The Flat Tire Syndrome
In an economy that is booming, most of our financial “mistakes” and indiscretions are usually easily forgiven.
We buy a house, and two years later the “value” has gone up, and we think we are financial geniuses. We invest some money in the stock market, and our accounts go up.
Have you noticed that sometimes assets become liabilities?
Tying our self esteem to the fluctuations of our asset choices is all too easy to do, but a big mistake in my opinion.
No one can predict with 100% confidence which way markets will move. Although we cannot control the direction of movements, we can control our risk.
We can also control our fearful thoughts, and therefore our actions.
In good times, it is easy to be charitable and help others with our time, money, and advice.
In hard times, it is more prudent to be aware of the flat tire syndrome.
We must fix our own flat tire first before we can move on down the road of life and help others.
Sometimes standing still is not much fun but a better alternative than going backwards. Focus on reducing debt, while increasing income and savings. Then help teach others how to do the same.
Reducing risk is a conservative strategy for staying in the game for the long haul, while waiting for markets to inevitably turn the corner.
Think outside the box and look for new strategies; in the shifting global marketplace, there are always opportunities for new ideas.
Personal Finance Blog
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