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- Income & Making Money
Why Diversification Is Important And How To Do It!
Many of you who are reading this article might have experienced what it feels like when you are making a fair amount of money and then all of a sudden, for whatever reason, it stops making you money. This can be from loosing your current job, or your business (either online or offline) going out of business. That’s why I always promoted the idea that you should diversify.
Diversification doesn’t mean that you shouldn’t be focusing on one, or a maximum of two things at a time; you absolutely should. Try building up one revenue stream at a time, until it pretty much takes care of itself, and becomes passive income for you. You should also set a goal for your self before you enter into that income source and set a goal for what income you are comfortable with at that. My goal is that each revenue source would earn me between 50-100 USD per month passively. Now, this goal can change, and sometimes I do return back to previous revenue streams of mine, just to see if I could improve it, and if I feel it is worth the time, I do work on it.
You shouldn't diversify only horizontally but also vertically. You should also try extremely different revenue sources, like bonds, stock dividends, CD (Certificate of Deposit, mutual funds), Internet Income (affiliate marketing, site/blog ad income, paid to click, etc), and of course the good old jobs (this could be both your regular job complemented by small temporary jobs, such as shoveling snow during weekends).
And of course always keep in mind that you cannot become financially independent if you spend more then you earn. Try saving as much as possible, and as early on as possible.