We’ve all heard the phrase, “Don’t put all your eggs in one basket.” However, for many of us, it’s easier said than done. It’s easy to get excited about a particular investment, job, relationship, or idea. When can additional options be beneficial?
Finances. Diversifying when it comes to investments is important in reducing risk and susceptibility to volatile stock markets. If your investment crashes, you may lose your hard earned money. Mutual funds are a great way to invest in various areas of the market, meaning you have a lower risk of losing all of your money at one time.
Careers and Job Changes. When you are job seeking, it can be easy to focus on one opportunity. Don’t quit because you found one you are really excited about. A lot can happen. Someone else may be selected, the opening may close, the salary may be bad, or there may be something even better out there!
Relationships. Do not confuse being committed to a relationship of any kind with putting all of your eggs into one basket. You can be committed to a relationship while still being committed to yourself and your aspirations. No matter your relationship status, make time for people you care about, yourself, your hobbies, and your dreams. Sometimes those ideas may differ from your partner’s. That can be okay. The problem occurs when you lose your autonomy and sacrifice yourself for others.
Diversifying your life can be a key component for your mental (and sometimes physical) well-being. Reducing your risk should not be limited to investing in the stock market. We should consider uncertainty in all aspects of life.
“Rise above the storm and you will find the sunshine.” Mario Fernandez