What does personal investment really mean? In this article, I will explore three possible scenarios, hoping that you can identify with at least one of them.
The basic principle is that investing in yourself can yield potentially unlimited results compared to the sacrifices required. Initially, the benefits will far outweigh any kind of stock investment.
The Choice of University as a Personal Investment
The first real and significant personal investment you will likely make is related to your university path. If you are twenty years old and about to enroll in university, I advise you to eliminate the comfortable local universities and seek excellence. You might think it is too expensive and that your finances cannot afford it. Perhaps your parents are also not very supportive, and you don’t want to leave your city, habits, friends, or give up your “girlfriend.”
Regarding costs, in the economics faculty of the most prestigious Italian private university, the tuition is 5,000 euros per year, to which you must add room and board, while excellent public universities can be under a thousand euros. There are also many financial aids available. Therefore, you need to fight, make sacrifices, research, and adapt. Often, the topic of scholarships is not given the right attention; I assure you there are many available from both public and private organizations, so do not underestimate this option.
If necessary, it is also appropriate to incur debt within certain limits. This is because the long-term return of a good university education far exceeds any interest rate on debt, as well as any alternative investment. Nowadays, there are also various ways to avoid putting too much strain on your family. Many jobs can be done remotely and are compatible with university commitments. At the same time, teaching is increasingly hybrid.
A top university increases the likelihood of entering the job market. Just think about the great opportunities provided by internships or placements, lasting three or four months, which are mandatory and paid throughout the academic path.
On this point, one great truth must be said: choosing to attend a university in a major city (whether Italian, European, or non-European) will give you access to a network of connections that is certainly not comparable to the opportunities that might open up from medium-small provincial universities.
Boosting Your Career
If you have already completed university, are in the age range of 30 to 40 years, your career is stagnant, or you are frustrated because you are in a job you do not particularly like and it is slowly wearing you down, the advice is to pursue a Master in Business Administration (MBA), full-time or executive. The choice depends on your age and current job position. I had an extraordinary experience at SDA Bocconi School of Management in 2018, which completely changed my life professionally and personally.
To get a comprehensive overview of the best business schools, simply check the Financial Times ranking. The cost of a “real” MBA starts at 50,000 euros. Again, there are various financial aids and scholarships; you need to be motivated and well-informed.
In the short term, the advantage of this type of education is very difficult to measure quantitatively. Do not expect to receive emails from head-hunters every day after graduation. In this regard, the issue of linear and non-linear decisions reappears, as discussed in the article Investing in Yourself: The Best Investment You Can Make. However, an undeniable plus exists, but it is not linear. In this scenario, the role of networking and the relationships you will develop is very important.
The Complexity of Life and Work
Finally, if you are over 40 and have children to support, then the perspective is different. At 40 and beyond, you are still in time to develop your professional career. The world, including Italy, is full of examples in this sense. However, it would be wrong not to admit that at this point in life, a good part of your education, professional experience, and relational network is already established. What you need to do at this stage is to try to maximize these assets.
There are many possibilities. For example, if you work in a declining sector or one undergoing generational change, you might try to find a new job, perhaps in the same role but in a more dynamic sector or company. I assure you that working in a company heading towards bankruptcy rather than one growing at 20% per year makes all the difference in terms of job security, career opportunities, salary, and bonuses.
In short, if you think that after 40 it is time to relax, you are gravely mistaken. In the current economy, you are never too old, as long as you are always sufficiently “up to date” with professional development. Again, a Master can be very helpful. However, since you no longer have age on your side, you will need to have clearer ideas and be more focused on your goals.
As an old Japanese saying goes:
Until 60 you can start anything, until 90 you can improve
Personal Investment in Your Children
In this scenario, there is another very important aspect: children. As a parent, your responsibility is not only to provide for their material needs today. You have a much more important responsibility, which is to start planning their future. This brings us back to Scenario 1.
We will discuss the concept of “compound interest” later. For now, let me tell you that you might not believe it, but if your child is, for example, 10 years old, setting aside just 200 euros every month in the international stock market, there is a high probability that when your child turns 19, you will have enough money to fully cover their university years, including room and board in a medium-large Italian city.
In short, if you think that at an advanced age it is time to relax, know that it is not. Even if your career is settled and you have no particular ambitions, you must seriously consider your children. Moreover, since in Italy people become parents on average between the ages of 30 (mothers) and 35 (fathers), it is likely that these calculations should already be considered when you are in Scenario 2.
In the three scenarios examined, the importance of a proactive approach to education and professional improvement is clearly highlighted, regardless of the stage of life you are in.
On avance!
