News Summaries

A July 9 online phrase from dallasnews. com, entitled Top 10 personal finance mistakes, provides a prime example of one variate of learning lesson by failure. The article discusses ten common pitfalls when soulfulnesss are addressing their possess financial tasks. By shining a spotlight on these mistakes, the article reinforces principles in Chapter 22namely, the essential need for solid personal financial planning.Each mistake receives a few paragraphs of attention, and the information holds more value because the source also pinpoints expert tips that can lessen the clash and occurrence of for each one problem.The first two discussed mistakes, for example, address the scarcity of people who arm a logical and flexible statement of goals. Too often, as the article elaborates, individuals necessitate financial decisions based on emotion rather than factual information. In addition, those who do develop goals and plans are many times reluctant to project the course from ini tial goals. However, experts advise that adaptability and structure can strengthen financial prospects for any individual, regardless of economic standing.Budgeting, in particular, is an strategic skill to develop in matters of finance. Debt and savings comprise the next part of the discussion. According to the article, a surplus of people sink into credit card debt that may hardly be eradicated through years of payments. Prompt, maximum-level monthly payments can ease these burdens, prescribe the experts. Debt accumulation is symptomatic of another financial planning problem mentioned in the article savings, or the lack thereof.A depletion of saved income can negatively impact both short-term and long-term financial goals. One remedy the interviewed experts exhort involves the creation of an emergency savings fund (used in case of unthought-of expenses). Such a fund would be bolstered by a manipulate amount of money from each employee paycheck. Finally, the article concludes with warnings involving two other important aspects of personal finance, employee benefits and stock investment.The author argues for 401(K) plans, life insurance, and reasonable investing, respectively. Each of these subjectsif handled improperlyholds the potential for catastrophic financial consequences. 401(K)s can help ensure an individual has a secure retirement nest egg (alleviating at least one burden for the elderly) life insurance in turn ensures a familys security, and minimal stock investing will help hold on an abolishment of personal savings.