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5 Things I’ve Learned About the Financial Crisis

5 Things I’ve Learned About the Financial Crisis

howwegothere

    When it comes to the current recession, just about everybody has a plan to fix it. Some people are in favor of using the government to support failing businesses. Others support letting the market move us past the current economic crisis. But if you want to sit down and have a serious discussion about some of the related details — how did we get here? what can we as individuals do to make it through this recession without major problems? — there are fewer answers available.

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    My search for such answers led me to take a look at How We Got Here: The Complete Idiot’s Guide to the Financial Crisis, Part One, by Tom Gorman. The Complete Idiot’s series isn’t usually my first stop for research. I’m more likely to hunt around online until I find a couple of articles that seem to come from an authoritative sources and start there. But The Complete Idiot’s Guide to the Financial Crisis has some features that make it an ideal resource for this topic. For one thing, this particular Complete Idiot’s Guide is available only as an e-book — and it will be updated every 8 to 10 weeks with new information about the financial crisis. Beyond that, the series is known to be well researched and written in easy-to-understand language.

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    5 Things I Learned from The Complete Idiot’s Guide to the Financial Crisis

    There is plenty of pat advice and opinions available on every blog and in every newspaper. In this particular ebook, however, I was pleasantly surprised to find real facts, as well as explanations of why particular approaches may help you. I’ve outlined just five things that I learned from just the first chapter Part 1 of The Complete Idiot’s Guide to the Financial Crisis — there are many more useful pieces of information in the ebook, and I’m confidant that the sections due out later will be equally helpful.

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    1. There are times to use debt: A common reaction to the current financial situation has been to declare all debt anathema. But the decision to use debt is not so simple. Instead, this book outlines how debt can still be useful. In particular, I found the comparison Gorman draws between using debt as way to come up with the cash to speculate to what caused banks to go under especially useful. It gets that important point across in a way that everyone can understand — and it’s a point that a lot of people have struggled with.
    2. Get creditors’ names: It may seem like an incredibly simple tip, but Gorman suggests getting the name of each person you spek with when talking to your creditors (as well as the correct spelling and pronunciation). Such an approach gives you a basis for building a relationship with a creditor — for giving them a reason to want to help you find a solution for any credit issues you may have. Most people treat creditors aggressively (and there is, admittedly, a reason for that), but this tip may let you handle creditors with a smoother approach.
    3. The basics of loan modification: If you search for information on modifying your mortgage (or another loan), you wind up with all sorts of conflicting information, making it incredibly difficult to navigate the process. Considering that The Complete Idiot’s Guide to the Financial Crisis goes through a far more rigorous fact-checking process than the average website, I’m happy to rely on the information in the book. It doesn’t hurt that Gorman clearly points to further resources — most of which are government agencies which can actually help you.
    4. You can profit from the recession: I don’t think any of us want to profit from the misfortune of others — but the fact is that there are several ways to make money off the housing crisis and other effects of the recession. There are still ways to invest in real estate, from purchasing foreclosures to investing in tax lien certificates, for instance. Gorman goes over these options and talks about how they can help you get ahead during a down economy.
    5. Interpret the economy on your own: Part of the difficulty most people have in deciding what to do next is that it seems impossible to tell what way the economy will jump next. Sure, numbers like the Fed Funds Rate are thrown around as indicators — but those of use without an economics degree may not know haw to interpret those numbers. Gorman has put together a guide to what economic indicators mean to us folks down on the ground. He even adds in some advice on what we can do to secure our individual economic positions for whichever way a particular indicator is moving.

    Getting The Complete Idiot’s Guide to the Financial Crisis

    The Complete Idiot’s Guide to the Financial Crisis is available in several e-book formats, including for the Amazon Kindle and a no frills PDF. Future sections will be available every eight to ten weeks. The first section is made up of five chapters. Later sections each include three chapters.

    Tom Gorman is the author of The Complete Idiot’s Guide to the Financial Crisis. He’s written and edited publications relating to economics, as well as banking and business information for over 20 years. Gorman is also the author of The Complete Idiot’s Guide to Economics, The Complete Idiot’s Guide to MBA Basics and The Complete Idiot’s Almanac of Business Letters and Memos.

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    Last Updated on November 5, 2019

    How to Cultivate Continuous Learning to Stay Competitive

    How to Cultivate Continuous Learning to Stay Competitive

    Assuming the public school system didn’t crush your soul, learning is a great activity. It expands your viewpoint. It gives you new knowledge you can use to improve your life. It is important for your personal growth. Even if you discount the worldly benefits, the act of learning can be a source of enjoyment.

    “I have never let my schooling interfere with my education.” — Mark Twain

    But in a busy world, it can often be hard to fit in time to learn anything that isn’t essential. The only things learned are those that need to be. Everything beyond that is considered frivolous. Even those who do appreciate the practice of lifelong learning, can find it difficult to make the effort.

    Here are some tips for installing the habit of continuous learning:

    1. Always Have a Book

    It doesn’t matter if it takes you a year or a week to read a book. Always strive to have a book that you are reading through, and take it with you so you can read it when you have time.

    Just by shaving off a few minutes in-between activities in my day I can read about a book per week. That’s at least fifty each year.

    2. Keep a “To-Learn” List

    We all have to-do lists. These are the tasks we need to accomplish. Try to also have a “to-learn” list. On it you can write ideas for new areas of study.

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    Maybe you would like to take up a new language, learn a skill or read the collective works of Shakespeare. Whatever motivates you, write it down.

    3. Get More Intellectual Friends

    Start spending more time with people who think. Not just people who are smart, but people who actually invest much of their time in learning new skills. Their habits will rub off on you.

    Even better, they will probably share some of their knowledge with you.

    4. Guided Thinking

    Albert Einstein once said,

    “Any man who reads too much and uses his own brain too little falls into lazy habits of thinking.”

    Simply studying the wisdom of others isn’t enough, you have to think through ideas yourself. Spend time journaling, meditating or contemplating over ideas you have learned.

    5. Put it Into Practice

    Skill based learning is useless if it isn’t applied. Reading a book on C++ isn’t the same thing as writing a program. Studying painting isn’t the same as picking up a brush.

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    If your knowledge can be applied, put it into practice.

    In this information age, we’re all exposed to a lot of information, it’s important to re-learn how to learn so as to put the knowledge into practice.

    6. Teach Others

    You learn what you teach. If you have an outlet of communicating ideas to others, you are more likely to solidify that learning.

    Start a blog, mentor someone or even discuss ideas with a friend.

    7. Clean Your Input

    Some forms of learning are easy to digest, but often lack substance.

    I make a point of regularly cleaning out my feed reader for blogs I subscribe to. Great blogs can be a powerful source of new ideas. But every few months, I realize I’m collecting posts from blogs that I am simply skimming.

    Every few months, purify your input to save time and focus on what counts.

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    8. Learn in Groups

    Lifelong learning doesn’t mean condemning yourself to a stack of dusty textbooks. Join organizations that teach skills.

    Workshops and group learning events can make educating yourself a fun, social experience.

    9. Unlearn Assumptions

    You can’t add water to a full cup. I always try to maintain a distance away from any idea. Too many convictions simply mean too few paths for new ideas.

    Actively seek out information that contradicts your worldview.

    Our minds can’t be trusted, but this is what we can do about it to be wiser.

    10. Find Jobs that Encourage Learning

    Pick a career that encourages continual learning. If you are in a job that doesn’t have much intellectual freedom, consider switching to one that does.

    Don’t spend forty hours of your week in a job that doesn’t challenge you.

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    11. Start a Project

    Set out to do something you don’t know how. Forced learning in this way can be fun and challenging.

    If you don’t know anything about computers, try building one. If you consider yourself a horrible artist, try a painting.

    12. Follow Your Intuition

    Lifelong learning is like wandering through the wilderness. You can’t be sure what to expect and there isn’t always an end goal in mind.

    Letting your intuition guide you can make self-education more enjoyable. Most of our lives have been broken down to completely logical decisions, that making choices on a whim has been stamped out.

    13. The Morning Fifteen

    Productive people always wake up early. Use the first fifteen minutes of your morning as a period for education.

    If you find yourself too groggy, you might want to wait a short time. Just don’t put it off later in the day where urgent activities will push it out of the way.

    14. Reap the Rewards

    Learn information you can use. Understanding the basics of programming allows me to handle projects that other people would require outside help. Meeting a situation that makes use of your educational efforts can be a source of pride.

    15. Make Learning a Priority

    Few external forces are going to persuade you to learn. The desire has to come from within. Once you decide you want to make lifelong learning a habit, it is up to you to make it a priority in your life.

    More About Continuous Learning

    Featured photo credit: Paul Schafer via unsplash.com

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