The best thing you can invest in is yourself and that means not just living for now but also thinking of your future. Even if you are still undecided on a career path, or if you want to get married, the future is always there in front of you. Decisions in the years to come will always be easier when you invest in your future now and every day going forward.
1. Life-long Learning
If worries keep you awake at night with questions like "how can I invest in my future?" you should consider life-long education as one of the best ways to spend your money. A degree or professional qualification will help you achieve as many of your career goals as possible. Education will lead to a good job, which in turn will provide you with an income for a comfortable lifestyle - and more money for continued personal development! Don't stop at one diploma if you can afford to continue with learning new skills. You could be made redundant because of fast-changing technologies and if you don't keep your skills set up-to-date, you'll have made yourself less employable.
2. Saving for an Emergency Fund
Life can throw you some unexpected curve balls that can knock you off your feet if you don't have an emergency fund to fall back on. Prolonged illness, redundancy, natural disasters … the list of things that could go wrong is long. An emergency fund will not only act as a buffer between you and sleeping under a bridge or on a park bench, it will make you more confident generally. However, it requires you to be disciplined and not use the emergency fund for paying for holidays, new outfits or presents for the Holidays.
3. Starting Your Own Business
Having a successful business with a steady cash flow takes a lot of hard work, commitment, luck and determination to succeed. It can be very difficult to get going at first, and sadly, statistics show that the majority of new businesses fail in their first three years of operation. However, starting your own business is one of the best ways to provide yourself with life-long employment and a means to invest in your future.
4. Your Home
If you know you want to stay in a specific area and not likely to want to go travelling in the future, it's time to think of getting your own home. Don't make haste to buy a house or apartment until you're sure you can afford monthly mortgage repayments and the maintenance and incidental costs that homeownership incurs. Having your own place will make you feel safe, grown-up and independent and much happier.
5. Having Kids
Naturally, everybody wants to see their own future being taken care of financially, but it's equally important to take care of your children's future as well. Women usually daydream about a happy family unit heading into a rosy financial future. Providing your kids with a college fund or savings scheme that will eventually enable them to buy their own house is the most important kind of financial assistance you can provide.
6. Pension Planning
When we're young, we hardly ever think about our pensions and most young people "forget" to provide for their old age. The earlier you start to save regularly for your old age, the better the monthly pension payment will be in the end, providing for a comfortable lifestyle when you no longer go to work.
7. Risk Assessment for Investment
Every type of investment carries an element of risk, but those who take calculated risks are more likely to make large profits than those utterly opposed to high-risk investments. A calculated risk-taking can often lead to excellent profits with little risk of costing the pensioner money. Always have a strict investment budget and never exceed it. If you are going to invest, it is very important you educate yourself or get professional advice.
How are you investing in your future? What’s the most important thing for your future security?