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...] about Diversified Income
income
Income Diversification
Most people make money from their job working for someone else, and that is it. This is an extremely precarious situation, because if the job goes away, it takes away 100% of their income. The ideal situation is a number of different income sources that can all be ramped up, if necessary. In this post, we are going to look at several different sources of income. Job This is where most people make their money. They work for an employer that pays them for their time. An advantage of this type of income is that the employee doesn't have to know much about running other parts of the business. They can concentrate on their portion of their job. A janitor at Google doesn't have to … [Read more...] about Income Diversification