For most business owners, their company is their largest asset, and in most cases, holds the most risk. If their business fails, they won’t know what to do next.
There is a big difference between, being super passionate about your craft and diving headfirst V.S. putting all your eggs in one basket and crossing your fingers. Now I am all for jumping in and putting all the blood, sweat, and tears into your business, however, you need to diversify your options, and make sure you have backup plans.
What happens if you have a slow month, how do the bills get paid? “Well, I have 3 months of operating expenses saved for just this occasion.” Great, but what happens if you have a slow quarter? How are you going to build those savings back up in time to throw at the next hurdle you face? This is why you want diversification. If the kitchen faucet gets turned off suddenly, you still have the bathroom faucet and the leaking backyard hose. The flow might not be as strong as your kitchen faucet, but at least it’s still consistently flowing.
A great majority of the population choose to place money in stocks, curbing the effects of inflation while making their money work for them.
This is also a way to set the money aside and keep it just out of reach, until absolutely necessary. As of the time I’m writing this, the stock market has been teeter-tottering for months, with people expecting a market crash that still hasn’t arrived. Multiple days in a row with bleeding red numbers, and very little green across the board. We could write multiple posts about what is happening in the market and why, but for simplicities sake, just know this is a very strange time for the market. With all the “Dips” in the market, it could be a good time to pick up some, relatively safe and reliable stocks.
Here is a post from our preferred trading platform that outlines the basics of stock trading: https://www.webull.com/blog/58-Trading-101
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