Certain purchases, such as buying designer clothing or everyday impulse purchases, don't provide the lasting value you need to live a fulfilling life. Rather than spending all your money on these purchases, a wise approach is to strive to achieve the three keys and invest carefully in each asset.
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What are the three keys to becoming rich? GOBankingRates spoke with David Edmisten, CFP, Founder and Principal Advisor of Next Phase Financial Planning, about investing in a strong financial foundation, increasing your personal value in the market, and investing in your health. .
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strong financial foundation
A solid financial foundation is the first key that anyone who wants to become rich should aim for. Edmisten recommends purchasing a diverse mix of stocks and bonds as financial assets.
Edmisten said stocks are a growth asset. These can help you grow wealth over time and outpace inflation. In addition to dividend-paying stocks, you can also earn interest and dividend income by purchasing bonds. This creates cash flow to provide retirement income.
What's the best thing about spending money on stocks and bonds? It's easy. Edmisten recommends that most people consult a financial planner and invest in a way that suits their risk tolerance.
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Improve personal value at work
There are several programs you can invest in today to become a valuable asset in the workplace. Edmisten recommends considering the following options:
Taking these courses will not only help you improve your skills, but it will also help you increase your earning potential. By spending money on these programs and using them to hone existing skills and learn new ones, you can increase your income, Edmisten says. That will lead to building more wealth.
investing in health
We often neglect that health is a necessary investment in ourselves. There are several ways to purchase products that you can use every day to invest in your health. This means more than just buying home gym equipment or taking an exercise class. Edmisten also recommends learning to cook, eating healthy, and pursuing active hobbies.
According to Edmisten, becoming rich isn't necessarily about saving a certain amount of money. It means living a great life, and an important part of that is keeping yourself healthy.
“Being healthy helps you live longer and enjoy a better quality of life,” Edmisten said. “There are also tangible financial benefits to being healthy, as it can save you from costly medical problems later in life. Less doctor bills means more money to spend on the things you love. It makes you feel better.”
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This article originally appeared on GOBankingRates.com: I'm a Financial Planner: 3 Things You Should Always Spend on If You Want to Get Rich
