysis. That way, when things get better, you'll be prepared. And when things get bad again? You'll know how to make lemons out of lemonade.