It may feel like your life is on hold because of the pandemic, but this isn’t necessarily true. Young professionals like yourself are part of the demographic that can best utilize the unique opportunities of a global health crisis.
It’s not all sunshine in your industry yet, but if you care to look, you’ll see the silver linings of remote work and less social activity. The money you used to allot to transportation and nights out now sit stagnant in your bank account, and it’s beginning to accumulate into quite a sum. Where there’s money, there’s opportunity, and the best move is to invest yours where it will pay off the most.
Getting Rid of Debt
Debt eats up your savings. The interests your loan incurs add up to a staggering amount if you do the math. Getting rid of your debts is one of the most promising investments you can make during the pandemic. Putting your money in other investments first in hopes of getting a big return is often not worth the risk.
There’s no guarantee that you’ll earn enough–if, at all–from that endeavor and that you’ll do so in a certain time frame. While you’re waiting to make it big, your debts incur interest, making your total balance even more overwhelming than it initially was.
Establish a realistic plan to pay off all your debts, starting with the small ones. Follow it up with resolutions on how you’ll handle credit cards, bank loans, and other forms of loans available to you. Being debt-free is one of the surest ways you can handle your finances efficiently.
Staring a Business
Even a reputable company’s managerial position doesn’t guarantee that you can keep your job until your retirement. Different income sources pave the road to financial stability, and one of your best options is to start your own business. A lot of young professionals shy away from entrepreneurship because it prompts grand images in their heads of office buildings and an employee count of fifty. There’s also the daunting idea of managing your capital and structuring a business plan.
Launching a business doesn’t have to be that complicated. You can start small with things you’re already familiar with like online selling. If your savings amount to a sizable capital, you can consider investing in franchise restaurants. Franchising is among the top choices for beginners who love food entrepreneurship because it comes with everything you need: a business manual, a brand, and products and services that people are already familiar with.
Whichever you go for, do something that suits you and your capital. Being a business owner is never easy, but it might just save you in case another pandemic hits in the next decade.
Learn a New Trade
The more skills you have, the more earning opportunities will be available to you. The great thing about learning a new trade or investing in skills you already have is that it doesn’t require a lot of money. You can pay for an hour of online tutoring or subscribe to websites that give you access to resources you need to self-study.
With distance learning now available due to the pandemic, you can also take advantage of online college courses for cheaper costs. Higher educational attainments always look good on your resume, and it could be the final nudge you need to get that promotion.
Making the Most of Your Youth
Income limits will make it unlikely that you can invest in all three at once. Decide on which ones will benefit you most at this stage of your life. If your savings all go into paying your debts, that’s fine. At least you can manage your future income more wisely now that you’re debt-free. Take every opportunity to invest while you’re young because the wise decisions you make today will be the most important investments you’ll make in your entire life.