My General Investment Strategy and Investment Principles

This article describes in details my general investment strategy and investment principles when it comes to managing my family money. You will also find here the list of revenue-generating assets that I consider important drivers for wealth building.

At this stage of my life, me and my wife are focused on ‘systematic and continuous wealth building’.

To know how wealthy you are, you need to calculate your Net Worth:

Net Worth = Everything you own — Everything you owe to others

Another name for Net Worth (or wealth) in the business jargon is Equity. On the Balance Sheet, it is calculated as:

Equity = Total Assets — Total Liabilities

We are not yet at the stage of ‘wealth preservation’. We still want to increase our Net Worth (or Wealth) making the snowball bigger.

My General Investment Strategy

In general, my investment strategy is reasonably conservative. I do not consider it to be ‘extremely conservative’. At this stage of our lives we are focusing on earning money from Active Income and investing our savings to earn Passive Income. This is the list of all My Different Types of Income.

We are growing our family’s Net Worth (or wealth) by saving cash from our paychecks every month. Later, we invest that cash in revenue-generating assets which also earn money for us every month or quarter. So…