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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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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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Change Your Mindset

The Secret Daily Routines Behind History’s Most Brilliant Thinkers

Uncover the daily rituals and hidden habits that powered history’s most brilliant minds to success.

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productivity habits of great minds
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Why Daily Rituals Matter

Every great achiever has one thing in common: discipline. Behind the novels, inventions, discoveries, and masterpieces are small, consistent habits repeated daily. (more…)

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Did You Know

How to Turn a Simple Link-in-Bio Into a Powerful Brand Hub

Transform your forgotten bio link into a high-impact gateway that fuels engagement, clicks, and conversions across every social platform.

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link in bio best practices
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Social media is one of the greatest marketing tools in 2025. According to a recent study, some 86% of marketers globally use platforms like Facebook and Instagram for advertisements, while 94% use it for content distribution.  (more…)

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Personal Development

These 11 Habits Will Make You More Productive, Successful, and Confident

Boost your focus, confidence, and results with 11 powerful habits successful people use every day.

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how to build self-confidence through action
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Successful people love to help beginners. They have an incredible work ethic and rarely complain. As a result, others naturally look up to them and want to follow in their footsteps.

But here’s the truth: there’s no success without sacrifice. You’ll need to give up comfort, excuses, and sometimes even social approval to accomplish your goals.

Value comes from solving problems, and these 11 powerful tips will help you become more productive, successful, and confident, starting today.

1. Take Short Breaks After Finishing a Task

Psychology shows it’s important to reward positive behaviour.

After completing a big task or finishing a book, take five minutes to walk, stretch, or simply breathe. This quick reset helps your brain recharge and strengthens focus.

Many great writers swear by morning walks, solitude, and reflection can unlock creativity.

But if you refuse to take breaks, don’t be surprised when burnout hits. Your brain needs recovery time just as much as your body does.

2. Schedule Your Most Important Tasks First

Multitasking kills productivity. If you want to get more done, try time blocking, a method where you dedicate set periods for specific tasks.

Productivity expert Caitlin Hughes explains, “Time blocking involves scheduling blocks of time for your tasks throughout the day.”

For example, if you’re a writer:

  • Research your topic at night.

  • Write your first draft in the morning (don’t worry if it’s rough).

  • Edit in the afternoon, great writing comes from rewriting.

You can’t buy more time. Use it intentionally and without regret.

3. Eliminate Distractions from Your Workspace

Focus is the foundation of success.

According to Inc. Magazine, it takes an average of 23 minutes to recover from a distraction. That’s nearly half an hour of lost productivity every time you check your phone.

Put your phone away. Close unnecessary tabs. And yes, limit your Netflix binges.

Meeting deadlines consistently is one of the fastest ways to stand out and earn respect.

4. Take Full Responsibility for Your Life

Entrepreneur Derek Sivers once said, “Everything is my fault.”

This mindset doesn’t mean self-blame; it means self-ownership. Stop pointing fingers, making excuses, or waiting for others to change.

If your habits (like smoking or drinking too much) hold you back, it’s time to make better choices. Your friends can’t live your dreams for you; only you can.

5. Invest an Hour a Day in Learning New Skills

Knowledge compounds over time.

Whether you read books, take online courses, or practise a craft, consistent learning gives you a competitive edge.

I used to struggle with academic writing, but I improved by studying the work of great authors and applying what I learned.

Your past doesn’t define you; your actions do. Every new skill adds another tool to your arsenal and makes you more unstoppable.

6. Develop a Growth Mindset

Psychologist Dr. Carol Dweck introduced the concept of fixed vs. growth mindset.

  • A fixed mindset believes success is based on natural talent.

  • A growth mindset believes success comes from effort and learning.

Choose the growth mindset. Embrace challenges. See failures as feedback. In today’s fast-moving digital world, adaptability is your biggest advantage.

7. Learn Marketing to Reach People Who Need You

I once believed marketing was manipulative, until I realised it’s about helping people solve problems.

If your work provides genuine value, marketing is how you let others know it exists. Even Apple spends billions on it.

Don’t be ashamed to promote your skills or business. Without visibility, your ideas will never reach the people who need them most.

Creative professionals who understand marketing and sales have an unfair advantage.

8. Ask Your Mentor the Right Questions

Good mentors can fast-track your growth.

While mentorship often costs money, it’s one of the best investments you can make. Great mentors don’t care about titles; they care about your progress.

If you don’t have access to a mentor yet, books are your silent mentors. Read the best in your field, take notes, and apply what resonates.

9. Build Confidence Through Action, Not Affirmations

Author Ryan Holiday once said, “I don’t believe in myself. I have evidence.”

Confidence doesn’t come from shouting affirmations into the mirror; it comes from proof. Doing hard things, keeping promises to yourself, and following through.

When you consistently take action, your brain gathers evidence that you can handle whatever comes next. That’s real confidence, grounded, earned, and unshakable.

10. Focus on Your Strengths

Your strengths reveal where your greatest impact lies.

If people compliment you on something often, it’s a clue. Lean into it.

A former professor once told me I was creative, and that simple comment gave me the confidence to go all in. I studied creativity, applied it daily, and turned it into my career advantage.

Double down on your strengths. That’s how you build momentum and mastery.

11. Identify and Challenge Your Limiting Beliefs

Your beliefs shape your reality.

For years, I believed I couldn’t be a great writer because of my chronic tinnitus and astigmatism, sensory challenges that made concentration difficult. But over time, I realised those struggles made me more disciplined, observant, and empathetic.

Your limitations can become your greatest motivators if you let them.

Avoid shortcuts. Growth takes time, but it’s always worth it.

Final Thoughts

Becoming productive, successful, and confident isn’t about working harder than everyone else. It’s about working smarter, consistently, and intentionally.

You don’t need to overhaul your life overnight. Start small: take a break after your next task, schedule your priorities, or spend one hour learning something new.

Every habit you change compounds into long-term success. Remember, true change comes from practising new behaviours.

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