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Turnkey Real Estate Investing

4 min read

Your Picture of Financial Freedom Shapes Investment Strategy

Thu, Apr 18, 2024

Road to freedom

Investors – ourselves included – often refer to “financial freedom.” While the concept itself sounds reasonably straightforward, it can mean many things to different people. These ideas lead to diverging goals and priorities. Ultimately, those points of divergence demand unique investment strategies. What you do hinges on where you want to be.

What Can Financial Freedom Look Like?

There’s no way we can go through every conceivable concept of financial freedom. However, there tend to be some common ideas:

Concept #1 – Retiring Early

This is the version of financial freedom you’ll see most talked about. It’s also the toughest to achieve. One would use investments to supply passive income to replace the money they would earn from a full-time job. Then, they would either focus on travel, hobbies, or entrepreneurship. (These early retirees rarely truly retire!)

Often, this goal demands aggressive, more active investment strategies over buy-and-hold methods that take time to reach their full potential.

Concept #2 – Securing Generational Wealth

The second meaning of financial freedom is securing generational wealth. This can entail a variety of financial goals – from being able to pay for a child’s education and help with other major expenses to passing your investment assets on to the next generation. This goal is more attainable because you have your whole lifetime to go before it comes to fruition. It may also involve securing cash flow throughout a traditional retirement.

Concept #3 – Bankrolling Hobbies and Little Luxuries

Your idea of financial freedom may be even smaller. There’s no shame in wanting extra cash to fund a regular family vacation, pay for a once-in-the-lifetime trip, or enjoy hobbies. Some people just want some extra financial wiggle room and see income-generating investments as a way to accomplish that goal.

Hey! Goals Change.

Just because you have one definition for financial freedom now doesn’t mean it will always be that way. You’ll get older. Your priorities will shift. No investor is perfectly alike in what they want. You’re not wrong for wanting something different or for changing your mind. No matter how your goals change through the years, though, keep these guiding principles in mind:

4 Rules at the Heart of Financial Freedom

Rule #1 – Make a Plan

Once you understand what you want, it’s time to make an actionable plan. This means researching your options: how these investments work, the resources needed to start, the risks involved, realistic expectations, etc. This plan may be fluid. It’s supposed to change with your priorities. What matters is that you have a plan. One you understand, one you can break down into achievable tasks, and one you can stick to.

Rule #2 – Start Early

This is doubly true if you want to retire early, but it’s a rule for any financial goal. They say time is money, and they’re not wrong. Investments, especially buy-and-hold varieties, demand time to pay off. It’s a slow and steady strategy you build on over time by increasing income streams while your real estate assets appreciate. The longer you wait, the less time you have to see everything pay off in the future.

Rule #3 – Do Your Due Diligence

Due diligence is the first tenant of any investment strategy. For real estate investors, due diligence isn’t a one-time task list. It’s an ongoing process of increasing knowledge, gathering facts, evaluating risk, and making wise, informed decisions. Whether researching an investment market or investigating a specific property, due diligence is at the heart of success. Whatever you do, don’t go in blind.

Rule #4 – Practice Futureproofing

None of us know what the future holds. So when we say you should be futureproofing, we’re not talking about making predictions or worrying about the next forty years. Futureproofing means that while you enjoy present wealth, you also work to preserve it. 

Investors futureproof by:

  • Living within their means.
  • Maintaining their assets and their value.
  • Keeping a comprehensive, up-to-date will and/or estate plan.
  • Managing their debt-to-income ratio wisely.
  • Supplying a financial safety net.
  • Mitigating liabilities whenever possible.
  • Consulting with financial advisors.

Futureproofing simply means doing everything within your power now to secure your wealth for the future. 


Thinking about your financial future? Your REI Nation advisor is waiting to help you develop a plan to suit your unique wealth-building ambitions!

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Chris Clothier
Written by Chris Clothier

Entrepreneur, writer, speaker, ultra-endurance athlete, husband & father of five beautiful children. Chris puts these natural talents on display every day. As a partner at REI Nation, Chris addresses small and large audiences of real estate investors and business professionals nationwide several times each year. Chris is also an active writer, weekly publishing real estate, leadership, and endurance training articles.