Invest in Yourself II

When it comes to investing, the first thing that comes to most people’s minds is what to invest in, and what to do with their money. The best way to know what to do with your money is to first invest in yourself.

Investing in yourself does not sound romantic. Most people do not see the reason why they should invest in themselves. Their idea of investing in themselves is driving the latest cars, using the most expensive mobile phones and home electronics, wearing the most expensive clothes and perfumes, etc. When you ask someone to upgrade or step up, the first thing that comes to mind is moving to a more posh neighborhood, upgrading their wardrobe, car, furniture, electronics, mode of travel, holiday destinations, etc. There is nothing wrong with enjoying the finer things of life. Life is meant to be enjoyed to the fullest, not endured. The problem comes when we have the wrong focus and priority, and do first things last.

Investing in yourself means investing in your personal and professional growth and development. Your number one asset is your earning ability – your knowledge, skill, and performance level. This primarily determines your income and return on investment. This is the differentiator when it comes to income. This is the reason some people earn more or get paid much more than others though they work in the same company or industry. It is not because they work harder.

If you are an employee, your Supervisor, Manager, or CEO is necessarily working harder than you. Quite often, they work less. They are not more intelligent or more talented than you. In fact, you may beat them in an IQ test. What separates you and them is the skill set acquired through personal development and experience. If you place two Managers side by side, the one that invests in personal and professional growth and development will earn more and get promoted faster than the one that does not. The same scenario plays out if you put two entrepreneurs side by side, two lawyers, consultants, teachers, engineers, investors and what have you.

The ones that invest in themselves get the best results while the ones that don’t simply coasts along. Personal growth and development do not come with growing older or gaining more experience on the job. It comes with conscious effort in continuous learning and improvement. If you keep doing what you have been doing, you will perform at the same level and get results at the same level.

You should spend at least 3% of your income on your continuous learning, growth, and development. Another way to look at it is to spend the same amount you spend in running your car per month on your personal growth. This money can be spent on books, audio and video products, seminars and coaching, etc. on personal and professional growth and development, financial education, and literacy. Growing companies, especially the Fortune 500 variety do this. UNESCO recommends developing nations spend 26% of their budget on education. Few developing nations do this, and the effects are apparent.

We may be quick to criticize the government for neglecting education while we have totally abandoned ours. Anytime we make an occasional feeble attempt, we want it free. When you see someone with a book you would like to read, you want to borrow rather than buy your copy. If it is an eBook, you want it emailed to you for free. What we get for free is lightly esteemed by us. You are sending a message to your subconscious mind that it is not important hence when you eventually get to read it, you do not follow through with the lessons therein. You develop the mindset of not paying the price, a mindset that sets the stage for failure in future endeavors. In real life, there is always a price to pay – full price upfront. No partial payments are accepted. You cannot obtain success on credit.

If you take your personal and professional growth and development seriously enough, you will invest in yourself rather than cut corners. The main risk in investing comes from not knowing what you are doing. The investment is not risky, the investor is. It is very risky to give a 10year old, the keys to your car. It does not make sense. But we take the same risk when we attempt to invest without knowing what we are doing, or handing over our money to someone we hope knows what he or she is doing, and only find out after the fact that our hope was misplaced. If you want to bet on a horse, you will put your bet on a thoroughbred horse with an experienced rider. Same with car racing, you would back a solid machine with an expert driver with Formula One trophy under his belt.

The more you grow and develop as a person, the higher your skill and the better the results you get. You will not need to wait for someone to advise you where to invest your money. You can make better investment decisions for greater returns. Rather than start as an illiterate and rise through the ranks, you enter the game as a graduate and get to play at a higher level. It may seem like a waste of time and money to invest in yourself. If you look at the long term, that is the smartest decision to make. Invest in yourself first.