Finance & Stability: Man's Intuitive Knack For Progression (2)
Being compartmentalized is a different way of counting and understanding our blessings. It's a way of spreading our wings so that when life decides to be calamitous, we're prepared to even the highest degrees.
However, it's awkward to admit that diversification as beautiful as it seems is firstly driven by fear. Rich people are often scared of falling more than average people who just want to live according to their means.
This is because having something to lose is a burden that many wealthy people carry in their mind throughout their lives
This is because life expectancy kicks in. So, at the height of diversification, we begin to develop fear, the more assets we own, the more we become careful and the more inclined we are towards the fear of loss.
Fear is not overly negative
When we own more, we develop a fear of loss, this is why diversification of wealth or assets, leads to even more intentional diversification. Intentional diversification means choosing to put one's money on the line, so they can make more money
There are certain types of money, people make because of being already wealthy and established, but intentional diversification comes intending to make money by offering something of value.
This time, it's time and other monetary and non-monetary resources. A lot of people want to end up in positions where the biggest financial storms will still leave them unabated, especially by the toughest things in life.
But this type of solidity is very difficult
This might entail setting up shock absorbers so that when one loses grip in one aspect of life, the other aspects they've set up would prevent them from completely hitting ground zero.
Diversification is a backyard way of seeking stability against financial exigency. Human beings are the most sophisticated learning machines.
In fact, we learn every second, especially with the number of experiences we're exposed to daily. We have come to become masters of our universe by allowing our experience to form a reservoir and become part of the knowledge we have.
This is why we often seek stability because we cannot trust singularity in anything we do
The idea that people should save for rainy day came about because of the experience of what "rainy days" feels like. It's when you're probably too old to work, too sick to care about money, but still need money to run one's daily life.
It's a period when you are no longer brilliant enough to replicate the crazy business ideas, that endeared you to the encomiums of your employers and earn you brilliant promotion.
Rainy days are days of uncertainty, where you have to depend on when you were active to obtain present sustainability.
Rainy Days: A Vivid Definition
A lot of people in the past have suffered from ill-prepared rainy days, and this becomes futuristic lessons to prove that we're ultimate learning machines.
Someone had to undergo the consequences of being ill-prepared for turbulent times so that another person can learn. Fear is a big motivator in our learning process.
While a lot of people deem fear to be negative, the truth is that it's been a huge motivator, giving us purpose when we become too complacent. Sometimes, people have no reason to work hard, but the fear of hitting certain lows, drives them to be insanely innovative.
The Fear Of Consequences
The fear of incurring certain consequences is why we mostly get a lot of things right, this is why the stress or discomfort of being prepared is often overlooked when it comes to setting up barriers for "the rainy day" the rainy days
are days where emergencies test our financial capacities. Life has become too sophisticatedly good, that we no longer need to learn from our own mistakes. This is why people chase value throughout their lives.
We're naturally seasonal
......and because we have come to understand our uncertainty of us, we choose to learn every day, to beat life at its own game.
So, there are times in life when we're valuable and there are times we aren't, we mostly make most of the former to enable us to live comfortably for the latter.
Rainy days are broke days, days when we are dependent and vulnerable, the understanding of this phenomenon is often driven by fear, this is why we choose to learn, whether we actually want to or not.
Interested in some more of my works?
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Money: The Consequences Of Making The Right & Wrong Decisions
The Nigerian Economy: Monopolizing Incompetence
The Experiential Process of Understanding Money
A Case Of Theft On Hive: Here's Why Some People Choose Scam.
I agree with building alternatives and diversifying so long as it's not too many different things. Just keep it manageable. I'd rather not have my entire plan destroyed because one thing failed and that can always happen. We need to be prepared for the worst.
Yeah, it's important to actually build within some limited and manageable assets. We value diversification a lot as people and because of the fear of ground zero. Sometimes we end up compartmentalizing too much and losing the real deal.
We have learned enough to know and realize diversity is foremost, selection into many resources safer then using only one.
"When the USD sneezes the whole world gets a cold", currently appears to be slowly losing ground against crypto, silver, gold to average forward thinking people, other options now being placed on the table as well.
@tipu curate
Upvoted 👌 (Mana: 59/69) Liquid rewards.
You're right, I think historically and educationally, we've come to realize that, having our eggs in one basket isn't the right way to go. Crypto is now an option against the USD, but currently, the US government is hoping we don't have to turn to the Crypto. I believe that in general sense, minimal diversification is really good.
Thanks for the curation
Always invest into variety of options, education is a problem in Africa where many have a phone yet know little of what they could achieve with a computer literally in your hands.
Early years when we traded it was in each countries denomination, Germany we paid Deutsche Mark or Japan in Yen, it changed to transactions all exchanging in USD around 1985 from our region.
Currently no harmony is being found with new technology, regional ideology coming to the fore, still invest a little into all, time will tell which way the chips will fall.
Greed is in human nature, the more he gets, the more he wants to get.
Fortunately/luckily not in human nature. But mostly in wealthy/rich people. Seemingly nothing is enough for them. They always want more. There are many happy and satisfied people, who have little or nothing.
The knowledge we've absorbed through the experiences we had has allowed us to create patterns and live by them. Rainy days are days that we look back and forward to, so it's always important to plan for it to the best of one's ability. Fear is indeed a good motivating factor, we dread experiencing another painful experience so we do everything we can to prevent it from happening again.
We've learned by experience to show that rainy days are days that we should dread and not adequately preparing for it can have some crazy effect on us. This is one of the reasons why I believe that we learn by adequate experience. Fear to me has been one of the biggest motivators in my life and I'm really glad it's there instead of overconfidence which can ruin a person.
I think it's also the reason why we're constantly in search of new information through experiences, be it consciously or not. Fear can be a great thing to experience when we know how to tap into it to move us forward.
New information and knowledge is powerful, because it can be insanely liberating. I think the more we seek, the more we have opportunities to be enlightened.
No matter how good (or bad) someone's life, anyone can learn from his/her own mistakes anytime. And from other people's mistakes too. Sometimes someone's entire life is a mistake (chasing money, wealth and possessions continuously), and they do not even notice it.
This is true. However, this means that, our lives doesn't necessarily have to be lessons anymore as as one can categorically learn from previous antecedents without experiencing the same suffering.
middle class people as well though Totally agree rich people have that fear and it is easy to lose everything in days, while you've spent your whole life to build that wealth.
Couldn't agree more... Honestly, Great to read this side of wealth and it's phycological aspect... Diversification is the key, it not only minimize risk but when we've something solid as a base layer that's gonna always help in bad time.. perfectly summed up!
Thanks for reading. I believe that the more we grow in life, the more fearful we become of falling as much as we want to continue scaling. This is why people who are reach take a lot of measure to secure themselves, but generally everyone is now securing themselves against falls, because they don't want to hit ground zero.
My goal as well and I have been chasing it for the most part of my life.
No doubt the fear of loss coupled with the will to increase one's financial holding always prompts the need to diversify. I think it is worse to have achieved some reasonable financial state in life and lose it all due to a lack of diversification than not achieving the financial status in the first place.
That status is almost impossible, unless we have established some really big and important assets and never got to experience some really intensifying emergencies that might really rock our boat. It's my goal too and even if I never get to reach there, I think I'll still achieve some reasonable as well. Just like you've pointed out.
There are many troubles in the life of human beings, but a wise person is the one who learns from them and lives his life in a good way in the next coming time, that person can be successful in this world. As much as a person gets, a person should be thankful within it.
For what it's worth, fear is one of the best motivators for action (or inaction). Obviously in the case of ownership and investing, fear usually leads to de-risking or diversification. One of my favorite mantras is "Going narrow will make a lot of money or lose a lot of money, diversifying will preserve wealth".