[Editor’s Note: the following is not financial or investment advice. It is educational and informational. It is intended to provide a possible outlook on what causes financial worries.]
Performance and productivity are as important to your passive income as to your employment or business income.
A big issue for both employees and small businesses is what to do with the money they’re making from their active earnings. How can it be saved and invested to provide capital growth for times of unemployment, financial emergency and retirement? What kind of investments perform best, but with reasonable safety?
If you are like most employed or self-employed people, you probably have investments in the stock market, either through company-provided plans or your own personal program of investment. So, in recent times, you may have been more concerned with the performance and productivity of the stock market than with your own.
In fact, just about a couple of weeks ago, one of my sisters and I were having a serious discussion on the ups and downs of the stock market and why not to worry about them. (And why not to precipitously dump investments during a panic and end up “locking in your losses.”)
What? Why shouldn’t we worry about the roller coaster ride on the apparent gambling machine we call the stock market?
Well, you know, I’ve got a long article I could write about that. It involves human behavior and emotions, behavioral economics, neuroeconomics and a whole bunch of other ideas. But I’ll spare you. Just remember that the history of the stock market is a history of people’s behavior, not a history of numbers. Good decisions about your investments — as with any important decisions — are best taken with calm, rational consideration and advice from knowledgeable people you know you can trust.
Thanks to a recent visit to my iGoogle page, I ran across a couple of articles on howstuffworks.com that explain the workings of wall street wonderfully well and in very easy terms. If you want to feel more comfortable about your current investments and get a better idea of where you might go from here, try the two articles linked below. Then explore more of the “Money” section of howstuffworks.com.
How Stock Market Trends Work http://money.howstuffworks.com/personal-finance/financial-planning/stock-market-trends.htm
How Stocks and the Stock Market Work http://money.howstuffworks.com/personal-finance/financial-planning/stocks.htm
As always, make sure to get advice from expert professionals before making financial, medical and other important decisions. Don’t simply rely on articles you read on the internet.