The choice of adopting the “solo lifestyle” is gaining considerable traction these days. Whether this is spurred by personal inclinations, work obligations, or other factors, living solo shouldn’t stop you from building a solid investment portfolio. Instead, it can provide distinctive opportunities that let you zero in on your objectives and make insightful decisions. In this straightforward and engaging article, I will outline some of the most popular strategies to assist you in crafting a resilient financial blueprint while embracing autonomy.

How to Build a Solid Investment Portfolio on Your Own

Money | 17th October 2023 by Myrtle Bautista

The choice of adopting the “solo lifestyle” is gaining considerable traction these days. Whether this is spurred by personal inclinations, work obligations, or other factors, living solo shouldn’t stop you from building a solid investment portfolio. Instead, it can provide distinctive opportunities that let you zero in on your objectives and make insightful decisions. In this straightforward and engaging article, I will outline some of the most popular strategies to assist you in crafting a resilient financial blueprint while embracing autonomy.

How To Build A Solid Investment Portfolio On Your Own

1. Conduct a comprehensive financial review

Your investment journey begins at home—with a meticulous and detailed examination of your personal finances. So how do you go about it? Plunge right in to find out how. 

  • Start by assessing all income sources: Don’t just consider your primary monthly salary; also take into account any side hustles, freelance gigs, rental income, royalties, or dividends. Every dollar counts when planning your investment budget.
  • Create an exhaustive list of your outgoing expenses: This should include fixed costs like rent or mortgage payments, utilities, groceries, insurance, and car payments. Also, consider less frequent cashouts, such as yearly memberships, insurance premiums, and maintenance costs for your home or car.
  • Get the entire picture: No financial review is complete without an overview of your savings. How much have you set aside as an emergency fund? Experts suggest setting aside at least enough to cover three to six months of essential living costs. And what about your retirement savings? Be sure to consider any 401(k) or IRA contributions. 
  • Draft a realistic budget: This isn’t just about numbers; it’s about understanding your financial behavior. Towards this end, budgeting tools like Mint or You Need a Budget (YNAB) can be highly beneficial. These apps track your income, identify patterns, highlight excessive spending, and help you set saving goals.
  • Take a close look at your discretionary spending: Maybe you’re spending more than expected on dining out, or those subscriptions you rarely use are adding up. These are potential areas where you can cut back and redirect funds to your investment pool without jeopardizing your financial well-being.

2. Set defined investment objectives

Secure a clear direction from the get-go. Start by reflecting on your financial goals. Perhaps you’re aiming to set aside funds for a down payment for a home within the next five years, or maybe you’re working towards a dream retirement in 20 years. Whatever they may be, each objective requires different strategies. 

Suppose you’re striving for a property deposit. Then you might want to focus on short-term, high-return investments such as growth stocks in emerging markets or innovative sectors like AI and renewable energy. 

On the other hand, for a long-term goal like a pension pot, a slow and steady approach might be better. Consider blue-chip companies with a history of consistent performance and regular dividend payouts or bonds. Both can provide a dependable income stream over time. Additionally, they offer potential capital appreciation, which will serve you well when you retire.

3. Begin with lower-risk investments

Stepping into the investing realm can initially seem intimidating, but starting with low-risk investments can provide a comfortable entry point.

  • Government Bonds: Government bonds should be a primary consideration. They may not always be the most exciting, but they offer a solid foundation. These instruments, backed by the full faith and credit of a government, provide guaranteed returns and add a stability element to your portfolio.
  • Corporate Bonds: Similarly, corporate bonds from mature companies like IBM or Johnson & Johnson offer a reliable investment avenue. These established companies have a proven track record and are at less risk of defaulting on their financial obligations.
  • Index Funds: A worthwhile option is index funds, which are either mutual funds or exchange-traded funds (ETFs) designed to mirror certain predetermined rules. They track a specific selection of underlying investments, for instance, the S&P 500, encapsulating 500 of the largest U.S. companies. As your market comprehension and risk tolerance evolve, you can venture into higher-risk, higher-reward territories. The aim is to progressively and judiciously expand your portfolio to resonate with your financial objectives.

4. Harness the strength of diversification

Diversification lets you distribute and manage risk among different types of investments. Let’s delve into your alternatives.

  • Large-cap stocks: These stocks belong to sizable companies, with market caps generally surpassing the $10 billion mark. Thanks to their global operations and established reputation, firms like Apple, Amazon, and Google often come with a badge of security and reduced risk.
  • Small-cap stocks: These are shares linked to companies that boast a market cap somewhere between $300 million and $2 billion. While they are typically labeled as riskier ventures, the upside is the promise of potentially impressive returns.
  • Commodities: Investments like gold or oil have the capacity to act as a buffer against inflation, adding a touch of diversity to your investment portfolio.
  • International Funds: It’s also crucial to have a global footprint. Exchange-Traded Funds (ETFs) that track markets in Europe, Asia, or burgeoning economies can introduce diversification and potential growth prospects.

Additionally, within each class, ensure that your investments are scattered across various sectors, for example, technology, healthcare, utilities, and real estate. This strategy can soften the impact of sector-specific downturns. So, if the tech sector takes a hit, your investments in healthcare or utilities can offset the losses.


How to build a solid investment portfolio on your own cont.

5. Balance your portfolio with Bitcoin

Having a Bitcoin account is an option some individuals are exploring to broaden their portfolio and take advantage of cryptocurrencies. Being a digital asset, Bitcoin presents some distinct benefits like easy access, lower transaction fees, and potentially more control for investors. However, it’s absolutely critical to exercise added caution, particularly in cryptocurrencies, which are volatile in nature. Plus there are always changes to the regulatory environment that can drastically affect the value of Bitcoin.


For effective management of a Bitcoin account, investors should begin by dedicating a small portion of their portfolio to this asset, minimizing excessive risk. In addition, you must keep up-to-date on cryptocurrency news, market trends, regulatory updates, and potential security concerns. Finally, opt for well-established cryptocurrency wallets to help you manage your Bitcoin account anywhere and safeguard your digital assets.


6. Set up a real estate fund

Adding a real estate fund to your investment mix might just be the spice your portfolio needs, especially if you’re living solo and looking to grow your wealth steadily over time. Funds like Real Estate Investment Trusts (REITs) or real estate-centric mutual funds get you a foot in the door of the property market, sans the need to actually own and manage physical properties. This strategy simplifies your investing journey, reducing the hands-on duties that come with being a property landlord.


Real estate funds provide several other benefits for solo investors. First, they provide diversification through various property types, including residential, commercial, and industrial assets, across different geographic regions. This goes a long way in minimizing overall risk and enhancing potential returns. On top of this, such assets typically generate a consistent income stream through rental yields and capital appreciation, making them an ideal addition to a long-term plan. 

Finally, exert due diligence by researching various options and choosing a fund that matches your financial goals and risk tolerance. Pay attention to factors such as historical performance, management fees, and the fund’s underlying assets.


More tips and tricks for a solid investment portfolio

Keep these savvy strategies in mind to sustain your investment journey:

  • Invest regularly and consistently: Yet another effective approach is dollar-cost averaging. By setting a fixed amount of money for investing at regular intervals, you can avoid the stress of market timing and benefit from the power of compounding. Consistent investments will help you build wealth over time and reduce the impact of market fluctuations on your portfolio.
  • Stay informed and educated: Successful solo investors are proactive in learning about financial markets, investment strategies, and asset classes. Stay informed by reading relevant news, blogs, and books. Attend seminars or online courses to enhance your knowledge and skills. All these will enable you to make well-informed decisions and adapt your approach as needed.
  • Seek professional advice: Although you’re building your portfolio independently, seeking professional advice can be invaluable. Financial advisors, accountants, and tax consultants can provide expert guidance based on your unique situation. They can also help you navigate complex products and tax implications, ensuring your investments remain optimized and compliant.
  • Monitor and rebalance Your portfolio: Regularly review your portfolio to assess its performance and alignment with your financial objectives. Market conditions and personal circumstances can change over time, requiring adjustments to your investment strategy.
  • Be patient and stay disciplined: Investing is a long-term endeavor. So stay patient and disciplined in your approach, even during market downturns. Steer clear of making impulsive decisions based on short-term market fluctuations or emotions. Instead, stick to your plan, and focus on your long-term goals.
  • Embrace technology: Take advantage of technology to streamline your process and access valuable tools and resources. For instance, robo-advisors, online brokerage platforms, and mobile apps can simplify investing, provide expert insights, and help you manage your portfolio with ease. These tools can be especially beneficial for solo investors looking to optimize their strategy without sacrificing time or convenience.

A parting note

  • Being solo should not hinder your ability to build a solid portfolio. You can take control of your future and create a diversified and resilient investment line-up that aligns with your personal goals and risk tolerance. With patience, discipline, seeking personalised advice and continuous learning, it is possible to achieve financial success while enjoying the benefits of an independent lifestyle. 

  • Please note: All information provided in this article is ‘as is’ at the time of publication, however sometimes information gets out of date. You should not rely on this information when making financial decisions as no financial advice has been given. The article is intended to be informative only. If you’re not sure what to do when making financial decisions, then consulting a financial advisor should be your next step who may well charge for any financial advice they provide.

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1 thought on “How To Build A Solid Investment Portfolio On Your Own”

  1. You’re so awesome! I don’t believe I have read a single thing like that before. So great to find someone with some original thoughts on this topic. Really.. thank you for starting this up. This website is something that is needed on the internet, someone with a little originality!

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