BANGALORE: Getting the best out of personal finance is often thought to be possible for only geniuses or extreme misers, but making smart moves with money isn’t more difficult, it’s easier. Here are four simple things you can do to increase the value of cash in the bank compiled by the Wall Street Journal.

Ignore economic and financial forecasts:

 Financial forecasts provide money to only one group of people: forecasters. Most professional forecasters and economist couldn’t predict the 2008 recession, or the point at which it would recover. Investment bankers make use of information from forecasters, however even a banker needs to think carefully about basing personal finance decisions on the same information.

Risks taken by organizations are very different from personal risks. Therefore, always treat any purchases on the stock market as a gamble, and maintain a steady profit and loss margin (For example: always sell when the stock is x percent higher or y percent lower than the value at purchase, even if it looks like it’s going to go up.) Don’t buy trendy stocks in bulk; people make a lot of money by betting on the stock market, but unless they’re Warren Buffet, they’re likely to lose it again.

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