![The 10 Most Important Investments You Should Make](https://www.ljrealties.com/blogue/wp-content/uploads/2023/02/The_10_Most_Important_Investement-1024x576.jpg)
In this blog, we’re hearing from our founder LJ Aguinaga about the wealth-generating tips he’s learned over the years. Let’s jump in!
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The very first purchase I’m going to discuss is a home. You’ll want to buy a home as soon as you possibly can, because it is essentially going to be forced savings. It doesn’t matter what you think about renting versus buying: at the end of the day, there is no other place where you can park cash every single month, have a roof to live under, and collect appreciation on the market.
The second thing would be a rental property. A rental property actually pays you every single month. This type of asset produces cash flows every month, will appreciate over time, and finally, will have tenants paying down the associated capital or debt.
Number three, a whole life insurance policy. This is a policy that you will have for the rest of time. You can borrow against it, and it will grow at about 6% to 7% every single year, based on how the market performs. So it’s an investment that you’re making into your future, and one that you can also leverage while you’re alive and well.
Number four, a term life insurance policy. Term life insurance is what I got for my home. When I bought a home with my wife last year, we bought term life insurance for one another. In this case, if something were to happen to one of us, we’d get a nice payout from the insurance company that would help us deal with what we’re going through.
It would relieve some of the pressure and strain, and allow us to act with a clearer mind when making decisions moving forward as opposed to being caught up in financial woes.
Number five, peace of mind. A “peace of mind” fund is simply an amount of money that allows you to feel relaxed and at ease, so that if anything happens – getting sick, losing your job – you won’t be in the hole financially. You have to start building that fund from day one: take a percentage of your earnings and start putting that aside as soon as you possibly can.
Number six: at this point, you have a lot of different investments going on. Time to diversify a little bit. Let’s invest in a business. When you invest in a business, you essentially invest directly with the key shareholders so that they can go out and grow their business. A lot of the time, these businesses can become a lot more lucrative than the stocks you’re seeing online.
For number seven, we’re going to talk about investing in a mentor. This means investing in something that’s going to help us level up. We’re going to choose somebody that’s already gone through the steps that we want to achieve. They’re going to give us the playbook in order to achieve those things ourselves.
Next, number eight. After you’ve gone through that, let’s talk about investing in somebody else who has great potential. There are people that are doing amazing things in this world that are much brighter than you or I, so if you have the means, uplift their work and help them impact the world in an even bigger way.
Number nine, invest in experiences. At the end of the day, we all have limited time on this planet. You want to make sure that you get to live life to the fullest every single day. Along the way, you’re going to want to have experiences, whether that’s travel, trying a new hobby, swimming with dolphins, you name it. Invest in experiences that you can share and treasure – they’re all we’ve got!
Number 10: invest in your legacy. What do you want to be remembered for? Do you want to give a lot of money to charity? Do you want to help underprivileged children? Make sure that you’re giving money back to different causes, because first of all, there’s nothing more fulfilling than helping others. And second of all, knowing that you are doing good with the wealth you’ve accumulated is priceless.