I think I qualify myself into the type of the era where the diversification was not easy. The internet was in 2G and life was slow. And the slow was even more than the slow that we have since the covid. At that time the parents used to tell us that kids should study, get a job and retire with pension.
Today if we try to that approach and insist on following the parents formula. You would find that you wont be finding the company that employs you for life and gives you pension. You have to keep on switching the companies and that would not make it easier for you when it comes to do the life time plans.
Each 5 year block the world is changing in terms of the job, career, relationship, family and other constrains. And we can't predict the same like our parents world used to do and it can be hard. Now a days you can't even have the family based on the income of one. As that would make it even more harder for you in the longer run.
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Diversification - What if we don't do it?
Let's take a look at the long term frame it would be something you would be facing is as follows.
- You would not be able to rely on the pension, which is gone concept from now on.
- You would struggle meeting the needs of the family as a solo worker.
- You would suffer on the emotional front if you rely on the single income, job and pension.
- You would have issues buying your own house and settling to the safe location.
- You would have more social issues as you are forced to adjust in locality based on income.
There is always some good and bad sides to what we choose to do in our life. And so the diversification is something you would struggle long term. You would face problems of such extent that you would have to bring in more people to add the income in the family.
Conclusion
Diversification in the age of today is necessary. You just can't ignore it. And ignoring it is going to cost you on the financial terms. So you have to find out ways to do the diversification. And so you have to learn about how to do the diversification the safe way.
Have you done the diversification? What plans did you do on that front?