This article is part of a 30-day series called the 30 Steps Program to Financial Independence.
STEP 7: INVEST
The ultimate goal of financial independence is to generate enough income through investments so you don’t have to return to an office job. How can you achieve that? By making smart investments.
I’m not a financial adviser, just sharing my opinions. You can invest in almost anything, but I usually do some quick calculations and trust my instincts. For example, I’ve bought two apartments. I sold one of them at double its value after nine years of rental income. The other is a three-bedroom unit rented out to three different tenants.
I also have some unconventional investments like livestock and coconuts. Investing in live cattle is pretty profitable since a cow can produce another cow approximately every 18 months. The full calculation is more complex, but with my current setup, I get excellent returns on my investment.
For the coconuts, I pay a managing company with a portion of my harvest. In return, they manage the crops, sell the produce, and deposit the earnings to me every three months.
Investing can be daunting for beginners, so I highly recommend seeking professional advice. It may be costly, but not as costly as losing all your savings to a scam.
Your choice of investment will depend on factors like your age, savings, and risk tolerance. The stock market averages a 9% annual return, but you must be in it for the long haul to avoid losses.
Always think carefully before investing and keep an emergency fund so you don’t need to liquidate investments at a loss.
Your investments will support your lifestyle during your financially independent years. A financial adviser can help you plan and determine when you’ll reach your goals and how much you need to invest.