Personal Finance: Using Money Wisely and Choosing Mutual Funds

There are a number of ways to be smart with your money. Here are some below:

1. Spend less money on electronics: Generally, electronics are the worst investments. For instance, a computer that you buy for $1000 one year will only be worth $500 the next. A big-screen TV that you pay $2000 for may only cost $700 a couple years down the road.

2. Spend money on things that will maintain some value: You can buy classic furniture. You can collect rare firearms. You can buy land, they aren't making any more of it.

3. Cut back your spending: Even saving only one dollar per day will add up to over $3650 over a decade. Just imagine if you were able to save $10 per day.

4. Only have one credit card and pay off your bill in its entirety each month. Paying finance charges is the same as lighting your money on fire.

5. Invest in gold. Currently most of the world is on the Fiat system. This means that governments are printing money out of thin air. It would be wise to have one's monetary units measured in gold rather than in make-believe money.

6. Buy only what you need. It is said that if people only bought what they needed the world economy would collapse. If you need running shoes to stay in shape buy the minimum pair necessary for your needs at the minimum cost. In the economy is not survival of the fittest but of the most efficient.

Choosing mutual funds:

Mutual funds are probably the lesser evil compared to stocks. One's money may be safe if they invest in no load index funds which track the market. Trading in stocks has often been called the losers game. The stark reality is that most people will lose if they try and trade against the market.

Mutual funds would be a wiser investment over stocks if the investor does not trade excessively. Commissions on trades will eat away at profits. Also, it is important to take everything that a financial adviser says with a grain of salt. These so-called financial advisers often have little more than a few weeks of training.

If you're going to invest in equities only invest in those areas which you are widely knowledgeable about. If you are an expert in the automotive industry your insights will be much more valuable than even a Harvard MBA who has little or no experience in that industry. So, narrow down the choices according to your expertise and then arrow them down further according to the lowest cost to run the fund.