"The beauty of life is diversity and diversification." - Debasish Mridha
Pregame Prep (today's overview)
I have spent the last week reflecting on diversification and why it should be part of your playbook to freedom. I trade in the stock market for a living and diversification in trading is a popular topic for many investors, but diversification has also been part of all aspects of my life. I have invested in mutual funds and the stock market since I was 17. I can't believe it's been almost three decades! Time really moves faster than we realize. Mutual funds have built in diversification without most people even thinking about it. Today's playbook to freedom is going to talk about diversification across my life if you want to read more about my diversification strategy in the stock market head over to my other site at Good Kids Trading. You can read the stock/investing blog here.
Film Review (my experience)
As I mentioned diversification has been a game-changer in my life and not just in my investments. From a young age I admired Warren Buffett and knew that diversification was key to success. I still remember the quote in my economics class from middle school: "diversification is the only free lunch." And if you know me, you know food has always been super interesting to me! This quote actually made me really think hard. What is diversification and why is important? From that point on I thought, if it works with money why can't it work everywhere else?
So I applied this principle of diversification to my life as a whole. I was the guy who would make friends with the kid sitting alone at lunch. I was the 'jock' who would hang out with the direct opposite type of people, you have to know the groups I'm talking about without me having to place labels on them. I was never satisfied just believing one thing, or hanging out with one 'type' of group. I've always enjoyed meeting different people, trying to learn more things I didn't understand or appreciate. I left my corporate job to pursue my passion for helping others and teaching others what I've learned because I met people who challenged my comfort zone. The decisions I made led me to an amazing adventures from Central America to Europe with strangers who became life-long friends. I also found a community of like-minded individuals online and formed business partnerships and more life-long friendships. Had I stayed in my comfort zone, I would still be stuck in a job that didn't fulfill me. But pushing myself to follow my dreams and diversify my life has brought me immeasurable happiness and fulfillment.
Diversification is not just about investing in different assets; it's about broadening your horizons in all aspects of life. By diversifying your interests, career, and network, you can create a more fulfilling and well-rounded life.
Offensive Game Plan (actions to obtain freedom)
Expand your knowledge: Open minds open doors. Broaden your perspective and understand that there is always more to learn.
Find new interests: Say yes more often! Remember, there are things you don't even know you don't know. If something is not for you after giving it a try, that's fine; stop doing it. There is power in no. I have found such amazing opportunities, experiences, and friends exploring new interests!
Build better networks: We've all heard that our network is our net worth. It's really true! Make an effort to talk to people who come from different backgrounds, cultures, and professions. Connect with people who aren't like you, go to meetups, and events that slightly pique your interest! You will find amazing people and opportunities you never expected!
Find new passions/careers. If your current job/career is not something you are passionate about, it's time to start looking for other opportunities! Develop new skills, expand your knowledge and network!
Travel: Exploring new places and cultures can broaden your perspective and help you understand the world in a different way. It can also be a great opportunity to meet new people and try new things.
Volunteer: Giving back to your community is so rewarding! I have learned so many things and been exposed to so many new people and situations. Look for opportunities to volunteer in areas that interest you, whether it's working with animals, helping the homeless, or supporting a cause you care about.
Defensive Game Plan (actions to defend your freedom)
Fear of failure: Do not let failure keep you only doing what you know! Embracing the possibility of failure will lead to growth and new opportunities, and it will help you develop the resilience you need to succeed in life. By taking calculated risks and trying new things you will become diversified across all areas of your life!
Lack of time and research - There is a fine line between spreading yourself too thin and spending enough time researching and discovering alternatives. Comfort Zone - Get comfortable being uncomfortable; this is where growth happens. Don't let this stop you. Overwhelm - Don't overdo it. There is power in saying no. Identity - If you see yourself as a musician, don't use this as a reason to not look into sports or business. 88Open Minds open doors.
Post-Game Review (key takeaway)
The most important thing about diversification in life is that you will develop a more well-rounded life! Let go of your ego and thinking you have to totally understand. You will find a broad range of skills, experiences, and perspectives that enhance your growth and help you feel happier and more fulfilled! Diversification helps us adapt to change, seize new opportunities, and overcome challenges in different areas of life!
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