After putting your foundation in place and boosting your entrepreneurial income, you’ll be prepared to start investing in independent income streams.
For all the reasons I outlined in the two previous posts, you’re not going to throw money into conventional “investments” like mutual funds or buy stocks peddled by stockbrokers. As an aspiring 5 Day Weekender, you’re going to be more savvy and keep your money safer, while also growing it more profitably. You’re only going to invest in things over which you have control.
In the Growth phase of the Wealth Matrix, your goal is to convert your income into more independent, cash-flowing income streams that are safe and conservative. Money that you use to fund your Growth investments has been generated from your hard-earned active income—your blood, sweat, and tears. You have an emotional attachment to that money, and for good reason. Never speculate with this money. Anything you do here has to meet the following criteria:
- You must know the return on investment up front.
- You must know how to manage and mitigate your risk up front. You must understand your worst-case scenario. Your investment must have solid safeguards built in to drastically reduce your risk.
- It must be recession-resistant. If you’re relying on the market to go up, it’s not recession-resistant.
- You must be able to control the investment. Do you have an exit strategy? Do you have liquidity? Do you know how it works? Can you influence the outcome or are you dependent on various factors beyond your control?
- Geo-lifestyle optimization. You must be able to invest while maintaining a “travelpreneur” lifestyle. In other words, can you make the investment from anywhere in the world?
Never speculate with your hard-earned cash. Otherwise, you’re not a true investor—you’re a speculator, a gambler.
I teach people that the number one secret to riches is to sell the pans, picks, and shovels during a gold rush. Always service speculation and exorbitant demand. While others are frantically speculating, you should operate from certainty and abundance. Prospectors in a gold rush are speculating with only the hope of making money. Investors know exactly how they’re making money, and how to do it whether the market goes up or down.
In other words, think like a casino. Rig the game in your favor. Remember: You know the odds are stacked against you when you have no idea what your return on investment is up front. As an investor in the Growth phase, you make your profit on the investment up front when you buy.
In my next post, I will offer you what I consider real growth investments that I’ve been using for decades to generate independent income.
In the meantime, what do you think about rigging the game in your favor so that you – the house – always wins? Thank you for sharing.
Secure your copy of the “5 Day Weekend” book. 5 Day Weekend: Freedom to Make Your Life and Work Rich with Purpose [Nik Halik & Garrett Gunderson]
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