Certain purchases, such as branded clothing or everyday impulse purchases, do not provide the lasting value we need in our lives. live a prosperous 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 3 keys you need to get rich? GOBankingRates spoke with CFP Founder and Principal Advisor David Edmisten. Next stage financial planningabout investing in a strong financial base, improving the value of individuals in the market, and investing in health.
Strong financial base
A strong financial base is the first key for anyone who wants to get rich. Edmisten recommends buying a diverse mix of stocks and bonds as financial assets.
Edmisten said stocks are growth assets. These will help increase wealth over the long term and outpace inflation. Interest and dividend income can also be earned by buying dividend-paying stocks as well as 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 fits their risk tolerance.
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Improve your 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 power. Spending money on these programs and using them to hone your existing skills (and learn new ones) can increase your earned income, says Edmisten. It leads to building more wealth.
investment in health
We often underestimate that health is a necessary investment in ourselves. There are several things you can buy and use every day that will allow you to invest in your health. This is more than just buying home gym equipment or attending exercise classes. Edmisten also recommends learning to cook, eating healthy and pursuing active hobbies.
According to Edmisten, getting rich doesn’t necessarily mean saving a certain amount of money. It means living a great life and an important part of that is keeping yourself fit.
“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 help alleviate expensive medical problems later in life. It makes me feel better.”
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This article was originally published on GOBankingRates.com: I’m a financial planner: Here are 3 things you should always spend your money on if you want to be rich
