You’ve probably
heard that you shouldn’t put all of your eggs in one basket. This
is especially true when it comes to income.
Do you have all of
your eggs in one basket? To answer this, you have to understand the
difference between “different baskets” and just putting “more
eggs in the same basket.” A basket is a type of vehicle you use to
accomplish something.
When we are talking
about income baskets, we’re talking about things like jobs,
businesses, investments, etc. Each of these is a different basket. So
if you were to have a job and invest in stocks, you have eggs in
different baskets. However, getting a second job is putting more eggs
in the same basket.
This fact is
particularly relevant when you consider that 96% of all Americans
procure their entire income from one or two jobs. The majority of
people have been taught that having a good job, with maybe an extra
one on the side will provide comfortable life. This is a statistic
that perpetuates itself worldwide, to every country around the globe.
The numbers might be slightly different but the message is the same.
However, this is no
longer true. Multiple Baskets of
Income is an important concept. It’s no longer true that a
company will be your home for your entire career. Businesses are
going under at the fastest rate in history. People experience job
insecurity more frequently than they used to. We are
suggesting that you begin to look at other baskets to put your eggs
in besides the “job basket.” This way, you will begin to solidify
your financial position and increase your income simply and easily.
What are your options?
Have you ever wanted
to start a small business? Today, more than ever, small businesses
are able to profit without the immense overhead that was required
years ago. The internet and global expansion of business allows
access to a larger number of customers than ever before; all without
ever having to travel further than your computer or phone.
Investing is also less
expensive and easier to do than it was years ago. Paper investments
have low commissions, can be executed online, and at this point,
there are tons of brokers who are clamoring to get your business
(should you decide you need a personal broker). Research on all
investment types is easier now as is access to almost anything you
want to know.
It’s worth noting
that we don’t advocate abdicating your investments in an attempt to
not have
to learn anything.
Instead of taking the time to learn about finance, people rely on
brokers’ advice
to determine how to diversify. Remember, diversification is generally
taken out of context. Proper diversification consists of investing in
a group of things that you have reason to believe will all
work to your advantage… not, “Let’s invest in everything and
surely something will go up.”
If you are unsure
whether the effort it takes to learn that we are suggesting is worth
it, you need to understand the realities of today’s world. There
was a time when jobs were secure but that is in the past. Company
loyalty is dead; it’s all about the bottom line now. In addition,
it is our belief that thousands of companies will be faced with an
important choice over the next 10 years. They will need to either
change their business model and cater more to an online model of
business or they will go out of business. Either way, the amount of
available jobs will decrease because even if they do make the shift,
online businesses require fewer personnel.
Investigate all the
ways there are to provide an income. Become an entrepreneur by
turning your hobby into a business. Learn how to manage your own
portfolio. Many brokers offer classes on how to invest for free.
Invest in real estate. If money is an issue, get a second, part time
job temporarily and save the money you make. There are many ways to
diversify your income. The point of this article is that you start to
consider which ways will work best for you.
It is also wise to
focus on learning and growing you largest asset, you.
When you learn at a job or elsewhere, you are able to keep that
knowledge forever. We have many resources at our website for
assisting you in doing just that.
By,
Michael Bloxton,
President & CEO,
oneMYnd, LLC.