Tip No. 4: Don’t put all your eggs in one basket. Diversify
|Diversify your money.|
It is important to diversify or spread your money in different investments like time deposit, bonds, mutual funds, stocks, real estate or even establish your own business. Don’t just place all your money in one company, invest in different companies. Like for instance, instead of buying shares in one company only, buy shares also of other different companies. You might be wondering, ‘why do you need to diversify?’ By spreading your money in different investments, you also spread the risk. In case you incurred a loss in one of your chosen investment vehicles, you still have your other investments. Always remember the higher the risk, the higher potential returns.