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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 January 2, 2019

    7 Steps For Making a New Year’s Resolution and Keeping It

    7 Steps For Making a New Year’s Resolution and Keeping It

    Are you keen to reinvent yourself this year? Or at least use the new year as a long overdue excuse to get rid of bad habits or pick up new ones?

    Yes, it’s that time of year again. The time of year when we feel as if we have to turn over a new leaf. The time when we misguidedly imagine that the arrival of a new year will magically provide the catalyst, motivation and persistence we need to reinvent ourselves.

    Traditionally, New Year’s Day is styled as the ideal time to kick start a new phase in your life and the time when you must make your all important new year’s resolution. Unfortunately, the beginning of the year is also one of the worst times to make a major change in your habits because it’s often a relatively stressful time, right in the middle of the party and vacation season.

    Don’t set yourself up for failure this year by vowing to make huge changes that will be hard to keep. Instead follow these seven steps for successfully making a new year’s resolution you can stick to for good.

    1. Just pick one thing

    If you want to change your life or your lifestyle don’t try to change the whole thing at once. It won’t work. Instead pick one area of your life to change to begin with.

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    Make it something concrete so you know exactly what change you’re planning to make. If you’re successful with the first change you can go ahead and make another change after a month or so. By making small changes one after the other, you still have the chance to be a whole new you at the end of the year and it’s a much more realistic way of doing it.

    Don’t pick a New Year’s resolution that’s bound to fail either, like running a marathon if you’re 40lbs overweight and get out of breath walking upstairs. If that’s the case resolve to walk every day. When you’ve got that habit down pat you can graduate to running in short bursts, constant running by March or April and a marathon at the end of the year. What’s the one habit you most want to change?

    2. Plan ahead

    To ensure success you need to research the change you’re making and plan ahead so you have the resources available when you need them. Here are a few things you should do to prepare and get all the systems in place ready to make your change.

    Read up on it – Go to the library and get books on the subject. Whether it’s quitting smoking, taking up running or yoga or becoming vegan there are books to help you prepare for it. Or use the Internet. If you do enough research you should even be looking forward to making the change.

    Plan for success – Get everything ready so things will run smoothly. If you’re taking up running make sure you have the trainers, clothes, hat, glasses, ipod loaded with energetic sounds at the ready. Then there can be no excuses.

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    3. Anticipate problems

    There will be problems so make a list of what they’ll be. If you think about it, you’ll be able to anticipate problems at certain times of the day, with specific people or in special situations. Once you’ve identified the times that will probably be hard work out ways to cope with them when they inevitably crop up.

    4. Pick a start date

    You don’t have to make these changes on New Year’s Day. That’s the conventional wisdom, but if you truly want to make changes then pick a day when you know you’ll be well-rested, enthusiastic and surrounded by positive people. I’ll be waiting until my kids go back to school in February.

    Sometimes picking a date doesn’t work. It’s better to wait until your whole mind and body are fully ready to take on the challenge. You’ll know when it is when the time comes.

    5. Go for it

    On the big day go for it 100%. Make a commitment and write it down on a card. You just need one short phrase you can carry in your wallet. Or keep it in your car, by your bed and on your bathroom mirror too for an extra dose of positive reinforcement.

    Your commitment card will say something like:

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    • I enjoy a clean, smoke-free life.
    • I stay calm and in control even under times of stress.
    • I’m committed to learning how to run my own business.
    • I meditate daily.

    6. Accept failure

    If you do fail and sneak a cigarette, miss a walk or shout at the kids one morning don’t hate yourself for it. Make a note of the triggers that caused this set back and vow to learn a lesson from them.

    If you know that alcohol makes you crave cigarettes and oversleep the next day cut back on it. If you know the morning rush before school makes you shout then get up earlier or prepare things the night before to make it easier on you.

    Perseverance is the key to success. Try again, keep trying and you will succeed.

    7. Plan rewards

    Small rewards are great encouragement to keep you going during the hardest first days. After that you can probably reward yourself once a week with a magazine, a long-distance call to a supportive friend, a siesta, a trip to the movies or whatever makes you tick.

    Later you can change the rewards to monthly and then at the end of the year you can pick an anniversary reward. Something that you’ll look forward to. You deserve it and you’ll have earned it.

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    Whatever your plans and goals are for this year, I’d do wish you luck with them but remember, it’s your life and you make your own luck.

    Decide what you want to do this year, plan how to get it and go for it. I’ll definitely be cheering you on.

    Are you planning to make a New Year’s resolution? What is it and is it something you’ve tried to do before or something new?

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