Build a Diversified Portfolio of What Defines You
Concentration Is Fragile. Diversification Is Durable.
We’re all taught the importance of diversifying our financial portfolios.
Don’t put all your money into one stock.
Don’t bet your whole future on one investment.
Spread it out. Protect yourself. Manage the downside.
But somehow, when it comes to our identity — what gives our life meaning, what defines who we are — we forget to apply the same logic. And honestly, that’s even riskier.
If you tie your entire sense of self-worth to just one thing — your job, your athletic success, your relationships, your family, your grades, your social life — you’re setting yourself up for unnecessary pain when life (inevitably) throws a punch.
Because life will throw a punch.
Diversify Your Sources of Meaning
When you're young, it can feel like everything rides on one thing.
Making the varsity team.
Getting into the perfect college.
Landing that dream job.
Finding “the one.”
It’s great to care deeply about things. Ambition is a good thing.
But the danger is when that one thing becomes the only thing.
If the only source of meaning in your life is your career, what happens when you lose your job or get passed up for that promotion?
If your entire identity is being a great athlete, what happens when you get injured?
If the thing you cling to is being the life of the party, what happens after senior year?
It’s a heavy crash if you’re too concentrated.
But if you build a diversified "identity portfolio," the losses hurt less — and the wins feel even sweeter.
You’re more resilient. You bounce back faster. You stay grounded.
Examples of a Diversified Identity
Think about it like this:
Maybe you’re proud of your career and you find meaning in being a good son or daughter or sibling.
Maybe you’re competitive in running and you find joy in volunteering at a local animal shelter.
Maybe you’re building a family and nurturing lifelong friendships.
Maybe you love pushing yourself academically and take pride in coaching youth soccer on weekends.
The more sources of meaning you have, the more stable your overall life satisfaction becomes. When stuff REALLY hits the fan in onc facet of your life, you NEED the other facets to keep you sane. Your diversification will really shine in volatile periods.
It’s like in investing — some assets go up, some go down, but overall the portfolio is strong because it’s balanced.
The takeaway is simple —> Don’t build a life where your entire self-worth hangs by a single thread. Build a life where your meaning comes from many threads woven together.
And keep this in mind when you next go through hardship. Whatever you are worrying about, remember - it’s just one stock in your well diversified portfolio.