When one approaches their finances, generally you should do so from more of a positive point of view, but when it comes right down to the important details making up the technicalities which matter most, it’s best to take the cynical approach. After all, cynicism is indeed the best financial advisor, simply because it highlights the reality of how one should handle their finances really.
When are you likely to spend the most?
Think about it – the time during which you’re likely to spend more of your money a lot easier at that too is when you find yourself in a situation where you have to spend your money. This is when you’re faced with some sort of crisis or emergency, in some cases making for a situation in which you are even prepared to go into debt just to get through it.
Think legal fees as perhaps a perfect example of such a situation during which you would probably do whatever it takes to put the money together to pay for professional and competent legal counsel, so too when your health suffers to the extent that you have to undergo a very costly medical procedure.
Perhaps an even stronger driver of your propensity to open up the cheque book (or rather, whip out the credit card) is the rather unfortunate one in which both of these unfortunate events take place at the same time, i.e. if you might perhaps have been injured or even disabled by some sort of accident and you subsequently need expensive medical care in addition to requiring competent legal representation to perhaps get you your due compensation for having suffered your misfortune.
From an investment (and financial advice) point of view, this is where to look for opportunities. This is where and when it becomes clear that cynicism is indeed the best financial advisor, in that it compels one to look towards areas such as the legal and medical fields as a safe bet for their money. Whether you’re looking at it from the point of view of an investor who wants returns (profits) or indeed if you’re looking at it from the point of view of protecting yourself from the expenses which may ensue as a result of something like the above-mentioned misfortunes, investing your money as if you “expect the worst” is the best approach to take.
Sure, there are some supremely competent disability lawyers who offer free consultation so that they can get an accurate indication of whether or not your case is winnable, but there are always so many other expenses you’d rather be caught on the right side of when the worst happens.
So whether you’re picking out stocks into which to put some of your money or indeed if you have some extra money sitting around and you don’t know how to invest it, looking at those industries which cater to the worst-case scenario is as safe a bet as you can make, whether you want to protect yourself or if you merely want profits.