If you’re not sure what exactly diversified means, we’ve got you covered. The classic explanation is not to put all your eggs (or dollars, in this case) into one basket. Buying a single stock is the opposite of diversifying, because you’re putting all of your money into one company. Don’t do that. Instead, look at Exchange Traded Funds, which are investments that track baskets of stocks classified by industry, geography, size, or some other metric. They are usually low-cost and give you instant diversification, even with a small investment. You can read more investing advice here . The more complicated your finances get, the more likely you are to need a helping hand every now and then. Your local CPA can help provide guidance on how to best manage your money to make sure it’s working for you and your goals.