Money Matters: Here's how to avoid too much financial risk – Daily Herald

St. Patrick’s Day may be just around the corner, but hold off before you make a risky dive towards that pot of gold at the end of the rainbow. Every financial decision we make comes with some risk, and it’s important to understand which risks are worth taking and which aren’t. 
Be sure to speak with a trusted financial advisor before you make any big financial decisions. In the meantime, read on to learn a little more about which financial behaviors to approach cautiously, which to avoid altogether and which to do with confidence. 
There are many ways to manage your money, and some philosophies will work better for you than others. So, when we talk about risk, it’s important to remember that risk is a relative concept. The five behaviors below may be considered risky, but they may be a risk you’re willing to take:
Now that we’ve talked about the “maybes,” let’s move on to the financial behaviors you should almost always avoid:
There are lots of financial philosophies out there, and they may not all suit you, but there are two principles every non-professional investor should live by: Diversify and be patient.
By spreading your money across many different bond and equity holdings, you minimize your risk of capital loss. And by being patient and waiting to invest in the stock market when the price/earnings ratio is at a good spot, you’ll have a better outcome. Financial advisors like Merrill Financial Associates in Provo can help you!
Besides those two investing principles, the old standards hold true: Spend less than you earn, put some of your money aside into a savings account and keep track of your spending. 
No financial decision is totally without risk, but you can be informed to know which risks are with taking and which aren’t. Be cautious about behaviors like taking out student loans, avoid living paycheck to paycheck and diversify your investment portfolio. It may not be the path of least resistance, but it will help you sleep better at night, knowing that you are taking care of your future.
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