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Personal Finance

Don’t Put All Your Eggs In One Basket

Investment opportunities and proposals abound yet it should always be borne in mind that inherent to every investment is an element of risk.

Bryan Hirsch




Every purchase of equities, property, government bonds and other financial products, brings with it some uncertainty about the final outcome. To evaluate and compare the different risk factors, banks, money management firms and financial consulting bodies conduct research based on published data. All this information is available and open to the public, but it is still up to the individual investor to decide on their needs and to align their requirements with those needs.
Although the equities market has rallied this year, the bear market last year exposed the mistakes made by thousands of investors. While they may have used financial advisors, many investors forgot the fundamental lesson – to diversify their portfolios. Figures published by the money market funds show how many people panicked, sold out of the equity market and moved into secure investments, fearful that they could lose more. How wrong they were as the markets rose over 50% from the low in March. Many of these investors are still holding cash, with interest rates down 5% and the market at quite a
high level.

The risk factors

Risk does not only encompass growth assets going up or down. There are other factors which play a role such as:

  • Corporate business viability
  • Economic factors, such as inflation
  • Political factors, such as unrest in parts of the world

Inflation is an investor’s worst enemy as, in the long run, it erodes capital and the size of pensions.
The rule of 72 will help you calculate how the value of money drops.
For example, divide the rate of inflation into 72. If inflation is 8%, divide eight into 72 which equals nine.This means that in nine years, the purchasing power of R1 000 will only buy R500 worth of consumables or, you would need R2 000 to buy what you bought for R1 000 nine years ago. Political unrest is a risk factor which is extremely difficult to evaluate as it does not influence all financial markets equally. As a result of political unrest a drop in investors’ confidence can lower stock markets, as we saw earlier in 2008 when enormous amounts of money were withdrawn by foreign investors, only for more to return in 2009, which contributed to the strong rand.

Each investor’s needs vary significantly

  • Do you need an income?
  • Are you looking for capital?
  • Are you looking for income and growth?

Do a comprehensive assessment of the risks you are willing to take, read the material available and talk to a financial advisor. Diversify your investments; even “rands under the mattress” will not have the same purchasing power in 10 years’ time. For peace of mind and to ensure that your investment strategy is balanced, do not put all your eggs in one basket. In my experience the majority of people who consult with me do not have enough answers to the questions I put to them regarding their financial position. Clients arrive with piles of documents which have been accumulated over the years and do not appear to have a real clue as to how all their policies and investments fit together.
What each investor must do is define their needs and then select the most appropriate asset allocation to achieve their goals.
questions which need to be taken into account

  • If you are trying to achieve growth, are you prepared to invest for the long term (7-10 years)?
  • If you need income, have you looked at all the options available (money market funds, preference shares, high dividend shares, property trusts, assurance company products – income plans and annuities)?
  • Have you assessed tax efficiency and inflation?
  • Each investor has a different attitude to risk. Have you evaluated the risk you are taking? Although you may be willing to take a risk, do you understand that there will be times when your investment declines. It’s during these times that it is necessary not to panic.
  • It is possible that the investments you already have will fit into a changed strategy but you need to assess the “financial jigsaw puzzle” and see how each piece fits.

It is essential to have regular meetings with your financial advisor to assess whether your objectives are being met. Do not be overly concerned by short-term setbacks. If your investment strategy is sound, these setbacks could give you greater opportunity to invest at lower levels.

BRYAN HIRSCH has been in the financial services industry for 47 years and is a director of Bryan Hirsch Colley & Associates. He has written two books, the first Bryan Hirsch’s Guide to Personal Finance and more recently, Steps to Financial Freedom. Bryan has written for many of South Africa’s top financial and business publications, has been a weekly guest on Radio SAFM for 18 years, and has his own weekly TV show You & Your Money on Summit TV.

Personal Finance

6 Ways To Develop A Millionaire Mindset

Chasing money has remarkably little to do with getting rich.



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If you truly want to have a million dollars, you must first be and think like a millionaire. By doing so, you will attract the necessary resources to you.

So, you want to become a millionaire entrepreneur? You’re not alone. Many dream of leaving their job and becoming their own boss, enjoying the various millionaire lifestyles we watch on TV. But there’s a difference between those who dream of becoming millionaires and those who do. And it begins and ends with mindset. If you don’t develop that mindset, you will continue to spin your wheels, working just as hard, but never going anywhere.

Developing a millionaire mindset requires you to stretch your thinking. Start by developing the following six attributes.

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Personal Finance

4 Ways To Become A Millionaire Even When You Start With Little

It costs nothing to take advantage of the limitless opportunities online.

Timothy Sykes




The hardest part of becoming successful is getting started to begin with. But despite the challenges ahead of you, there’s a way to become a millionaire when starting with little. I’m going to show you four reasons why you can become a millionaire with just a small investment.

1. First focus on learning, not big gain

Education is your greatest weapon. Focus on learning in the beginning. Don’t make the mistake of focusing on making huge gains in the beginning. Learn everything you can because this is how you build the foundations for long-term gains.

Related: 21 Choices Millionaires Make That You Aren’t Making But Should Be

They say that if a millionaire goes bankrupt they’ll nearly always be able to get it back. And that’s because they might have lost their money, but they have the knowledge of how to get back to where they need to be.

2. You can learn loads about any topic online


I’m grateful for the internet. It’s the single biggest library in the world. You’re reading this article right now and you’re acquiring knowledge you wouldn’t have been able to acquire 40 years ago.

Use the internet to its fullest extent, whether that’s through reading books, browsing articles or watching video tutorials. Set some time aside every day to learn something online. It could be a video series or a favorite blog.

When you get into the habit of learning regularly you’ll find that you advance much faster.

3. Focus on the niche you love

These days you can learn about anything and target the niche you’re passionate about.

This is what I was able to do with penny stocks. I found a gap in the market and provided knowledge to people who wouldn’t have otherwise being able to access this sort of information.

You can do that with absolutely any niche. When you find a niche you’re passionate about and you use the reach of the Internet you start to make huge gains.

4. Prove your expertise by creating free content

Your reputation as an authority is the new business card. There’s a reason I created a penny stock guide and made it free for all. You may have already seen ads for it on social media. The way to succeed with little is to create a reputation through your content.

Related: How To Become A Millionaire, Explained In 1 Minute

It’s the gateway to success because through free content you start to build relationships with others who value your work. And from there everyone gets richer.

You can do lots with a little

The days when you needed a huge investment to become successful are long gone. These days you can do so much with just a little. Find what you love, advance your knowledge in that area, and create a product that fulfills a need. Finally, work on building up relationships through portraying yourself as an authority on your subject.

Combine everything together and you can accomplish anything.

This article was originally posted here on

Related: 13 Habits Of Self-Made Millionaires You Could Adopt Today

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Personal Finance

10 Tips To Become A Millionaire This Year

Becoming a millionaire requires changing your mindset and implementing some changes.

Murray Newlands



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Becoming a millionaire may seem out of your reach, but it’s possible with the right attitude and guidance. The fact of the matter is your income can only grow as quickly as you do, so you need to change your mindset to achieve your goal of becoming a millionaire.

Once you have a millionaire mind, you can’t lose it, no matter what financial or business mistakes you make along the way. To get yourself there, you’re going to need some structure. To help you, I’ve outlined the top ten tips you should follow to become a millionaire this year.

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