Is it Time for a Financial Change?

It is no secret that we are in a very tumultuous time when it comes to the world economy. And things seem to get more confusing by the minute with all the information out there from various sources with a great variety of opinions.

At best these are uncertain times. While some have a positive outlook on the future, others are gripped by fear and lack of financial security. We have gone from years of prosperity and economic growth, to millions losing their jobs and entire industries being crippled under the strain.

How about you? Are you worried about your future?

There are two main types of reactions people have when in the face of financial worry and uncertainty. Statistics have shown, on one hand, that the sales of luxury goods momentarily increases. Psychologists believe this is because people like to have sense of control and buying expensive things helps calm their fears. The darker side of this is many begin to live on credit and assume bad debt to maintain their false sense of security.

On the other hand, those that can't afford luxury items to begin with tend to freeze in their tracks. With harsh realities such as high debt, bankruptcy, poor savings, career instability and decimated investment portfolios setting in, many of us find ourselves in extremely stressful situations. This can be terribly detrimental to our health and family relationships.

So where are the answers?

Some believe the financial industry cannot be trusted after recent scandals and economic aid initiatives. Others believe the financial industry and big corporations are the ones to blame. And many just don't know where to turn or what to do.

These are all signs that it is time for a financial change.

How?

There is a common factor that separates those that survive economic downturns and those that get crushed or barely make it. The difference between longterm success and constant instability is the proper financial foundation.

The wealthiest individuals who just seem to be able to roll with the economic punches have sought the necessary information and advice to fortify their financial foundations. Much like the actual foundation of an office building, the true wealthy understand principles and make their first decisions on the ability to withstand any financial forces. Once that foundation has been fortified, they have a solid base from which to take diversified risks based upon their investment preferences and risk tolerance.

The strongest financial foundation starts with an understanding of how money actually works. Most people know how to work for their money and pay the mortgage, however they don't know how to get money working for them. The wealthy understand that it's not just how much money you have, but how smart your money is and how much it works for you.

How is your financial foundation?

Is it time to make the necessary financial change to ensure your economic foundation does not crumble in these troubled times? We encourage you to do so.

About: This article was made possible in support of social enterprise by Kim Mark, financial educator for World Financial Group.
*