Finance Don’t put all your eggs in one basket

Maphalle

Member
That's very true. Putting all your money in one basket is risky...
1. Banks are not using same % to calculate interest
2. The institution can be broke n be liquidated
3. It's more better to invest the money in properties and other businesses than saving it in the bank.
 

Abigael

Valued Contributor
This is very true. It is best to scatter you funds, whether you are investing or just saving it. It will help you curb the many risks that may occur. Especially when you are doing investment in high risk ventures. It is best not to put all your money in one venture. Just a small amount that you can afford to loose and put it in different investment methods.
 

btaliat

VIP Contributor
One of the holy books advises us to scatter our bread on water because we don't know the one that will later fetch us good money. We don't need to invest all we have on one investment. We need to at least invest in maybe three investments to secure the capital.
 

kayode10

VIP Contributor
It is a bad idea to put all your eggs in one basket. you are going to lose all the eggs if the basket accidentally drop. and when this happened you are going back to square one. you will need to build everything right from scratch if you have the enthusiasm. The same thing goes for the business. it is very important to diversify your investments by having multiple streams of income.
 

Chibson

VIP Contributor
Definitely a very good article. It is not possible for people to put all that money and business or investment because such investment may fail. It is very important for people to always look for diverse streams of income because one may fail. When you have different streams of income, you have the opportunity to make money passively.
 

Mika

VIP Contributor
This is one of my favorite finance quotes. It is from Warren Buffet. This quote implies that you should diversify your investment For example, if you have invested in the share market, you also need to invest in real estate. If you have invested in share markets, you should invest on various companies
 

sincerem

VIP Contributor
Yes, putting every treasury we get in one basket or egg is very detrimental in the future. We should be diverse, spread our investment to touch other places or saving institutions. we shouldn't save all in the bank even if bank is legit. Their are times we might be in urgent need of money and the bank experiences network failures. That will make us suffer for that moment and result in something worst.
 

Mellorando

Banned
In a business environment putting your eggs in one basket simply means investing all your income and trust in one institution, business deal, or company without considering if further difficulties might arise this is a very wrong decision to take because a business without strong foundation is prone to fall and you investing all your money in such a business will lead to nothing but disappointment that is why it is advisable to invest a little portion of money first to see if better outcomes will come fourth before investing more
 

Yugocean

Valued Contributor
I also do not support putting everything in one institution, however many people keep all their money in one bank only, this is for different reasons and mostly disabled people do that due to their limited ability in keeping their money and bank works. And as the problem goes, even bank managers abuse them because they do not have any other access.
 

Alexandoy

VIP Contributor
This is a saying that can serve as a good advice to persons with a stack of cash. The usual recourse is to deposit the money in the bank or to invest in stocks or bonds. Some others would invest in tangible assets like a car or motorbike that would be sold in the future for a profit.

When you save or you invest your money then be sure that it is somewhat scattered. Depositing all your money in one bank poses a risk. If the bank closes down then you can imagine the loss. Scatter your funds in at least 3 banks just to be sure. With investment never invest more than 10% of your liquidity in one scheme. Aside from the legit investments like government bonds and corporate stocks you can also engage in other investment but only in small amounts. In the course of time you never know what can happen to the economy. If you scatter your wealth then the potential loss will be minimal.
 

Samuel72

Verified member
Saving money in the bank nowadays is even risky. I am working at investing my money in different ways this is better because unlike bank savings you get a return from your investment, saving money in the bank without investing will lead to a huge financial breakdown which is not advisable.
 

Briangsam

Active member
You are completely right. A good businessman will diversify. The aim of diversification is to spread the risk while generating income from multiple sources, thereby allowing your business to grow quickly but in a sustainable way. Diversification is often a tried and tested business growth strategy embraced by businesses. So putting one's eggs in one basket in business context is not the smartest thing to do.
 

Queentener

Active member
I agree with you, it's not advisable to put all your money in one investment platform or save in one account. Spread the money, invest in different platforms. If one doesn't work the other will work, but in this present time I you decide to save into a bank account even if the bank has issues you will still get your money back because deposited money are insured.
 

Sotherefore

VIP Contributor
You are right, this is applicable in alot of things including our work and our savings,we should not put our hope so much in one way of making money,we should always try as much as possible to invest on different potential projects and not one at a time, this will actually help us alot. Thanks for your good write up.
 

Mataracy

VIP Contributor
This is a saying that can serve as a good advice to persons with a stack of cash. The usual recourse is to deposit the money in the bank or to invest in stocks or bonds. Some others would invest in tangible assets like a car or motorbike that would be sold in the future for a profit.

When you save or you invest your money then be sure that it is somewhat scattered. Depositing all your money in one bank poses a risk. If the bank closes down then you can imagine the loss. Scatter your funds in at least 3 banks just to be sure. With investment never invest more than 10% of your liquidity in one scheme. Aside from the legit investments like government bonds and corporate stocks you can also engage in other investment but only in small amounts. In the course of time you never know what can happen to the economy. If you scatter your wealth then the potential loss will be minimal.
You are right,a good business man must surely know that putting all investment in one business is as dangerous as putting snake under one pillow while sleeping.
Since the risk in business is unpredictable therefore one should not try to do that unless the risk or loss will be so big.
 

Segat

Active member
Putting ones egg into a basket is an idiomatic expression that find its feet stand in all facet of life but talking in terms of business and finance majorly , it simply means we must learn to have streams of income and investment. You are having certain amount of money , just share to put it in different businesses and investment invade of any eventuality one will still have something to fall back to.
 
Top