These can all be wonderfully lucrative investments. However, it could be argued that none of these will give you the best possible return on your money when compared against one other class of investment. The one investment that is likely to beat out all of these asset classes in providing you with a solid return probably isn’t what you’d think.
The best investment, arguably, is the right kind of education.
Most people earn the bulk of their income from their job rather than from any investments they’ve made. Their wealth and standard of living are a direct result of the income earned from their job.
If that’s your situation, it logically follows that your job will be the foundation of your wealth-building strategy.
The right education can help to qualify you for obtaining a high paying job. In turn, having a high-paying job is one of the best ways to have money available for saving, investing and growing wealth.
According to the United Nations Children’s Fund, education has the potential to boost your income substantially. Their website reveals that each additional year you invest in your education is likely to add another 10 percent onto your income.
Mind you, this isn’t a blanket recommendation for any available university education, because there are university degrees that are almost useless when it comes to providing a solid return on investment.
Although university can be helpful for getting a high-paying job, there aren’t any guarantees that earning a degree will provide this result. This is particularly true if you choose to enroll in a degree program that teaches you a subject such as studio art, theatre arts, history or dance performance, because it has historically been challenging to earn a living from employment in these niches. You have to be smart about the specifics of the education you choose to undertake.
It’s important to be aware that the university system isn’t the only possible purveyor of valuable education. For many students, vocational education obtained through trade schools results in less student debt, less risk and higher job offers upon graduation.
If you’d be interested in working at a hands-on type of job, or starting a hands-on type of business, vocational education is definitely worth considering. This sort of training can empower you to become an electrician, plasterer, plumber, carpenter, structural engineer or other tradesperson. These roles frequently pay well, and professionals working in these trades generally enjoy high levels of demand for their services.
In recent years, there has been a shortage of skilled tradespeople, which has resulted in soaring paychecks for capable electricians, bricklayers, plumbers and other tradespeople. The Daily Mail has reported that some of these people are even earning more than the Prime Minister does, with impressive salaries reaching as high as £156,000.
There is a demonstrated correlation between education, income and wealth. Education, if undertaken prudently, has the potential to elevate your wealth substantially in the long term.
However, education alone will not make the difference in whether or not your wealth grows. Education is merely the key that will boost your earning potential. If you hope to grow wealthy, you will have to be proactive about using your education to obtain a well-paying job; and then from there you will have to be diligent about saving and investing, which are essential facets of building wealth. Education is such a worthwhile investment because it can become the cornerstone of your long-term wealth building strategy.