Final answer:
The financial advice promotes income diversification through investment to create multiple income sources. It highlights risk management by advising against relying on a single income stream, instead endorsing the spread of investments across different assets.
Step-by-step explanation:
The financial advice provided by the statement 'Never depend on a single income. Make investments to create a second source' is D) Diversify income sources. This advice emphasizes the importance of diversification, which involves spreading your investments across various assets as a way to manage risk and avoid becoming overly reliant on a single source of income. By investing in multiple assets, such as stocks of different companies, bonds, mutual funds, or property, you can mitigate the risks inherent in investing and potentially stabilize your income over time, as the performance of one investment can complement another.
Financial experts advise diversification to avoid the risks associated with putting all your financial eggs in one basket. This strategy is crucial in building financial ealth, especially when it comes to planning for retirement. An individual can accumulate significant wealth by following a disciplined approach to savings and investments, which includes additional education, consistent saving, and early investing.