Friday, September 23, 2011

Financial Help

The stock markets are behaving in a rather scary manner at the moment. About ten years ago I studied a bit about investment. At that time the advice was that stock markets were always the best performing place to invest, in the long term and that you should buy shares. I bought some shares and then sold them as the markets got worse and worse and I needed the money for other things. I think I lost a few thousand pounds. I do wonder whether the information I read has now changed.

At the moment I have my money in what I feel to be the safest place. I am not so concerned about the fact that I am only getting 1% interest, I know that because it is in premium bonds, which are government bonds, I will not lose my money if particular banks go out of business, if the stock market goes down even more or anything like that.

Just after I sold my shares people started investing more in property and then there was a collapse there as well. It does make me wonder whether we are trusting our instincts too much and not thinking practically about the future. Perhaps more of us should discuss our investments with someone who is an expert or we need more education, perhaps when we are at school. Some people are having an even harder time, just struggling to meet ends meet at the moment. Although the stock market problems will not effect them directly, they could still very much have benefited from financial education.

It is sad that more and more of us are getting in to debt or needing an IVA agreement to help us out of trouble. Although these can be useful, it is a shame that we need them in the first place and if only we understood more about how to look after our money or were educated at a young age, so we formed good spending habits then we might be looking into possible investments rather than debt solutions.

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