Diversify to weather the financial storm.

The economic storm continues to rage. The high street chain Zavvi has gone into administration, another victim of the credit crunch. When Richard Branson sold his stores to Zavvi, he later wrote in his book "Business stripped bare" that the shops were unprofitable due to high rents and people buying music and films online. This shows that no matter how good a business is, in the end the current market defines what actually happens, and failure to use current business channels makes disaster much more worse when it strikes.

No one knows where the next economic failure will be. Always try to stay as diversified as possible in your investments, that way, if one financial ship sinks, you will still have others sailing for you. Never put all of your wealth into one basket, under any circumstances.

The worst of this financial storm is not yet over, and now more than ever is the time to play it safe, making conservative low risk, low yield investments. The key to wealth is to build it up over time, slowly and steadily, like a tortoise. Eventually you will reach the finish line.