10 Steps to Retiring Young

3) Learn How to Diversify

Diversification is an important step, and an indispensable rule to life. It works with careers, money, eating habits, and exercise. Simply put, if you diversify your income and investments, you are protecting yourself from those eventual downturns in the economy, or when the company you work for has layoffs.

Diversification is the process of ensuring all of your eggs are not in the same basket. Regarding investing, this means a financial plan of high, medium, and lower risk investments that changes according to your age. For a career, this may mean supplementing your primary income with a part-time job, or owning your own part-time business.

As the millennial generation builds more into modern society you will begin to see more of a gig-economy fitting into the work place. This is where one large business operates a company through the use of independent contractors who work when they want, rather than when the company dictates. This is only the beginning stage of a work shift that will lead to greater diversification of jobs.