Building a strong, flexible, renewable and sustainable financial portfolio is a lot like building a weather-resistant home. The overall strength of a house is dependent on how well its components — the walls, floors, roof and foundation — work together as a singular unit.
To build a home, you start with a full set of construction drawings. This is the blueprint that details not only what your house will look like, but all of the individual components that will integrate to create the home. Obviously, you don’t just start with one room and then add on later. You design the whole house at one time. To do so, you must first consider all of your objectives for the house, including the specific components and features that you want in the house – and those you don’t. With these objectives in mind, you and a professional designer would work together to draw a plan that includes every room and every detail of each room until you have a full set of construction plans, plus a list of materials and resources needed to build the house.
A financial portfolio comprises a foundation, walls, roof and even fencing. When constructing your fiscal house, you must begin with the foundation, because without a strong foundation, the house may crumble.