When it comes to our investment portfolios, one of the strategies most of us use is diversifying. We do that to minimize the risks of the unknown when we go all in on one investment. Typically, that strategy serves us well especially in economic downturns, we often end up less scathed. With everything that has been going on in the world these past few months, I started thinking about how this diversification strategy is applied in other areas of life.

One area that most of us probably diversify with little to no conscious thought is in our collection of friends. The baskets that friends seem to fall into are work/business friends, neighbor friends, sports friends, see once a year friends, Facebook friends, best friends…you get the picture. We get (and give) differently depending on the type of friendship. This natural diversification of friend baskets allows us to go to each one based on what our need or want is at that time. This basket logic is likely applicable to family members for most of us too.

Growing up in Ontario Canada our family doctor (General Practitioner) was the gatekeeper to all other specialists unless you landed yourself in the emergency room of a hospital. For example, you couldn’t just call up a dermatologist for an appointment without a referral from a family doctor. Getting that referral was usually a lengthy path consisting of tests, exams, medications and eventually after exhausting all their well-meaning diagnoses, you were handed that “hard earned” referral slip. I’m a US citizen now and can honestly say I am delighted to be able to have so many medical choices without the gatekeepers. I’m not saying there aren’t flaws in the health care system in the US – what I’m saying is being able to easily diversify my medical support choices is extremely comforting, especially under the stress and worry of an unexpected health issue.

An area that takes up at least one third of our entire life is what we do for a living. Whether you are a business owner or an employee, making money is critical to you and your family. Approximately 5% of the US workforce has more than one job according to the US Bureau of Labor Statistics. Whether it is to make ends meet, get ahead financially, or gain more experience, I believe not having all your career “eggs” in one basket is an area of diversification that more people need to consider. Prior to these last few months, unemployment had been low. To stay relevant and attract good franchise prospects, many brands started altering their model or creating new models that catered to people wanting to keep their job and own a business.  This semi-passive business ownership trend has helped a lot of people go into business for themselves without the financial risk of leaving their current employment. These opportunities can be home-based or brick and mortar. Managing the manager and time management are key skill sets needed to do this well. The growing number of existing franchise business owners diversifying through the purchase of a second franchise in a non-competing industry is also growing.

Click here to learn more about these semi-passive franchises.

A great year can still be achieved!