Do a quick online search and you will find thousands ( if not millions ) of ways to create a secondary income , including selling services or products online , freelancing , affiliate marketing , etc . You can also invest in various asset classes like shares , cryptocurrencies , foreign exchange , and so on .
Investors often build a diversified portfolio by combining various asset classes based on their financial goals , risk tolerance , and investment horizon . Diversification not only helps spread risk but also reduces the impact of poor performance in any single asset class . While there are many different investment options , for me , property is by far the best asset class to create consistent and sustainable cash flow . It is also more passive in nature and can replace your primary source of income .
The power of property investment
Although one usually invests in property for the long term , you can benefit from your property portfolio in the short term . Most people are aware of rental income , but you benefit from capital growth as well ! The capital growth can be accessed by selling the property , but even better , you can access it by refinancing . Now , combine that with using as little of your own money as possible , i . e ., using the bank ’ s money , and you ’ ve got a lucrative way to get out of the rat race .
One of the nicest things about consulting with clients about their property investments daily is seeing how more mature ladies and gents , who have been investing in property for some time , have created passive income for themselves . They don ’ t have to work anymore , and they can live off the proceeds from their rental income . If that ’ s not a win , I don ’ t know what is !
Their secret ? They started young and they kept buying properties . They didn ’ t sell , and they made sure they protected the cash flow by either paying off the properties as quickly as they could or by having sufficient cash reserves to protect them in volatile , unpredictable times .
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Strategies for your journey to financial freedom
1 . Manage risk effectively :
Mitigate investment risks by making informed decisions and continually educating yourself .
2 . Manage your time :
Effectively balance your responsibilities to maximise productivity and create more time for investments .
3 . Have a long-term vision :
Understand that financial freedom is a marathon , remain patient , and stay committed to your goals .
The journey from rat to fat cat isn ’ t an overnight one . I started investing in property to create a secondary source of income , and that was my way to get out of the rat race . It happened slowly but surely , and I was very intentional . Today , I can proudly say I am no longer a rat , but well on my way to becoming a fat cat ! Are you ready to do the same ?
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