This post contains affiliate links. If you click on link I will earn a commission. You can read our affiliate disclosure here.
“An investment in knowledge pays the best interest.” ~ Benjamin Franklin
The internet is filled with hundreds, maybe thousands of self-proclaimed financial gurus who want a chance to tell you the best way to invest your money.
Unfortunately, most of these gurus only have their own best interest in mind, which is padding their pockets with money. Some of their propaganda looks like this:
- Buy Gold Now!!!
- Get Rich with Bitcoin and other Crypto Currencies
- Never Use Credit Cards
- Buy Only Mutual Funds
The best way to invest money is rarely found in a banner ad on Yahoo to buy Gold or from an 8,000-word sales page from James Altucher exploiting Bitcoin.
Instead, let’s discuss the best way to invest money that will last the test of time!
The Best Way to Invest Money
Invest in Yourself
Most of us get stuck thinking the best way to invest money is in the stock market. That is probably the biggest myth I’ve heard since my best friend in 3rd grade told me professional wrestling was real.
Since graduating from college, I have made it a commitment to continue to learn. Although I graduated with a degree in finance, I’ve taught myself how to code websites, write sales copy, grow and sell businesses, and much more.
It does cost money to invest in yourself, but the investment also pays off. The best investment I ever made in myself was starting an Amazon Retail Arbitrage Business.
In 2014, I was listening to the Smart Passive Income Podcast featuring Jessica Larew. She discussed how she would find items in Target or Walmart, then resell them on Amazon for a profit. She even detailed how she sold $100,000 worth of products in a month!
As with most things, I was skeptical, but I gave it a shot.
I spent $75 on inventory and sold that for nearly $350. Soon, I made $500 in a month working less than 10 hours a week – I was hooked.
Then in 2015, I earned nearly $50,000 selling items on Amazon that I found in local stores.
I’ve also created and sold an app business with one of my friends from college, started this website, and wrote a book. All while having a day job!
I gave up selling on Amazon a few years ago because the business overtook my life. It was great for that time in my life, but I became obsessed, and my health/family relationships started to take a hit.
Now I’m more focused on my family, career, health, and creating for this site. Things I really enjoy.
When you invest in yourself, the possibilities are endless.
Here are the best ways to invest money in yourself:
- AudioBooks (Get Your Free Audible Trial Here)
- Online Courses (Udemy and Teachable are my favorites)
- Graduate School
- Reading Blogs
Invest in Your Health
Your health is the most important things you have in life! So you want to make sure you take care of yourself.
When it comes to your health, this includes eating, exercise, and mental well-being.
As a parent, life is crazy, and you must find the time to focus on your health. Luckily, it only takes about 30-45 minutes a day!
Most people don’t understand what it takes to stay healthy, and I was one of those people for about 35 years, but taking care of your health must become a priority before it is too late.
Here are some of the best ways to keep your health in check:
When it comes to exercise there are two things I love; running and strength training. Although I regularly train for triathlons, these are my two staples.
If you spent 35 minutes a day for five days a week alternating running and strength workouts; you would be in great shape.
Seriously, that’s all it takes.
Here are two links to get you started:
Although eating whole foods every meal sounds fantastic, it’s not a reality.
In the evening we are running kids from gymnastics to Lacrosse, to flag football. We don’t have time for that perfect Pinterest-like meal.
Instead, I have a ton of friends who have found success with intermittent fasting. This is when you restrict your eating to only eight hours a day.
Some of my friends have lost 20+ pounds, and it has stayed off for months!
They are not necessarily worrying about what they eat, just that they eat only during those 8 hours. A typical schedule would be to only eat from 11am-7pm every day.
Personally, I haven’t tried intermittent fasting yet, mainly due to triathlons. It’s challenging to fast after a strenuous training session. However, I have researched the topic and have seen proven results.
Here are a few posts to get you started on Intermittent Fasting:
- Why I Love Intermittent Fasting for Weight Loss…And You Will Too
- How to Choose the Best Intermittent Fasting Method For You | Geeky Tricee
Have you ever felt extremely overwhelmed?
Yea, me too! When you have work, kids, managing money, etc.; the stress can build up.
Sometimes that stress was hitting me a few times a week.
Two things have helped me deal with the stress of life other than wine! They are triathlons and meditation.
Triathlons have helped me get in great shape which has an overall positive impact on your mood and stress.
I’m not saying you need to train for triathlons, but getting 30 minutes of exercise in a day helps tremendously.
To learn more about how to reduce stress and anxiety with exercise, I suggest you read this article from Radical Relaxation Central.
Additionally, I try to meditate 2-3 times a week. I never thought meditation would be part of my life, but it helps me focus on being present and brings a calming effect on my life.
I use the Headspace app, which helps with my meditation practice.
To get started with Mediation, Wellness and Wallet have a great post: How to Use Meditation for Stress Relief.
Invest in Index Funds
Once you invest in yourself and start making money, then you need to figure out how to grow the extra money you are accumulating.
This part can be tricky because there are many great marketers telling you how to get rich with the latest craze! I can’t tell you how many of my friends purchased Bitcoin thinking they would retire next year.
Now most of them are scrambling to cover their losses.
Instead of listening to the hype, you should consider investing in a tried and true approach: index funds.
Index Funds are low-cost funds designed to match or track the components of a market index, such as the Standard and Poor’s 500 Index.
The reason index funds are the best way to invest money is because you are getting a diversified portfolio, paying little expenses, and good potential long-term returns.
Example: You invest $1,000 a month for 25 years and get an average of 8% return a year. At the end of 25 years, you would have about $950,000.
If you extend your investments another 5 years, then your portfolio would grow to almost $1.5 MILLION!
That’s the power of compound interest!
What index funds should you invest in for the long-term?
I’m not a financial advisor nor do I play one on TV, and you should talk to a financial professional before making any investment decision.
However, my absolute favorite portfolio is the All-Weather Portfolio, created by Ray Dalio – one of the greatest financial minds ever.
The All Weather Portfolio consists of the following portfolio:
- 40% Long-Term US Treasury
- 15% Intermediate-Term Treasury Bonds
- 30% Stocks
- 7.5% Gold
- 7.5 Commodities
Although I like this portfolio, I have invested 40% in Stocks and only 30% in Long-Term Bonds.
Why do I like this portfolio?
Well, first Ray Dalio is much smarter than me.
Second, in Tony Robbins’ book, Money Master the Game, Robbins wrote, “The strategy (Dalio shares) has produced just under 10% annually and made money more than 85% of the time in the last 30 years (between 1984 and 2013).”
This fund is built for almost every economy including inflation, market crashes, stock market booms, etc.
How do you build this portfolio?
It’s actually pretty easy:
- 30% Vanguard Total Stock Market Index Fund (VTSAX)
- 40% Vanguard Long-Term Bonds (VUSTX)
- 15% Vanguard Intermediate-Term Treasury (VSIGX)
- 7.5% SPDR Gold Shares ETG (GLD)
- 7.5% PowerShares DB Commodity Index Tracking Fund (DBC)
Again the best place to invest money is in yourself, in your health, and index funds. When you invest money in these three areas, you will lead a prosperous, healthy life!
If you feel this article was helpful, please share.