Don’t put all eggs in one basket…

Our financial life matters. And that’s more of a reason why we have to take note of how we spend our money. Some people say money is like a visitor, it just comes around, and if not well welcomed, then it would find its way away from you.

Financial education is a broad topic to discuss. And that's why we have a lot to discuss when it comes to finances. Trade, profit, loss, budget, accounting, savings, banking, debt, loans, investments, assets, liabilities, and many more are all financial-related topics. If you want to have a full understanding of finance then you should know a bit of all these.

The way debt could affect your finances if care is not taken is just so underrated. And gradually without knowing you get to see that your financial life is in shambles.

Debt is somehow inevitable at some point in one's life because you can’t be financially stable forever. But as much as possible it’s best to try avoiding debt by all means.

Accumulation of debts weighs on financial stability, no matter the source of income you have once you get overwhelmed with debts, then there is little or no guarantee of your financial stability. If you are a business owner then you should try as much as possible to avoid debts. As for the salary earners too, debt should be avoided by all means.

One thing I realized over time about finance is that “we should try as much to make sure not to put all eggs in one basket”

I am still young when it comes to finance, but I can say over time I have also learned to manage my finances, those who can't manage a small amount of money have no guarantee that they can manage a large amount. Many times I have worked with budgeting and wise spending, I have owned a business and financed it, and I also have some other streams of income.

To be financially stable, one has to learn to divert their source of income. Not putting all eggs in one basket. This might give two different meanings. It could be the fact that one doesn’t put all money into one source of income, and it could mean one should as much as possible not rely on only one source of income.

Having a passive and active source of income is one way to overcome financial breakdowns. I have tried this over the years and realized that it works well. There will be financial breakdowns but not a total breakdown. If your active source goes down, you can temporarily rely on the active source. If the passive source breaks down then you can remain on your active source.

In conclusion, you can't have a perfect financial life, but when you try to take precautions and wise steps then you realize that you are always finding a way out of financial burden.

Try as much as possible to invest wisely. Invest more in assets and not liabilities. If possible find ways of making your money work for you and not just have them dormant in your bank account or somewhere in your home. All of these are ways to gain financial strength over time. Have this in mind as a business owner that loss is part of business. So expect to see it coming always.

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This is my response to the HIVE LEARNERS weekly prompt in hive learners community for the Week 116 Edition 1 and the topic to be discussed is FINANCIAL LITERACY

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