The Investment Jar

Ever packed a suitcase the wrong way? Clothes stuffed in first, then you try forcing shoes and the laptop on top. No matter how much you press, nothing sits right. Pack it the other way - shoes and laptop first, then clothes folding into the spaces - and suddenly the same suitcase feels balanced. Investing is no different. The order you choose decides whether your financial life feels steady or messy.

The Jar Experiment

A professor once showed it with two jars.

In the first, he poured sand. Pebbles sat on top. When he tried to add rocks, they wouldn’t fit. It looked full, but the important things were missing.

In the second jar, rocks went first. Pebbles rolled into the gaps. Sand trickled down and filled every space. Everything fit.

Same jar, same ingredients. Different order.

Most portfolios I see look like one of these two jars.

The 80/10/10 Recipe

Think of your financial portfolio as a jar. Fill it in this order: 80 percent rocks, 10 percent pebbles, 10 percent sand.

Rocks (80 percent)

• Emergency fund: three to six months, easy to access.

• Insurance: health insurance and term cover that protects your family.

• Mutual fund SIPs: 3 to 5 goal-linked funds, reviewed once a year.

This is the foundation. Like a meal, you need rice or roti before chutney and pickle.

Pebbles (10 percent)

• Direct stocks, but only after seven to ten years of steady SIP discipline.

• Limited names, small sizes, reviewed by rules not moods.

They add flavour, but only after the main course is steady on the table.

Sand (10 percent)

• Trading, themes, speculation - small and written down.

• Clear entries, exits, and loss limits.

• Allowed only when big goals are already on track and you have at least fifteen years of steady investing behind you.

These are the spices. A pinch can lift a dish, too much spoils it.

Add them in the right order and everything fits. Get it wrong and Panic becomes your portfolio manager.

Two Scenes I Often See

Sand first - A young investor, caught up in hype, jumps into trading with no safety net. One bad Monday, markets drop, positions go wrong, and peace of mind vanishes. Jar broken.

Rocks first - A couple starts with emergency fund, insurance, SIPs. They review once a year. In year ten, they add a few stocks. In year sixteen, with goals secure, they allow some speculation. When markets fall, they stay calm. SIPs continue, sometimes they even add more. Their jar stands strong. Same ingredients, different order. Lifelong difference.

Quick Jar Check

Ask yourself today:

• Can I access my emergency fund in one or two days?

• Do my insurance covers reflect today’s life?

• Are my SIPs tied to real goals?

• Have I invested steadily for seven to ten years before investing in stocks?

• Am I debt free and my goals taken care? Only then speculate.

• Does my portfolio reflect 80/10/10?

Why Mutual Funds Deserve to Be Rocks

• They make discipline automatic.

• They spread risk without daily effort.

• They let you rebalance quietly.

• They tie money to goals and dates.

Sand washes away. Rocks hold fast.

Closing Thought

Cooking reminds us: start with the main dish before sides.

Cricket reminds us: build your innings before swinging for the ropes.

Chess reminds us: control the centre before choosing to attack.

Investing is the same.

Place the rocks first. Pebbles will find their gaps. Sand will always have space later, but only if the jar is steady.

I am always here to sit beside you and help you fill the jar right.