MoreThanMoney members seem to have plenty of investment questions. Thanks, these inspired me to write the next few posts on the most important investment decisions you may need to make along the way to great wealth.

Have you invested enough in your own earnings potential?

Maybe you find the whole idea of investing quite depressing. Everybody else talks about the right time to buy property and which shares are cheap right now. But you struggle just to get by every month – not able to save anything, let alone buy your own property? Or you save and save but it all feels like a drop in the ocean compared to the sums you would need to realise your dreams.

You’ve already cut your budget to the bone and further skimping would actually not make live worth living. But how about increasing your earnings potential? No need to remind you: you can only invest when you have enough disposable income. If you still have several working years left, your most important investments right now may be to:

1. Get a further education

The 7th UASA Employment report of 2007 states that someone with a bachelors degree earns more than 250% more than someone with only matric. The salary for a worker with only grade 11 nearly doubles when he or she completes matric. Yes, a tertiary education costs money, but over a normal lifespan a person with a degree will see a return on that investment that’s 308% higher than the return on investment of someone who did not continue studies after matric. Currently, a bachelors degree through Unisa costs around R16 000 (excluding books) which looks even more affordable when you consider that the tuition fees are spread over several years of study.

2. Welcome more experience

Irrespective of the level of your schooling, are you constantly trying to learn as much as you can on any job in which you may find yourself? In fact, are you thinking about long-term earnings when you choose your roles or projects? The pay may be poor for a year or two, but the experience could be worth millions of future earnings.

This is what Donald Trump has to say about the value of experience: ‘A couple seasons ago, we based an entire season of The Apprentice on this premise, pitting highly educated candidates against those with less formal schooling. In the end, we discovered that the key to success was experience, not education. Experience comes from action – or doing – and involves taking risks.’

3. Boost your confidence

Do you have a career handicap, such as a fear of public speaking or numbers? Ever considered coaching or private lessons? Even conquering only one fear can boost your confidence in all other aspects of your job.

Your skill-set and experience remain your greatest assets while you still earn active income. And you may even find that as your income rise, those boring investment topics start to appear more and more interesting to you!

Tags: confidence, earnings, education, experience, salary, UASA Employment report

This entry was posted on Tuesday, September 16th, 2008 at 10:48 am and is filed under Money matters. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.