I’m sure you already know that you should diversify your sources of income. If you’re relying on just one stream, you could end up broke very quickly.
When things are working out just fine for us, we tend to forget about diversification. We may have a job, a business, or a side hustle that’s churning out cash on a reliable basis.
This, folks, is the exact time you should be diversifying.
I’ve read so many stories over the last few months of people losing a stream of income because some company shut them down.
I read a story recently about how Vocal Media refused to pay a writer. She eventually got paid, but they shut her account down. That also resulted in her Stripe account getting closed as well. What a nightmare.
She managed to get the Stripe account reinstated, but she won’t be earning any longer on Vocal Media.
Luckily, she has diversified her income streams, so all is not lost.
If heard of a few people getting their Amazon Associates account shut down. No problem if you’re diversified. A big problem if you’re not.
On Reddit, I’ve heard many stories of PayPal shutting down accounts that resulted in people almost losing their businesses.
Over the years I’ve made sure my investments are spread across different asset classes and across different countries. Most people think I’ve overly cautious. But just look what happened to Russian people recently.
Many are totally cut off from some streams of income and can’t even pay for goods with their credit cards.
If only they’d kept some money in a separate account in a different country.
I travel a lot, so it’s a no-brainer for me. I have my UK accounts for when I’m at home. I have another account in Asia and another in the EU. I’m well covered.
I also have crypto spread across many accounts.
And my side hustles are equally diversified.
If one bank account fails, I have others as backups. If any side hustles fail, I have backups as well.
Isn’t this a hassle?
Yes, it can be a bit of a hassle maintaining these accounts. But it’s a small price to pay for peace of mind. It ensures I sleep well at night.