I've been reading the PeerFinance101 blog for a while and love the balanced advice offered on smart spending and reaching your financial goals. I wanted to offer my own perspective and some ideas on investing in yourself. Have you been ignoring your investment opportunities because you just don't feel like now is the time? On the contrary, it's always the perfect time to start investing in yourself whether through education or through other financial assets.
No matter how young or old you are, starting to invest in yourself can only lead to future gain. Investing now gives you something to fall back on. Below are my five favorite ways to invest in yourself starting today.
- Get Personal Insurance
There are a variety of personal insurance under life and health insurance options. The types of coverage to have would depend on your family’s lifestyle as well as your family’s health history. Investing in these insurances helps your current and future financial security. For instance, you may feel investing monthly in a dental insurance is a waste of money should you not use it the prior year. But if you have an emergency situation and the expenses are $5,000 or more, that’s a lot of money to come out of pocket with at once.
Should you pass away today, do you have enough savings to cover your family’s future? Can your savings cover your children’s educational expense, mortgage, automotive bill and other necessities? Sure, you could say you have an emergency fund set aside just for that, but the truth is, most people are not responsible enough to save that type of money and keep it there. Investing in personal insurance options keeps things more affordable on a day to day basis.
- Protect Your Assets
Can you replace a valuable asset, such as your car, home, and valuables in your home, or your business? Insurance such as auto, homeowners, renters, and business insurance should be considered an affordable and necessary expense to invest in. It’s better to invest this money today than having to figure out how to replace your property later. These insurances also help protect your financial assets should you be responsible for someone else’s loss on your property.
- Invest for Your Retirement
Retirement funds are often overlooked by the young and old because of a variety of reasons. A few reason’s people do not invest at this moment include:
You always have time to invest
You don’t make enough to save
You believe the stock market is not safe
You can invest your money elsewhere
Invest in your company’s 401k or contribute to your own IRA. Start off small and automate your savings. Have one percent of your check go to a savings account automatically. Increase this with every pay raise you receive. You’ll never miss the money and will build a great nest egg.
- Start an Emergency Savings Account
An emergency savings account is sometimes a sacrifice, but an important investment in yourself. Instead of borrowing from a financial institution and incurring interest and late fees, simply borrow the money from yourself. The money you are saving could be accumulating interest to help grow your savings even more.
- Invest in Your Education
Investing in your education is an important life investment. For one, you can immediately boost your income by being promoted in your company or finding another job altogether. Investing in your education helps you make wise decisions. You could start your own business. And, the best part is, there are free courses out there such as on Coursea, Alison, or Udemy where you don’t have to pay a dime to learn. The best investments can be free.
The above five ways are a great way to start investing in yourself. Truth be told, just start investing today as age is nothing but a number.
About the Author
Joseph Hogue is a financial expert and investment analyst. After serving in the Marine Corps, he started his career investing in real estate before becoming an investment analyst for some of the largest private investors. He's appeared on Bloomberg and on CNBC as an investment expert and has published ten books in personal finance. Now he helps investors reach their financial goals and invest in the stock market with some of the same advice he used when working for the rich.