TO INVEST OR NOT TO INVEST

Someone once said ignorance is bliss. This is true to some point. It may be bliss to not know that an earthquake is coming as we do not have to worry or take action. But while your head is in the sand, your bum is in the air and the earthquake is still coming. If you looked up and faced it, disaster would be avoided but ignorance and denial always ensure that we get the full force and the extreme consequences as it will strike at a time that we are totally unprepared for it.

Ignorance is bliss- but only for so long.

This short post is about financial education or the lack of it. It is extremely dangerous particularly now with this global economic crisis. I have been reading about it and financial gurus and economic experts the world over are saying that the worst is yet to come. If you read my earlier posts on unemployment in the US and the global recession explained you would be knowing by now that this paints a bleak picture for the future. And the less developed countries are dead center on the path of the storm.

So what do we do? DEFINITELY not hide our heads in the sand and hope that the visionaries like Bernard Madoff will come to save us? Aint no way. We all have brains and we can reason for ourselves.

It is high time people took control of their lives. Take classes in accounting, seminars in investments, take time to read a book about finances instead of wasting our life in front of that mind numbing television screen. 

In a financial crisis it is best to invest for cash flow and not for capital gains.

Cash flow is where one invests in things that pay out cash regularly like apartment houses, stocks that offer dividends every quarter etc while investing for capital gains is where you buy an investment and hope that its value will appreciate. This is guesswork investment and is not encouraged

                                                     REMEMBER CASHFLOW IS KING