It’s no joke but it sounds like one. What’s the difference between a bank, a casino and a bookie?

Experience shows us that the answer is that the banks gamble but the bookie and the casino benefit from gamblers and which are the ones who make money all the time? Once again it is the bookies and the casinos.

It is shocking that the people we expect to know most about handling and investing money are the ones who are the least capable but it is also interesting to note that bookies and casinos are carefully regulated. So, perhaps the conclusion we must draw from all this is that without regulation people’s greed overcomes their common sense and leads to huge mistakes.

We have more rules and regulations than ever before but it seems that while the goverment were thinking up new ways to arrest people they didn’t worry about defending the country against greedy people whose actions were to bring the country to it’s knees.

We all got suckered in to some extent or another. We all thought house prices were ridiculously high but few of us wanted the rise in house prices to stop and now we know why. We were living in a house of cards and when one of the weak foundations eventually collapsed it brought down the whole edefice.

So what can we as individuals do in the future to protect ourselves from financial problems? That is the million dollar question. Be cautious in your financial dealings would seem to be the answer. Beware of getting too much in debt, keep your investments in secure places and avoid the temptation to cash in any increases in house values as they may not be permenent.

The chances are we will recover from this current financial mess and there may not be another one like it in our lifetimes but we will all sleep more soundly if we take a more cautious approach to our finances in the future. We will all benefit from the savings we make on interest payments by avoiding too much debt so we could all be better off by dumping most of our credit cards and using real money for a change. That will feel strange for a while but I am sure we will get used to it.

Money Magic: Seven Simple Steps to True Financial Freedom (Quick Reads)

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  4. House Prices Are Unlikely To Rise For Some Time Yet
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Filed under: Debt • Money

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