The more I experiment and try out different ways to achieve financial freedom, the more I learn about real concepts of financial management of my own money.

Moving from One Asset Class to Another

As you live within your means, you start to have savings. Most personal finance books advise you to keep some buffer or emergency funds enough for 3 to 6 months of expenses or income. The additional savings you should invest in fixed deposits, mutual funds, stocks and shares or other asset classes that fit your risk-reward profile.

Different asset classes have different liquidity. Liquidity refers to how easy it is to sell your assets and convert it to cash. Sounds simple but can be fraught with challenges as I found out now that I’m selling most of my equity portfolio into the currently rising market to move into property investment.

Why am I moving most of my net-worth out of equities at this point in time? Continue reading →

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