Alan Blinder Lays Down the Financial Law

Alan Blinder is a renowned (according to some) economist who recently released a book titled After the Music Stopped: The Financial Crisis, The Response, and The Work Ahead. While getting through the entire thing might be a slog for those who aren’t professional economists or who don’t have a major interest in financial matters, Blinder does include something in his book that everyone should find interesting: his ten “financial commandments.” While the commandments are intended to help the United States as a whole to improve its finances, most of the commandments on the list apply to personal asset management as well.

Commandment number two is particularly valuable for personal asset management. It reads “Thou shalt not rely on self regulation.” What does that mean for the average consumer? Well, it means, in part, that you shouldn’t try and handle your finances and your assets on your own. Unless you’re a professional financial expert, chances are that you could use a little help getting the most out of your money and making your money work for you. By seeking regular financial advice from a professional and by following that advice, you can reap big financial rewards.

Commandment number four is also interesting: “Thou shalt elevate the importance of risk management.” In other words, if you’re only thinking about the gain involved with investments, you’re  going about it the wrong way! Always make sure that you educate yourself or that your financial advisor educates you on the risks and potential benefits involved with any investment. To make informed decisions about investments, you have to be able to see both the potential positives and the potential negatives. For honest, reliable financial help in Naperville, contact Platinum Financial Associates.

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