3 Cost-effective Ways to Invest Like a Minimalist | By Natsu (2024)

Have you ever dreamed of reaching financial freedom - a kind of freedom that allows you to live your life on your own terms? But you’re still not sure how to manage your investment portfolio, and kind of there are too many investment options to achieve the financial goals from mutual funds, stocks, or real estate.

Well, you're not alone. Many people aspire to achieve this level of financial independence, but often find themselves overwhelmed by the complexities and uncertainties of investing options.

Imagine a life where you have the freedom to pursue your passions, travel the world, and spend time with loved ones - all without worrying about money. Sounds like a dream? Well, it doesn't have to be. With careful planning and smart investing, reaching financial freedom is within your grasp.

The main purpose of financial freedom isn’t only about traveling the world, but the most important thing of your financial goals are to live your life without stress about money, having funds to pay for doctors, emergency cases, comfort, your kids’ education, and so on.

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When it comes to building or managing an investment portfolio, many people are drawn to complex strategies and intricate investment instruments. As we’ve mentioned before, asset allocation opens up the world of diversification. Think like a key and do a dollar-cost averaging or DCA in every month or a set of time periods with the same small portion.

For example, in a 12-month cycle, you want to invest in a single stock AB, instead of using $72,000US one time, you separate them into small 12 funds ($72,000 / 12 funds = $6,000US), and buy the same 100 shares of the AB stock. It costs you this figure.

As we’re talking, portfolio simplification and cost-effective financial investment instruments allow you to achieve your financial freedom goal. By adopting a minimalist approach to your investment portfolio, you can simplify your strategy without sacrificing potential returns.

Asset allocation is another crucial aspect of reaching financial freedom in the long-term investment strategy by diversifying your investments across different asset classes such as stocks, bonds, real estate or commodities. This helps spread out the risk while maximizing potential returns over the long term.

No one knows when is the best time for stock, for real estate, because there are plenty of factors that affect the world economic trend at the time. Diversification by asset allocation though is like a cushion for any suffering.

When it comes to getting started with investment, the beginners may struggle where and which investing options to start. Especially ones who’re first year jobbers that have less cash flow and are inexperienced.

Long-term investing can feel like a labyrinth reserved for the financially elite, a game of chance played with Monopoly money on Wall Street. But what if I told you there was a secret path, a minimalist approach to building wealth that anyone, yes, even you, can start today? No fancy footwork, no high-stakes poker faces, just three simple, cost-effective options that leverage the power of diversification and asset allocation to turn your spare change into a steady stream of green.

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Rather than borrow money from your family or put all money in one investment - too risk to avoid! - Consider these simple yet cost-effective investment instruments with our top pick 3 low-cost investing options you can add up to your current investment portfolio or even decluttering your current ones.

Forget the white-knuckled thrill of riding a single stock rollercoaster. ETFs, or Exchange Traded Funds, offer a smoother, cost-effective journey towards financial freedom. Think of them as all-you-can-eat buffets for your investment dollars, where you savor a smorgasbord of top-performing companies across diverse industries. No more putting all your eggs in one basket, praying it doesn't plummet. With ETFs, you're spreading your risk across dozens, even hundreds of businesses, ensuring that a hiccup in one doesn't spoil your entire picnic.

But the perks don't stop there. ETFs are minimalists' dreams. No need to research individual companies or become a Wall Street whiz. Simply choose an ETF that aligns with your goals, like growth or income, and let it do the heavy lifting. Management fees are typically low, unlike the hefty tolls you pay for actively managed funds - ‘Active Management’ strategy.

And there's a secret sauce to amplifying the benefits of ETFs: Dollar-Cost Averaging, or DCA we’ve talked about before. This way, you buy more shares when prices are low and fewer when they're high, automatically smoothing out the bumps and wrinkles of market volatility. It's like spreading out your picnic blanket over the entire buffet, ensuring you always have a tasty morsel to enjoy, no matter which way the market wind blows.

Single stocks might be too volatile, but let's be honest, they're often unpredictable and high-maintenance. Mutual funds and index funds, on the other hand, are the reliable investment options to fit your long-term investment strategy - it’s dependable, and surprisingly fun in their own way. These cost-effective options are the minimalist's secret weapon for building wealth, and hefty price tags.

Think of mutual funds as curated investment baskets, hand-picked by financial experts to suit your risk tolerance and growth goals. Some mutual funds are called index funds, letting you diversify your portfolio with a single bite. No more spending hours analyzing individual companies or deciphering financial jargon.

Investing in real estate can feel like a gilded cage – glittering with potential but locked behind hefty down payments, endless paperwork, and the ever-present groan of leaky faucets. REITs reduce the hassle and cost of doing so.

With REITs, specific funds to invest in some commercial properties, instead of buying a whole rental property yourself, you pool your money with other investors and own a piece of a diverse portfolio of income-generating properties, like shopping malls, office buildings, or even data centers.

Investing in REITs, you become a shareholder, reaping the rewards of rent without the pesky responsibilities of maintenance, repairs, and tenant tantrums. It's like owning a piece of the real estate pie, without the messy kitchen cleanup.

REITs are a good investment option as a minimalist person. No need to deal with mortgages, inspections, or late-night emergency calls. You're free from the time-consuming hassles and emotional rollercoaster of direct property ownership.

Simply choose a REIT that aligns with your goals (think income or growth) and let the professionals handle the heavy lifting. DCA your capital and see the growth by the time.

Not only these 3 cost-effective investment options, there’re a lot of potential ways about asset allocation. Minimalist person is crucial when building an investment portfolio for long-term growth by decluttering useless activities and focusing on only what matters for you.