As your portfolio grows, investing in the right places not only protects it but also helps it continue to grow over the years. But are you investing in yourself? This can be one of the most important ways to invest for the future and ensure you always have financial stability. Here are five ways you can do just that.
1. Invest In Your Education
One of the most obvious ways to invest in yourself is to increase your earning potential through education. For many, this means financing a university degree or a higher level of degree than you have, increasing your marketability. But it could also mean setting aside money for continuing education, new skill-building, or just keeping up in your own field of knowledge.
2. Invest In Financial Knowledge
Understanding how to make money only protects you if you know how to control and keep it. And that means financial literacy. Therefore, you should learn about how the stock market works, different investing strategies, how to project growth, and basic economic markers. If you don't understand a subject your accountant, banker, or financial planner talks about, make a point to research it until you're comfortable with it. Read books, podcasts, or websites about financial subjects and keep up with financial news.
3. Invest In Income Streams
Even high earners can suffer from a downturn in their industry, a bad economy, or being replaced by younger workers. An important way to minimize this risk is to have more than one stream of income for yourself.
There are two routes to creating side income streams: passive and active. An active income source could be a side business, becoming a landlord, or consulting in something you're knowledgeable about. Passive income streams include dividends from investments, copyrighting an artistic work, or investing in royalties.
4. Invest In Your Health
Your health and wellbeing are more important than any amount of money. But many Americans fail to properly prioritize their wellbeing, whether that's physically, emotionally, and mentally.
Therefore, start by making sure you and your family have proper health and life insurance. Get exercise, sleep, and eat healthy foods. Take breaks from work, even when you have a hard time being gone. And make sure you take care of your mental health and reduce sources of stress.
5. Invest In Estate Planning
Finally, estate planning is your final investment in yourself that benefits your family. Even while you're alive, it's a way to ensure that you're cared for if something incapacitates you or if an emergency prevents you from making decisions. By ensuring continuity of care for yourself and your assets, you create stability for yourself and your family no matter what happens.
Do you want to do better in investing in yourself within any of these areas? Start by discussing your goals with a wealth management specialist in your state today. A company like Horan can provide more information.