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Include This Investment in Your Retirement Plan

As a former bank director, I can name off the most common investments that everyone thinks of off the top of my head. Index funds, mutual funds, options, individual stocks, bonds, money market accounts, rentals, REITs, short & long term treasury bonds, CDs, ETFs…we could be here awhile.

The Investment Many Miss

But there's one common investment than many people miss. It's the same one that Warren Buffett pointed out as the best investment you can make.

It's investing in your earning potential.

There are people out there making more than a million dollars A YEAR.

Now I'm not saying that you can take a few classes and get to that level or even that I can get you to that level any time soon as a coach if you're not already close to that, but adding $10, 20k or more to your annual salary by taking the right actions over the next few years? That's entirely realistic for most people.

I've got a guy on staff who was working at Pizza Hut making minimum wage when I hired him. Now he makes more than he ever dreamed because he invested in his education and has consistently gone the extra mile for us. He's told me on more than one occassion that it changed his life.

I added $20k a year to my salary after I spent a few thousand dollars investing in some IT certifications early on in my own career, so I know first hand how big of a return that can be.

Look at something like the Amazon Web Services (AWS) System Operations Certificate, for example. It costs less than $5k to get, and the average person with it makes $130,610 a year. You won't live long enough for stocks to turn $5k into $130k a year.

Before You Spend Thousands…

With the price of college continuing to skyrocket, you can spend a lot of money with little return if you don't have a specific goal in mind. Before you invest thousands of dollars on something just because it has the potential to make a lot of money, I'd recommend taking our career test, which can help you determine which careers might be a good fit for you.

It's disheartening to listen to people who tell me that they hate their job after working in their career field for a decade or two, but feel stuck because they may have to take a significant pay cut to change to something else, so I'd try to make the right choice upfront. You can always change things later, and I have helped people do that, but does introduce some additional challenges especially when you have a family relying on your income.

It takes about thirty minutes to complete the assessment and then it will recommend careers based on your personality and preferences. This is the same test I give my private clients before working with them to pick the right career and creating a strategy to get them where they want to be, so I know it's solid.

Good luck, and happy investing!

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Don Smith

Don Smith is an executive coach who helps small business owners and leaders focus on the right things to improve their results and get their time back. To work with Don, please click here.