Sunday 27 November 2011

Attitude decides it.

  In reality, many people have been misled by the medias in doing financial planning. Like newspaper medias, many of us have been taught to diversify our own financial wealth to avoid risk. Technically, diversification is the key to avoid risk, but not really works all the time especially for those who are the low-middle incomers.

  We must bear in mind that over-diversified could make your wealth to be over-separated, and it does lead to the real risk---unable to focus. If you cannot focus just because of diversification, that means the method or way is wrong enough to make you fail. No doubt, diversification is needed but not overdoing it. Some people are addicted to diversify it just afraid of risk, divide the income into 4 or 5 categories----share investment, unit trust or mutual fund, fixed deposit, property, and insurance.

  I don't really buy in this way because I would not do something too separately. Concentrate in one particular field first then only get into second field. This should be the correct way for the employed people. Bear in mind that, all is talking about the attitude. If you have wrong attitude when you are doing investment like expecting to earn huge money within few minutes by clicking few buttons, it could mass you up. Should we know that, everything is accumulated in investment, as well as financial wealth.

  Not more than that, do not afraid what are you doing now, if you do so then just give up of it.  Doing things fearfully could lead you to failure. Afraid of nothing should be the way.

  Remember, will controls mind,  mind controls attitude.