How Safe is Your Wealth? The Secret to Safeguarding Your Assets

JanetPersonal EmpowermentLeave a Comment

Your wealth is a combination of all your assets including food, shelter, clothing, money, love, happiness and health. Protecting each of these areas of wealth requires a diversified approach. My recommendation for safeguarding your assets is to wisely find ways to diversify in a variety of areas, then add some zest to the mix. 
If your eggs are all in one basket and your basket accidentally gets dropped, all the eggs will be broken and then you’ll be completely out of eggs.  If your eggs are separated into different baskets and you drop one basket, you still have other baskets full of unbroken eggs. Separating your eggs, or in other words, your wealth, into different baskets is called diversification. Diversification reduces your risk of losing everything you have by following any one trend, fund, or activity. This strategy of dividing your wealth into different areas does not guarantee against loss, but it helps you to reach long-range goals while minimizing your risk. In other words, it protects from mass destruction, while increasing the chances of reaching your goals.
Financial Diversification
In the financial world there is a lot of talk about where to put your money so it grows the fastest, yet reduces your risk of losing it all. Each company has what they call a “market risk” rating which takes into account inflation, exchange rates, political stability, and interest rates.  When you are financially diversified, your risk level is substantially reduced. The aim is to invest in a variety of assets. Each asset will not be affected by market events in the same way. For example, when bond prices go down, commodity prices go up. Having a little bit in several different places reduces your risk of losing it all. 
Quick List of Ideas
Diversifying Your Personal Health
Diversification is also important in having good health. If your diet consisted of only crackers, your body would lack other nutrients it needs to function properly. A strained ankle, tooth ache, or a broken leg reduces your quality of life immediately. Yet, the healing process is so much faster if your body is in overall good shape. You usually don’t lose your life due to a broken leg because the rest of your body continues to function. But a broken leg (and even a tooth ache) can become a dangerous threat to your life if you are overweight or diabetic. While it may take creative thinking to add more colors to your meal (diversifying), the overall effect is well worth the effort. 
Just like eating a balanced diet is wise, diversification in exercise will strengthen all muscles in your body to help avoid injuries. My husband used to run every day, but after a while his knees started to hurt. He went to the doctor and learned that he was only strengthening a set of muscles on the back side of his legs. The doctor recommended that he add swimming, cycling and core training to his exercise routine. When he started doing this, his knee problems went away and he experienced an increased sense of health. If you are used to only running as your source of exercise, other muscles of your body will become weak which may lead to injury. Therefore, it is wise to use the technique of diversification in your exercise so the whole body functions better. 
Quick List of Ideas
Diversification in Relationships
Another place that diversification works extremely well is in your relationships. For instance, if you go out to dinner with your spouse every week to the same restaurant, although you are doing something together, the risk of boredom or dissatisfaction can start to creep in. It’s not that going out to dinner is a bad thing, but if that is all you do together, don’t be surprised if one day you or your spouse get upset. It may take you by surprise, similar to a crash in the stock market, sore knees, or a broken leg. In order to reduce the risk of a troubled relationship, it’s always wise to get together and come up with a variety of activities that will help your relationship become more solid and diversified.
Diversification also applies in the corporate world. For example, if staff meetings are boring you to tears, think of ways you can shorten them, or cut them out. Before relationships become strained, change the location, bring refreshments, use conference calling, or meet via the internet. As the CFO in my husband’s office, these simple actions brought energy and enthusiasm into the work environment. When I asked for input from other staff members, they felt important when I used their ideas, thus relationships improved.
Life is much more enjoyable when the risk of losing your precious assets are reduced through diversification. It takes creative thinking to come up with new ways of relating to the same thing. As you diversify, interest levels raise, stress is reduced, and relationships improve when you let wisdom rain a diversity of wealth on your mind, body and soul. 
There’s so much more to life than crackers.
…chocolate…ice cream…nuts…
Diversification Ideas

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