Importance of Diversifying Your Savings Geographically.

[Jasz]

If you’re a business owner, then you probably know that an important part of your job consists of ensuring the financial health of your company. This includes ensuring the security of investments and savings.

As the saying goes, "putting all your eggs in one basket" is never a smart idea. But it's still common for investors to keep all of their assets in one place. This can be fine if you're investing in stable economies like the United States, but if you're investing in countries with a less predictable economy—or even if you're investing from within those countries—it may not be enough. During times of economic crisis, this can be extremely difficult to do—especially if all of your investments are located in one region or country. That’s why it’s so important to diversify your savings geographically: when some countries are going through a financial crisis, others may be experiencing a time of prosperity.

By spreading out your investments, you can ensure that you can continue to make money even during years where other countries are experiencing a slump in their economy.

 

[Shaf]

Seasoned investors know that one of the greatest risks in business is having only one choice with no diversification. Recently, there was a protest in a certain part of my country, Nigeria which eventually led to burning, looting and destruction of a lot of businesses. For anyone who was affected without an alternative, that would probably spell doom and long periods of pain.

As soon as one can do so, it's good to have different locations for a physical business, and to ensure that they are properly insured. This you can have an alternative sour e of income if something bad happens to one.

Alternatively, it would even be better to have different choices, not just the same type of business in different locations.

 

[Holicent]

If you've read any financial advice in recent years, you know that it's important to diversify your investments. You wouldn't want to put all of your money into stocks, or all of it into bonds. The same is true of savings. But what does it mean to diversify your savings? Many people focus on diversifying their investments, which is important, but leave their savings untouched and exposed to risk.

Diversifying your savings might seem scary—you've worked hard to save up that money!—but there are a few smart ways you can do it without taking on too much risk. One way is to open another bank account at a different bank than the one you're using now. Your current bank may be great, but it might not always be safe from fluctuations in the economy, especially if it's only operating in one country. If you have all of your savings in one place and that country experiences a recession or even a full-blown depression, it could be very bad for your nest egg. Another way is to consider investing in physical gold bullion, which has been known to remain stable despite economic changes. This can also protect you from currency exchange rates that may decrease the value of your money.