Using Investments to Focus on What is Important in Your Life

Money is the root of all evil. Money can't buy happiness.

These are widely used quotes that mean that the excessive desire for money and wealth can lead to negative, immoral, or evil actions, and that money is not the sole determinant for happiness.

I do not agree with the first quote although I do agree with the second quote. I do not think money is evil or that money can buy happiness, but I do believe that money is important.

The Importance of Money

Money is important in life. Money plays a major part in each of our lives.

Money is essential for our basic needs. Everyone needs food, shelter, clothing, and healthcare. All of those basic needs require money. As such, money allows individuals to provide for themselves and their families.

Money is important for our quality of life. After your basic needs are met, money enables you to enhance your quality of life. Money enables you to have life experiences, travel, education, entertainment, leisure, dining, personal growth, and improved goods and services.

Money can also provide financial security and stability. Having excess money allows individuals to provide for their lifestyle, pay for education, prepare for emergencies, and have the flexibility to plan for the future.

Money also opens the door for various investment opportunities, networking events, further education, and personal development.

What is Most Important to You?

I have a value statement that I live by and try to make decisions based on.

It's simple really. My value statement is Family, Wealth, and Health.

My belief is that everyone should come up with a guiding system that is used to make investment decisions, and that is used as a guide to focus on what is important in your life.

While my three values are crucial to me in making decisions, they also drive my decisions in making investments so that I can focus on what is most important.

It is important that everyone is able to recognize and focus on what matters most for them. For some, their personal values may be geared to personal values, spirituality, cultural background, education, or charity.

Can You Make Investments that Enable You to Focus on What's Important?

While money is important for meeting your basic needs, improving your quality of life, and providing financial security, money is not the sole determinant of happiness and it is certainly not the most important thing in one's life.

True happiness and focusing on what is important typically comes from establishing meaningful relationships, finding personal fulfillment, and engaging your sense of purpose.

But making investments that allow your to focus on what is important so that you can get to a place of financial independence and security takes discipline and patience.

Here are five ideas for using investments to create meaning in your life:

#1 - Cash Flow Investing

You can allocate a portion of your investment portfolio towards cash flow investing. These investments can include various types of real estate, real estate investment trusts (REITs), dividend paying stocks, and private equity. The cash generated from these investments can provide you with the income you need, which will enable you to focus on what is most important to you.

#2 - Impact Investing

You can allocate a portion of your investment portfolio towards impact investing, which means that you can invest in companies that generate positive social and/or environmental impact in addition to financial returns. This could involve investing in renewable energy companies, sustainable agriculture projects, climate control firms, healthcare firms, or companies improving access to education. These types of investments can provide returns and impact.

#3 - Community Development Investments

You can allocate a portion of your investment portfolio towards community development projects that directly benefit the areas where you have a connection. These investments could include affordable housing, small business investments, or infrastructure projects. By investing in the community, you can earn returns and also enable you to focus on things that are important.

#4 - Education and Self-Improvement

You can also invest in your own education and personal development. This could involve investing in education for yourself, which could be formal or informal. This could also involve obtaining additional skills that can help you focus on your purpose.

#5 - Legacy Planning

You can also invest in your legacy planning. You can utilize your investments as a tool for legacy planning and philanthropy, which can ensure that your wealth has a lasting impact beyond your own lifetime. This could involve establishing a charitable foundation to support the causes that you care about. You can leave a positive legacy that reflects your values and priorities, while also inspiring future generations to continue your philanthropic efforts.

Final Thoughts

While money is undoubtedly important, it's crucial to recognize its limitations and not equate it with overall happiness or fulfillment. While it can provide comfort and convenience, true happiness often comes from meaningful relationships, personal fulfillment, and a sense of purpose.

Striking a balance between financial security and life, which includes a focus on health, relationships, and personal growth, is essential for overall well-being.

Striving for money and financial independence gives individuals the autonomy to make choices and decisions that align with their values, goals, and preferences. Having money allows for greater freedom in determining how to spend time, pursue interests, and shape one's overall lifestyle.

* I started a weekly newsletter on January 1, 2024 called Cash Flow Net Worth with the goal to provide actionable real estate investment ideas and insights to help you increase both your passive cash flow and net worth over time. I would be honored if you would sign up here.