Weirdly, I am currently watching a movie titled, "What If" and while I was researching what to write about today, I stumbled on a Chapter of the book, Rules of Wealth, by Richard Templar, that's headed, Learn to play, "What if"? And it goes on and on about how we tend to earn a lot during a certain time and forget tomorrow.
Source
We forget that something terrible might happen and stop our earnings from coming in. The author particularly buttresses his points by using footballers who are at their peak one moment and the next moment everything is gone because they broke an ankle or sustained an injury and couldn't come back from it.
And since they hadn't been trained for anything else, it suddenly seem as though their lives are falling apart.
It happens to almost everyone, when we are blooming, we think everything lasts forever, and we never make plans for the future "what ifs". This is something that everyone should learn, life has several times shown us that it's uncertain, and things can either turn out for better or for worse. This means we shouldn't be caught in the euphoria of the now and forget to make preparations for the future.
Even though we are choosing an investment portfolio, we should do so by asking the "what if" questions. We should try to see a gap and close it. In case, the investment doesn't fall through, or we experience another pandemic, or the bear market takes longer than expected. When we can see several steps ahead of the market or economic situations we might be able to plan for any twists and turns of events.
The only way that's near accurate for preparing for uncertainties is diversification. Having a nice and broad spread of investment as Richard Templar says. Making sure we do not rely on one stream of income. Opening up as many as we can afford to handle and stay abreast with. This will set us free in a way that if one door closes, the other one stays open and sustains us until we find a way to break the closed door down and install a new one.
We should never have to make moves that send us into what the game of chess call Zugzwang. A position that is claimed to be;
An obligation to make a move despite the fact that any move will weaken one's position. What IF
Putting yourself in a financial position that makes you lose no matter which angle you turn is a bad move. So it's important to stay diversified so that the affairs of the market will not catch you unawares and you will be able to minimize the risks to your wealth creation.
Fortune Favors the Prepared Mind
Accumulating Wealth through the Mastery of Time and Patience
Escaping the Chains of Materialism
Risk, Trust, & Financial Decisions: The Impact of Emotions on Investments
The Chessboard of Wealth: Revealing the Four Levels of Why Money Matters
The Life-Saving Power of Emergency Funds: A Lesson from Camila in Queen of the South
The Power of Consistency in Building Wealth and Financial Freedom
Start building the right foundation to become financially secure
Financial Freedom: Navigating the changed landscape of money and investment
