The Best Investment
“By far the best investment you can make is in yourself.”
I often get asked, “What is the best investment I can make right now?” My response has never wavered: the most valuable investment you can make is in yourself. It's important to prioritize investing in your education, enhancing your skills, exploring new knowledge through reading and learning, taking care of your health, as well as focusing on personal growth and self-improvement. These investments in yourself are truly unparalleled in value.
I understand that when people seek 'investment' advice, they usually anticipate recommendations on stocks and specific ticker symbols for quick returns. However, investing in yourself can often yield the highest return on investment. Let me illustrate this concept with a simple example.
Meet Andy, a dedicated individual earning $60,000 annually. Despite his strong work ethic, Andy has been feeling stagnant in his current role. He often finds himself being overlooked for promotions and sees limited growth opportunities within the company. Recognizing the need to enhance his skill set to increase his earning potential, he took the proactive step of consulting his supervisor, Carol.
During their conversation, Carol provided valuable insight into the key skills required for higher-paying positions within the company. She highlighted three essential skills that, if improved upon, could pave the way for Andy to transition into a more rewarding role. By expressing interest in upskilling and focusing on the specific area identified by Carol, Andy now has a clear path towards advancing his career.
Andy took the initiative to conduct some research and enrolled in several online courses. He discovered various classes available for free as well as certificate programs priced at a reasonable amount. By dedicating a few hours per week to watching free courses on platforms like YouTube, he was able to acquire new skills relevant to his industry. It's amazing how much valuable knowledge can be gained from resources like YouTube. Learning doesn't always have to come from traditional sources like universities; online platforms offer a wealth of information waiting to be explored! (I don’t know about you, but I have learned more on YouTube than all my years at college. Kind of sad, but this is the new normal.)
Let's fast forward a few months and see Andy's exciting progress! He has been busy acquiring new skills and successfully finishing 2 certificate programs. The best part? It didn't eat up all his time or break the bank. With just a $400 investment, he's now well-equipped to confidently present his newfound expertise to his boss!
After a week, Andy catches up with Carol who shares that there's a job opening he is now eligible for. Given the company's preference for internal hires, he's been offered the position. The exciting part? The new role comes with a salary of $80,000! This means Andy will enjoy a $20,000 raise, a whopping 33% increase in his income!
Let's imagine Andy continues in the same position without receiving any pay raises (although that's quite unlikely). The additional $20,000 in income each year, over the next decade, adds up to a significant $200,000 difference in total earnings.
By investing $400 wisely, Andy was able to generate an additional $200,000 in income over the span of 10 years. That's an incredible 500 times return on his initial investment! Of course, we need to factor in variables like income taxes and the time Andy dedicated to acquire the necessary skills. Nonetheless, when compared to other ways Andy could have utilized that $400, the returns speak for themselves!
Isn't it amazing how small steps can lead to significant opportunities? Kudos to Andy for his proactive approach to self-improvement! Remember, financial growth doesn't always have to be expensive or overwhelming. It's all about making smart choices and seizing the chances to better ourselves.
Action Items
Establish your very own "Invest In Myself" fund to kickstart your personal growth journey. It's super easy and doesn't require a huge commitment. You can start with as little as $10, $50, or even $100 a month, depending on what fits your budget comfortably.
Imagine saving up for a whole year – that's 12 months of consistent contributions. Let's say you manage to set aside $600 in that time, specifically earmarked for your personal growth. Now, here comes the fun part: utilizing this fund to enhance yourself!
You could explore investing in an online course tailored to your career aspirations or grab a few books packed with valuable personal growth insights. Better yet, why not consider doing a bit of both? The key is to make choices that align with your goals and interests while nurturing your personal development.
By proactively investing in yourself, you're not just growing your skills and knowledge but also demonstrating a commitment to your future self. So, are you ready to start your "Invest In Myself" fund? Your future self will thank you for it!
~Alex
Whenever you’re ready, there are 3 ways I can help you!
Organize Your Money Course: Are you ready to take control of your financial future, instead of letting it control you? This course will help relieve your financial anxiety and get you back on track.
Book a 1-on-1 Meeting: Whether you’re looking for assistance with your financial planning needs or are in the financial industry and you want to learn how to grow your practice, I can help.
Lake Avenue Financial: If you’re looking to build a relationship with a team who can help simplify, educate, relive the stress caused by money decisions and make sure you are on your way to financial independence, we are here to help!
Be Inspired to take Action
Join readers of the Inspire Action newsletter for tips, uplifting stories and actionable steps to guide you through your financial journey.