1. Categorise your wealth
· Your wealth is likely to be held in 5 major categories – property, equity, debt, precious metals, and cash - whatever the investment product and however complex its terminology and working.
2. Diversify your wealth
· Ensure that your wealth is spread well across these 5 categories.
· Every time you make an investment, try and see what it does to what you already have.
· However, you don’t have to add to all the categories at the same time, and can plan it as per your need and convenience.
3. Balance your wealth
· Long-term wealth building needs balancing, in a steady manner.
· Always assess your wealth by analysing if you have too much or too little of something.
· When evaluating a potential investment product, look at it in terms of how it would add to, or take away from the balance between all the components you already have.
· Have a target of working on corrections, and look for rectifying the extreme positions.
· It is fine to keep extreme positions for some time, as long as you have a plan to balance it.
4. Immunise your wealth
· Do not allow your wealth to be a victim of your attitudes.
· Protect your wealth from your emotions, insecurities, overt optimism, and mistrust.
· Recognise emotions that may lead you to overdo something and keep a check on those that harm your wealth.