The sky is falling!

Yes, of course, its the credit crunch. And we are all worried. Nothing seems safe, least of all money in the bank. In these insecure times, I believe it is a good idea to go back to the basics and reframe our personal financial strategies.

This blog is aimed at the novice and the expert who is not afraid of 101. There are times when a science gets redefined, just because the assumptions made earlier do not exist anymore. Maybe this is one of those times.

This blog seeks to test the basics. Some are undeniable truths. Like savings are good – right?  Wrong. There maybe times when too much saving makes things worse for us all. Ok, here’s another one: If I borrow money, I will definitely be in trouble. Hmmm… Not always true, is it? How about, “I have a diversified portfolio, I’ll be fine in this turmoil”. Not if Mr. Systemic Risk kicks in.

I plan to start with links to various financial literacy sites. There are strong financial education programmes for teenagers and adults in many countries in the world. In some places, it is part of the curriculum at school. Others have to to sign up for business studies. Personal Finance Coaching is offered in the workplace in some corporations. But for most of us, it is the deep end … swim or sink, or just paddle and survive. Pick up tips as we go along, maybe an Olympian will tell us something as he swims past us.

The primary focus of this blog is Personal Finance Education. I DO NOT GIVE ADVICE. I will discuss the basic principles of personal finance, point you towards some fantastic tools available in webspace. I will also watch out for some interesting government policies and talk about how they influence your personal finance decisions. For Educators out there, there will be links to lessons and resources. And for Educationists, there will (hopefully) be an international comparision of personal finance education policies.

In any financial meltdown, we suffer. But it is times like these when a system changes and evolves. We live, make mistakes, learn and re-form. It is time to go back to the drawing board. For all you know, we might even use money rationally!!


(c) meetasengupta


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s