Having everything so simple allowed me to know where to focus my energies and how to make it grow each month.

Most people love to over-diversify.

They invest in all the opportunities others say could make money over time, and there’s come a moment where they don’t even know how much money they have around their accounts.

The reality is that you don’t need multiple investment options to be wealthy or to retire early.

If you manage to understand what your goals are and what options you have to make that plan a reality, then you will only need to review what opportunity suits your financial mentality.

Saying that, these are the only three investment options you need in your life to have the opportunity to be rich, retire when you want, and try high-risk opportunities.

Read also: 5 life rules you should not break for anyone/anything

A safe big fund investment for your retirement

The first main investment you need is a safe account that lets you put all your retirement money there without being afraid of market conditions.

This will give you peace of mind to invest in other options without worrying about your future and also help you have liquid money in bear markets in case an emergency happens.

I also see it as the worst-case scenario. Like if all the other investment options don’t work, I will still be a millionaire, thanks to this investment (and you can achieve too with $500 a month).

Some examples of secure accounts that can help you are: 401(k), deposit certificates, saving accounts with significant rates, mutual funds, bonds, and fiat currencies staked.

Some people could consider Real Estate in this category, but I don’t think you should put all your life money on a market that could have down periods.

I chose a bank mutual fund because the rate is very good for this kind of investment (7% fixed), and the risk management is less than 1%.

There I put 30% of my money.

A market investment that can make you rich over time.

This investment is what will give you the most profits over time, and the purpose of this one is to grow your bag in the best way you can.

The options I have here are the Stock market, Cryptocurrency market, Options market, and Real Estate market.

I know that many people decide to invest in more than one of these options (and even in all of them at the same time), but the reality is that you do not have to. All of these markets have similar conditions, and over-diversifying only makes you lose control in one (or all) of them.

I think you should choose a maximum of two of these categories because in this way you will have the time to understand each investment and why your money is in good hands there.

Markets like Real estate (especially when you are not in the long term there) require a lot of analysis and time to understand if you are making the correct investment.

Therefore, I don’t think you should take all of them lightly or invest in something just because everybody is doing it.

In this option, I put 50% of my savings money.

Read also: 10 rules that bring financial freedom

A lucky/high-risk investment option

A high-risk investment option is one opportunity you could make to see if you have a stroke of luck.

Those investments could be a business opportunity, Cryptocurrencies if you are a conservative investor (or altcoins if you already are professional with that market), single stocks, angel investors, etc.

The purpose of this investment opportunity is to be part of the wage and grow your bag in the short-term to then move that profit to your long-term safer options.

I have 20% of my saving plan there, but depending on your goals and how comfortable you are, you can put more or less there.

Takeaways

If you manage to have one of every investment opportunity I said above, then you are on your path to becoming wealthy.

You don’t need to take every opportunity that you feel could leave you money, just understand your options and choose which one best suits your life plans.

Almost all of them have the same return over time, so it’s not necessary to be present on everyone to try to be rich, and over-diversifying only can make you lose control over your money.

I decided to have my investment options as simple as an Index fund as my retirement investment, Real estate as my overtime rich opportunity, and cryptocurrency as my high-risk investment option.

I know where all my money is, exactly what my goals are with every penny I invest, and I have a solid plan for each investment.

Having everything so simple and clean has allowed me to know exactly where to focus my energies and to know how I can make it grow each month.

These are the only three investment options you need in your life summarized:

A safe big fund investment for your retirement. It could be 401(k), deposit certificates, saving accounts with big rates, mutual funds, bonds, and fiat currencies staked and will help you have safe money for your future; it will serve as the worst-case scenario for your life.
A market investment that can make you rich over time. These are the Stock market, Cryptocurrency market, Options market, and Real Estate market.
A lucky/high-risk investment option. Those investments could be a business opportunity, Cryptocurrencies if you are a conservative investor (or altcoins if you already are professional with that market), single stocks, angel investors, etc.

CONTRIBUTED BY Desiree Peralta

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