It always amazed me growing up how much my dad knew about money and personal finances. Even to this day when he is nearing his golden years, he knows a great deal more than nearly every person I've met. He is still planning and evaluating his portfolio, always tweaking and always altering. He continues to make regular deposits to his retirement plan and never misses or is late with bill payments. He understands how to manage money.
Most of me thinks that my knowledge in proper money management stems from his passion for it. When I was a teenager I would constantly ask questions about his past. I asked him how he knew the right time to move certain funds from medium risk to high risk and vise versa. Prior to the stock crash in the late 1980's he completely avoided a loss by altering his portfolio a six months before everything went downhill. He did the same thing in early 2000 and again before this most recent crash. When tens of thousands of people were losing most of their savings and forced to sell their homes he managed to protect all of his portfolio and eliminate his mortgage in 15 years.
Is it luck that my father has always avoided losing money during these difficult times? My Father isn't an investment advisor or or work at a bank nor does he work as a stock broker. The amazing thing is his profession for close to 40 years was as a manager at a retail store. Why has he always understood when to change everything and at the right time? He has either been seeing the only fortune teller that isn't lying or he understands finances more than the average Joe. I think it's the later.
My father's financial interests started when he worked as a teller at a bank when he graduated high school. The job required him to read enough about how to manage money so he could easily answer any questions his customers might have. He was only there for around five years before changing careers. What he learned in that limited period of time he carried with him for the rest of his life. He made some mistakes along the way but due to his knowledge, he understood how to correct those mistakes and minimize the damages.
Since the time that my dad changed careers over 40 years ago, I can't recall a time where he has read anything to do with finances. Having said that I'm certain he read so much more in that half decade than the majority of people read in two decades. The beauty about personal finance basics is that they really don't change. The simple formula's involved with interest or principle or the dividends have remained the same for a long time and will stay the same. The more reading you do the more you will understand how to manage money.
Knowledge is very important. By reading as much as possible or even just a little you will learn how to manage money. If you spend a couple hours every week informing yourself with sources like this blog and by reading some recommended books you will understand the trends involved with investing and will less likely to have devastating losses. There are very few things more important than making sure your portfolio is always in order. A little knowledge is a dangerous thing. The more you have the more you will save.
Here are a few books I would recommend you read.
"The Wealthy Barber" - Written By: David Chilton
"Automatic Wealth" - Written By: Michael Masterson
"Think and Grow Rich" - Written By: Napoleon Hill
"The Automatic Millionaire" - Written By: David Bach
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