You’ve worked hard to get where you are. You’re at the top of your game and have the financial resources to show for it. But just because you have money doesn’t mean you should spend it willy-nilly. Being wise with your money at the height of your career will set you up for future success.
According to a Consumer Federation of America study, nearly one-third of Americans have no savings at all. And of those who do, the median amount is just $27,000. If you want to ensure you’re not part of these statistics, you must start thinking about your financial future now. Here are a few tips on how to spend your money wisely at the height of your career:
1. Save as much as you can.
Save for a rainy day. Just because you’re making good money now doesn’t mean that will always be the case. If you lose your job or experience a drop in income, you’ll be glad you have a savings account to fall back on. Try to tuck away at least 10% of your income into savings. You can start small and increase the amount as your income grows.
Some people open a separate savings account for specific goals, like a down payment on a house or retirement. This can help you stay focused on your goal and make it less likely that you’ll dip into the money for other purposes. You can also consider investing some of your money. Just be sure to do your research first and understand the risks involved.
2. Think about retirement.
Many people put off thinking about retirement until it’s almost upon them. But if you want to retire comfortably, it’s essential to start saving early. A retirement investment can be a great way to grow your money while taking advantage of tax breaks. You can open an individual retirement account (IRA) or 401(k) through your employer.
If you’re self-employed, you have a few different options, including a SEP IRA or SIMPLE IRA. You can also open a Roth IRA, which has different rules and benefits than traditional IRAs. Be sure to talk to a financial advisor to see what retirement plan makes the most sense for you.
3. Invest in yourself.
You can always use some of your money to invest in your career. Whether taking a class to improve your skills or hiring a coach to help you get ahead, investing in yourself is always a good idea. You could also use some of your money to start your own business. This is a big decision, but if you read the David Shulick article and you’re passionate about your vision and have a solid business plan, it can be a great way to make more money and gain more control over your career.
Some people also choose to invest in their health. This can include anything from going to the gym to eating healthy foods. While it’s essential to take care of your health, be sure to do it in a sustainable way. There’s no point in signing up for a gym membership you never use or buying expensive organic foods you can’t afford.
4. Splurge from time to time.
Give yourself permission to splurge-within reason. You work hard and deserve to treat yourself from time to time. Whether it’s a new designer handbag or tickets to see your favorite band, allow yourself to indulge every once in a while. Just make sure you stick to a budget, so you don’t overspend.
When spending, consider investing in experiences, not things. When you look back on your life, you’re not going to remember that new car or those designer clothes nearly as much as you’ll remember the vacations you took and the memories you made with friends and family. Invest in experiences that will make great stories-you won’t regret it.
5. Give back.
Once you’re established in your career, you may want to start giving back. This can take many different forms, from volunteering your time to charitable organizations to donating money to causes you care about. Not only will this make you feel good, but it can also help you reduce your tax bill.
There are many ways to give back, so find one that feels right for you. And don’t forget, even small acts of kindness can make a big difference in the world. You don’t have to be wealthy to make a difference.
If you’re fortunate enough to be at the height of your career, congratulations! You deserve everything good that comes your way. Just remember to spend your money wisely to enjoy your success now and in the future. By following the tips above, you’ll be on your way to financial security and comfortable retirement.
