If you are in your twenties and fresh out of undergraduate school, there are a number of investments that you should make today that will pay off handsomely tomorrow. No, I am not talking about particular international ETFs or municipal bond funds. I am talking about specific things you can do now that can pave the way for a brighter future.
A Part-Time Business
Invest some of your time and money into a side business. It does not have to be anything fancy. It could be a hobby of yours or something as simple as selling ads on your blog. Whatever it is, it is good to invest in it now when you have the time, assuming you are not yet married and do not have kids. Building a separate income stream can mitigate the impact of a layoff. If you decided to try to monetize a passion of yours, the advantage of doing so now is that you already have a paycheck and health insurance, and so can afford to spend a few years building your business while taking in relatively little income. Another advantage is that your business could take off and you could spend the rest of your life doing something you love, and reporting to no one. Even if full-time entrepreneurship is not for you, an investment in a second income now can buy you security and peace of mind.
There is no better time to take advantage of graduate school, especially if your employer offers tuition reimbursement. A few years out of undergrad, your study skills have not completed atrophied. And while you may have to cut back on club hopping, you’ll find yourself meeting and making a lot of new friends. Contrast this to going back to school in your thirties and forties when you have a spouse, kids, and a mortgage; imagine going back to a classroom filled with kids in their mid twenties who are far more likely to recall how to calculate the partial derivative of a function and be able to pull all-nighters. Get your masters degree or law degree now, while you still have enough energy where it does not become a burden. It will separate you from the pack, in an era where increasing numbers of job seekers have college degrees.
A Savings Account
Liz Pulliam Weston has written a compelling article about why you should always have at least $500 dollars in the bank. Even a modestly funded savings account ensures that minor unanticipated costs don’t become major financial setbacks. You do not want to dump all of your cash into an investment because something like a busted muffler could force you to sell low. Plus, getting into the habit of living below your means now will stand you in good stead if by some unfortunate circumstance, you have no choice but to do so later.
But by no means use $500 dollars as a rule of thumb. Conventional wisdom suggests saving three to six months – or more – worth of living expenses.
Exercise Regimen/Healthy Diet
It is tempting now that you are on your own to let yourself go – barhopping every weekend and dining out every day you can afford to. But these kinds of things can have serious ramifications for your health later on. If you are successful enough to make it to the C-suite by fifty, forty, or even thirty or twenty, you do not want an ailment like heart disease to cut that short. Invest now in a regular aerobic exercise routine as well as a healthy diet. You do not necessarily have to join a gym: jogging around your neighborhood can easily reap sizable dividends. Check out Fitnessqq.com for latest fitness guides!
With defined benefit pension plans all but gone for new hires and Social Security in sorry shape, it is critical that you do all to ensure a secure retirement. From the moment you first start working, contribute as much as you can afford to these two vehicles. Moreover, begin a self-education regimen, starting with personal finance websites and books from the local library about stocks and bonds. Do not use the excuse that you get paid too little for it to matter. Numerous studies have shown the earlier you start, the more you are likely to wind up with. Start now with best IRA Gold Account at Regal Asset. Click HERE to request FREE Gold Kit and receive FREE Forbes Issue
Even if you are between jobs, always have a business card handy. You never know who you might meet or how they might impact your career. It’s also a good to purchase your name as a domain name and route it to an online resume, such as a LinkedIn or VisualCV profile page. Clean up any potentially embarrassing information about yourself online. You may just be in an entry-level position, but there is no better time to begin to manage and build your reputation.