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What Does Diversification Mean to You?

Diversification can mean several things. To most people, it’s spreading their money over a range of investments so that if one investment doesn’t do well, the rest of the money won’t be affected and there’s still plenty to fall back on.

For the past year, I’ve unknowingly been diversifying another way.

With my investments, I do a pretty bad job of diversifying. I have my money in a few broad mutual funds, and the rest is kept in low-interest savings accounts.

But when it comes to my job, I’ve done an amazing job at diversifying. Not only do I work a full time job, but I pull in a decent side income through blogging. When I add in another side venture, there’s an additional stream of income. And now, with the addition of writing for WiseBread, I have yet another option for ways to bring in income.

I do not consider myself a writer by any means. I am interested in personal finance, but writing several times a week is one of the last things I expected to be doing. Still, if I were to lose my primary job, I would be able to meet my expenses each month without dipping into savings because I have a healthy income coming in on the side.

Of course, nothing is guaranteed, so I keep plenty in savings, but I feel prepared that if disaster would strike, I would be reasonably prepared.

What does diversification mean to you? How prepared are you should something unexpected happen?



  1. I would love to have diversified income. Unfortunately, my blog isn’t bringing in any money yet. I guess I’ll just have to keep plugging away.

    I did sell my Wii and old cell phone on eBay last week and made $180. Does that count!?

    • @Kevin McKee, For sure, but you definitely should have just given me the wii for free, that would have been the smart financial decision. You know better than that.

      Your blog is built for the long-term and your content will take you far. Once Google recognizes that you have an awesome site, the money will start rolling in.

  2. I look at diversification the same way you do (No suprise, I guess). It is the ability to turn one stream of income off without too much pressure on the others. Granted I am not near being able to turn off the day job stream, but getting closer and closer everyday

  3. At least you are invested in mutual funds, most of the time that is diversification within itself!

    Not a fan of a low interest savings account though lol.

  4. When I was in college, I had loads of income streams, waitressing, tutoring, house sitting, dog walking, you name it. I’d like to diversify income streams again, but with my career it’s a little tough, so here’s how I do it.

    1. Do it myself – I add equity to my homes by fixing things by myself. Sweat equity.
    2. I diversify my savings – stocks, cash, home equity.
    3. I keep my skills current so I can switch jobs if need be. I also am in sales, so I’m somewhat location independent depending on my territory.

    Options are good.

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