I have found that with things being very unstable these days, it seems like good practice to diversify. I mean for us regular people, who have jobs, a little savings, a work 401 K. I have felt to split money up into various places for savings or emergencies rather than put all my eggs in one basket. I have three bank accounts at three different banks, some cash at home, a retirement account' and I plan on buying a small amount of gold soon. It's not that I have a bunch of money. I don't, it's that in an economic melt -down. I don't think it's wise to have all the money in one place, especially if that place is at a bank that can lock the door and shut off the ATM. What do you think?
I think diversfying your investment is a good idea and if you can you need to go a step further and aim for self-sufficiency. Buy land in a rural area, start a farm, grow vegetables, breed/rear some farm animals. Should you lose your job or lose the money you've invested, you wouldn't be be fine because your farm can provide you with all the food you need and the proceeds from the surplus you sell can be used for other things.
It's a good policy not to put all your eggs in one basket. I also have several bank accounts - one for house expenses, one for my daily expenses, one for installments and another for emergency savings. Aside from the bank accounts, I also have savings spots like my wardrobe cabinet, my office table's drawer and some other secret places. In case of emergency, I have a fallback at least especially when an unexpected expenditure comes up.
I totally agree. I have always believed in that principle and I really try to live by it when it comes to my money. I have put away some of my savings in various investments and I am also trying to invest a little doing buy and sell so I could get my money rolling.
In today's investment environment, diversification is key. Placing all your eggs in one basket is very risky and you need to protect your downside risk. A bank is a business which may collapse like any other so spreading your money in different banks is a great idea.I like your idea of moving to a rural area and starting a farm. City life is very expensive everywhere in the world. A farm is a good idea and if well managed can be the source for all your food. This can be a great saving on your paycheck.
It takes a long time to reach financial milestones. I am now working on the emergency fund and hope to be in good shape there by the end of the year. I will then want to turn my attention to business start-up and investing. Eventually we may want some land. I try not to get too far ahead of myself because I want to see what becomes possible as it all unfolds. I may think it will go a certain way, but until time happens, I don't really know how it will go. I make plans but I keep an open mind too. There are plans for diversity, I just can't do it all at once.
" idea and if you can you need to go a step further and aim for self-sufficiency. Buy land in a rural area, start a farm, grow vegetables, breed/rear some farm animals. Should you lose your job or lose the money you've invested, you wouldn't be be fine because your farm can provide you with all the food you need and the proceeds from the surplus you sell can be used for other things." (Denis Hard) *sorry the quote feature wold not work for me) Yes, this is a good idea. I try to grow vegies, fruits, herbs etc and that does help. I make a lot of my own things in general, cleaning supplies, blankets, and many useful things. I save money and get that value of knowing how to make it with little to no money if necessary. haven't even had to rely on living in rural areas to do it because I mostly grow in containers on porches, tiny yards, and balconies if need be.
I totally agree with you! I'm the same way with my money. I have some here and I have some there, for years my husband thought I was a worry wart. I don't know why he assumed I was a worrier because I never talked about being scared of the economy collapsing. I just saved my money and made sure I had money in several places. I've always been a saver and that's just how I roll.
Diversification is a must in today's fragile economic situation. I have money in three different banks but I also have some in the house and they're a good mix of local and foreign currency (US$). I am working on a day job full time and online part time. I've also started a business that doesn't require much of my time and can pass off as almost a passive income. I've invested in government bonds which is more secure than other stock investments as the earnings is fixed. I am securing my future because I've seen how poverty and failure have destroyed the lives of some bright and good people I know. I don't want that to happen to me.
I agree. I do diversify my accounts but not for savings because they earn measly amount for the interest. Instead of saving my money through banks, some of my hard earn cash have been converted to Cryptocurrencies. I have some in stocks, and exchanges. I have also invested in mutual funds via a life insurance agency that I trust the most. I know for a fact that our current jobs are unstable, so I make sure my money don't just go idle. At least I could say that they are all earning money on their own through dividends, market fluctuations, and interests. I plan on doing a business in the coming months, so I guess it's enough to prevent me from becoming broke if our company goes EOL.
This is the strategy that I employ. Since no technology can be foolproof it is better yo be safe than sorry. I also tend to fd small or big amounts on the go so that the money in the bank account doesn't just sit idle. Whatever small interest I get helps in maintaining the bank charges.
You have a good foresight as to what is going to happen in the future, you are ready for the eventualities. It is just like preparing (saving) for the rainy days. Most of the people especially those who are working, who have a monthly stipend or salary to receive are not doing this for they are confident that they are well assured for the salary they received every month. But matters would come to worse. Are they ready? Are they prepared?
