In the financial investment word, you often hear the term ‘Asset Allocation’.
Asset allocation is a term used to refer to how an investor distributes his money (assets) among various classes of investment vehicles (e.g., stocks and bonds). Depending on the persons goals and desired level of risk, the asset strategies can be quite varying. Even if an investor is going for aggressive growth and high risk, he will often spread his money over a number of investment.
The logic being that not all your eggs are in one basket. If one investment crashes you don’t loose everything.
What about your personal assets?
Your strengths and skills are the assets that make it possible to earn a livelihood.
Most people have one source of income, a few have some investments that give some dividend revenue, or are set up as a retirement fund, but those are often set up for when the person retires and no longer has their main income source.
If putting all of your financial asset in one investment is a foolish idea, is it not equally foolish to invest all your personal assets in only one job/career/source of income?
Job security is a thing of the past. Todays ever changing world requires strategies for ensuring that you always have a continual source of income.
Effectively allocating your personal assets to create multiple streams of income.
When you know your strengths and skills you can effectively direct them to opportunities that will generate income (active/passive) for you.
A good example of personal asset allocation is Dave Gordon. Dave is a skilled writer and speaker. He as used this ability to:
Become a freelance journalist.
Create a University based news paper.
Work as an editor for the National Post.
Set up a blog.
Start is own radio show.
Write a book.
Note taker for University Grad Students
I’m sure there are more, but seven streams of income mean that Dave always has money coming in. He could loose half his income portfolio and still be financially sound.
The starting point is discovering your strengths and skills. There is a site called Authentic Happiness.
On the site there are an assortment of free assessments that you can take. The “VIA Signature Strengths Questionnaire”
measures 24 character strengths, and is a good starting point to help gain awareness of where to focus your energies.
After beginning to get an idea of your strengths and skills, you can put a strategy together to allocate your assets.
Two books by Robert G. Allen are worth reading.
Both of Allen’s books give you some great ideas on how you can direct your talents.
Placing all your personal assets in one basket(job), is a recipe for disaster. Were will you be if that source of income is cut off.
Taking control of your abilities can lead you to enhanced control of your income, your life, and your freedom. Your future is defined by the actions you take now. Begin to discover your strengths, skills and passion. Then play with the possibilities, where else can your value be realized.
If you hit a wall feel free to contact me. I would be glad to assist you in reaching your highest potential.
Have a great weekend.