8 Investments you MUST have by age 45

8 Investments you MUST have by age 45.

Today, I want to share with you 8 investments 📈 you must make by the age of 45.

Time waits for absolutely nobody and the older we get the harder life typically becomes and usually the more expensive it also could be.

So these 8 investments I'm sharing today are ones you should be interested in if you want to create a future where life feels a lot more secure, you have more financial freedoms and you're also alive and well to enjoy the fruits of your labour 😀.

If that sounds good, buckle up because today's post is going to be fun and very practical.

It's worth mentioning that if you've not made these investments by the age of 45, you're NOT a failure!

I've done a bit of a write-up here on my board to share a bit of a picture of what things we should be focusing on as we kind of get through different stages of our lives.

Stages of Life and What To Do

• From age 20 to 30

In our twenties to our thirties, we should really be doing many experiments.

You know, trying different things, taking risks and trying to figure life out.

It's a good opportunity to make as many mistakes as possible whilst you are in your twenties and you know heading towards your thirties.

• From age 30 to 40

• From age 40 to 50

From the age of forty to fifty, typically for most of us we've lived half our lives and things start to feel a bit urgent.

Time is running out 😅.

So at this phase of life, you need to do what works.

You haven't got the leisure of making mistakes.

Although you can try things out and do trial and error, really and truly what you wanna do here is really follow what works.

Work with people who have achieved what you want or have a track record of getting results. 

• From age 50 to 60

Here you should be leaning more on your life experiences.

You might have had a twenty-year career, thirty-year career, and beyond in many industries.

So here you're leaning on your experiences and this is helping you to create an income and so much more.

• From age 60 and beyond

Really and truly if things are going really well, work should then become optional in your sixties.

8 Investments you MUST have by age 45.

So for today's post, I now want to share with you very practically, sharing here from my lived experiences what I would invest in to be able to create that future where I have a balance of wealth and well-being.

💪 1. Invest in Your Health

The absolutely number one thing I would invest in beyond anything else is to invest in your health.

Now I say this one because many of us treat our health as a side hustle. That's right!

The health is kicked to the side.

It's almost like, yeah…

I know I've got this thing called my health that I need to kind of look at over time, but when we're in our twenties and thirties we kind of ignore it in some way.

Some of us do a little bit here and there but it's not a core priority.

The thing that happens is that as you get older, I'm in my forties now, you start to realise how important your health is.

Your friends around you start to have various diagnoses in a hospital.

They start to tell you that you might be pre-diabetic.

Or they start to say you have some other condition that you haven't anticipated that you might have.

You might have high cholesterol, you might have all kinds of things suddenly showing up and life starts to get very serious and very expensive.

So for me, the number one priority particularly if you're not at the age of forty-five and if you're obviously at forty-five and beyond is your health.

I'm talking here about good quality food.

So avoid that cholesterol, avoid all those things that mean you're gonna have a heart attack one day.

Eat good food.

Next, sleep well.

I know this is difficult for a lot of people but you have to prioritise your sleep because it affects so many other things in our body over time.

Exercise, the recommendations are about 150 to 180 minutes per week which is about 30 minutes per day of good exercise that gets your heart going.

Next is health insurance.

This is very important.

I know not many people can afford health insurance because budgets are tight, but this is something worth having if your budget allows you, even if it means making a sacrifice.

Next is to avoid anything that means that you are constantly stressed out and facing a lot of anxiety because this piles on a lot of mental issues which you don't want to carry on much later in your life.

🔗 2. Cornerstone Connections

Your relationship capital is worth more than the amount of money in your bank account.

Investing in cornerstone connections can significantly impact your personal and professional life.

The reason I call these people the cornerstone connections is when you think about a building, think about what the cornerstone represents.

The cornerstone is that stone in the corner of a building usually at the bottom (not always) that connects two walls.

These people in your life will be the people who you go to and they will connect you to other people.

They'll connect you to other opportunities and open doors.

These people will tell you things that you might not find on LinkedIn or advertised publicly.

Identify key individuals in your life.

Each person serves a unique purpose and adds value to your life. Examples:

• Spiritual Leader: A go-to person for emotional and spiritual guidance.
• Financial Advisor: Someone who can help you navigate investments and savings.
• Accountant: A good accountant who doesn't just fill in forms and count beans 🙄
• Solicitor: A legal expert for advice on personal and business matters.
• Builder and Architect: Professionals to assist with home projects.
• Doctor: A trusted health professional for medical advice.
• Business Leader: A mentor who can provide insights into your career path.

Building these relationships takes time and will sometimes cost money.

Be genuine and offer value before expecting anything in return. 

As the saying goes, dig your well before you're thirsty.

📈 3. Invest in Growth-Focused Stocks

This next bit is not a personal recommendation to you, but I need to share it for illustration purposes only.

There's a fund that Mary and I have in our portfolio called the Vanguard US equity index fund accumulation.

I went before I wrote this blog to look at what £10,000 invested in this fund in July 2009 would be worth today.

Have a guess.

As of August 2024, £10,000 invested in July 2009 would be worth an astonishing £93,211 🤯.

Just think about that.

That is 9.3 times your money or a 932 per cent increase.

That's like saying, if you'd put £100,000 into this one fund, it would be worth around £932,000 (a £1m!!) for doing absolutely nothing except putting the money in the right environment.

What am I saying here?

Invest your money.

You can either suffer to make money or you can invest your money to make money. The choice is yours.

Of course, not all investments do well. Avoid picking individual stocks as you're more likely to lose money.

Aim to invest in low-cost globally diversified index funds and ETFs.

Choose a tax-efficient account e.g. stocks and shares ISA, lifetime ISA, a SIPP, etc.

Recommended: Read week 7 of our Sunday Times Bestseller, Financial Joy,  to learn how to invest step-by-step even as a complete beginner.

🏢 4. Invest in a Cash-Flowing Business

I know this is gonna sound really obvious but I'll say anyway.

It's important to grow older with some money.

Now why is that?

I've learned a great deal about life from watching older people.

People who are ten years twenty years older than me.

I watch them, listen and I learn.

And as you get older, dignity is important.

Independence is important, options and choice are important, enjoyment is important.

So it's important to grow older with money with the safety of some savings and investments.

And so the thing I'd put money into ideally by the age of 45 is a cash-flowing business.

Online businesses are great.

They're different kinds, different varieties.

Recently in our community at Financial Joy Academy, we looked at a case study and I do this every Monday at 1 pm GMT.

I call it the Monday MBA.

We unpack a business case study, a successful business, somebody who's done something remarkable.

In the recent one we looked at, this young lady invested in a hobby of reselling trainers, something she'd learned from her dad.

And this year alone, she'd made $4m from that alone.

We unpacked the case study and what we can learn from it as a community and we also talked about what the learning points are as well as what are the action points more importantly.

Now, why is it important to have a cashflowing business?

Over time what happens with your job is you either become too old or you become too expensive such that when you get pushed it becomes harder to find a replacement job at the income level you were used to.

So if you had a cash flow in business you have diversified yourself very well.

If you're somebody who doesn't know how to create a cash flowing business or you want to join us in our Monday MBA sessions and many other sessions inside of financial joy academy, learn more here.

Go and check it out, invest in yourself and start to move forward.

🌟 5. Invest in Your Personal Brand

Your personal brand is like having an insurance policy that is guaranteed to pay.

It also appreciates over time the older you get.

Think of it as your digital CV or what comes to mind when I think about you.

It reflects your values, skills, and experiences.

Building it can open doors to opportunities that may have otherwise remained closed.

Opportunities include a better-paying job, consulting opportunities, speaking gigs, coaching clients, invitations to be on a board, exclusive events, brand sponsorships, etc.

• Step 1: Begin by defining your niche:

What unique value do you offer? 

Or put simply, what 5 top topics do you want to be known for as a thought leader?

Imagine they were hashtags, what would yours be?

For example, mine are #PersonalFinance, #FinancialWellbeing, #Investing, #Entrepreneurship, #FinancialFreedom, #FinancialJoy

• Step 2: Choose your platforms wisely.

Start with only one. e.g. LinkedIn, YouTube, Instagram, etc.

If you're a professional and worried about what others might think, position your content as thought leadership and let others know you're on a journey.

• Step 3: Craft a clear message that resonates with your audience.
• Step 4: Stay Consistent in your content and values
• Step 5: Create content that showcases your expertise.

This could be through blogs, research, infographics, videos, or social media posts.

Here for example is my LinkedIn profile. Follow and see what I post.

Providing value establishes you as a thought leader in your field.

Finally, be patient. It will not happen overnight but is so worth it.

Developing my personal brand has led to delivering corporate workshops and keynotes at some of the best companies in the world.

e.g. Netflix, Amazon, Meta, Expedia, Gousto, S&P Global, Macquarie, Franklin Templeton, Allen & Overy, Ogilvy, the NHS, etc.

💑 6. Invest in Your Marriage or Relationship

Investing in your marriage or relationship is crucial for long-term happiness and stability.

A strong relationship not only enhances your personal life but can also boosts your financial well-being.

The emotional support and teamwork that come from a committed partnership can lead to greater success in other areas of life.

It also helps you to avoid a costly divorce!

Prioritise quality time with your partner.

This could mean regular date nights, weekend getaways (without children!), or simply spending an evening at home without distractions.

Communication is key; discuss your dreams, challenges, and daily experiences to deepen your connection.

Consider seeking professional help if needed.

Couples therapy or relationship coaching can provide valuable insights and tools for navigating challenges.

Remember, investing in your relationship is an ongoing process that pays off in countless ways.

👶 7. Invest in Unstructured Time and Strategic Investments in Your Children

Unstructured time with your children is invaluable.

It's those spontaneous moments that create lasting memories.

Whether it's playing games (Uno, Connect 4, etc), going for walks, or simply being present, these interactions help build trust and strengthen your bond.

With children, I've learned that it's either you pay now or you pay later.

Strategically investing in your children’s future is equally important.

This could involve opening a Junior ISA or Junior SIPP or funding extracurricular activities that align with their interests.

Education and personal development should be at the forefront of your efforts.

Ultimately, the time and resources you invest in your children today can lead to a secure and independent future for them.

🏡 8. Invest in a House (and Investment Property)

Owning a home is often seen as a cornerstone of financial stability.

However, some people say you should rent and not bother buying.

Renting works for some people, but in my experience, if you can afford to buy, do so and pay the mortgage off early.

We took out a 25-year mortgage and worked insanely hard to pay it off in 7 years.

A house provides not only shelter but also a foundation for building wealth.

When you buy a home, you are investing in an asset that can appreciate over time, providing important security in retirement.

Yes, I know it's extremely difficult for many people to put together a deposit to buy a house.

However, with a plan, hard work and a lot of sacrifice, you can get on the property ladder.

Someone I know emigrated to the UK 2.5 years ago and started at nothing. This year, he bought a home near Liverpool.

Consider also the benefits of investment properties.

Rental income can supplement your earnings, and property values tend to rise in the long term.

Explore the possibility of acquiring additional properties to diversify your investment portfolio.

Investing wisely in property can yield significant rewards, both financially and personally.

Location matters of course.

A friend of ours has built up 4 x AirBnBs in Kingston Jamaica and it's a big part of their financial freedom plan.

🎁 Bonus Point: Invest in Experiences

Experiences often hold more value than material possessions.

Investing in experiences can enrich your life and create cherished memories.

Whether it's travel, concerts, or family outings, these moments can enhance your relationships and overall happiness.

Plan experiences that align with your interests and values.

They don’t have to be extravagant; even simple activities can create unforgettable memories.

The key is to be intentional about how you spend your time and resources.

🔚 Important Conclusion

Remember: If you've not made these investments by the age of 45, you're NOT a failure.

As you reflect on these investments, remember that it’s never too late to start.

My parents started life in the UK as first-generation immigrants in their mid 40s and today they're financially independent.

So there is hope for everyone 😊.

Whether you’re in your twenties or forties, prioritising these areas can lead to a richer, more balanced and fulfilling life.

Don’t forget to invest in yourself along the way, enjoy your life in small ways and be kind.

 

What To Read Next About Investments by 45:

• Read Financial Joy, our Sunday Times Bestseller.
• Escape Plan: How to Stop Living Paycheck to Paycheck
• 40 Years Old and Nothing Saved For Retirement? Do This!

What to Watch Next About Investments by 45:

❓ FAQ

Q: What if I haven't made these investments by 45?
A: It's never too late to start. Each day presents a new opportunity to invest in your future.

Q: How do I start investing in my health?
A: Begin with small changes in diet, exercise, and sleep routines. Prioritise self-care and mental well-being.

Q: What are some affordable ways to invest in experiences?
A: Look for local events, free community activities, and plan budget-friendly outings with family and friends.

Q: Can I invest in my children without a significant financial commitment?
A: Yes! Invest time and attention, and look for low-cost educational and extracurricular opportunities.