The world is full of uncertainties. Just like the sudden outbreak of the global new coronavirus in 2020, just like the various sudden things that each of us will encounter in our work and life, this is all impermanent. There is no script in life, ups and downs can happen at any time.

Human nature is uncertainty. However, man's inner pursuit is to demand certainty. In a sense, all human activities are about finding certainty in an uncertain world.

Human beings are afraid of uncertainty, randomness and turmoil. Only certainty can make us feel safe. This seems to be something engraved in our bones. For example, most of us pursue a stable life and job. We like to take precautions and have a sense of control over everything around us. We need this sense of control in order to better understand and explain the world, and in order to face and overcome more uncertainties in life. This sense of control brought by certainty is like a beacon in life, preventing us from easily getting lost in the sea and drifting with the tide.

Of course, uncertainty does bring all kinds of unexpected surprises, but real warriors will not bet on uncertainty, but tend to look for something more certain and controllable. law. When you don’t know what will happen next, seize the moment, seize what is 100% certain, and constantly upgrade your abilities instead of betting on an uncertain future.

Human beings are animals that seek certainty. From an economic perspective, especially when it comes to financial management or investment, many times the most important thing for us is to eliminate numerous uncertainties and find the option that is relatively certain.

When we examine a financial product, generally speaking, return, risk and liquidity are the three aspects we pay most attention to. However, in real life, it is difficult to find products that meet the requirements of high returns, low risk, and good liquidity at the same time. We can only get two of them at most, and sometimes even only one of them. This is the "impossible triangle" of financial products.

The impossible triangle of financial products cannot be obtained at the same time, and trade-offs and trade-offs are inevitable. After all, financial management is not gambling, we need to act according to our ability.

I think security is the primary consideration. Whether you are buying stocks or doing any investment or financial management, you are buying the future with real money, and you should look at the risks in advance. Any investment that does not take risks into account is a scam. Everyone's situation is different. Some people can speculate in stocks, crude oil, and Bitcoin, but some people are only suitable to buy government bonds and save some bank deposits. Investing beyond your risk tolerance may yield high returns, but it may also bring a devastating blow to your life. Even though you might survive, you're still just a fool and the risk is like walking through a dynamite factory with a torch.

Secondly, about liquidity. Funds with different uses have different liquidity requirements. Funds that may be used in a short period of time, or will be used soon, require strong liquidity and must be able to be cashed out quickly, at least not for long-term investment. But in the long term, such as funds that will not be used for three to five years, the liquidity requirements are much weaker. Therefore, when managing finances, you must combine your own needs and choose products with liquidity that meet your requirements.

Finally, about profitability. After confirming that you can accept the safety and liquidity of the product, then look at its benefits and choose the product that suits you. However, in the process of financial management or investment, most people often look at the returns of financial products first, and then consider safety and liquidity, putting the cart before the horse. If the product returns are very high, many people will even forget about the other two factors, which is completely taking advantage of the fire.

Taken together, the representatives of products with low risk and very good liquidity are demand deposits and money funds. However, we all know that the interest of demand deposits is almost negligible. Although the income of money funds is higher than that of demand deposits, Much better, but definitely not a high return overall.

If you want to increase returns while also wanting safety, you need to sacrifice liquidity. Therefore, the return on time deposits will be higher than that on demand deposits. The same bank financial product has a longer term. The returns will also be higher.

If you want both high returns and good liquidity, you have to sacrifice security. For example, Bitcoin and stocks are very convenient to buy and sell, and the potential returns are high, but the price fluctuations are very large. . This type of radical investment product is highly volatile, and most people do not have a high tolerance for fluctuations. For many individuals, a 20% drawdown of assets would probably cause psychological collapse.

The risks and rewards are matched, and we want all three, but the reality is that we cannot have them all. If you want to get higher returns, you have to bear the corresponding risks. If you are too greedy and want all three, you may end up losing heavily. Therefore, when investing or managing money, we must learn to make trade-offs and choose relatively certain financial products in the game of these three factors.

For ordinary people, a common operation to improve investment certainty is to buy bank financing.

For those who choose bank financial management, in essence, they choose a way to properly manage their assets, which is a progressive way of wealth management.

This is also the result of a comprehensive consideration of the three factors of risk, liquidity and profitability. The products selected in this way may not be satisfactory in terms of returns, but at least they will not affect your normal life. .

The so-called bank financial management means that we entrust our money to the bank and let the bank help us invest, and then the bank will pay us the income as agreed. The bank is "entrusted by others to manage finance on behalf of its customers." In other words, when you buy bank financial management, you hire a bank as an "investment intermediary" to help you make investments. Correspondingly, the bank will also charge a certain "intermediary" fee. Therefore, in bank financial products, the bank is more like a fund raising manager and investment channel.

There are many types of bank financial management, with different liquidity, and there are many types, which can match the capital needs of different customers. At present, it is also very convenient to purchase financial products on the Internet.

I personally feel that the aggressive financial management and investment style is not impossible, but it is destined to be only suitable for a very small number of people and not suitable for most people. If you ask an extremely conservative person to buy stocks or futures, it's okay if you don't lose money. Once you lose money, you will definitely be unable to eat or sleep, and the gains outweigh the losses. Whether buying stocks or futures, it is a very professional matter. Stock selection is very difficult and is not an ability that ordinary people can possess. For ordinary people, methods that are too complicated are not practical.

Protecting principal from loss as much as possible is the starting point of everything. No matter how much money you have, or how long you have owned it, as long as you go bankrupt, your wealth will be gone. Even if it is just a general loss, it will take a long time to make up for it.

If you have 1 million, I would suggest that you put most of the money in stable bank financial products, and then use a small part of the money to make big gains. If you make money, add it to the principal. , if you lose, it won’t hurt your vitality.

In comparison, the most suitable financial management style for ordinary people is the prudent one, which is to obtain reasonable returns under the premise of controllable risks. Compared with relatively radical investment methods such as stock speculation, gold speculation, and crude oil speculation, although the income from bank financial management is not very high, it is better than stability. In the face of risks and many uncertainties, it can give you a stable sense of security and happiness in ordinary days.

This is an anxious time, when everything seems to be full of uncertainty. Too many people are eager for success, eager to take one step as three steps. As a result, they do not gain countless money, but gain countless anxiety. We need to calm down and think about it, how can we ensure the steady growth of personal and wealth in the next 5, 10, or 20 years?

Buffett said: Life is like a snowball. The most important thing is to find very wet snow and a long slope. Smart people pursue steady growth. They value long-term returns more than some short-term returns and small immediate profits. Day after day, year after year, they stick to a certain track and make limited progress. Invest your time and wealth in a field you like, stick to it, continue to accumulate, and do it repeatedly and seriously. When accumulation reaches a certain level, wealth and thinking will snowball like snowballs, getting bigger and bigger and farther and farther away. This is actually the effect of compound interest. At the beginning, its effect is very small and difficult to detect, just like a seed buried in the ground. But after reaching a certain stage, its effect is very amazing. This is true for both personal growth and financial management.

The goal of financial investment is not high temporary returns, but long-term stable returns, using the principle of compound interest to increase the value of wealth. Managing money is not difficult, but few people have the patience to wait. Anything that is unsustainable is not worthy of envy. Just like gambling, you can't be right all the time, but if you bet wrong once, you may lose everything. Understanding this truth is the first step towards correct financial management or investment.

There is no shortage of myths about creating wealth in the market, but not everyone is lucky. When you are "seeking wealth and wealth", others are "making a fortune". This is competition in different dimensions. Therefore, it is actually a very stupid decision to leave the principal to luck. After all, getting rich overnight is just a fantasy, and long-term success is the way to go.

Whether it is personal growth or financial investment, be patient and treat time as your friend. Go in a certain direction and take your time. There is no need to envy other people's high income, and steadily guard your own happiness. Only by being able to endure loneliness and maintain prosperity can we have stable happiness and savor the fragrance of compound interest in the uncertain markets of the future.

If there are two buttons, one red and one blue, in front of you,

A: If you press the red button, you can be 100% sure to get 1 million US dollars;

< p> B: If you press the blue button, you have only a 50% chance of getting $100 million.

Which one will you choose?

Putting aside all models and theories, there is no doubt that I would choose this certainty of $1 million. For financial management or investment, certainty of returns is important. Sometimes you just have to admit that you can't afford to lose and only make the safest money.

Going back to the question at the beginning of the article, how to deal with "uncertainty"?

After this "battle", perhaps the most important thing next is to stabilize yourself, your wallet, and your life. Discovering certainty amidst uncertainty and maintaining a hard-working and happy life tone may be the attitude we should have.