Your portfolio should be funded with money you won't need for the next five years.

I have done some major mistakes in investment back in 2019 and in 2021. I wouldn't say, I had no other option but to withdraw the money I have invested. But I thought it wouldn't be a dumb move. That's where it turned wrong. And now, even after trying for more than a year, I still am not able to fill the money back that I have taken down!

After listening to my mistake, one of my friends shared with me the other day; "Our portfolio should be funded with money you won't need for the next five years."

And I was shocked by it. Because to be honest, I never thought about it this way. As I do a full-time day job so my crypto investment is some kind of backup money. I withdraw when I feel like it and reinvest when I find the opportunity. Taking it less seriously didn't really help me to build a 'real portfolio' I can depend on.

Photo: My own creation using Canva

Investment should not be such a thing that only can back you up but rather something you can depend on. It should have the credibility to save you during rainy days. Otherwise, you are just playing, man.

Important thing to consider is how much time you are willing to put to grow your investments, as well as the amount of capital to invest and future income needs.

If you go back and forth, withdraw some, invest some, and don't have any long-term goals, then you will lose the game for sure.

Let me put it this way -

Invest the money you will probably need in the next five years. Stores all the assets you own across, hold on and it will give you a good return.

Also -

• Keep cash in an account with low risk so you can withdraw whenever you need. Like I did with HBD saving.

• Put the majority of your liquid into a long-term investment. Consider making it at least 40%.

But remember, a good return requires an aggressive allocation, like 80%-90% of the investment. Otherwise, it will take almost double to time to reach the same goal.

I have learned from my mistake and I'm not going to withdraw more from my investment in the long run. I have managed to put some money offline so they can help me during bad days. And now what I have is all investment.

People say that it's your money, spend or invest as you like. Don't listen to them. That's what spoiled me. If you have a long-term vision, want to be financially in a better position, and earn a good return; then take your investment plan seriously. And if you really can build such a profile where you don't need to put your hands on it for five years, then the game is yours.

Thanks for reading.