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Why Diversifying Your Portfolio Can Make You More Money and How to Do It

Diversification is key to keeping yourself protected in a highly volatile sector

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How to diversify your portfolio to save money

When you put your cash into the stock market, there is a 1-in-4 chance that you’ll lose money, regardless of the year. This can lead to significant loss, especially if you are still a beginner who does not know how to choose the right stocks. A change in the market can also lead to failure, despite how much care and thought you gave into choosing your investments.

This is where portfolio diversification can come to your help, as it offers you the safety net you need to minimize loss. In this article, we will talk more about diversification and how to take full advantage of it as an investor.

Why Is Diversification Important?

As a beginner investor, you may feel tempted to stick to one type of asset that you are familiar with. For example, some go for real estate stocks, while others prefer assets in the pharmaceutical market. The latter can seem appealing to some, especially as this sector is on the rise after the COVID-19 pandemic.

The problem is that if one market crashes, there will be nothing else for you to fall on. Think about the great market crash of 2008. Before that, the housing sector seemed so promising, with many people placing their investments in this industry. However, only a few predicted this crash, the others being taken fully by surprise. Anyone with real estate assets saw a great loss, leading to a recession.

To prevent this from happening again, a good failsafe is not to keep all your eggs in the same basket. Because if the basket drops, all of them will be ruined. Instead, you have to keep things separate and diversified so that it won’t affect you as much if there is another crash. It helps your risk management, as you still have other options to fall back on, acting as a safety net.

What Should a Diversified Portfolio Contain?

This type of portfolio requires different assets with the potential to bring passive income. It can contain a harmonious blend of domestic stocks, bonds, and short-term investments such as CDs (certificates of deposit) or money market funds. Cryptocurrency has also seen a surge in popularity, with more and more investors adding it to their portfolios.

You need to remember that diversification is not just limited to traditional assets such as stocks and bonds. Modern passive income methods should also be added to it. For instance, if you have extra bandwidth you are not using; you can use bandwidth-sharing apps to earn money passively. Their popularity has increased, especially as many people are enjoying unlimited internet plans.

Top Tips to Diversify Your Portfolio

This process is quite straightforward as long as you are open to it. Here are a few good ways to balance your investments and manage your risks: 

1. Consider More than Two Investment Types

Very often, when people put together a diversified portfolio, they think about two alternatives: stocks and bonds. Financial advisors have advised on a ratio containing these two for a long time now, and it indeed brings benefits. However, this can help you think outside the box so you can boost your profit. From equities to crypto and commodities, multiple investments can lead to stronger safety nets.

2. Consider Index Funds

If you’re looking toward a diversified portfolio but don’t want to make the investments yourself, then you should keep index funds in mind. Also referred to as mutual funds, this investment form pools investor money into various assets (usually bonds and stocks). With this method, you invest in the market, so make sure you go for multiple industries in case the current one crashes.

3. Set Some Cash Aside

Diversification does not mean that all your money must go into investments. The market is always prone to fluctuation, and the cash can be there to save you. A good tip would be to put that money into a certificate of deposit (CD) or a high-yield savings account. The sum will remain yours, but you’ll earn more interest as it is sitting there.

4. Try Alternative Investments 

As of late, millennials and Generation Z representatives are moving away from the stock market and going for alternative investments. This is because the volatility is lower while offering multiple investment types. You can go for ETFs, stocks, collectibles, gold, and more. Focus on different industries to keep the risk as low as possible.

Diversification is key to keeping yourself protected in a highly volatile sector. Remember, the market is constantly changing, which is why you should revise your portfolio regularly. Consider your goals and milestones, making adjustments accordingly so that your earnings reach their full potential.

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Life

9 Harsh Truths Every Young Man Must Face to Succeed in the Modern World

Before chasing success, every young man needs to face these 9 brutal realities shaping masculinity in the modern world.

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harsh truths for young men
Image Credit: Midjourney

Many young men today quietly battle depression, loneliness, and a sense of confusion about who they’re meant to be.

Some blame the lack of deep friendships or romantic relationships. Others feel lost in a digital world that often labels traditional masculinity as “toxic.”

But the truth is this: becoming a man in the modern age takes more than just surviving. It takes resilience, direction, and a willingness to grow even when no one’s watching.

Success doesn’t arrive by accident or luck. It’s built on discipline, sacrifice, and consistency.

Here are 9 harsh truths every young man should know if he wants to thrive, not just survive, in the digital age.

1. Never Use Your Illness as an Excuse

As Dr. Jordan B. Peterson often says, successful people don’t complain; they act.

Your illness, hardship, or struggle shouldn’t define your limits; it should define your motivation. Rest when you must, but always get back up and keep building your dreams. Motivation doesn’t appear magically. It comes after you take action.

Here are five key lessons I’ve learned from Dr. Peterson:

  • Learn to write clearly; clarity of thought makes you dangerous.

  • Read quality literature in your free time.

  • Nurture a strong relationship with your family.

  • Share your ideas publicly; your voice matters.

  • Become a “monster”, powerful, but disciplined enough to control it.

The best leaders and thinkers are grounded. They welcome criticism, adapt quickly, and keep moving forward no matter what.

2. You Can’t Please Everyone And That’s Okay

You don’t need a crowd of people to feel fulfilled. You need a few friends who genuinely accept you for who you are.

If your circle doesn’t bring out your best, it’s okay to walk away. Solitude can be a powerful teacher. It gives you space to understand what you truly want from life. Remember, successful men aren’t people-pleasers; they’re purpose-driven.

3. You Can Control the Process, Not the Outcome

Especially in creative work, writing, business, or content creation, you control effort, not results.

You might publish two articles a day, but you can’t dictate which one will go viral. Focus on mastery, not metrics. Many great writers toiled for years in obscurity before anyone noticed them. Rejection, criticism, and indifference are all part of the path.

The best creators focus on storytelling, not applause.

4. Rejection Is Never Personal

Rejection doesn’t mean you’re unworthy. It simply means your offer, idea, or timing didn’t align.

Every successful person has faced rejection repeatedly. What separates them is persistence and perspective. They see rejection as feedback, not failure. The faster you learn that truth, the faster you’ll grow.

5. Women Value Comfort and Security

Understanding women requires maturity and empathy.

Through books, lectures, and personal growth, I’ve learned that most women desire a man who is grounded, intelligent, confident, emotionally stable, and consistent. Some want humor, others intellect, but nearly all want to feel safe and supported.

Instead of chasing attention, work on self-improvement. Build competence and confidence, and the rest will follow naturally.

6. There’s No Such Thing as Failure, Only Lessons

A powerful lesson from Neuro-Linguistic Programming: failure only exists when you stop trying.

Every mistake brings data. Every setback builds wisdom. The most successful men aren’t fearless. They’ve simply learned to act despite fear.

Be proud of your scars. They’re proof you were brave enough to try.

7. Public Speaking Is an Art Form

Public speaking is one of the most valuable and underrated skills a man can master.

It’s not about perfection; it’s about connection. The best speakers tell stories, inspire confidence, and make people feel seen. They research deeply, speak honestly, and practice relentlessly.

If you can speak well, you can lead, sell, teach, and inspire. Start small, practice at work, in class, or even in front of a mirror, and watch your confidence skyrocket.

8. Teaching Is Leadership in Disguise

Great teachers are not just knowledgeable. They’re brave, compassionate, and disciplined.

Teaching forces you to articulate what you know, and in doing so, you master it at a deeper level. Whether you’re mentoring a peer, leading a team, or sharing insights online, teaching refines your purpose.

Lifelong learners become lifelong leaders.

9. Study Human Nature to Achieve Your Dreams

One of the toughest lessons to accept: most people are self-interested.

That’s not cynicism, it’s human nature. Understanding this helps you navigate relationships, business, and communication more effectively.

Everyone has a darker side, but successful people learn to channel theirs productively into discipline, creativity, and drive.

Psychology isn’t just theory; it’s a toolkit. Learn how people think, act, and decide, and you’ll know how to lead them, influence them, and even understand yourself better.

Final Thoughts

The digital age offers endless opportunities, but only to those who are willing to take responsibility, confront discomfort, and keep improving.

Becoming a man today means embracing the hard truths most avoid.

Because at the end of the day, success isn’t about luck. It’s about who you become when life tests you the most.

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Change Your Mindset

Work-Life Balance Isn’t a Myth: Here’s How to Actually Make It Happen

Work stress doesn’t have to win, here’s how to protect your peace and thrive in any workplace.

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workplace stress management techniques
Image Credit: Midjourney

Starting a new job often comes with excitement and ambition. Yet, beneath that initial enthusiasm, many employees quickly encounter the reality of workplace challenges, especially stress. (more…)

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Change Your Mindset

The Four Types of Happiness: Which One Are You Living In?

Most people chase success only to find emptiness, this model reveals why true happiness lies somewhere else.

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happiness model explained
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In a world driven by rapid technological growth and constant competition, many people unknowingly trade joy for achievement. (more…)

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Success Advice

11 Mark Manson Lessons That’ll Redefine Success in the Digital Age

Success in the digital age isn’t about hacks, it’s about the raw, real lessons Mark Manson actually lives by.

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Mark Manson life lessons on success
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In 2016, Mark Manson released The Subtle Art of Not Giving a F*ck, a brutally honest, thought-provoking book that redefined self-help for a new generation. (more…)

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