How much have you spent this week on gas for your car? How much have you spent this month on your cable bill? Is it more than $100?
Now, let me ask you something. How much have you spent (invested) in your most important asset this month? How much have you invested in yourself? Is it more or is it less than what you spent on your car or your cable bill? Aren’t you and your future worth the same amount as one of your bills?
We all spend so much of our hard-earned money on the luxuries of life, such as our car and watching television, but how many of us have a set amount that we spend on improving our skills so that we are able to earn more, do more and be more in life?
Are you worth 3%? I am!
A long time ago, I read somewhere (I think it was Brian Tracy) who said that we should be investing 3% of our yearly salary on ourselves in order to improve ourselves. I’ve taken this advice each year and have put aside money to invest in myself and increase my skills. Why increase my skills? So that I can earn more, of course! The money isn’t important, it’s what you can do with the money that is important, namely to have freedom.
Let’s say you are middle-class and make $50000 per year. Don’t you think that you and your future self is worth $1500? ($50000*0.03=1500) That only comes out to $125 per month ($1500/12). My cable and internet bill is more than that! If you make more or less than $50000, then adjust your investment threshold accordingly.
The stock market took a major dip in 2008/9. But, if you steadily invested a measly 3% in yourself to improve your marketable skills, you would have been able to weather the market slump quite well. But, it doesn’t help if you do it retroactively, you have to steadily and consistently invest in yourself so that when downturns in the economy happen (or when an amazing opportunity comes your way), you are able to decide without fear what’s best for you.
The best place to invest your money is in yourself.
What kind of investments, you ask? What about taking a night course to gain a credential to help you in your career? Can you take private lessons in an area that you’re weak in and where you know that if you improved, it would affect your work performance?
You can easily spend a fraction of the 3% on buying books that will open your mind and expose you to new ways of thinking and seeing the world. You can even set aside some of your investment money into getting business cards so that you are able to hand them out at the next networking event so that you are able to increase your network.
How about taking a financial planning course or a tax preparation course so that you can understand your finances and taxes. Once you have learned how to complete your own tax return, you will never have to pay anyone else to do it, plus you would have increased your skillset.
Are you weak in your communication skills? Why not enroll in a language course to further your language skills?
You don’t have to invest in only your marketable skills with your investment money. How about going to a spa or getting a massage once per week so that your mental health continues to be healthy?
Almost anything will fit the category of investing in yourself. Gym memberships, magazine subscriptions, books, online courses, seminars, night school, you get the idea. If one of the areas cost more than $125, then prioritize your investment budget. Some months you won’t be able to spend as much because there is this fantastic course that costs $500. Save your investment budget until you can afford to take the course.
Don’t go crazy and buy whatever you want and fool yourself into saying that it’s an investment, though. If I keep buying trashy romance novels with my investing budget but do nothing with them except use them for escapism, then that’s not an investment. If, however, I buy them and read them with the idea of analyzing what it takes to write them and break down the novels into their formulas, with the end result of becoming a romance writer, then that’s an investment in myself that will pay huge dividends down the road.
Personally, I’ve spent more than $1000 on this blog since I started it in October 2009. Buying the domain, the premium theme, paying for yearly hosting package, buying stock photos, buying ebooks relating to blogging, buying an online business forum membership, buying a blogging forum membership, not to mention buying more books, etc. I consider it a worthwhile investment in my self, even though I’ve only seen a $20 monetary return (so far).
I have no problem spending $1000 on something that I know will (and has) reaped major benefits to me personally and to my career. I have picked up so many new technical, social and communication skills in the last six months that $1000 is a very cheap price to pay.
Are you ready to invest in your most important asset?
If you enjoyed this post, please consider leaving a comment or subscribing to my feed to have all the future articles delivered to your feed reader. Thanks!
PDF 
{ 2 trackbacks }
{ 36 comments… read them below or add one }
I like the idea of investing 3% of your income in yourself. I could use some time at the spa right now
I’d even push it one step further.
Taking a morning off work to go to the dealer for a maintenance on your car is generally accepted by most employers. Same goes for an appointment with your dentist, or with any professional who can help you with your earthly matters.
But when is the last time you took some time off to have an emotional maintenance on yourself? When is the last time you took a day off to work on a relationship that you hold dear? Would it be well-received if you told your boss “tomorrow I am taking a day off to spend some quality time with a very dear friend I haven’t seen in a long time”? I doubt it!
Phil Starn´s last blog ..Challenge #2: Develop a Positive Mindset by Keeping a Positivity Journal
That’s true, Phil but what if you didn’t give an excuse and just took a ‘mental health’ day off from work? That is a legitimate way to recharge your batteries.
I never thought of it that way, but I guess we should also be ‘investing’ in our social relationships, too. My original take was that we should be spending money on ourselves with just as much priority as one of our bills, but you bring up a good point about investing in other areas of our lives.
Thanks,
Karen
Loved the post, though it’s actually something I try to do already! Each month I have either 10 or 20 pounds to invest in myself; usually for 3D related things. Added to that I also have Tai Chi classes and a few other things I do, so my percentage is probably nearer the 20% mark.
Funny thing is I use all of it and am perfectly happy to do so.
Heather´s last blog ..How to Hack Your Paperwork to Save Time
Hi Heather,
I took Tai Chi for a couple of years and absolutely loved the feeling while doing the exercises, plus it was a great social activity. Seeing you read about it makes me think about taking it up again
Glad that you liked the article so much and that you are already investing in yourself. it will pay off.
Thanks,
Karen
Oh you really should
I just started with it, and it’s already helping me out a great deal with feeling calmer and less tense… tough going though. It’s like it’s pretty difficult getting into position and staying there, so much to think about all the time (at this stage because I’m very new lol), yet the feeling you get is amazing.
Definitely worth it!
Heather´s last blog ..Soften Your Spotlights; Quick and Easy Fix
WOW, I don’t know what impressed me more this post or the fact your cable bill is so much!
You are 100% right, so right in fact that it almost serves as a visual body shake to get our back sides into gear and start pushing ourselfs. We need to invest in us inorder to provide more.
It’s like a trust fund, the more you invest into the more interest you will accumulate.
RT’ing so passionately now, fantastic stuff
TheInfoPreneur´s last blog ..I Rank Higher Than ProBloggers, But Make No Money
Thanks so much, James.
‘It’s like a trust fund, the more you invest into the more interest you will accumulate.” — that’s a great way of putting it!
My bill is actually a lot higher (about $175) for cable/internet/phone. It’s paying for the movie channels, time-shifting and HD channels that increases the cost. I know, I know, I should be paring it down, but I can’t seem to give up my HDTV channels.
Thanks,
Karen
Karen´s last blog ..Invest In Your Most Important Asset – Yourself
I like the concept of investing in yourself. I’ve long advocated to my friends that because I read a lot of books about business is not a self-help tool, but rather a way to increase my understanding and perception. I completely agree with the post, and I dearly wish some people did this around me. This was first time visit to your blog. I like your writing style and layout. I’ll definitely be back.
-Eric
Welcome Eric, glad that you found the site and that you liked the article.
Reading business books is one of the best ways to expose yourself to new ideas and new ways of thinking. Especially with business as there is so much to know. Reading about how other people have gone through business problems and have overcome obstacles is totally worth the money invested in buying the books. They made the mistakes and were kind enough to tell you what to do so that you don’t have to make the same mistakes.
I think it’s important to surround youself with like-minded people who are trying to improve themselves by investing in themselves. They are out there. And here
Looking forward to your insights,
Karen
Man, that’s a pretty damn good way of putting it. Last year, I took a class to get re-acquanited with programming concepts (I”m a programmer).
I haven’t done anything this year though.. hmm, let’s see how I can invest in myself. Very good post!
Moon Hussain´s last blog ..Why Automating Your Proccess Is The Only Way To Stay Sane
Hi Moon,
I started my career as a programmer/analyst, too, so i can appreciate where you are coming from. When you are working in the IT industry or in a technical field, you definitely have to keep abreast of new technologies and new programs – if you don’t, you’ll be left behind. Pretty soon, it will be very hard to catch up with what’s been happening in the industry. Glad to hear that you are making yourself a priority and investing in your own future.
Thanks,
Karen
Great post Karen, I too have seen the Brian Tracy claim to investing 3% of your annual salary on yourself. I think that’s a minimum. Also, it’s Jim Rohn that talks about increase the value you take to the market place, which links in very well with the 3%. Continuing to develop yourself beyond your formal education is a must for future success. The follow quote sums it up!
“In times of change the learners will inherit the earth, while the knowers will find themselves beautifully equipped to deal with a world that no longer exists. ” – Eric Hoffer
Regards
Paul
Paul´s last blog ..Self Esteem
Great quote, Paul!
I hadn’t heard that one before, so thanks for sharing it with us.
Karen
This is a great idea and it’s good to have some metric to apply against it. My word of caution though is that you should link any development to your goals. Will this training/course/magazine/coaching help me reach my goals or not? If it does then you should go for it, if it doesn’t then you shouldnt.
Matthew Needham´s last blog ..The Aweber Code – and why you need to promote it
I can appreciate what you’re saying Matthew, but sometimes we don’t initally know the value of what we are learning.
It can take time for new ideas to percolate and for us to act upon them, so I wouldn’t necessarily ask if each investment is helping me reach my goal or not. I don’t know what I’m going to learn from every book I buy (sometimes I don’t learn anything) but I still buy them with the hope that I will learn something new or be exposed to a new way of thinking.
You would never go to the spa or buy anything for your mental health, if you evaluated every investment decision that way
Karen
That’s true. I suppose really it depends on what you’re spending if it’s $10-20 then fine, but if you’re talking 100′s or 1000′s then it should be linked to a goal.
All too often I see 1000′s spent on training and development with no clear idea of what the benefit will be.
Too many people chase a quick fix.
Oh yes and there’s only one thing worse than spending money on development, not using it!
This is so true, invest in yourself, I have had to do alot of that this past year and it has given me a road map to who I am and where I am going. Although, sometimes I forget that I am important too, I know it is just a learning experience. Lovely post.
Thanks, winnie, glad that you are remembering that you are important, too.
I love this post Karen. Thank you so much.
I need to start investing in myself more – it’s not something I’m doing right now.
Finances recently have been down very low but are now at a point where I can start thinking about investing in myself and ultimately my future.
Thanks for the kick up the ass to remind me to make it happen
Hi Ben,
Yes, finances can be tough, but if you average your amount of money (and it doesn’t have to be 3%) throughout the year, you should have a sum that you can use to invest in yourself and your future. I know it can be tough, but isn’t your future self worth one of your bills? We pay our bills on time, we should be as important to invest in ourselves
Thanks,
Karen
I agree 100% with you, in fact more than 90% of my income goes in my own development – library membership, motivational movies. Since I am a teen who still lives with his parents (it’s cultural) so I don’t have to worry about place and food.
Glad to see you using Thesis theme with the content that deserves that deserves it.
Let’s be Awesome.
King Sidharth´s last blog ..A How-to on Hardcore Motivation
Welcome King,
You have started a very good habit while you’re still young that I hope you continue once you leave your parents house.Take advantage now of the free time, money and opportunities that come your way – you won’t regret it.
Thanks,
Karen
I know where you’re coming from Karen, but I just can’t see myself taking classes again. I went to school only because I had to, I certainly wouldn’t go that route again, not even an online course.
What I would do though is to put that money aside so that I could invest it in other ventures, ones that had a potential for it to grow. Now that I could do
Sire´s last blog ..Release The Child In You And Become A Better Blogger
Hi Sire,
There’s a misconception (maybe I wasn’t clear) that the investment has to be in books or courses. Maybe you want to retrain in a new career, so you to invest in a new piece of software that makes you more marketable, or maybe it’s a new better instrument or new paints and paint brushes. You can go see a nutrionist to learn about eating better foods so that you have more energy. Or pay a personal trainer to get you in the best shape of your life and overcome your life-long weight battle. It can be anything really.
The safest bet for our money is on ourselves. This is what we can control. Once we give our money over to someone else, we can only hope that they invest it wisely and that the return on investment will grow.
Thanks for stopping by and sharing.
Karen
Sorry Karen if I seemed to have missed the point. I reckon it’s the thought of taking classes again that threw me off track. Thanks for clearing that up for me.
Sire´s last blog ..Release The Child In You And Become A Better Blogger
Investing in yourself is extremely important. We all only have this one life to live so why not make the most of it by giving ourselves the ultimate best we deserve?
It will all pay off in the end if done right.
Great post, Karen.
Eric´s last blog ..Vital Parts Your Site Needs – Pop Post
great perspective and advice. I like the idea of setting aside 3% of your money to invest in yourself, nice to have a target number.
One consideration – when investing scarce resources (either money OR time), I would err toward investing in enhancing your *strengths* rather than shoring up your weaknesses. I have read studies that suggest you’ll get the most bang for your buck (greater improvement) by working on strengths, rather than weaknesses. Also – it’s a lot easier and more fun to invest in your areas of passion, which are often aligned with your strengths.
ami´s last blog ..Joy + passion = energy (for you and everyone around you)
Hi ami,
I agree that it’s easier to invest in your strengths, as well. No use wasting money tryng to improve your weakness. I think Marcus Buckingham’s books ‘Now, Discover Your Strengths’ and ‘Put Your Strengths To Work’ are two great examples of this tenet. I have a couple of his books and they’re quite good.
Thanks,
Karen
For me it is hard to justify investing in myself, meaning that I don’t value myself very highly. I give myself a low priority when compared to other expenses. My biggest barrier is the understanding that the higher I value myself and reward myself, the more I can and will deliver to myself and all my family.
Ralph,
If you don’t value yourself, no one else will. There’s a reason why they ask you to put the oxygen mask on yourself before you put it on your child while you’re on an airplane. If you don’t take care of yourself, then you can’t take care of anyone else and you both you and your child at risk. It’s not selfish, either. We only have one life to live, please value yourself enough and know that you are so worth it.
Please do something that is only for you today. Then do it again tomorrow.
Thanks for sharing.
Karen
Great reminder Karen. For me it’s all about priorities. Eating out is a good example. Although we do that a lot, it hurts me to go to expensive restaurants. I prefer common, good cheap food. I can’t stand to spend exorbitant amounts at an upscale eatery knowing the next day it is nothing but a memory.
Buying something of lasting value, books, courses, memberships and charity is so much more important to me.
My last post: Discus vs Comment Luv
Hal Brown´s last blog ..Discus vs Comment Luv
Hi Hal,
Isn’t that funny because I’m the same way? Especially now that I realize how much money I wasted in expensive restaurants on food that was good (at the time), but now I can’t even remember what I ate or when I ate there. I would prefer to invest in things that have more lasting memories. I’m currently saving my money for travel – I can’t wait to get away. It’s one thing that I didn’t do when I was younger and I think that the investment will pay off with the culture and knowledge I will be gaining more about the world.
Thanks for stopping by,
Karen
There’s also the other way around. Some of use are investing too much times in ourselves we got to invest it elsewhere. While working at home or blogging online becomes more mainstream, reaching out into the blogosphere through blog commenting or even guest posting is something worth investing. Not only does it connect you with people but bring in further ideas towards your online future.
You’re right that the $1000 you spend is nothing compared to the results you’re getting. It’s all a matter of making it happen. If it’s working, why skimp on the dollars?
Well, Karen this is the 7th post of your challenge and I have to say I’ve learned more about you as a person through these posts. Darren’s idea is greatly put into relationship building as well. 7 is a small number to hop through but good enough to get to know a person.
Talk to you soon!
Thu
Thu Nguyen´s last blog ..How I Reviewed- Rewrote and Revived My Ideas to Keep Hope Alive in Times of Blogging Slumps
Hi Thu,
I think that whatever you invest in yourself, you reap is tenfold. Investing in your social network can really pay excellent dividends, as you know
The thing with investing is that you may not see the return right away, but that doesn’t mean it’s not coming your way soon.
Thanks,
Karen
I agree with the basic premise that most people don’t invest enough in themselves. I have been formulating new goals now that my health is better so I think the 3% is a good metric to figure out if I’m spending enough on what I want to accomplish. Right now my biggest investments are Spanish tutoring and the coming relaunch of my two websites.
Jennifer Barry´s last blog ..Small Ways to Make a Big Difference
Hi Jennifer,
Both of those goals sound like sound investments. Good luck with both of them. I have taken Spanish night classes and find that it’s a great investment for my future travel plans.
Thanks for stopping by,
Karen