“Never put all your eggs in one basket” – Anonymous
In simplest terms, the above adage says that a person should not put all their resources only at one place. I definitely agree with this one but that is just one end of the equation. How about defining how many eggs / nests do we need specifically for our financial aspirations based on our financial conditions?
Most of the people understands “eggs” as “money” in investment world but I would consider it as resources. Your time is also an egg and actually has more value than money – remember our parents saying – “time is money!” Most of us spend most of productive time at work. One should realize that they are putting all the productive time that they have in to only one basket – work. This will benefit to get great recognition, awards and few more income but still, it’s just one basket. Now, coming to the point, we should create many productive avenues to spend time after (or before) work. It is always good idea to improve on skills that you know fairly well and be proficient to get monetary benefit out of it. Soft skills like People management, sales, marketing and advertising etc. are also very crucial in this process. Real-estate investing, stock-market investing, selling merchandise online and blogging are some of my favorites.
Now coming to the money-eggs, we have ample options to invest around us varying from Fixed-income avenues (like FDs,SDs, Bonds etc) to more un-certain avenues (like Mutual funds and stock-markets). We need to identify our specific need that we want our investment to fulfill. E.g shelter is need and house is an investment. A working professional might need an additional alternate income and may look at real-estate, stock-market as options. We should also learn how the investment vehicles works by “investing enough time” on it before starting to invest money. This process will make you more confident about investing instead of relying on agents and brokers.
The idea is to start with one need at a time and fulfill it with the most appropriate investment vehicle. Keep identifying and fulfilling your needs by learning more and more investment vehicles and you will start appreciating the value of the effort you spent during this process. For most of the people, 3 to 7 investment avenues (and vehicles) are sufficient for their entire life time. If we try to make it more complicated than this, there is high chance of we losing track of what we originally wanted and how the investments are providing!
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