Lessons from ‘08 Who Should Control Your Finances?

Lessons from ‘08 Who Should Control Your Finances?

Link to YouTube Video >>> https://youtu.be/jadNJDaPVlM

Introduction

To answer that question in one word, YOU! In a world where financial decisions ripple through every aspect of our lives, personally understanding one’s finances cannot be overstated. Beyond the numbers and spreadsheets lies empowerment, security, and informed decision-making. This article delves into the profound impact of gaining a comprehensive understanding of personal finances and why it’s a crucial skill for navigating today’s complex financial landscape.

Financial Literacy A Bridge to Empowerment

Financial literacy is the foundation for individuals to build a secure and prosperous future. Being financially literate means having the knowledge and skills to manage money, budget, invest, plan for retirement, and make informed financial decisions. Such literacy empowers individuals to take control of their financial destinies, reducing the vulnerability of ignorance.

Informed Decision-Making

A deep understanding of personal finances allows individuals to make informed decisions that align with their goals and values. From budgeting for daily expenses to making significant investment choices, knowledge is the compass that guides wise decisions. The ability to evaluate options, weigh pros and cons, and foresee potential outcomes can make a substantial difference in achieving financial stability and success.

Financial Security and Resilience

Personal financial understanding is a shield against unforeseen circumstances. An emergency fund, insurance coverage, and a solid retirement plan are all products of financial literacy. Preparing for life’s uncertainties builds a safety net that provides peace of mind and safeguards against unexpected financial setbacks.

The Power of Compounding Growing Wealth with Knowledge

Understanding the concept of compounding is a game-changer in personal finance. Investments, savings, and debt all compound over time, leading to exponential growth or depletion. With a clear grasp of compounding, individuals can strategically allocate resources, save for long-term goals, and harness the potential of time to grow wealth. Conversely, not comprehending compounding can lead to missed opportunities and financial setbacks.

Smart Debt Management

Debt is a double-edged sword. When managed wisely, it can be a tool for achieving goals such as education or homeownership. However, when misunderstood, it can lead to financial stress and a cycle of increasing interest payments. Personal financial understanding empowers individuals to distinguish between good and bad debt and make choices that align with their financial health.

Investment Savvy

The investing world can be daunting, but a solid grasp of financial principles makes it accessible. In stocks, bonds, real estate, or retirement accounts, informed investment decisions can yield substantial returns. A well-educated investor is less likely to fall prey to scams or make impulsive decisions based on market fluctuations.

Creating a Legacy Securing a Bright Future

Personal financial understanding extends beyond individual well-being and paves the way for creating a lasting legacy. Estate planning, wealth transfer, and philanthropy are all shaped by financial literacy. By thoughtfully managing wealth, individuals can ensure their hard-earned assets benefit their loved ones and causes that matter to them.

Lessons from ‘08

The 2008 financial collapse, also known as the Global Financial Crisis (GFC), was a watershed moment in global finance that led to significant economic turmoil and recession. Individuals can draw several valuable lessons from this crisis to better navigate their finances and make informed decisions in the future.

Importance of Diversification

The 2008 crisis highlighted the risk of having an overly concentrated investment portfolio. Many suffered significant losses because their investments were heavily tied to a single asset class or industry. Diversification across different types of assets (stocks, bonds, real estate, etc.) and sectors can help mitigate risk and protect against large losses in a specific area.

Beware of Excessive Debt

The crisis underscored the dangers of excessive borrowing and leveraging. Many homeowners and investors faced foreclosure and bankruptcy because they had bought mortgages they couldn’t afford or invested with borrowed money. Maintaining a manageable level of debt and understanding the terms of loans are crucial to avoid being vulnerable to economic downturns.

Understand Financial Products

The complexity of certain financial products, such as mortgage-backed securities and derivatives, contributed to the crisis. It’s essential for individuals to thoroughly understand any financial products they invest in and the associated risks. Being misled by intricate financial instruments can lead to unexpected losses.

Emergency Funds and Liquidity

The crisis highlighted the importance of having an emergency fund. Many individuals lost jobs or faced financial hardships during the recession. Having a savings buffer can help cover essential expenses during tough times and prevent the need to sell investments at unfavorable prices.

Risk Assessment and Due Diligence

Investors should conduct thorough research and due diligence before making investment decisions. Many people fell victim to risky investments they didn’t fully understand. Understanding the risks, potential returns, and overall market conditions is crucial to making informed choices.

Long-Term Perspective

The crisis demonstrated the importance of maintaining a long-term perspective in investing. The markets will experience ups and downs, but historically, they have recovered. Panic selling during downturns can lock in losses and prevent individuals from benefiting from eventual market rebounds.

Regulation and Oversight

Governments and regulatory bodies play a role in maintaining the stability of financial systems. The 2008 crisis exposed weaknesses in regulatory oversight and financial institutions. Individuals should advocate for strong and effective financial regulations to prevent a repeat of such a crisis.

Continual Learning

The 2008 crisis showcased the interconnectedness of global financial systems and the complexity of modern economies. Individuals should commit to ongoing financial education to understand economic trends, financial products, and best practices for managing personal finances.

Transparency and Honesty

The crisis highlighted the importance of transparency and honesty in financial dealings. Dishonest practices and lack of transparency in the mortgage and financial industries contributed to the crisis. Individuals should be vigilant and demand transparency from financial institutions and service providers.

Planning for Retirement

The crisis affected retirement savings for many individuals. Learning from this, individuals should contribute regularly to retirement accounts, stay informed about their investment choices, and adjust their plans as needed to ensure a secure retirement.

 

The 2008 financial collapse is a stark reminder that economic and financial downturns can have far-reaching consequences. By learning from the mistakes and missteps of that period, individuals can take proactive steps to safeguard their financial well-being and make sound decisions that contribute to long-term financial security.

 

Conclusion

In an increasingly complex and interconnected world, personally understanding one’s finances is a vital skill that transcends economic status. It’s a journey toward empowerment, security, and the ability to confidently navigate life’s financial challenges. By investing in financial education, individuals equip themselves with the tools to make informed decisions, harness the power of compounding, and build a legacy beyond their lifetime. As we recognize the profound impact of financial literacy, let us embark on a path of learning that shapes a brighter and more prosperous future for ourselves and future generations.

So you have decided to buy silver online.

Great choice. Let’s talk about silver.

Silver is exceptionally popular today. Part of the reason for this is the belief that it’s potential for upside value increase is even greater than the same belief in gold. In fact, there is a very good book on this subject entitled: “ Why Silver Will Outperform Gold by 400% in the coming years”. It’s a very scholarly book and quite convincing. Give it a read if you have the time.

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Mind you, one need not look as far as that book to find evidence of the common belief that silver has great potential for growth in the near future. All one has to do is go to the web or even Youtube and there are advocates of this thought at every turn.

At Durham Precious Metals we believe that silver is an easy choice because it gives a sense of substance due to its lower cost per ounce than gold.

Silver Bullion

Probably 90% of our business is silver sales so this sentiment is fairly unanimous throughout the public. 10oz bars seem to be the most popular. Generic rounds and Silver Maples seem to be the next most popular and 1oz bars a close 4th place. It is our opinion that 10 oz bars and 1oz rounds are your best value as their premium over spot is very reasonable. However, there is no wrong choice when it comes to our silver product line because we try to concentrate on product lines with low premiums anyway.

Silver has always been a form of money. There are those that will argue that silver has been demonetized but we beg to differ. All one has to do is refer to the (CCRA) definition for 999 bullion. It is deemed by Rev Can to be a “ financial instrument”. Enough said on that subject!

Best Place to Buy Silver

From a utility standpoint, silver has somewhere in the neighbourhood of 60,000 industrial uses including painting the backs of mirrors to create the reflective surface to collecting radiation in solar panels. If nothing else, the lack of an above ground supply of silver ( which is relatively new historically) will keep the demand for this metal strong since for most applications there is no viable substitute.

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Can you imagine the mayhem that would ensue if all the major electronic manufacturers came grinding to a halt due to a silver shortage? It would be catastrophic to the economy. We believe that this fact alone will be a major driver of support for the silver price when the powers that be run out of tricks in their attempt to suppress the price of silver. And yes, we agree that this practice goes on in plain sight and that the regulators turn a blind eye. Let’s hope justice prevails and that the historic silver/gold ratio returns to its traditional level.

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In the meantime…keep stacking!

So you have decided to buy gold online.

Great choice! Let’s talk about gold then, shall we?

Gold is, and always has been, a favorite of collectors of precious metals. Its 6000-year history of sustaining wealth is unprecedented. The yellow metal has launched wars, bought fortunes and has been a form of money throughout that history. It is one of the densest metals and also one of the densest elements on the periodic table. It weighs in at a density of 19.32 grams per cubic centimeter. Water, by contrast, has a density of 1 gram per cubic centimeter.

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Platinum is the densest of the common 4 precious metals at 21.45 grams per cubic centimeter.

People will often ask when gold is the right choice to buy as opposed to other metals such as silver. This is a very common question. There is no easy answer that anyone can give to someone so we always boil it down to practical applications.

Gold Bullion

Consider how much of an investment you are planning to make over-all throughout the course of your precious metals buying.  If you are planning on purchasing, for example, $10,000 worth of metals and then cap your spending then it really doesn’t matter which metals you buy. The volume of the purchase will be relatively small in terms of weight and size. Our main concern and Durham Precious Metals comes down to simple things like , cost of storage, cost of shipping and bulk. We are always trying to help our customers have the best experience as metals collectors.

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For example, if you were to tell us that you are considering selling a piece of real estate and use the proceeds to buy metals then gold would be our suggestion. The reason comes down to volume and weight at this point. Several hundred thousand dollars of silver would be an incredible amount of bulk at this spend level. Hundreds of pounds of silver would be hard to store practically and would be more expensive to store as well. If you are the DIY type it would also be harder to hide than a comparable dollar amount of gold.

Keep in mind that at the time of this writing gold is about 75 times more expensive in dollar terms as the same weight of silver. That equates to 75 times less bulk per dollar spend. This will make it much easier to hide or store if you are looking at large purchase amounts.

Price of Gold?

If you are only considering a small total purchase amount either of the metals is perfectly fine. The one consideration we always emphasize for small purchase amounts really comes down to personal perception. Here is what we mean. Silver is 75 times more bulky per dollar spend. Obviously, it is going to feel a lot more substantial if you buy $5000 worth of silver and have several hundred ounces to admire than only about 3 ounces. It’s a perception thing at this point but perception matters to people since perception can make us feel a particular way about what we spend our money on.

In closing, gold and silver are both great choices and neither is wrong in terms of their value of utility. They have both had a long history as a store of wealth and that isn’t likely to change any time soon.

Buy both with confidence. Buy Gold Online

We often carry pieces that we don’t list on site so feel free to call us for an up-to-date list.

About DPM

When you consider silver value and gold value, the wise choice is to stock up today. At Durham Precious Metals we make it easy and convenient to buy silver and buy gold online.

For those who are serious about investing in gold and silver bullion, DPM is your one-stop store to buy gold and buy silver, whether it be through our website or our retail store.

Many people want to know where to buy gold and do not realize they can avoid the traffic hassle of driving into the city and visit us at DPM located in Oshawa, Ontario. See our Retail Store page for directions. Our customers are delighted with our competitive silver price. We carry mint direct silver bars, silver coins, gold bars and gold coins.

Make Durham Precious Metals your choice for gold and silver bullion.

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