Money 101: How to protect your future financial security

Editor: Draco Copper | Tactical Investor

Money 101

We discovered that our readers loved the concept of us posting excerpts to other interesting articles. In keeping with that theme, we think you will find the following article to be of interest. We cover a wide array of topics as in today’s world of finance everything is interrelated. Crowd Psychology states that if you focus on only one topic it’s like looking at the tree only and forgetting that it’s part of the forest.

No one can claim to have mastered the markets fully and anyone that does lay claim to such a title should be avoided like the plague. For example, after QE all the rules changed and many time-tested indicators simply ceased to work because the operating environment had changed forever. The markets were suddenly hit with a force that they had never been hit with before. A fed that was determined to destroy any shred of free market forces left in the market. This surprised everyone, and it even caught us off guard initially. Many so-called experts refuse to accept that they made a mistake or could be wrong. Bull Markets Vs Bear Markets & Arrogance

Money 101: The Basics

If an unexpected expense came up, how would you pay for it? If the answer is not “with cash,” then you need to listen up!

Saving for an emergency isn’t really the fun type of saving — like, say, saving up for a big purchase or vacation — which is a big reason why people just aren’t doing it.

Another big reason people ignore it is because they simply don’t realize how damaging an unexpected expense can be until it’s too late.

Wake-up call: $#*! happens — and when you think about it, not preparing for it is just dumb.

According to a recent GoBankingRates survey, more than half of Americans (57%) have less than $1,000 in savings.
According to a survey by Bankrate, only 41% of Americans have savings they can rely on in an emergency.

And for many, it’s not that they aren’t making enough money — 10% of people making at least $100,000 a year said they have no money that they think of as savings.

A lot of people who participated in the survey even said they knew they should have emergency savings that’s easily accessible — but they don’t.

So how would they pay for an emergency?
-49% said they would use a credit card
-36% would borrow money from another person

The last thing you want to do is put an unexpected bill on a credit card because that can easily spiral out of control of cause you money problems for years. Full Story

Money 101

Money 101: The Basics

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