Every single person has the possibility of doing so much more with their money. They can make it work for them in ways that pay off and allow you to enjoy a golden retirement. Or you can invest and enjoy wealth at a young age. From being financially secure to being financially well-off, the only thing that is standing between you and this reality is how well you can manage your money and what you put that money into.

Many people today, even in western nations like the United States, live on a paycheck to paycheck basis, but unless you go through your spending habits and make the right changes now, you will never know if this has to be your reality. In so many cases poor spending habits can contribute to financial stress. The majority of Americans do not have savings, and this will contribute to daily stress when cutting back on spending and being smarter with your investments could be all it takes. Over time, these investments will pay off, allowing you to build an empire of your own:

Build Great Spending Habits

Before you start thinking about investing your money, you are going to need to free up space in your budget. To do this you will need to re-evaluate your spending habits. Bad spending habits can include anything from going out too much, to spending too much on clothes, to being too wasteful with your food bill.

You can save a lot of money by simply being smarter with how you shop. Try to cut back on buying frivolous items, then improve on your necessities and utilities. Be more energy efficient in your own home, buy frozen fruit and vegetables instead of fresh, and opt for bulk purchases over frequent shops. It will take time to master your balance until you can live off of very little, but once you do, you will be able to save and invest properly.

Start Saving Today

Once you have cut down on your spending, you should have some money left over at the end of every month. It will take time, but you will want to save up this money and put it towards good use:

• Save Up an Emergency Fund

Emergency funds are simply savings accounts where you keep money on hand in case of an emergency. This could be an unexpected bill, or even a job loss. Its purpose is to keep you afloat and financially stable throughout this period.

• Save for Your Retirement

Once you have a healthy emergency fund on hand, it’s time to start saving for your retirement. The sooner, the better. As a bonus, when you start saving in your twenties for retirement, your monthly contributions will only need to be $100 or so a month.

• Build Your Credit Score

During this time try to build up your credit score. Your credit score will help you reduce your costs over time and help you apply for better deals when needed.

The Investments You Need to Make from There

If you have money left over after all that saving you will officially have a disposable income. Use this money wisely, and you can build a whole empire for yourself that you and even your children will continue to benefit from. Top investments to make include:

Personal Investments for Career Advancement

Though this might sound like a spiritual investment, it will often come with a price tag. Take courses, go to workshops, conferences, and more so that you can keep your skills and knowledge industry-relevant. Ideally, you should see if your current employer will be willing to sponsor you through these endeavors, but be willing to pay for them yourself if not.

Financial Investments for Future Payoff

As for strictly financial investments, here are the three best to put your time and effort into:

• Real Estate

Real estate is one of the most stable markets out there, even after the 2008 crash. There are several ways you can invest here as well. Simply buy a nice home and keep it until the area gentrifies, or try to purchase more than one home so you can rent the other out. Regardless of what option you choose, the financial payoff will be huge over time, if you are smart about which properties you invest in.

• Stock Market

Though it can be risky, the stock market can be a great place to see a substantial return on your investments. This doesn’t mean you should ever put all of your savings into one account or invest money you aren’t willing to lose, but done right it can help you make a lot of money over time. You don’t even necessarily need to understand the market in order to benefit. You can instead sign up for money calendar alerts that will make investing in stocks easy and simple to do. Just follow the advice crafted from an experienced stockbroker, and benefit from stocks that have a proven 10-year history.

• Passive Incomes  

Passive incomes refer to income that occurs without you putting extra effort in. Photographers can gain a passive income by selling stock photography. Musicians, artists, writers, and all other creatives can earn it through royalties. Real estate tycoons earn it through rent collection. There are so many ways to build up passive income sources, and having them will greatly secure your future and your retirement.

Never Spend What You Don’t Have or Aren’t Ready to Lose

When it comes to investing you have to be remember never to invest money you are not ready to lose. By having a separate emergency fund and retirement plan set up, you can avoid total catastrophe should the worst happen, allowing you to make these investments without stress, and thus with a clear head.

With the right investment and savings plan, many more of us can secure our futures and even build an empire of our very own. The only thing that might be holding us back is a lack of foresight. Investments often take a long you to roost, but when you have reached the prime of your life, you will see the benefits of all your hard work in your early adulthood.