Money Management: Don’t Keep All Your Eggs in One Basket
It is crucial that you diversify your investments.
Don’t keep all your eggs in one basket. Rather spread your investments.
You can diversify your investments across investment houses and asset managers.
You can diversify your investments across geographical areas.
You can even spread your investments across various asset classes: cash, bonds, equities, and property.
By diversifying your investments, you can also save towards specific goals over the short, medium, and longer term.
King Solomon, the wisest man who ever lived, said this about diversification:
“Ship your grain across the sea; after many days you may receive a return. Invest in seven ventures, yes, in eight; you do not know what disaster may come upon the land.” (Ecclesiastes 11:1-2)
If all your eggs are in one basket and you slip and fall, you will be left with a mess. Broken eggs. Scrambled eggs.
Make sure that you spread your investments. Diversification eliminates disasters and reduces risk while giving you the potential to grow your wealth safely.
