Sometimes you need to spend money to make money.
If you want to be rich, there are three things that you should be spending your money on, according to a financial planner.
David Edmisten, CFP, founder and lead advisor at Next Phase Financial Planning, shared what people should be investing in if they want to live a rich lifestyle.
Edmisten specializes in helping “corporate professionals in their mid-50s and early 60s enter retirement with confidence.”
The father-of-eight told GOBankingRates the three tips that people should be following to guarantee wealth later on in life: buy stocks and bonds, increase earning power and stay healthy.
Solid financial foundation
The first key for people who want to be rich is to have a solid financial foundation — and buying a mix of stocks and bonds is a good way to do so.
Stocks are growth assets that, over long periods of time, beat out inflation and help increase wealth, Edmisten said. Bonds “can also provide interest and dividend income.”
Purchasing stocks and bonds to build an asset portfolio will be beneficial in the long run by providing cash flow during retirement.
Edmisten suggests consulting a financial planner before doing so but said it’s an easy process.
Invest in personal value in the workplace
Edmisten advises people to take a program to ensure that they’re an asset to their workplace, such as coaching, training and/or classes.
Doing one of these programs will not only increase your skill set but will also increase your worth and earning power, most likely leading to an increase in your earned income.
Invest in health and wellness
The third key is one that most people tend to overlook. Edmisten said it’s necessary to invest in yourself.
Some purchases — if used regularly — are worth the investment for one’s own health and wellness.
Aside from workout equipment for home or workout classes, Edmisten urges people to learn to cook, eat healthily and participate in active hobbies.
Edmisten noted that being rich isn’t necessarily about a dollar amount, but rather living a great life and remaining in good health.
“Being healthy can help you live longer and enjoy a better quality of life,” Edmisten told the outlet. “It can also help reduce costly medical issues later in life, so there is a tangible financial benefit to being healthy. Less doctors’ bills mean more money available to do what you love, and you’ll feel better to boot.”
