Personal Finance Stability

Posted by trust

April 23, 2008

This article may be freely distributed so long as the copyright, author’s information and an active link (where possible) are included. I have a lot of debt, but most of it is real estate which is producing some income. What happens to your money and even your children could be entirely up to some state or court appointed official.

Stability

The next level of personal finance is stability.Stability to me means that first of all I live within my means. You may start with just $100 in a bank CD, but as you learn more and become more sophisticated, you can invest in more and more opportunities.You will learn about how risk and reward are related, that as the risk increases so does the size of the potential reward.

You may now be a bigger target, so purchase a suit of armor. The management aspect comes into play where you may start to concern yourself with taxation, ownership, distribution of income and possibly endowments to charities or other non-profit institutions. You may hire a person or company to manage your wealth, or you may choose to do it yourself. I don’t buy things expecting that next month I will have more money or I will get a big raise or promotion.