We all know the importance of investing. When we get to the point that we can start saving, it's instinctual to start looking at higher-interest investments. One Reddit user, however, suggests that the first investment to make is in yourself.
Photo by Simon Cunningham
The same principle of compound interest that applies to your financial investments applies to your personal investments: the earlier you start, the greater the impact later on. Even something as simple as buying a nice wardrobe can pay huge dividends if your professional-looking appearance catches the eye of a potential employer:
I told him he isn't really making enough money to justify an investment at his age. (20 yrs old) and that he needs to take his $11 an hour and invest it in himself. He needs to ensure that he looks professional (clothes/appearance/take care of himself) and improve his educational background/experience to find a better paying job later in life. $5000 on a trade school IMHO is better money spent then $5000 in the stock market at 20 yrs old.
What this means for you will vary greatly depending on where you're at in life, but maximising your earning potential early on will greatly affect how much you have available to save in five years. While it might be easy (and tempting) to go overboard, we've discussed before how not all purchases are frivolous if they can boost your career.