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Level Four: Build & Diversify Investments

Level Four of the Five Levels of Financial Freedom |

Welcome to Level Four!

If you completed all of the steps of Level Three, you now have a solid reserve of liquid savings, as well as a store of food and water you can use to feed your family and to help others in times of need. Congratulations! You are now ready to embark on Level Four!

In Level Four, we are going to:

1) Invest Broadly Across Various Asset Classes

2) Remember P.A.C.E. for Inflation Protection

3) Avoid Overweighting in One Area

4) Trade Cash for Cash Flow When Possible

5) Begin Creating Multiple Streams of Income

Level Four is all about building and diversifying your investments. Recall from Level One that you began a systematic savings plan, ideally saving at least 15% of your gross income. By now you have six months of your monthly income saved and diversified in liquid assets that will help protect your savings from inflation (from Level Three). Now that you have your savings reserve, you do not stop saving 15% of your income. But rather than keeping it in liquid savings, you will now divert this 15% into investments. If you ever drop below your six months of liquid savings, you will immediately stop adding new money to your investments, replenish the six months of savings, and then resume adding to your investment pool.

So, if you are ready to get to the “fun part”… We are going to begin Level Four with a basic concept that all investors should implement, especially in today’s age of market turmoil: Invest Broadly Across Various Asset Classes. 

Step One – Invest Broadly Across Various Asset Classes >>

<< Back to Level Three Overview





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