STEP 3
Diversify
The way to reduce risk is to spread your money between different types of investments.
Diversifying doesn’t mean lots of term deposits with different banks. Diversifying means different types of investments, in different countries, in different industries, in different currencies, etc etc.
Diversifying means literally thousands of different investments across a whole range of categories each of which are exposed to differing risks to minimise the chances of too much of your capital being affected by any one risk.