Income Diversification

Income diversification is the strategy of earning money from multiple sources rather than relying on a single income stream. It helps reduce financial risk by spreading potential earnings across different activities or investments. For example, someone might have a primary job, investments in stocks or property, and a side business. This approach provides more financial stability because if one income source declines, others can help maintain overall financial health. Essentially, it’s about creating a balanced portfolio of income streams to protect and grow your finances over time.