Three things to learn from Scotland’s financial stability

How to apply similar thinking to your personal finances.

11:35 24 May 2013

Scotland is making a case for their ability to be financially independent. The attention on financial stability is bound to make the rest of us wonder how we stand with our own financial stability. Scotland’s leaders are highlighting the economic diversity, natural resources, and innovation as part of their case for independence and there might be some good ideas that we can all apply to our futures.

 

What can Scotland’s case for independence teach us about managing personal finances?

 

•    Diversity—this is one of the key pieces of investing wisely.  While it has a slightly different meaning to Scotland at the moment, the general principle is the same. One of the most secure ways to invest is to ensure you have a good portion of your money in an account such as a Cash ISA which yields a return on your investment, but presents no risk to your funds.

Since the return is low, with little chance for large growth, you would want to choose some other higher-growth opportunities like a Stocks and Shares ISA that can get you a much better return, but with more of a risk. When you combine the two approaches you’re more likely to achieve financial stability.

•    Resources—using resources in our personal finances could mean many things. You might be able to capitalize on talents that you have and create a profitable business. Perhaps you are a great bargain hunter and you can find new uses for old things. With the internet at your fingertips, you’re that much closer to financial stability because you have many resources at your disposal. You can compare interest rates to ensure you’re getting the best deals on everything from savings accounts to car loans.

•    Innovation—some of the most successful people achieved financial stability by taking a few well-placed risks on ideas. If you find and need and can fill that need, it’s a surefire way to create your own financial stability.