Why are these problems so common? Why is it that so many of us really struggle to make wise financial decisions? Well, the Bible tells us that there are a number of reasons. It could be greed, fear, impatience, ignorance, laziness, etc.
The really frustrating thing about financial decisions, though, is that you might deal with greed pretty well. But just when you think you have that one licked, fear creeps in and causes you to make a foolish decision. Or maybe you get lazy and don't do the work necessary to make a good decision.
Yes, it really does require wisdom to make good financial decisions (or any good decision, for that matter). But what is wisdom that it can have such an effect on our decisions?
If you look through Scripture, it creates a picture of wisdom. This picture is a lot more practical than you might think. In fact, in Exodus 36:2 we get a small part of that picture. There it says, "And Moses called Bezalel and Oholiab and every craftsman in whose mind the LORD had put skill, everyone whose heart stirred him up to come to do the work."
The words "in whose mind the LORD had put skill" is another way of saying wisdom. So, in essence, wisdom is the skill of using your mind. The mind of the craftsman gave him the skill to carve or build amazing structures. The book of Proverbs describes how to be wise (or skillful) in righteousness.
The verse also shows that God gives us skills that make us better at certain things than others. That's why making money comes easy for some people -- but is very difficult for others.
However, because we're talking about a skill, it's quite possible for you to become more skilled than you are. You may never be a master at financial decisions, but you can get better. You can learn how to make wise (skillful) financial decisions.
So if you think you're making foolish (unskilled) financial decisions now, it's time to develop your skill. It will take time, hard work, persistence, humility, prayer and the ability to be teachable. But, over time, you'll notice a difference in how wise your financial decisions have become.
Whenever a group of people get together for a common purpose, a structure must be put in place, or not much happens. A stock investment club is no different. For a stock investment club to be successful there are several features that need to be in place for the club to run smoothly.
There are two broad types of people in the market, investors, and traders. Investors use the market to build a stock investment portfolio that will realize them a profit in the long term. A trader uses the stock market to make money quickly over a short period of time. Members of a stock investment group should consider themselves to be investors, since they will be in the investment market for the long haul.
Because of the long term nature of the stock investments, a club will need to have clear investment goals. All members of the club should have the same philosophy about investing, and be pursuing the same goals. If these goals aren't made clear, the membership could easily become divided about stock investment decisions, and the effectiveness of the club could suffer.
There should be a clear understanding established of what percentage of the profits realized from the investments are going to be distributed and what percent is going to be reinvested immediately back into the stock market. There should be balance between growth and stability.
But before any stock is purchased or sold, it should be required that all members of the investment club be part of the study of these stocks, and be part of the final decision. The club can use technical or fundament analysis of the market to help make these decisions, whichever fits their investment style best.
Because of this fact, it's important that all members of the group attend all the meetings. When there are decisions that need to be made about ongoing investments and future stock investments each member needs to be part of the decision process. If the group decision is held up because some members don't attend regularly, the effectiveness of the stock investment group is jeopardized. Club members should also communicate on a regular basis. Part of the experience of starting a stock investment club is getting together to enjoy similar interests and goals.
It's a good idea for all members of the club to have Internet access so that they can keep track of the market from their homes, and to make it easier to communicate with other members frequently. The importance of good communication between members of the group can't be stressed enough.
And last, but certainly not least, there clear records must be kept of all stock investments, profits, losses and any other money issues, that follow accepted accounting guidelines. These records should also be available for any member of the club to read at any time.
If all of these guidelines are met, the members will be confident in their club, and feel secure in their stock investments. This will allow the club to grow, and likely produce profits, as well as market experience, to its members. Without the guidelines, a club will be chaotic and ineffective. And a good way to lose your stock investment.
Both Steve Kroening & Jimmy Cox are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Steve Kroening has sinced written about articles on various topics from Investments, Asthma and Health. Steve Kroening writes for Success magazine and also publishes Wisdom's Edge. You can get Biblical tips on health, finance, relationships, parenting, and success, delivered to your email inbox every week. Simply visit. Steve Kroening's top article generates over 27100 views. to your Favourites.
Jimmy Cox has sinced written about articles on various topics from Web Development, Horse Racing and Investments. Who Else Wants To Learn A Simple, Step-By-Step System For Generating Quick & Easy Profits, By Starting An Investment Club - FREE FOR A LIMITED TIME -