‘The risk comes from not knowing what you're doing,' says the rich person. One of the things that you’ll face throughout your life (if not handled well) would be financial insecurity. Which is often associated with being up most nights and wondering how the hell the last paycheck didn’t see you through a week. It can get tiring beating the rat race of overworking yourself and still having nothing tangible to show for it. However, there is a way - investing. With investments, you can secure your future and that of your family. If you don’t believe me, it’s okay to just take a look at Warren Buffet. Although it is risky sometimes to get a good deal and often expensive, it is something you can do if you are determined. With a strict savings habit, you can gather a pool of funds to hedge on in something you believe is what it. However, in this article, I’d been outlining 5 tips to help you play safely in the investment terrain. Some of these lessons are based off on lessons I learnt from studying Warren Buffet’s investment lifestyle. PS. 5 Tips For You To Stay and Play Safe In the Investment Terrain 1. Be fearful once others are greedy and be greedy once others are fearful Why is this: It's the big mistake we sometimes make with our savings. We tend to buy or invest when we see that something is going up and giving returns to others. This might come as a shock but recall the years 2006-2007 in the real estate market. Or moments in the stock market in which even our closest neighbor was winning, and then when you came in, it crashed. or get-rich-quick investments schemes operate on greed and desperation and the best they scale is to paint the picture that everyone on the team is winning. Ponzi schemes Beware of investing in what everyone is already invested in, Buffett argues that the time (and is the most difficult) to invest is when others are fearful (which is when things tend to be cheaper). This phrase links with two other famous quotes from Buffett: "What the wise do at the beginning, the fools do at the end" and "you can not buy what is popular and do well." 2. Invest only in things you understand Why is this: If you wake me up in the middle night and ask me companies I know won’t go away soon. You’d probably hear, Coca-cola, Apple, real estate and of course, food companies. I get informed often by reading investment blogs because I want to put my hard-earned money on something I know too well. Part of the many mistakes we make while investing is to involve emotion. Believe me, it might live you hanging someday. You need to take away your emotions and see the reasons why you should invest in that. Don’t do it because of hearsay. Runaway from products or companies that you don't understand, although they promise high profitability (remember the preferred ones or structured products that you are not sure about what you are investing in). Simple is sometimes the best option. Especially for your peace of mind. 3. Buy only shares of companies where you would be happy and calm if you closed the bag for 5 years Why is this: It takes quite a while for a decent appreciation in any genuine investment you make. The keyword is -patience. Warren Buffett defends this by saying that if you invest in the stock market you should not see it as buying a stock, but as buying a business so good that even if you could not sell shares for 10 years you’d still be happy. 4. Never ask a hairdresser if a haircut suits you Why is this: It serves for life and serves for investment. One of the biggest lessons I learn as an amateur investor was too quick in jumping in into opportunities. Believe me, I lost a lot. I was young and restless but from those mistakes, I learnt this: Be hesitant to whom you want to place a product especially financial products. This is so because whoever knows what he wants from us can take advantage of our weakness. In this sense, when hiring a financial product, find out first, compare, and then decide. And most importantly, always be clear that whoever sells it to you is dedicated to it. 5. Predicting the rain does not count, build coffers instead. No one knows when the next scare will come on the stock market or what investment will make you rich. Instead of wasting time on that, devote yourself to being prepared for what may happen. If you cannot bear a loss of more than 10%, 20%, 30%, have an investment portfolio prepared for it and avoid selling in a panic at the worst possible time. It is just an example, but as always, the key is to have contingency plans and make sure that we invest in something appropriate to our risk profile and the time horizon we manage. That part of your savings that you anticipate that you will need in the short or medium term, do not deposit it in very risky products. For the part that you can have in the long term, choose investments with greater profitability (which may have more risk or swings in the short term, but that will help your money grow in years. It’s always advised to seek professional advice before you take any leap towards investment. It is one of the things you can trust to secure your future and that of the people dependent on you. Wrap-Up:

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How to Gain Financial Security As a Man with this 5 Safe Tips

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