Top Wealth Building Strategies: The 1/3 Rule

Are you an investor? Are you saving for retirement? Financial literacy is not taught in school but there are many investment strategies out there.

One such strategy is the 1/3-1/3-1/3 method. We are not taught about the various wealth building strategies, but its time we learn.

The 1/3 Method

This strategy simple means investing 33% of your money in 3 powerful assets:

First 1/3: Real Estate

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Wealthy people own land. They invest in rental property and pass the land down from generation to generation. This property can be residential property or commercial property. The benefit here is you will have a monthly stream of income for as long as you own the property.

Second 1/3: Precious Metals

Wealthy investors are big purchasers of the precious metals gold and silver. Both have been used as money for thousands of year. Until 1971, the U.S. dollar was even backed by gold. Today, gold and silver are used as a hedge against inflation because they tend to increase in value as well. In other words, as many goods become more expensive, so do precious metals. They can be sold to purchase more assets or help you maintain your standard of living during turbulent times.

Final 1/3: Fine Art

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Fine art is popular among the wealthy because art holds its value as well. They also tend to increase in value over time, in many instances because they are rare pieces. By keeping a portion of their wealth in art, they protect themselves from the effects of inflation.

Here’s a video of me elaborating on each of the 3 assets and the 1/3-1/3-1/3 strategy:

What’s Your Plan of Action?

Having an investment strategy is key to accumulating and preserving wealth. Many people think investing in a variety of mutual funds is diversification, but that’s not true. Stocks and mutual fuds are just one type of asset. The key to successful investing is to be diversified into various wealth classes.

If it’s good enough for the rich, it should be good enough for everyone.

In addition, having rental property allows a person to have cash flow regardless of their employment status. This could allow them to retire before the standard age of 65. The precious metals and fine art tend to retain their value during times of inflation, allowing them to retain their standard of living.

In other words, as the dollar loses its purchasing power, these assets tend to keep up with inflation and may even increase in value.

Call To Action

In addition to these 3 assets, another investment strategy is to obtain multiple streams of income and passive income. Which is the best investment strategy? There is no “one size fits all” answer. The key is to do your research and see which is best for you and your situation.

This is just one strategy, but there are others to check out. Get more tips in my online course Tired of the 9-5? How to Retire Early With Passive Income. Available on Udemy.

This information is critical to our success, but isn’t taught in school. Order a copy of my book Invest For Success: Millionaire Wealth Strategies Not Taught in School. Our kids can benefit from this information as well. order a copy of the Amazon Best-Seller Planting Seeds: The Children’s Guide to Entrepreneurship. Both available on Amazon.

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