Wednesday, October 29, 2014

Finance 101: Your Entire Life is a Delete Button Away...

Literally!

Its a known fact, the World runs on debt. Debt financing, speculation, leverage, margin, yada yada yada. Get to know these words because they control your life. You don't believe me? Ok, say you buy a house, take out a bank loan, education loan, what determines the interest rate you receive? Ah I forgot, you're the type who deals in cash only. Fine, so where exactly is your retirement/pension fund held? Do you know what happens to it? or you think its sitting in a bank somewhere collecting dust?

If your money is in a savings account, over the long run, you'll more than likely loose the battle with inflation and suddenly your $10k is worth as much as $5k. Say hello to Mr Depreciation. So might as well have it in the Market. Market here meaning, trading stocks, mutual funds, fixed income, derivatives etc. So lets say you have it in the Market, you run the risk of loosing it ALL...Now you realize how your life is tied to the Worlds Financial system? What happens in London, Hong Kong or even Mongolia will affect you. Education is power especially when it comes to your finances. Make no mistake, ONLY money makes money. Ok, lets start by watching the following video below. It will make you think and ask more questions. This is exactly what created the economic burst in 2008/2009. All what I just said might not make much sense to begin with, so overtime I will break it down. Visit the blog often though :-). Finance Education 101 coming your way...


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