I spent the first half of my 20’s working hard. So much so that I saved over $365,000, and invested that money into cash flowing assets. Now, I’m the world’s richest homeless man. Today’s article explains why you need to build your own “Freedom Portfolio” and how to do this.
We’ll also look at some ideas to help you achieve financial independence and protect yourself from the coming storm.
But first, let’s talk about why holding $1,000 a day in assets is important.
Having money allows you to make your own decisions. Don’t want to work? Don’t have to. Want to move to another city or country? You can. The bigger your bankroll, the more opportunities open up.
Owning $365,000 in cash flowing assets (the equivalent of $1,000 per day), gives you a lot of options in your life.
If, you’ve invested the right way.
Allow me to explain:
- $365,000 invested into an S&P 500 index currently yields about $5,475 per year.
- $365,000 invested into blue chip companies, like Coca-Cola or Nestle, yields about $10,950 per year.
- $365,000 invested into REITs, like Reality Income or Medical Properties Trust, yields about $20,075 per year.
- $365,000 invested into “politically incorrect” but profitable companies, like Altria or Enterprise Products, yields about $30,112 per year.
You can live quite comfortably in most emerging markets for around $1,500 per month. That’s $18,000 a year, an amount you can easily cover by owning $365,000 in cash flow producing assets.
I have two simple suggestions for reaching this stage:
You’re a slave to the almighty dollar until you learn how to make money on your own. But once you do, you can start buying quality assets and living life as a free man.