There was an article a while ago about a man who worked a high-paying consulting job, earning enough for everything all of us dream of: big house, flashy cars and expensive holidays. However, after close inspection, it was revealed that he was spending everything he was earning very fast, which would mean that if he had stopped working the day after, he would have come back to the start. This is one of the main reasons people choose to invest in something, and since time is flying by (literally as we grow older), we soon find ourselves in our 50s without having invested in anything. This means that creating investing strategies is one of the most important things that we should do to ourselves and our future selves. And if you don’t know how to achieve that, take a look.
The 10-10-10 rule
One of the best ways to create a good investing strategy is following the 10-10-10 rule. This is a rule that every person should follow, and the younger you start – the better. The point is to take your total monthly income, and divide it up 70%-30%. The bigger portion of your income should be for spending on your day-to-day lifestyle, meaning lunches, going out, buying groceries and stuff that you need. However, the other 30% should be divided equally into three different parts. The first part should go into a long-term vehicle; 10% should immediately go into your savings fund, while the last 10% should be for things that you want but not actually need, such as traveling.
Even though this is something that we very often run away from, investing in your health should be your main priority. It doesn’t matter how young or old you are, staying healthy and making sure it stays that way is of crucial importance. Make sure that you always get your regular medical checkups in order to find out if there’s something wrong with your body, and to make sure you stay healthy and alive for a long time. As far as these medical check-ups are concerned, you should start with two or three per year, and see if you need more along the way.
It might seem a bit far-fetched to start thinking about moving to a retirement home at the moment, but it’s always a good idea to plan everything ahead. Before you blink, you’ll find yourself in your 60s and 70s, so investing right now or saving money on the side so that you could afford appropriate aged care is definitely a good idea. That way, once the time comes to move to a retirement home or ask for help, you won’t have any financial difficulties, nor will you be a burden on your kids or other members of your family. Once you have everything settled, you could move on with your life knowing that you crossed out one of the most important things from the senior to-do list.
Investing in businesses is a double-edged sword, but definitely something that’s worth thinking about. This is something that can double your monthly income, and if you play your cards right, your business will live a long, long time. First of all, think about what kind of business you want to invest in. You can always choose an existing one and try to find your way in, but unless you’re 100% sure that business will bloom in the years to come, perhaps you could invest in a business of your own. Try to think about the demand and the things you’re good at and start from there. If you hire a marketing specialist and advertise your business every way that you can, success will not be far behind.
Finally, renting is a great investment option as it will always bring you some cash on the side. If your budget allows it, buying a property is always a great idea. The property prices are very high, especially nowadays, but you can find a cheaper one in a different part of the town or another city as it will definitely pay off in the future (bearing in mind that cities and towns are constantly growing). You can use this money to invest into something else, or have a fund that you will later on give to your children and grandchildren.
It doesn’t matter if you’re in your twenties – thinking about your future is something that you should definitely do. These five tips are the easiest; just follow them and you’ll see how happier and more satisfied you will be knowing you’re doing everything you can to help your future self.