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How to Regain Control Over Your Personal Finances

November 1, 2011
URL: http://www.entrepreneur.com/article/220561

Everywhere I turn, I see tales of financial doom and gloom. The stock market is crashing! The dollar is inflating! Oil is peaking and homes are foreclosing! If you listen to the breathless media, it's 2008 all over again.

Maybe it is, and maybe it isn't. I don't know. What I do know is that I've learned from my mistakes in past meltdowns. Today I'm able to sleep well at night because whatever happens to the national economy, my personal economy is on solid ground.

You may not be able to sway economic policy in Washington, but you can build a strong personal economy by following financial fundamentals like these:

Saving History

Here's one last tip: When it comes to money, it often pays to ignore financial news. When you give too much attention to national or international economic news, you can find yourself making decisions that don't make sense for your personal economy. Five years ago when the housing bubble was in full swing and credit was flowing freely, many people bought into the idea that quick profits could be made from real estate. Now many face foreclosure. That media-fueled frenzy has turned into media-fueled despair.

The national economic situation does affect our personal financial decisions to some degree. But more important than the national economy is your personal economy. Ultimately, all you can control are your personal finances.

Image from Shutterstock.com / James Thew