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Personal finance news: something for you to use in 2011




It’s a new year, a new age, and a new dawn. A friend of mine wished me a prosperous New Year in a more jocular vein since she might have to borrow money from me. But I wish you a prosperous New Year minus that one caveat. And I do wish all of you break the cycle of greed and fear if you have been locked into it. It is so easy to look at X% possible returns and wish you got that instead of what you are getting. But it is important to instead maximize your earnings and look to use personal finance news invest according to your goals. Use personal finance news to your benefit and save money by following these three simple rules.

“I will use protection…against inflation”

Tax in itself is a bit obvious in the manner in which it eats into your finance. Inflation on the other hand is more covert in its ways. Consider it a hidden tax if you will. Inflation means the money that gets you a basket of commodities today will not be able to buy the same basket of commodities tomorrow. That’s why you need to protect against the value of your money being eroded. Look to invest in instruments offering greater returns than the rate of inflation, even if they are long term instruments. Equity mutual funds are a good example of this.

“Don’t invest in dead assets”

The latest mobile phone or gizmo or fashion is something so appealing, but don’t waste your money in rubbish like that. Look instead to plough your money into productive assets that will do the job for you instead. Yes, we all deserve some indulgent pleasures, but don’t just keep on consuming and giving back little by way of actual investment. “Work, save, invest” should be your new mantra, so put away some money each month towards an investment of your choice. Grow your assets in a manner that is wise without cutting back totally on discretionary spending.

“I will review my goals periodically”

Those that are prepared well will always be able to achieve their goals more regularly. And the media is nowadays flush with personal finance news and tips that you can use to consistently review your investments and finances. Make full use of it and don’t just go with the flow. You might be happy with the hand fate deals you, but you should always plan to get the best hand you can. After all, who wants risk in investing? And good planning will always cut out the risk level to some degree or the other. So plan ahead at all times.

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