If you are like most folks, in your mind the word “investment” usually refers to your mutual fund holdings, or your 401k or IRA account. However, “investment” is a broad term that refers to a number of aspects of your life. Here are some of the biggest investments you have, that you might not be aware of, in your personal financial planning.
Your Career
Take a step back and look at your career. Do you enjoy what you do? Are you fairly compensated for the work you provide? Have you looked at your benefits recently? If you do not have a good benefit package, you can end up having problems while you are working, and when you stop working.
There are several ways to save for financial independence, but working with an employer’s retirement package is one of the best options. Not only should you look at the level at which you are investing, but the amount your employer matches. The other thing to consider with your job is the health insurance and life insurance programs you are being offered. Are you given a low rate for insurance? Can you buy an adequate and appropriate amount of coverage?
Talk to your employer about your current benefit package to make sure you are not paying more than you should. Talk about other benefits like tuition reimbursement, credit unions, and corporate travel discounts to capitalize on these savings and enhance your personal financial planning.
This is an important aspect of personal financial management, as you need to know where your money is going, and what your employer is doing to help you.
Your Health
Do you take the time to work out each day? If you have a list of excuses as to why you cannot exercise, or you cannot give up the junk food for healthy options, you can easily hurt yourself financially. Healthier eating and living a healthier lifestyle is a smart part of personal financial planning as can help to shield you from excessive medical expenses.
Your Relationships
How do you fare with your personal relationships? Are you happy with your marriage? Are you happy with the relationships you have with your loved ones and friends? You need to improve your relationships to boost your health and overall well-being. If you must go through a divorce, you can face significant costs, which can take years to recover.
Money Behavior
Another investment you might not be aware of is the way you spend money. If you are an impulse buyer, you can end up spending more for a product than it is truly worth. If you can cut $5 from daily expenses and invest it at 6%, you can end up with $300,000 after 40 years! This shows the importance of a single dollar and why you need to have smart investment management to save money for your future. Being wise with your money is a critical practice when it comes to achieving financial confidence. Learn how to manage all these different areas of your life to have a happier life, free of debt and stress.
