Financial educator and founder of Clever Girl Finance, Bola Sokunbi, emphasizes the crucial importance of cultivating multiple income sources, even for those who are employed full-time. In her recent insights shared with Business Insider, Sokunbi, who is also a certified financial education instructor and the author of the upcoming book Clever Girl Millionaire, sheds light on her personal journey and offers practical advice for achieving financial stability.

Sokunbi graduated from college in 2004 and remarkably managed to save $100,000 within just three years, all while earning an annual salary of $54,000. However, her financial plans were tested in 2007 when the recession struck, leading many to hesitate in their investing choices. Sokunbi, drawing inspiration from the book Smart Women Finish Rich, recalled the advice to treat the stock market downturn as an opportunity to invest. She adopted a long-term perspective, reasoning that at her young age, she would not need immediate access to her investments. Thus, she persevered in saving and investing despite the widespread panic surrounding her.

During this challenging economic climate, Sokunbi was fortunate to retain her consulting job while simultaneously embarking on a side hustle as a photographer. This dual approach not only helped her navigate the tough times but also laid the groundwork for her future ventures.

Fast forward to today, Sokunbi has successfully built a portfolio exceeding $1 million over the past eight years. She attributes her financial success to three key strategies that she believes can assist anyone in achieving their financial goals, even during economic downturns.

1. Build Up a Cash Buffer

One of the most vital pieces of advice she offers is the importance of having a cash buffera financial safety net that allows individuals to cover essential expenses such as housing, food, and unexpected repairs without having to liquidate investments. Before transitioning from her full-time job to focus on Clever Girl Finance in 2017, Sokunbi set a goal to save an amount equivalent to 18 months of her salary. This proactive measure ensured that even if her new business faced challenges, she would have the necessary funds to fall back on.

Sokunbi recommends setting up a dedicated bank account for this cash buffer, ideally one that is less accessible, to encourage saving. For those currently employed, she suggests automating transfers from their paycheck into this account to facilitate consistent saving.

2. Get a Side Hustle

In her view, having supplementary income is vital, regardless of one's full-time job. She acknowledges that not everyone feels business-savvy but emphasizes that creativity can lead to profitable side hustles. Drawing from her personal experiences as a mother of twins, Sokunbi mentions how she generated extra income by selling items as her children outgrew them. From strollers to cribs, she found ways to turn unused items into cash.

Sokunbi has also worn many hats throughout her career. While managing Clever Girl Finance, she simultaneously operated her photography business from 2008 to 2015, charging around $4,000 per wedding. Additionally, she ran a bridal retail shop and continues to engage in speaking opportunities and writing projects today. This diversification of income sources not only boosts financial resilience but also fosters growth in her primary business.

3. Invest with Diversification in Mind

As a proponent of investment diversification, Sokunbi cites John Bogle, the founder of The Vanguard Group, as a significant influence on her investment philosophy. She advocates for adopting the three-fund portfolio approach, which involves allocating funds across U.S. stocks, U.S. bonds, and international stocks. By categorizing investments, individuals can achieve broad diversification across various sectors, such as healthcare, technology, and consumer goods. This strategy lowers risk and helps investors remain steady during market fluctuations, as losses in one sector can be offset by gains in another.

In addition to index funds and ETFs, Sokunbi also invests in individual stocks, especially in companies whose products she uses. Beyond traditional stock investments, she explores angel investing and real estate opportunities, further diversifying her portfolio.

Changing the Narrative

Sokunbi's journey into the financial education space was not initially planned. However, motivated by a desire to shift the narrative around women's financial literacyparticularly among Black womenshe founded Clever Girl Finance. Her mission is to empower women with the knowledge and tools to navigate their finances effectively.

She reflects on the inevitability of market fluctuations and the need for a resilient mindset when investing. With a well-established cash buffer, a side hustle, and a diversified investment strategy, she believes that individuals can alleviate much of the anxiety that comes with financial market volatility.

Bola Sokunbi concludes her insights with a vital reminder: if you require the money you are considering investing, it is best to prioritize building emergency savings and job stability first. She encourages individuals feeling overwhelmed by economic and political uncertainties to focus on developing a positive mindset through education and reading, steering clear of the noise and hype surrounding current events.

If you work in finance and are interested in contributing investment tips or insights, you can reach out to the editor, Manseen Logan, at mlogan@businessinsider.com.