If you have followed any of my social media posts or articles I have written, you know that I am a big fan of investing on whatever level you are currently on. Now that you have invested, especially for the crypto investors out there, lets begin to build your money funnel! Sounds fun right?
First, what is a money funnel? A money funnel is a financial ecosystem that you create for the financial wellbeing of your family. In the money funnel, money goes into investments (any type of investment). The returns from that investment are then invested in other things that produce revenue. Before I explain in detail, I just want to say that your money funnel can be as intrinsic or as simple as you like, no pressure!
Let’s take John (this person’s name has been changed, but this is a true story). John uses money from work and his side business to invest in the stock market. He begins to see moderate returns on his investment portfolio (4% to 8%). John takes his profit from the investment portfolio and begins to invest in the cryptocurrency market. He is building his wealth funnel:
Portfolio Returns –> Cryptocurrency market
As his cryptocurrency portfolio and regular portfolio grow, John takes out some of the returns and goes to buy investment properties, still growing his funnel:
Portfolio Returns –> Investment Property <– Cryptocurrency returns
Over time, as the two portfolios generate a return and the investment property has positive cash flow, John can use those proceeds to invest into some other what I call IPAs – Income Producing Assets.
Ladies and gentlemen, this is the way you diversify your investments. It is no longer about investing in different sectors of the stock market, it is about having your money come through various conduits.