Bigg success is life on your own terms. There are five elements of bigg success – money, time, growth, work and play. Today we’ll focus on money.
We hear a lot about climate change and its implications. It occurred to us that financial markets change much like the weather.
So here are 4 tips for weathering financial climate change:
Asset prices heat up and cool down
Stock prices skyrocket. Then they fall.
Real estate prices rise. Then the bubble bursts.
Nothing goes up linearly. Yet most of our projections do. Plan for all weather – diversify.
You won’t create much wealth without taking some risk. But you can manage that risk by investing across asset classes (e.g. stocks, bonds) and within asset classes (large cap, mid-cap and small cap stocks).
Price movements can be extreme
Experts are predicting more volatility in the years ahead. We don’t mind it when prices are rising quickly. But we have to be prepared for the other side as well.
Very, very few people successfully time the market period after period. So it’s important to move your money to less risky assets as you near the date when you’ll need it. If you’ll need it in less than ten years, you may want to look at shifting money to something less risky.
As we always say, talk with your financial planner about your specific situation to determine your best move.
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Watch your emissions
By emissions, we mean money out the door. In our businesses and in our personal lives, it’s much easier to spend less than to make more.
When you’re getting ready to spend it, think about how many hours you have to work to earn the money in the first place. If you really want an accurate picture, do this on an after-tax basis.
Make the green house effect work for you
When you’re buying a house, ask some important questions. Do you really need that extra room? How often will you use it?
You may decide to buy a smaller house and invest the “green” to further diversify your portfolio and increase your returns.
Also, invest your “green” in energy efficiency. Improving the efficiency of your home pays you back month after month by lowering your utility bills. You can’t say that about most outlays.
Take these four tips and go green to build a sustainable future for yourself. That’s bigg success!
How are you weathering financial climate change?
Share that with us by leaving a comment, e-mailing us at firstname.lastname@example.org or leaving a voice mail at 888.455.BIGG (2444).
Thank you much for visiting us today. Next time, we’ll discuss a positively fantastic way to improve your bottom line. Please join us. Until then, here’s to your bigg success!
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(Image in today's post from tome123)