Most of us realize through life there are several key life investments we will make that can often have a dramatic effect on our overall wealth and happiness. According to a recent study by career site Zippia, the average US citizen can expect to earn just shy of $2.7 million through the course of a lifetime. In the UK, the figure is estimated to be closer to £1.1 million over an average 48-year working career. When you think about it, both are quite staggering amounts and almost beg the question – just where does all our money go?
Most of us realize through life there are several key life investments we will make that can often have a dramatic effect on our overall wealth and happiness. Here are the five biggest speculations most people will make throughout their lifetime.
Education – One of the Most Important Life Investments
Unless you are fortunate enough to have been born into wealth, for the majority of people the most important and fundamental life investments we can make is in our education. Not only will qualifications give access to better employment opportunities, often attending the right school or university can open societal doors allowing us to mix with similar, like-minded professionals. Indeed, it could very easily be argued the greatest benefit of a good education is not so much the training but rather the networking prospects it can present for later life.
Family – the Gift that Just Keeps on Giving
Investing in the family is not for personal gain – rather, we all have a vested interest in our nearest and dearest doing well and making a success of their lives. Families care and will be there for you, through thick and thin, good times and bad. Yes, having a family is expensive and will account for a significant chunk of your hard-earned wages but the payback goes far beyond material wealth. Moreover, your family line will continue long after you are gone and is the closest any of us will get to immortality.
Home – for the Majority, the Biggest Life Investments
A home is not just important from a lifestyle point of view – real estate is considered by most financial advisers as one of the most sound and reliable investments you can make in life. Houses typically appreciate over time and while there will always be occasional downturns in the real estate market, taken as an average, property prices rise.
Moreover, making regular payments to a mortgage is a good way to discipline yourself into saving without particularly realizing it – each payment you make contributes towards your future outright ownership and helps chip away at the original loan. Nonetheless, with sums this large, you should ensure you seek professional advice from a mortgage specialist like Azembel.com to ensure you select the best mortgage product for you.
Additional Life Investments – Shares, Real estate, etc
If you find yourself in the enviable position of having surplus wealth, the best thing you can do is look at investing it in other concerns. Money won’t increase in value just sitting around and with record-low interest rates, not even banks present a particularly favorable investment opportunity right now.
Some investments like gold or property offer good stability compared to more risky ventures like shares – however, they will typically appreciate far more slowly. The key in all cases is to remember prices can go down as well as up and only put in what you can realistically afford to lose.
Retirement – Planning for your Future Beyond Work
People are living longer than ever these days and you must start planning for your future beyond work as early as possible to ensure you have the greatest quality of life through retirement. Nobody wants to end up working until death, and contributing to your pension early is the best way to make sure you can enjoy a healthy, wealthy old age.
Final Thoughts on Life Investments
Life investments are important choices and hopefully, this guide helps you understand each of the life investments that most people choose to make more simple to understand. From education through retirement, choosing the right places to invest your money can mean the difference in preventing financial hardship in the future.