The average single person brings in a measly $35,000 per year in income. That number isn’t likely to ever make you rich by itself.
In order to far surpass what is considered average and to create a life for yourself where you can afford the things that mean most to you, you’re going to need to start investing.
Investing and saving money are both important concepts but are also different. When you save money, you scrape a little bit of what you make and put it under the mattress so that one day, you can make a big purchase. When you invest money, you spend it on things that will in the future, improve your financial circumstances.
Below, we share with you a handful of investments/ways to spend money wisely that can change the trajectory of your life.
There is perhaps no way to spend money wisely that is more important than investing in your education. The more educated you are, the more earning potential you’ll have.
That means, in theory, if you were to invest $15,000 getting a degree, you’d make that money back and then some over the course of your career.
To be clear, blindly investing in education is not a good idea.
Get educated at schools that are affordable and study subjects that carry market value.
A rich man without insurance will soon be a poor man. All it takes is one fall, lawsuit, etc. and it’s all over.
Don’t ever skimp on captive insurance, business insurance, health insurance, etc. It’s a small expense that will protect your financial well being on a daily basis.
You may be in the prime of your life right now and think that you could keep on grinding forever. As you get older though and your body starts to slow down, you’ll realize that the last thing you want to do is work until you drop dead.
Small investments in your employer’s 401K or a private IRA can ensure that you’ll live a good life in your twilight years.
4. The People Around You
Making small investments to better your community or your loved one’s lives is always a good way to spend money wisely. Not only do investments in those around you make you feel good but they can also have objective monetary benefits.
For example, investing in your community could improve it and if you own a house, your home’s value could go up. As a separate example, investing in a loved one might compel them to help you someday down the line if you need assistance.
Wrapping Up Ways to Spend Money Wisely
When you spend money wisely, you pour it into buckets that aim to compensate you later on in life. The sooner that you make some of the investments that we’ve suggested above, the more that they’ll pay off.
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