How to Create an Investment Portfolio
Start with the end in mind
If you’ve never had a financial management system before, the Queens of Capital Financial Management System is by far the easiest and most user-friendly. Remember the three F’s - Fixed, Flexible, & Future - start first by writing down your fixed income and expense commitments, including essential living expenses, automatic payments and any outstanding debts. Automate as many of these as possible.
Then write down your flexible expenses, such as memberships, subscriptions, holidays and gifts. Once you’re clear on your fixed and flexible expenses, double this figure and you’ll have a good idea of the amount you need to generate each year to cover your living costs, debt recovery and fun, whilst still giving yourself room to account for inflation and any surprises (health, education, expansion of your family, etc).
Finally, decide how much you’d like to put in your future/growth fund. Many people start by allocating 2-3%, or up to 10% of their fixed income into investments and further income generation streams. See what is right for you and adjust it accordingly as your disposable income grows.
What about setting financial goals?
Get clear on how much you’d like to create as your first major financial milestone and focus your thoughts and feelings on increasing the flow of money to you as often as you can throughout the day. Remember that most people overestimate what they can achieve in one year and grossly underestimate what they can achieve in 5-10 years.
Consciously improving your relationship with and habits around money is essential to not only achieving your financial goals but also to retaining your newfound wealth, so observe your habits and thought impulses when dealing with money. You can learn about how to do this in a tangible way by taking part in our Castle Programme.
Managing Risk
Understanding your personal risk appetite is essential when it comes to investing, even more so when starting out in the crypto space as it is still nascent in nature and is incredibly volatile. Generally speaking, the higher the risk, the more potential for greater returns on your investment.
Buying and holding long-standing crypto assets such as Bitcoin (BTC) and Ether (ETH) would be at the lower risk end of the scale, so long as your time horizon extends beyond several years. Trading crypto derivatives and investing in NFTs, collectables and very young crypto tokens would be at the much higher risk end of the scale. It is recommended to never risk capital that you are not willing to lose entirely, no matter how high your risk tolerance.
What should I invest in?
When starting out in crypto investing, diversify your portfolio with “blue chip” or layer one (and proven layer two) coins and tokens, such as BTC, ETH, BNB, AVAX, MATIC, SOL, FTM, etc, versus very new tokens that have not had much trading history or proof of backing, investment or development. Ensure that you read the white papers for your chosen assets and do your own research, so that you are investing in crypto assets that you believe are worthy of your investment and have room for growth.
How do I learn to invest and trade effectively?
Our Queendom Programme teaches everything that you need to know about how to get started in the crypto space - everything from how to open a wallet or exchange account, how to buy and sell, how to use robots to trade while you sleep, how to invest in collectables, how to take advantage of decentralised finance (DeFi) and privacy tokens, and more. This course is evergreen, has live launches and live coaching calls regularly, and has a thriving and active community associated with it to ensure we keep each other safe while taking advantage of exciting new opportunities in the ever-evolving crypto industry. Sign up and join us today!
