The first financial investment you should make is in yourself
We all know the importance of investing. When we get to the point where we can start saving, it’s instinctive (and rightly so!) to start looking at financial investments like stocks or 401(k)s. One reddit user, however, suggests that the first investment to make is in yourself.
The same principle of compound interest that applies to your financial investments applies to your personal investments: the earlier you start, the greater the impact will be later on. Even something as simple as buying a nice wardrobe can pay huge dividends if your professional appearance catches the eye of a potential employer:
I told him he didn’t really make enough money to justify an investment at his age. (20 years old) and that he has to take his $11 an hour and invest it in himself. He needs to make sure he looks professional (clothes/appearance/take care of himself) and improve his education/experience to get a better paying job later in life. $5,000 in trade school IMHO is better spent than $5,000 on a 20-year-old scholarship.
What this means for you will vary greatly depending on where you are in life, but maximizing your earning potential early on will greatly affect how much you will have to invest in this retirement plan five years from now. While it can be easy (and tempting) to go overboard, we’ve already covered how not all purchases are frivolous if they can boost your career.
picture by Simon Cunningham.