For those who are riding the fence about what to do with your money, in terms of how to invest, I have a thought or two to share.
And I share this thought with you because you are not alone about which steps to take in your quest for being a good steward with the money you’ve earned and then, how to invest it wisely.
While I am not a certified financial advisor, I am probably very much like you, wondering which direction to take in the market, as I too, have been burned by past bubble-bursting in the housing market and have experienced the sharp declines in big Wall Street.
Of course, first, I advise that you seek professional advice when it comes to making wise investments. Perhaps you might seek out more than one professional opinion since the complexities of the market are just that during our modern times – COMPLEX and UNPREDICTABLE.
The recommendations that I am making are simply a roadmap to moving into financial freedom. Each one of us carves out our own path in the journey of life, including our decision-making about money matters. I am not trying to compete with the geniuses who know how to gain wealth or accumulate mass amounts of money or know how to pay less taxes due to prudent investing.
My recommendations are proposed from the foundational position of already being focused on reducing or eliminating senseless debt, such as credit card balances, high interest loans, etc.
My approach to financial freedom is based on a 3-prong approach that I learned from my father, who was a successful businessman in Fort Worth, Texas. He taught me these three principles in order to gain more freedom in life:
Pay-off your home.
I already hear the critics who are vehemently against this strategy and endorse some fantastic reasons to carry a big, long mortgage, especially at our historic low interest rates. And quite frankly, I can’t form an intellectual argument against their way of sound economics.
However, if you can’t pay off your home, then I recommend to carry a low mortgage, then build up enough funds that you will be able to pay off your mortgage one day, if needed. Of course, this recommendation is a vision to follow, and it might take some time to see this financial transformation to occur. What will happen is that you will find “peace” and “freedom” in the next seasons of your life.
Build-up Reserve Capital.
How much reserve capital do I need, you might ask. Some experts purport 8 months living expenses, at least. What my dad recommended to me was to have $250,000 in cash reserves for that rainy day – a good strategy to work towards for many.
The third part of the puzzle is to take risks and to invest your money as wisely as possible. Subsequently, a diversified portfolio is recommended, whether that includes your 401K or real estate, or small business investments or stocks or whatever you strategize with your financial advisor.
From the real estate perspective, the Department of Commerce has reported that homeownership has declined 65% in the second quarter of 2013, which is the lowest since 1995. More people are renting and not wanting to commit and are living at home with their parents longer and are buying into the idea of urbanization. So, perhaps, one of your ways to make investments might be the purchase of investment properties. Your call!
Basically, it’s this three-prong approach that I am currently working on, and it just might be your guidepost to gaining financial freedom.
Part of my financial strategy isn’t really financial as much as spiritual. I tend to sow seeds of finances generously into ministries and people, especially those who are less fortunate. This approach has ratified the success of my business, my relationships, and has opened my mind to taking this 3-prong approach about money, in light of our changing times.
Feel free to contact our Colorado Springs Realtors at Selley Group Real Estate, LLC: 2139 Chuckwagon Rd, Ste 210 – Colorado Springs, Colorado 80919 – 719. 598. 5101.
All agents affiliated with Selley Group Real Estate, LLC are actively licensed in accordance to the laws of Colorado.
Portions of this article are written by Gordon, as framed by the expressed opinions of Cherise, but not proofread.
By Cherise Selley