Macroeconomics is a term used to describe the study of large-scale economic systems. The studies are focused on determining how different areas of the economy impact other areas of the economy. Although most of us are not macroeconomists, it is not difficult to perceive that many areas of our national economy are being challenged. Whole sectors of the economy once perceived to be stable are complicated by an inter-woven global system. That system, in turn, has a trickle-down impact on the general public that is often perceived as being out of their control. It’s not just one enormous housing bubble here or a significant student loan bubble there. The issues of unemployment, under-employment, poor credit ratings, zero interest-earning, quantitative easing, financial safety, and increasing stock market volatility are some factors that have shaken us to the core. At least some of these issues directly impact our personal resources and decision making, however, all of them impact us indirectly.
So, what can we do? Even if you are one of those who is on top of the latest headlines, listens to the radio talk stations, or might even be a finance student, we have to take immediate action. The more knowledge and understanding we have on macroeconomic issues, the more we can relate them to our personal issues to help us prepare and adapt to changing financial climates. This empowers us to make strategic plans for investing our personal limited resources and, ultimately, helps us navigate through financial waters. We can make a difference in our personal financial health, but we have to start now.
Don’t just listen to the news or read the internet, but look outside of your familiar surroundings to notice the changing financial climate. Don’t disregard your perceptions. Keep notes of your observations instead of dismissing them. When you do listen to the news, ask yourself what the supporting facts are and then research it for yourself. Find out what leading indicators are and learn what they mean. Acknowledge, research,study and learn about what is happening to our financial world because it is impacting our way of life. Grasp an understanding of the current and most significant issues. Ask yourself questions such as, “How could this situation impact me,” “What choices do I have to prepare for this situation,” and “Has this happened before in our country or elsewhere?”
The times have changed and we can’t just watch the news or read the newspaper and say that it doesn’t apply to us or there is nothing we can do. No one can take care of us but ourselves. We have to take action to determine the most resourceful ways to protect what we have, and then thrive in the months and year ahead.
Thanks for reading and feel free to comment.