- Invest in real estate
Invest in real estate until you are making a net cashflow of $20K per month (or you can pick a number you are comfortable with). But, I recommend a minimum of $20K per month before the next step.
2. Invest in stocks
When I start making a lot of cashflow on my real estate, I then migrate into stocks. I have a wealth management company that puts my money in great stock portfolio that has been getting me great returns.
3. Invest in a business
Whether it is your own business (Amazon FBA) or someone else’s (REIT’s can be good), I like to put small chunks of cash into businesses. I have lost and I have also made big windfalls. But, you must have a lot of cash for this step.
4. Repeat
Buy more real estate, more stocks, and more businesses. I use this process to spread my risk out more because I’ve seen house markets crash, commercial crash, stocks crash, all through the different recessions. DIVERSITY IS KEY!