Are You Planting Seeds For Your Egg Baskets?
We’ve all heard the phrase “Don’t put all your eggs in one basket.” Most of us even know it means we shouldn’t have our entire result hanging on one particular success or failure. That’s too risky.
It’s a common theme for investing. Don’t put all your investments in one stock. Be diversified. You might not earn as much in boom cycles but you won’t lose as much in bust cycles either.
It’s also common in business. Don’t build all your sales around one item. Offer choices. You’ll need more shelf space but you’ll appeal to more customers.
What about our personal lives? When it comes to money most of us will get a job and collect a paycheque. That’s it. One source of income. Most of us can go a long way with that strategy once we find the right job.
It seems risky lately with all the worries about a global slowdown and a recession. What happens if our job is taken away? What happens if our hours are cut back? How will we pay the bills and support our family?
Let’s consider a situation where you and your spouse both work in a large factory. You can make good money but you can be in trouble fast if the factory shuts down or downsizes. However, your risk is reduced if your spouse works in a different industry.
If your situation is based on a single income it makes sense to spread things out and have a side project of some kind.
In both cases I’m not suggesting getting a part time job or spending your whole life working. Your family life and personal time are far too important for that. What I’m suggesting is finding a way to benefit from a hobby, a skill or your life experience.
Having a couple of baskets for your eggs doesn’t hurt.
“It’s okay to have all your eggs in one basket, as long as you control what happens to that basket.” — Elon Musk (Tesla, Space X)
“You should be planting seeds today that will grow trees that will provide shelter tomorrow.” — Sean Cannell (Video Influencers)
It’s safe to say we don’t control the basket when it comes to events like recessions and factory shutdowns. However, being prepared is completely within our control.
Both of these quotes suggest we need to plan ahead and be prepared for the unexpected. We need to take care of ourselves because nobody else will do it for us.
Plus, we need to remember that side projects will take time to generate meaningful money. It’s best to start them when we don’t need the money. It’s not a good idea to start when we can’t pay the mortgage. Right now seems like a good time to start.
What skills will we use to help people?
What life experiences will we share with people?
We need to find creative ways to get them into the world.
We need to be planting seeds.
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