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Yogi Berras 7 Secrets to Smarter Money Management

Wisdom can be found in the funnest places. Who would think, for example, that a baseball player could teach us something about money management. It turns out that famed Yankee catcher Lawrence Peter Yogi Berra is pretty smart when it comes to managing your money and investing. So lets see what 7 secrets he can teach us about money and investing:

1. I knew I was going to take the wrong train, so I left early: You will make mistakes investing. Even Warren Buffett has made mistakes, including (as he acknowledges) his 1993 purchase of Dexter Shoe. And Ive certainly made mistakes, including the purchase of my first mutual fund, which came with a 5.75% front load and hefty yearly expenses. Ouch! But just like Yogi, get on the investing train early, and you can still reach your destination on time.

2. This is like deja vu all over again: The market goes up and down, over and over again. When the market is in a panic and prices are falling, just remind yourself that its deja vu all over again. Otherwise, you may find yourself tempted to make a costly mistake.

3. If you dont know where you are going, you will wind up somewhere else: Financial goals are a must. Financial goals enable you to set sound priorities, measure your progress, and make mid-course corrections. And measuring your progress against goals can help motivate you in times when you feel like giving up, and those times will come.

4. You better cut the pizza in four pieces because Im not hungry enough to eat six: You can try to beat the market by cutting it up into different slices. Certainly some have succeeded, most notably Mr. Buffett. But for most of us, trying to beat the market is like trying to cut the pizza into fewer slices, we still end up with the same pizza. This is why, for most, investing in index funds as the core of a portfolio is the smartest way to buy the whole pizza.

5. A nickel isnt worth a dime today: Inflation is one of the most significant risks to your financial future. Everybody seems to fear a market meltdown, when the real long-term risk to a portfolio is the quiet, ever present, never sleeping, inflation gremlin nibbling away at your nest egg. Long term, stocks beat inflation, many bonds do not.

6. 90% of the putts that are short dont go in: And 90% of those who dont save enough for retirement, dont have enough for retirement. Dont leave your investing putts short. If you do, youll never make it.

7. Nobody goes there anymore; its too crowded: Much of the market participants act like lemmings, following each other over the cliff. Its easy to say dont follow the crowd, and its another thing to actually heed this advice. Nobody said this was easy, but to repeat Buffetts sage advice: We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful. Amen.

And in the words of Yogi Berra, It aint over till its over. Well, its over.

Article Source: http://www.purearticle.com

About the Author (text)

David Roberts writes for a number of online publications including www.doughroller.net on topics ranging from money management to investing.

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