How to invest in the future

Investing is a way of making your savings bigger and more profitable. For example, the value of a savings book opened at a bank branch will be more or less, depending on the customer’s economic ability. The original purpose might have been to find a safe place to keep the money they have saved. However, they receive periodical interest from such deposit. Without realizing, they have invested the money they have saved. But, have you ever thought that the same amount will be more and more profitable without any regular accumulation effort? The answer is investing for the future.

Facing up to the current developing economy and investing in the future is considered essentials if you are to have a prosperous and happy life. Saving and investing mean limiting consumption from now until an unspecified point in the future. So, when looking for reasons to invest, we should think about delayed gratification rather than instant gratification.

Tuan and Mai have learned how to do financial planning, risk management, and achieve financial well-being. It is time for them to start learning how to invest in themselves to build their future. Both have short-term and long- term plans for themselves, aimed at having a prosperous and happy life.

INVEST IN YOURSELF

Billionaire Warren Bufett said: “The best investment you can make, is an investment in yourself.”

We all invest in the people and things around us. When going out with friends, you are investing in a relationship. Whether you spend time posting on social media or playing video games, you are investing. For many people, their biggest investment is trying their best at work and investing in their employer. They invest a huge amount of time and money in building connections and recognition within their company. With so many ways to spend money and waste time these days, it’s no surprise that many people no longer invest enough in themselves.

Every day, you invest your time and energy in friendships, businesses, goals, and movements. How can you better invest in yourself?

Investing in yourself is not really that complicated. It is found in the daily activities that we usually do. Whenever you watch a documentary, go on a vacation, play Sudoku, go to a spa, or even read an article or a page of a book, you are devoting time and energy to your own health and growth. In return, you become a better version of yourself.

INVEST IN YOUR HEALTH

If you are healthy, you will have a firm foundation to fulfill your wishes. Unfortunately, the rate of people suffering from mild to serious diseases is very high and they often pay a lot for treatment every year. The expense of treatment is always greater than that of prevention. Therefore, investing in and taking care of your health is the foundation for self-development. This is always the most profitable investment. Once your health is gone, no matter how much wealth you spend, you cannot get it back.

INVEST IN YOUR CAREER

Because Tuan has a stable job and is saving money to buy a motorbike for his work, it means that his material and safety needs have been met. Thus, Tuan is aiming at a higher goal, i.e., self-assertion. To do that, he could invest in career development by enhancing his professional knowledge, studying for higher qualifications or improving experience in his field.

Thanks to technology, you can actively increase your knowledge via a variety of methods. You can acquire new knowledge through the mass media, the Internet, books, and newspapers, or take courses specializing in capacity and intelligence development. This will help you discover new things to help you develop yourself to the fullest.

INVEST IN YOUR CHILDREN

Once they’ve reached a stable income to serve their personal lives, Tuan and Mai may consider getting married. They will have children of their own in the future. As their children grow up, it will become time for them to invest in their children to ensure a good future for them.

A suitable and stable financial plan is required to provide children with the best opportunities and conditions. From their existing income and savings, parents can come up with a bank deposit in a suitable time. For example, one year of college tuition fees will be VND 18 million. If you start saving 4 years before, with VND 1,5 million per month, you will have enough money for your child's whole college career. In addition, you will get a deposit interest attached. Parents can take advantage of that interest to cover additional costs such as accommodation and vehicles.

Investment in children includes providing them with a good education and development environment, in which the children can receive knowledge, and develop their talents and soft skills. Investing in your children is as important as investing in yourself. There is nothing better than when parents see their children living happily and developing their capability.

INVEST IN FINANCIAL EDUCATION

Financial education always plays an important role, no matter what job you have. Building good money habits and understanding finance will help you, your whole family, your children know how to save and manage money. Families in developed countries teach their children financial matters from an early age so that they get used to making money-related decisions, learn how to manage a bank account, and finally how to invest their own money.

Financial education ensures that we understand topics such as compound interest, diversified investments, and tax-advantaged savings methods. Tuan and Mai will be able to pass on their personal knowledge to friends and family, provide them with financial resources, and encourage them to take personal finance courses in training centers.

The Bottom Line: The future is inherently uncertain and full of unexpected variables. Therefore, use your savings to invest in an important financial tool to cope with life’s unexpected events. These are also the savings that act as a buffer to secure your family from both possibilities and risks. An important purpose of investment is to provide a sense of independence and autonomy to do things. So, right now, start investment planning to perfect yourself in the present and invest in your children in the future.