In 1943, psychologist Abraham Maslow published a paper called “A Theory of Human Motivation.”

In this paper he described, what has come known as, Maslow’s Hierarchy of Needs. Basically its a pyramid structure describing different human motivation drivers.

At the bottom of this pyramid lies physiological needs–food, water, etc. The next level up is safety and security. In other words, you need a roof over your head.

The pyramid continues upwards to its pinnacle, self-actualization–the ability to focus on one’s mission in life. I call this true wealth.

After all, it’s tough to focus on your mission in life when you are trying to put food on the table AND trying to keep your family safe from wild animals and infectious disease.

Trouble finding one’s mission in life is a first world problem.

Now–let’s apply these principles to investing. In tough financial times, where should you focus your investments? Maybe low income housing makes sense? The problem is that low income housing is often very difficult to manage.

I can tell you from personal experience with the first apartment building I ever bought–low income housing usually looks better on paper.

Understand that I am not made to be a slum lord. My father made millions of dollars throughout his life collecting rents with a baseball bat in one hand but I did not get that gene.

Now, if you can find people who are really good operators in this space, there is a lot of money to be made and you can actually do a lot of good for the communities. One of the few operators in the low income housing space that I trust is Mike Ayala. Mike and his colleagues are killing it in the mobile home park space.

So, if you want to learn more about how Maslow Level 2 investing can help your portfolio, make sure to tune in to this week’s episode of Wealth Formula Podcast.