Invest In Your Future

Do you want financial freedom? What should you invest in? How can you set yourself up for your future?

It's a timely topic to explore. Several of my employees are trying to get into the property market and are finding it increasingly difficult. They are beginning to realise that they should've started a little earlier. If you are in your early 20s or know someone in that age bracket around you, if you want to start gaining some forward momentum in your life and your career, then this article is for you.

YOUTH AND INVESTMENTS

I'm really excited about the cryptocurrency market right now, not because it has crashed, grown, or people have made a lot of money from it. But, because it has brought the current generation of 20-somethings into awareness about making money. It's brought it to the forefront of topical conversation, particularly on social media.

TO PARTY, OR NOT TO PARTY…

It sucks to be poor. Money doesn't make you happy, but what money does do, is give you freedom. Money gives you the ability to make choices.

A lot of people are enjoying life right now in their 20s, partying really hard and doing drugs. They're living week to week, not thinking too much about the future. The months turn into six months, six months turn into three years, and it's already five years before you know it.

Don't get me wrong, enjoying life is great when you have more freedom, especially when you have no overheads or serious responsibilities. But, soon enough, your desires begin to change. Maybe you might meet your significant other, start a family, or you're tired of paying rent and moving houses. When your overheads increase, your freedom may become impacted if you don't increase your earning potential.

PERSONAL REFLECTION

By asking yourself some reflective questions and understanding what you should avoid or do less of, you will positively impact your life. You will be in a better place to achieve your future goals.

I want you to ask yourself, can you influence the people around you and have you got yourself sorted out first? I say this because often, we haven't taken that advice ourselves. Stay in your lane and gain experience. You will then be able to be confident in helping others.

Think about the next six months or twelve months of your life. Be honest with yourself.

• What does success and financial success look like to you?
• What dollar value would you like to have in your bank account?
• If you had this dollar value in the bank the very next day, what are you going to do with that money? 

• Why is it important to have that dollar value? Is it because you want $25,000 in the bank to go on a holiday? Is it because you want to place down a deposit for a house? Is it because you want to buy a fancy car?
• Can this money be invested to make more money?

WHY INVEST YOUR MONEY AND IN YOURSELF?

Now, the objective is not necessarily to make a lot of money. The objective is to gain freedom from your money and always have a choice. You will be able to do a lot more later in life because you've worked hard. When I say work hard, educate hard, educate yourself, and bring knowledge into investments and financial advice. It's okay if you want to party hard, that's fine, but you will find yourself restricted as the years go by.

Begin to think how old you are right now in your life. Ask yourself, what am I doing to educate myself around investments, finance and multiple sources of income? 

HOW MUCH SHOULD I INVEST IN MYSELF? 

Make sure you put 10% of what you earn each week and invest in educating yourself. You'll want to do professional development every single week. If you can't read a book a week, read a book every month. If you invest $30 into a book, you will reap the benefits later.

WHERE SHOULD I INVEST MY MONEY?

Start to think of different asset classes you might be interested in. I appreciate real estate, especially here in Australia. Real estate is growing in value, and a lot of people are attributing that to the pandemic. I've been watching real estate really closely for the last 30 years.

If you're more into investing in stocks, it's crucial to think about the fundamentals of those companies. Is this company offering something people are going to need in the future? Is it desirable, and will people buy it? Is it trending? If that's the case, then the value of the company will go up.

Take a look at essential services. These are good long-term investments such as utilities and infrastructure. However, be mindful of electricity companies right now. They're not necessarily going to be trending, particularly in Australia. Electricity is becoming decentralised. There are people like myself that are starting to think about taking their house off the grid. I wouldn't invest in a power company. People are putting solar panels on their homes and then driving electric cars. I plan to not pay an electricity bill to a power company in twenty-four months and begin using an electric vehicle.

GOALS WILL HELP YOU GET TO WHERE YOU WANT TO BE. 

If you're somebody who wants to invest, if you're somebody who wants to make money, if you're somebody who wants to have more freedom later in life, start thinking about what your goals are.

Write a bucket list.

One of the most addictive emotions is anticipation. Anticipation is rewarded to those who set small goals in different parts of their lives and vision what it will feel like to achieve them. Setting small goals will give you something to work and focus on. It's going to help you say no to the drinking invitation.

As much fun partying is in the moment, you are sacrificing your future. It's okay in moderation, but scaling the drinking back and starting to invest in yourself will pay more dividends later on.

I hope that I have motivated and inspired you in some way to start thinking about the things you can work on now for your future. I want you to start setting up the life you know you're destined to have.

If you want to invest in your self-development, check out our article, "It's Time To Do A SWOT Analysis On Yourself", to learn more about how you can turn your strengths into opportunities and your weaknesses into strengths.

Keep learning, 

Kobi Simmat - Director & CEO of the Best Practice Group.