Why We Should be a Lil’ Pessimistic on Money Management

Today, I am dissecting one of Warren Buffett’s most quoted investment philosophy.

I reckon you already knew what I am going to say, don’t you?

Be fearful when others are greedy, and be greedy when others are fearful“.

What he IS really trying to say, in layman terms is that one should be pessimistic when others are optimistic, and be (cautiously) optimistic when others are pessimistic.

The truth is, you don’t have to be a billionaire investor to practice what the Oracle of Omaha preaches.

We could all start from the very fundamental level – and that is applying a moderate amount of pessimism in our money management.

It means saving sufficient reserve funds and being prudent in spending money (impulse spending using credit card especially) so that we can keep ourselves away from financial hell-hole.

This is especially true for Gen Y (born between 1977 and 1994), young working people now in their twenties and early to mid thirties.

Shit Hits The Fan

Image source: cafebabel.co.uk

Because shit will hit the fan – not a matter of how, but when.

Read my latest article at KCLau.com – More Pessimism Needed in your Money Management Now

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