Diversification

The financial advisers who keep on talking with people how to invest their money in 401ks and other investment vehicles always emphasize that we should have a diversified portfolio and we should have save enough money in case of emergency but I have not heard anyone saying that do they have a back up plan in case of unemployment (other than saving and sending out resumes). Most of us indeed do not have a plan B working in case we get laid off and we are living pay check to pay check and believe me it is no fun (been there, done that).

Most of the people just pray that they do not get laid off and if they do then they should be able to job fast enough so that the bills not pile up. But if praying can work without doing something to make it happen then what is the use of praying. A plan of action is lacking in overwhelming majority of households and even with this economy it is no surprise that again there is no plan B like two jobs in case you lose one you can count on the other one or just plain having a small sole proprietorship in place that you can at least be able to pay your bills. It is easy to advise on diversification in your investment portfolio when you are putting in money because of your job but how about having a back job at night or on the weekends and paying the bills out of that. You will need it since the precarious economic situation of our nation will extend by the age limit to 70 or more by the time we collect our social security checks (if we collect it in lesser value dollars).