Topic: The rate of value between financial Utilizations and Diversifications of income - page 2. (Read 243 times)

it is the quest for effective utilisation of income that brings into play th idea to diversify your income into a different alternative.

The only time diversifying your income could be a bad option is when the person doesn't have what it takes to managing the different sources of income if not the best thing to do as someone that's currently earning from a single source is to put your savings into another source that can still fetch you more income. You can't be 💯 certain about what can happen to your job in the future so it's always best to invest into other sectors so in case a sector is having some downtime, you could easily sustain yourself from another sector while waiting for things to get better in the bad sector.

I understand the power of specialisation in a choosen field and how it can boast your productivity to a very large extent but with regards to job and financial security, I'm not a big fan of over deo ndence on a single streams of income.

Utilization in the sense how they manage their expenses right?

One source of income or multiple sources of income doesn't matter if an individual doesn't have discipline with their expenses. For sake if someone making 5K per month in one job or by doing multiple jobs and they spend 4800 per month then it's considered irresponsible behaviour in their spending nature and those individuals may never be financially independent.

On the other hand if someone is making 1000 per month and they managed to save 300 per month then invest then invest savings atleast into an asset that gives around 8 to 10% returns per year then in the long run the one who made 1000 will be richer than the one who made 5K.

I have been on a high notice that when we talks about how we could have reliable incomes, we basically relies that point at diversifications of incomes while we underrates the motions to utilize our incomes.
Talking about how to build a financial structure to attain a great heights is primarily considered when we hold on to utilizations of our incomes before considering the diversifications of incomes.

Let's briefly discuss about diversification of incomes and Utilizations of our incomes and then let's figure out the holding that is more vital to secure a better financial stance.
So now, financial expenditures disciplines helps an individual to utilize his incomes in a productive manner, it could be of savings and economizations in reserve for the future. It helps an individual to keep a reliable bankroll nomatter how little or big the rate of income maybe. Although it might not be enough to afford the individuals needs.
While diversification of incomes is to have broad measures for income flows.

In most cases, some person's with just a source of income meets a greater height in achieving great things than those who has multi source of incomes.
So, if a diversified investor is not efficient enough to utilize the incomes, then his incomes is said to be void in as much as you don't keep a reliable bankroll and you don't stress on achieving great things.

I might not be so opened with the thread but my point is that Utilization of income has better based lines of productivities than of diversifications of incomes.

Let's discuss!