Investment Mistake #2: Money Ignorance

Posted by André Nosalsky :: July 5, 2007 @ 7:10 am

The previous generations didn’t need to know much about money. Their world was simpler. Back then if you worked hard and saved a portion of your money in the bank, you could retire at 65 and be satisfied. The money rules that our parents and grandparents followed are no longer valid. They are lacking and deficient.

There are new money rules today. The money world has been growing in complexity by leaps and bounds and continues to do so every year. The people that do not stay current on money issues are soon left behind to wonder where they lost their money or why their money is only growing at 0.25% in the bank.

Money is a critical part of life. Without it, many of life’s experiences cannot be enjoyed nor necessities afforded. It is crucial to allocate time to educate yourself on money issues by reading blogs like Lending Club’s, personal finance magazines (such as Money or SmartMoney) and books.

To be financially literate today requires different levels of money knowledge. Money 101 is education. Seeking out information on how savings and checking accounts work and being familiar with positive and negative consequences of using credit cards. Higher-level subjects include stock market trading and mutual funds.

One great opportunity that is emerging today is the area of p2p lending and borrowing, which offers great benefits to the borrower and the lender. If you let your money education lapse, you might not be taking advantage of this new opportunity.

Starting today, try to set aside an hour or more per week to your financial education. You’ll reap the benefits for the rest of your life.