How To Rebuild Your Nest Egg

It is very sad to hear of people who have lost their savings acting on the advice of their financial adviser who underestimated the risk of the proposed investment. You can't take back the money no matter how loud you cry. You cannot blame your adviser. You made the decision. You are accountable. Managing risk is a tough discipline but it is your responsibility. Now, the only way to get back into a workable financial position is to start educating yourself. If you don't learn from your own and other people's mistakes, you are condemned to keep repeating them. Instead of paying fees to these people, pay yourself. Start with these simple steps. OK. Rule 1: If you don't understand it, don't invest in it. If the financial concept is too abstract to be transparent, stay away.

1. Start with your bank statement. Read it carefully and understand the information included. When you don't understand some information, call your bank. Don't be embarrassed to ask questions. Their job is to help you understand. Make them do their job. You pay them fees and you give them your business so let them work for you. Go over your credit card statements and sort out the interest you are paying and how much cost you add to bargains when you don't pay the balance each month.
2. Set an appointment with your bank or financial institution. Before you go, put together some questions you want answered. Get all the brochures they have so you can start understanding the terms banks use, their services, and their policies. Keep in mind that this is your research so don't commit to anything. Also visit other competing banks if you have the time so you learn what alternatives there are in the bank market. Let your fingers do the walking through the internet and you can gather data in a few hours.
3. Understand your tax statement. Practice doing your own tax return. There is free help offered in some libraries, churches and community centers. Many governments have great web sites with massive FAQ pages and even step by step instructions for the tax forms. Call up your tax revenue agency for help. There are staff who are there to answer your questions. Or, go to their web sites. They usually are very informative. Most important, start you tax returns early so there is time to do research and avoid last minute panic.
4. Understand the investment market. Even if you don't play the stock market, you still invest, so do some homework. An investment advisor is just another source of information and unless they are independent, they may be selling an alphabet product that is unregulated. The recent crisis has to be a lesson to everyone. You have to do the work.  Many investors know more about the ingredients of their breakfast cereal than they do about their investments.  Read the finance section in your newspaper. Ask your friends who are knowledgeable. Watch finance programs on television. Surf the net. There is so much information out there, so pace yourself.
5. Start developing your financial awareness. When you do your groceries, look at what people buy. When you go to shopping malls, what stores are popular? Where do your friends put their money when they have extra? Houses, cars, entertainment, savings, food, clothes, or electronics? Invest in what you and your friends buy. There are millions of others like you buying the same products.

Once you have this basic know how and awareness, start building on it until you become confident in your own ability to make financial choices. Let this confidence work for you. Listen to others but decide for yourself. Manage your own greed and fear. When investing in stocks, buy into what you buy. If you don't understand it, don't buy it. Do your homework.  Now is the time. There are fantastic bargains right now for those who dig in.