Good Financial Decisions - Which colour are you now?

How do you make your financial decisions? There's a lot of talk on Silver now. If you look at the charts of Silver, you will notice that it's price has doubled in less than a year. Do you feel left-behind? Are you shopping for that silver bar?

Good financial planning requires systems that can manage the environment, and what the markets can throw at you. There are 3 things to consider.

First and foremost, you need to have a solid financial plan, where you can define your earnings (cash inflows), expenses (cash outflows), assets (investments), and liabilities (borrowings). Keep this plan and manage this continuously.

Second, as you wade through life and re-define your life's goals, you change colors like a chameleon: aggressive to a moderate to a conservative investor. And you change color to be comfortable and prepare for your next set of goals.

Third, depending on the color, you allocate assets in different buckets (asset classes). While Gold & Silver are important components in a investor's asset-allocation matrix, keeping a right balance is important o suit your colour. So, which colour are you now?