It’s no secret that many investors have lost a fortune in the past few dismal months. While losing money is always stressful, there are ways to safeguard your finances and protect your nest egg.

The key is to diversify your finances so they’re not all wrapped up in the same opportunities. I’m not talking about putting your money in different stocks. My philosophy goes much deeper than that.

Savvy investors and investment experts have learned the concept of dividing your investment income equally between three piggy banks. Here they are:

• Savings: This money is off-limits and should never be touched. Even if you’ve been given an amazing deal that could potentially multiply your wealth a hundred times over, leave this piggy banks alone. The potential reward is not worth the risk! This money will be your safety net if your investments tank. At the end of the day, you still need to feed and clothe your family, and the savings piggy bank will help ensure that you can take care of yourself no matter what the market does.
• Investment: This is the piggy bank that you’ll dip into for the above-mentioned investment opportunities. Feel free to take risks with this money, because even if your investments fail, you will still have your savings and you can slowly build your investments back up again. Matthew 25:15 teaches us that we shouldn’t be afraid to take risks with the money that we’ve earned with our God-given talents, and having multiple piggy banks can help take the fear out.
• Giving: The Bible also tells us we should give to those less fortunate than we are. Your options of giving are limited only by your imagination and instincts. If you don’t already have a favorite charity that tugs at your heart strings and compels you to give, do a little research to find a cause you will feel good about supporting. You might also choose to give your time, which is just as valuable as money.

By utilizing the three piggy bank concept, you will be able to protect yourself from financial hardship, choose opportunities that might increase your wealth, and give to worthy causes. The bottom line is that you can sleep easy at night knowing that you’re doing right by yourself, your family, and your fellow man.

To learn more about the three piggy bank concept, please visit my website and read my article titled “Divide Your Wealth Into Three Piggy Banks for Optimal Returns.”

Tags: finance, Investment, Ron Wellman