Yesterday morning started off as a normal day. I had gone to bed a little later than normal so instead of waking up at 5 am as planned, I slept in an hour extra. I woke up, did 20 minute of exercise and sat with my cup of warn water to write my article of the first Episode of The Wave.
This suddenly changed when I was ready to leave for work. My lunch box was no where to be found. I searched everywhere in the house and asked my lift for the previous night if I had perhaps left it in the car but there was nothing. I also called the people that were at choir the night before but no one remembered seeing my bag. I was not really sadden until is understood the magnitude of the problem.
I had for some off reason thrown my keys in the lunch bag.On the bunch of keys, I had my house keys, the office keys as well as my car keys. What could go wrong? Maybe the house is safe because I could easily get a copy at a minimal cost and there is nothing really identifying the house number. The office key and car keys were a higher risk. The key was on the company key holder; meaning that someone could easily get the key and the remote to access the door. My car key on the other hand could mean someone could just drive my car away if I park somewhere and also the cost of programming the car keys is high, what I am to do?
Luckily, I had just left it at church. Maybe it was lack of lighting in the room we were gathered that my fellow choir members did not see the bag when they left. But this situation reminded me of two basic finance principles:
- Insure what you cannot afford to loose and
- Diversify your risks.
Remember when I lost my bag on a plane earlier this year (read it here)? That time I had written an article on how one must ensure that if something will leave you broke, it is probably best to insure it. From my preliminary questions around, reprogramming can cost up to N$20 000. Forking that up cash was going to hinder my big audacious goal and leave me empty. Re-look at what asset that you have and for certain key assets , take out insurance on it.
Secondly, diversification is key. Do not put all your eggs in one basket. If the economy get hit hard and all your money is in shares of the companies operating in the same industry, you are likely to suffer a lot more than someone who has a diversified portfolio. Some mix of debt, equity and money market will do you some good.
I might have been lucky this time or actually I like to think of it as blessed but next time I would not always be.
From today, I keep the office keys on a separate holder and my house keys with the car keys. I did not split them up completely because having too many keys around will also increasing the chances of loosing one. Similarly if you consider insurance, do not over insure and also do not diversify too much that you are not getting the benefit of your money. STRIKE A BALANCE
Next time you see me smiling, that is why. I am blessed and Lucky.