Uncertainty or Opportunity? Time will tell…

March 2, 2009 by  
Filed under Money Space

Time is Money - IstockphotosWe all have the same amount of time in each day, and as they say “it is how you use it that counts”.

If we all have the same amount of time, and if you accept the above statement as true, then that should be our focus when it comes to financial matters.

Success (and especially financial success) requires a number of resources and ingredients, one of those is time. Taking the time to plan and prepare is an essential ingredient to success. So too is the time to review successes and failures to learn from them, which will ensure the highest probability of future success. Dare I say but budgeting or developing a spending plan is a key aspect to your financial arrangements at home as well as in business. Not to forget the importance of comparing the results to your original budget or spending plan to identify any need for changes.

If your home finances are reliant upon your business then a business plan (or at least some focus time on your business) is an essential factor for income consistency and success.

Allowing enough time for things to work though a normal cycle is also important to ensure you have sufficient information upon which to make future decisions. Assuming you have committed sufficient time to the planning and preparation phase, a knee jerk reaction may not yield the best result.

The same approach could be said for your investments. We have all heard and read the current media comments about the economic climate. Some of us maybe concerned and act without appropriate information or an understanding about the time period we are dealing with. Time has a very important role to play when it comes to investment generally.

I believe it is important to clearly understand your timeframes for investment. No discussion can be complete, in my view, without a clear understanding of current and future time frames. If you look at history (it is the best guide to the future) every concerning or uncertain economic period has been followed by a significant period of prosperity (it’s just a matter of how long a gap between the two). Time is a key element in understanding your current position and a projection of your financial future. If you take action in hast without a clear understanding, you may well cement your unhappy position. Longer term thinking is essential in any investment or financial consideration.

So until next month, take the time to plan, prepare, review and consider the future. In every period of financial uncertainty exists significant opportunities both on the home front and in business.

[I make these comments on the basis of issues generally and not in respect of particular investments. If you have any concerns about your particular investments you must seek professional advice.]

Comments

One Response to “Uncertainty or Opportunity? Time will tell…”
  1. Thanks, Grant, for your measured, balanced and timely advice. Pun intended. :) Money, the making of it, the growing of it, can be one of those things that brings on stress and confusion. But your calm logical approach is just what we need to hear.