16/02/2016

Taking Control Of Your Finances - by Jeff Fitchett

One of the most important aspects of preparing for the changes that are occurring globally begins with our own finances.  For arguments sake, lets assume that you understand that geopolitical risks are increasing and that the world is heading towards war.  As well, I am going to assume that you understand that money is debt, that our world is drowning in debt, that the financial markets are rigged and special interest groups control the economy.  Now that the foundation has been laid out for the rest of this article we can focus on your finances.

First off, no one cares about your money and financial wellbeing more than you do.  The majority of financial industry representatives are shaped by the industry.  The views that are passed on as advice from advisors to clients are likely biased.  Corporations rely on investors to support their business activities.  Banks and corporations enjoy a mutually beneficial relationship. Banks lend money to businesses, they advise on mergers & acquisitions, they provide cashflow services to corporations and are instrumental in allowing businesses to function.  In addition, the banks make a lot of profit by charging interest on the money they lend into existence.  It is in the best interest of the bank and corporation for the system to continue functioning as normal.  Therefore, the banks generally keep an overly optimistic view on individual companies and the overall economy.  As well, most corporations paint a picture that tends to be optimistic in nature so that investors remain comfortable investing in their businesses.  

Financial industry training is funded by the industry and the message is one that aligns with the goals of the banks, mutual fund companies and other financial related firms.  You should now understand that there is definitely a bias within the financial sector.  You as an individual have the choice to decide how you manage your life savings.  It is very important to keep abreast to what is happening in the economy and in geopolitics.  I suggest you watch documentaries about the economy, debt, financial industry, corporations and anything else that deals with the levers of control and how we have been enslaved by powerful interest groups.  I provide lots of information on this website.  I encourage you to take advantage of the interviews and articles that I post because I only post information that I feel will be beneficial to helping you understand the machinations that are controlling our world.  

My specialty is analyzing macro-economics and geopolitics.  My views are baked in the cake and I have the luxury of now being able to focus my personal efforts on solutions.  From an investing standpoint I prefer to have direct control over my assets.  Specifically, I am very comfortable owning hard assets.  That said, I do speculate on precious metals miners, exploration companies and a mineral bank, but this does not represent my overall strategy.  My most important goal is to have physical possession of most of my resources.  The decisions I make are based on my conviction.  I recommend that you invest or store your savings in a manner that is consistent with how you think.  Weigh the consequences and risks if something were to go wrong such as your bank going bust or if there was a bank holiday.  Everyone is able to draw conclusions based on their observations.  You need to come to your own conclusions and manage your risk accordingly.   Listen to everyone, follow no one.  

Age is an important factor to consider when making financial decisions.  I am 38 years old and I have a long time horizon and I do not require immediate liquidity for any reason.  I feel for seniors because I do not see a lot of options available for this segment of the population.  Many older people rely on the income and capital from their investments to maintain their standard of living.  Most investment options are not appropriate given the short time horizon.  A combination of gold, cash and short term investments are logical, but each have pitfalls such as volatility, devaluation and systemic risks.  I believe generations of family will be forced to live with one another under the same roof in the coming years.  This is normal for many developing nations especially in Asian cultures.  As time passes, I think there will be an opportunity for families to pool resources and invest in mutually beneficial items.  Items may include a farm, gold, businesses, etc.  

If you have debt, I encourage you to come up with some form of a plan to deal with it.  It is imperative to deal with it sooner rather than later because debt will prevent you from being able to prepare properly.  If you default on your debt it could potentially leave you homeless, without assets and you will end up in a precarious position having to rely on others for your basic survival.  Most Western nations still have generous social safety nets in case of job losses, illnesses or other unfortunate circumstances.  I do not think these social benefits are sustainable medium to long term.  With economic conditions contracting, I think we will soon be faced with severe cutbacks and a lowering of our standard of living.  Debt is an impediment to freedom.

I am focusing on reducing my expenses.  There are a number of things that can be done in this area.  Cut out spending on frivolous items that are not necessary.  Focus on paying down high interest debt first and then paying off the lower interest rate debt.  Invest money on items that will save you money.  The options available are only limited by your imagination.  On a very small scale you could buy mason jars with Tattler lids and preserve your own food.  The small cost of buying the jars and lids will save you more money over time than your initial up-front expense.  On a larger scale you could invest in alternative energy.  Again, the initial investment will end up paying for itself over time.

There is no better time than right now to take stock of your situation and come up with a plan.  A plan does not need to be a complex document that requires endless hours of preparation.  List your goals and think about what it would take to achieve them.  For instance, I have a list of items I want to pay off and a number of things that I need to purchase.  I have prioritized my goals and make payments/savings on a schedule.  For me to meet my goals I need to increase my income.  This has forced me to focus on creating multiple streams of income.  There are many excellent websites, books and youtube videos on this specific topic.  From my personal perspective, I am doing things I love to do and I leverage my existing skills.  I am also looking at a getting a job in an area that I want to learn more about.  I will potentially be paid for learning a new skill.  I hope this article will inspire you to take control of your finances.

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