3 Astonishingly Simple Ways to Invest in Yourself
April 26, 2021 (Investorideas.com Newswire) When you think about investments, you probably picture the jagged line of the stock market showing gains (and losses) for the economy at large. You think of mutual funds and companies announcing they're going public.
But today, let's get a little more personal. Instead of investing in money market instruments, it's time to put money towards the most important stock there is: you!
With three small changes to your financial habits, you can manage your money better. Here are three ways to invest in yourself:
1. Pay Down Debt Using the Avalanche Method
Debt can be a drag. It ties up your monthly budget in ways that reduces what you have to save and splurge.
If you want to boost your spending power, it's important you do what you can to pay it off as quickly as possible.
Paying down debt is easier when you follow the avalanche method. This debt payment style helps you pay off the installment loan or line of credit with the highest interest rates first.
- Hit the minimum payments on all your personal loans and lines of credit to keep them in good standing.
- Pour any extra payments toward the account with the highest interest until you pay it off.
- Once you pay off a loan, combine its minimum payment and your extra payments and apply them to the account with the next highest interest rate.
- Repeat as you move through each debt from highest to lowest.
Before adopting the avalanche method, read your loan and line of credit contracts carefully for pre-payment clauses. While a financial institution like MoneyKey encourages borrowers to pay off installment loans as quickly as possible, other lenders may not.
2. Pay Yourself First
All too often, saving comes as a last-minute thought at the end of the month, but by that point, you've already spent all your money. Priority goes to essential bills like rent, utilities, and groceries, and even fun expenses can eat into the cash you meant to save, too.
If overspending stops you from saving, switch the order around. Set it up so that you squirrel away a bit of cash as soon as you get paid.
Paying yourself first guarantees you won't skip out on a contribution because you splurged on a new phone or jacket.
In this way, it forces you to budget better. When savings come off the top, you have less money to go around for the rest of the month, so you'll have to reduce unnecessary spending to pay your bills on time.
3. Learn a New Skill
Improving your skills and expanding your experience can come in handy when you're looking for a new job. You can list your new achievements on your CV, unlocking different positions and higher rates of pay.
MOOC - or Massive Open Online Courses - make it easier to brush up on your skills from the comfort of your home. The following organizations offer free courses:
Volunteering is another good way to expand your horizons. If it works out, you'll gain another reference for your resume, and you'll feel empowered by helping your community. That's a win for everyone.
Start putting more stock in you by focusing on how you can improve your finances. Once you start investing in yourself, you'll start to see your financial powers grow.
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