Financial Flexibility: The Power Of A Multifaceted Investment Strategy

financial flexibility multifaceted investment strategy diversify portfolio

You work hard to earn your money. When searching for ideas and opportunities to invest, you may have heard the phrase make your money work for you. But what does that mean? 

There’s a reason why most savvy earners choose to invest their money rather than allow it to collect dust in the bank: growing your wealth leads to financial flexibility, fewer years of your life spent at work, and the freedom to enjoy the good things in life. But how can you get started investing today? 

Embracing the future of work means working smarter, not harder. Let’s explore what it means to invest, why you need an investment strategy to secure your future, and how you can create a multifaceted approach to investing to gain financial flexibility and freedom. 

What Is Investing And Why Is It Important? 

If you’re investing your money, you’re likely funneling your funds into an asset in the hopes that it will appreciate, growing the initial amount of money invested over time. However, investing can have different meanings depending on the individual. 

When you invest, you reap a monetary or intangible profit. For example, if I invest my time and money into taking a class, the profit I reap is the skill I have learned. If I invest in a personal trainer or nutritionist, the profit may be my health and long life. 

Essentially, investing refers to any amount of time, effort, or money you commit to something in the hopes that you will reap a reward, whether the profit is monetary or intangible. Let’s discuss a few investment ideas to help you create a dynamic and multifaceted strategy to build your wealth and gain financial flexibility. 

Lucrative Ideas To Create A Multifaceted Investment Strategy 

Investing without a strategy is like a sports team going to a big game without their playbook. Let’s explore some popular investment strategies to get you out into the playing field and into the investment game. 

Stocks: Value Investing 

This strategy was made popular by famed billionaire Warren Buffet, and the main principle revolves around investing in stocks that are currently cheaper than they’re worth. While this can take quite a bit of research and potentially years to see a return on your investment, it can be quite lucrative (just ask Mr. Buffet… he’s worth over $100 billion). The stock market usually returns about 8% on investments every year, but with a little extra effort and a willingness to play the “game,” value investing can win you up to 60% on returns. 

Stocks: Growth Investing 

This strategy revolves around capital appreciation. Growth investing is a riskier alternative to value investing and involves targeting smaller companies that exhibit signs of future growth and investing in them even though it may be risky or pricy. If you want to learn more about growth investing, search American investor Peter Lynch and emulate his strategy. 

Property Investment: Turnkey 

A tried-and-true investment option, real estate is a tangible asset that can appreciate over time and become a source of passive income. If you aren’t into the risk involved in the stock market, consider purchasing a turnkey rental property. A turnkey property is ready for tenants with no repairs needed, making it a simple and hassle-free option for a first-time investor. 

When you add a real estate property to your investment portfolio, you create a steady stream of income for yourself and you gain an asset that will appreciate and diversify your investments. If you’re interested in property investment, consider contacting a professional lender to secure a rental property loan. 

Property Investment: Fixer-Upper 

If you’re a little more on the adventurous side, consider investing in a fixer-upper. Flipping a home can be a rewarding investment. When the remodel is complete, you can turn around and sell it for a raised price and collect the profit, or rent it out and pay the mortgage with money from your tenants. 

According to the National Association of Realtors, real estate value has been appreciating steadily since 1968, the industry growing alongside technological advancements and thriving even during the Great Recession of 2008. No matter what type of property you decide to add to your investment portfolio, you are gaining a tangible asset that will help you gain financial flexibility and security for the future. 

Diversified Portfolio Investing Conclusion 

In order to create a secure financial future for yourself and your family, you need a diversified investment strategy, or a blueprint portfolio to help you grow your wealth. A multifaceted strategy that involves high- yield accounts, real estate investments, and investing in the stock market will allow you to work smarter and create the financial flexibility you desire.

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