Its 2010, People are worry about Jobs, increased commodities prices,rents,taxes and importantly interest rates. One person who took a small loan for his personal needs finds himself under a big burden with each day ending cause of fastly increasing interest rates and inflation. World leaders are discussing on the avaliblity of resources for the next century while people in AFRICA are dying of hunger in this century.Day by day, the value of money is goining down, an item that costed 1$ now costs 2$ and this chain is goining upwards leaving many people thinking where it will “end”.
Now, Have a look at other view, day by day as the money value goes down, the value of your asset increases proportionally. For example, if you bought a car for 2000$ in 2008, its value in 2010 is approx 3000$ (subject to same conditions).With the depressing economic conditions all around the world, the year of 2012 going to be “TOUGH” in terms of person’s financial position.So you need to plan to minimize these adverse effects.
These are the few things which you could consider them for planning your financial matters.
- Avoid keeping your earnings in money(notes), you can choose to either convert them in GOLD, Bonds or any good interest earning scheme(government schemes are preferrable) so that the your earnings dont lose purchasing power.
- The only way to completely minimize adverse effect of bad economic conditions is the BUSINESS. You either open a retail shop or any consultany business, your investment will be safe cause businessman transfer inflation cost on final consumers.
- If you cant afford to do business then buy gold,diamonds or any other asset which are traded on Normal Market( property,cars,etc…)
- Avoid taking loans from the bank, waiting for good times is better then to pay more then what you get.