Don’t Put All Your Financial Eggs In One Basket

Today is National Don’t Put All Your Eggs in One Omelet Day, a take on the classic saying “don’t put all your eggs in one basket.” While the name might get a chuckle, it’s a good reminder of the importance of balance — in breakfast and in your finances. Try to cram too many eggs into one pan, and you’ll likely end up with something that’s tough to flip, unevenly cooked, or just not quite what you were going for. The same principle applies to your financial life. Putting all your focus, money, or trust into one area can limit your flexibility and make it harder to adapt when things shift.

One common place we see this play out is with individuals who have concentrated stock positions through work — whether it’s equity compensation, RSUs, stock options, or a significant portion of their net worth tied up in their employer’s stock. While it’s great to be invested in a company you believe in, too much concentration in one stock or sector can create risk if that company hits a rough patch, underperforms, or goes through unexpected changes. Your financial future shouldn’t rise and fall entirely with one name on a ticker symbol — especially when you’ve worked hard to build it.

Diversification is a core principle of financial planning because it helps you build a strategy that’s prepared for more than just one outcome. It doesn’t mean spreading yourself thin — it means being intentional about how you allocate your investments, savings, and income sources so that no single decision carries the weight of your entire future. When your portfolio is diversified across asset classes, account types, and time horizons, you create room to adjust as markets move, as your goals evolve, and as life happens.

This idea extends beyond just investment holdings. A well-rounded financial plan also considers how you’re saving for retirement, how your income is structured, how your taxes are managed, and how your short-term and long-term goals are supported. Relying solely on one account type, one income stream, or one market sector might seem efficient, but it can limit your options when you need them most. Diversification, by contrast, gives you more levers to pull — and that flexibility can be the difference between reacting under pressure or adjusting with confidence.

So while today’s holiday might sound silly, the takeaway is a smart one. Don’t overload your plan with a single ingredient, and don’t expect one approach to do it all. Like any good recipe, a thoughtful financial strategy comes together best when there’s balance, intention, and room to adapt.

Schedule a complimentary introductory call here if you’d like to take a fresh look at your financial life and seek strategies to diversify — especially if you’re navigating concentrated equity or employer stock positions. And as always, you can reach us at info@shermanwealth.com with any questions or inquiries.