Financial future how you can be more secure
There are two schools always or maybe more, however in any discussion, there is an optimistic thought and pessimistic thought.
There are people who yell at you when you present a pessimistic thought as if you are a spoiler of everything.
Is optimism win always? or makes you safer and successful always?
The answer is “No”, it is the pessimistic thought used as a base thought process that runs the world economy, Even at a granular level, the finances of a small family or an individual.
If you don’t believe this and if you are an eternal optimist, here below some examples.
Part of our earnings will go to paying insurance companies, which earn money playing on the pessimistic thought.
we pay mortgages and other loans we take, the EMI calculated is again based on the risk profile for the specific loan.
Hope the above two are enough to cover your monthly expenses, a classic example is the fuel price, which is calculated again covering the future risk in supply and demand.
All the above look rational, however fundamentally points towards an approach where “what if” thought is embedded in the calculations.
However, thinking pessimistically about everything definitely should be avoided, however, enough pessimism is needed for daily life.
Here are some thoughts from “Warren Buffett“
- Do not accrue credit card debt.
- Save for yourself some amount whenever you earn some money.
- Luck is a factor in life, whether you agree or not.
Also, check why elections are unpredictable