Nearly everyone knows that, when it comes to investing, you shouldn't put all of your eggs into one basket. Investing in many different types of investments helps lower the risk that a downturn in a particular area will wipe you out, financially. (See the story about a man who only invested in street cars.) Most people don't take what is common knowledge about investing and apply it to other areas. In particular, they don't apply it to their income. When you are in a position where all of your income is determined by a single employer, you are just like the guy who had all of his money in street cars. Many dual-income families have some level of diversification by having two adults … [Read more...]
