The basics still apply

The speakers at Saturday’s WealthCamp have very different backgrounds, yet all seemed to convey a common message at the event:  keep it simple.

The sheer volume of financial information available today can make the decision making process seem completely overwhelming. In fact, research is proving that Americans are so overwhelmed by choices that many feel “paralyzed and confused.”   In fact, even the experts can have a tough time knowing what to do. 

From the April 3 edition of the Economist

“The depressing truth is that financial literacy is impossible, at least for many of the big financial decisions all of us have to take,” says Richard Thaler, a behavioural economist at the University of Chicago. Aptly for someone who has built his career on the study of irrational financial behaviour, Mr Thaler admits that even he finds it hard to know the right thing to do.

It may be true that we may never fully understand all financial options available, but perhaps that isn’t necessary.  While we have more choices, and the choices are more complex, the basic rules still apply.  Paying your bills on time and saving for your financial future are always smart financial decisions.