Diversification is a strategy used to reduce risk by spreading investments across different assets. Instead of putting all your money into one stock or bond, you can invest in various sectors, such as technology, healthcare, and real estate. This way, if one investment performs poorly, others may do well, helping to balance your overall portfolio. In addition to investing, diversification can also apply to other areas of life, like skills and experiences. For example, learning different skills, such as cooking, coding, and public speaking, can make you more adaptable and open up new opportunities. This broadens your horizons and enhances your resilience in changing circumstances.