Financial Education - Income diversification as a salary protection mechanism

in hive-175254 •  last year 

Diversifying our income is one of the most discussed topics in recent times, basically because it is the way to protect ourselves from massive corporate layoffs or bank, institutional and state bankruptcies.

Source ( iedunote. )

Financial experts say that one of the greatest dangers of economic downturns is the effect on the labor market, as many companies are forced to lay off part of their workforce, leaving millions of people vulnerable and poorer.

Hence the need to achieve a diversity of passive income, this with the objective of being able to counteract the danger of a potential layoff wiping out the total of our finances, therefore highlighting the need for these paid activities to have great variety.

It is therefore a matter of diversifying investments to prevent a setback in one of them from disrupting all plans, but in the current macroeconomic crisis scenarios this could mean taking on additional employment, which is not affected by the same factors as full-time employment.

Source ( movi-invest )

Also making sure that your sources of income are not crowded into a similar or related industry is critical, so that if one market takes a hit you maintain income from another source.

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