13 Steps to Recession-Proofing Your Finances

10. Diversify Your Portfolio

Now that you've invested in the stock market, you'll want to make sure that you're not at the mercy of market volatility. This means that your investments aren't limited to one type of asset, such as stocks in only one company or industry. Unless you diversify your portfolio, a metaphorical basket of financial assets, you risk losing your total investment if the company or industry in question falls. Even worse, if you're employed by the same company, you could lose your income as well as your savings. Consult with a financial planner for a diversification strategy, and spread your holding out to include bonds, short-term investments, and other funds.