People pursue investments for a variety of reasons, though it always comes down to generating income. Whether an investment is held for years, sold for a quick profit, or used to generate long-term passive income, all of these contribute to the overall experience of financial freedom.
Financial freedom requires having a variety of reliable sources of income. The idea is to generate as much income as possible. An investment that generates $200 per month is just as valuable as an asset that generates $2,000 per month in the sense that it’s money you don’t have to trade your valuable time to earn.
When looking at investment opportunities, don’t be so quick to pass on the opportunities that may not produce a large profit. Those are the investments that can cover your daily living expenses like utility bills and food.
If you’re looking to expand your investment portfolio, consider the following investments to achieve financial freedom sooner.
1. Residential Mortgage Backed Security Market
There are two ways to invest in the residential mortgage backed security (RMBS) market: directly and indirectly. To make a direct investment, you need to be a professional investor to have access to the market.
To invest indirectly, you only need the funds required to buy into your investment. For instance, Firstmac offers options for investing in Australian bond funds backed by the RMBS market through a program called High Livez. You don’t need special qualifications to take part in these investment opportunities.
2. World Currencies
Investing in currency gives you several investment advantages. According to Investopedia, currency investments level the playing field because all the news driving the value of currency is available to everyone in real-time.
However, be cautious about currency investments if you’re new to this type of investment. There are several currency scams that have been promoted as genuine investments for years that have never generated a dime.
We probably won’t see cryptocurrencies reach astronomical heights as seen in 2017, but that’s okay because cryptocurrency is still a worthwhile investment.
If you’ve never invested in cryptocurrency, you should probably stick with Bitcoin, Ethereum, LiteCoin, and other well-known currencies that have been around long enough to prove their stability.
4. Gold, silver, and copper
You’ve probably noticed the value of gold and silver has gone way up since a few months ago. As of September 28, 2020, the price of gold has risen to $1,890.20 per ounce, which is an increase of about 20% since September 2018.
Technically, when gold and silver rise in value, it means the U.S. dollar is losing purchasing power. However, there are several solid reasons to invest in metals that will serve you even if the entire economy collapses.
Metals can be used in place of cash payments
In the future, if you don’t have enough cash to pay your bills, your debtors will likely be happy to accept payment in the form of gold and silver. If you’re paying bills during a time when cash doesn’t go far, you’ll get more value for your metals when used as payments.
Metals can be used to barter
During the great depression, it literally took a wheelbarrow full of U.S. currency to buy certain items that would have cost $5 or less before the economy crashed. Those who didn’t have truckloads of dollar bills couldn’t buy even basic necessities like bread and meat.
You don’t hear about it often, but although most gold was confiscated and deemed illegal to own at the height of the depression, people secretly traded gold and silver with each other to obtain items they needed. For many, it was the only way to bypass the need to amass absurd quantities of dollar bills to put food on the table.
The same can be done today or in the future. When you have gold and silver coins or bars, you have something of value that people will gladly accept in a barter deal. In other words, metals give you purchasing power regardless of the state of the economy.
Provided the government doesn’t make owning gold illegal again like it did in 1933, having a secure stash of precious metals is a wise investment.
You can’t have too many investments
Provided you’re organized and keep track of your tax obligations, you can’t have too many investments. If financial freedom is your aim, every investment you make will bring you one step closer to your goal.