Invest in Self

In the financial field, there is often an emphasis on material gain. After all, doing everything you can to ensure that you and your family are taken care of is one of everyone’s primary goals. However, there are other investments you can be making. Investments in yourself, which can lead to an overall better ROI in the long term.

When it comes to long-term investing, what we’re hoping to see in a client’s financial plan is an average annual return of 7-10% per annum from their investments. Of course, those amounts are not guaranteed and what is actually achieved can vary from year to year. That doesn’t mean you ignore short-term planning, but this is where investing in yourself comes into play.

From a planning perspective, our goal is to leverage your income to help build a strong investment portfolio that will help our clients achieve their financial goals. And because the amount you invest is in direct correlation to your income, if you spend some time investing in yourself, you may see an overall increase in your earning potential. Meaning that even if you’re setting aside the same percentage of your income as before, the total sum will still be higher.

You see, when you look at it from a development point of view, it has a cascading effect. You improve yourself, which makes you a happier and more well-rounded person. The happier you are, often the more productive you are too. That can directly affect your job performance and increase your earning potential. Which continues to knock on and increase your total income, and therefore the sum you’re able to set aside and invest each month.

For example, if your income is $100,000 per annum and you make an investment in yourself that will allow you to increase your overall earnings by $50,000 in the next 12 months (or even a couple of years). This becomes a 50% return on your investment, which only accelerates your ability to achieve your personal financial goals.

There are many ways you can start to invest in yourself, things like starting your own business, or reinvesting into your business if you have one. You could further your studies, or take a professional development course related to your field or the field you want to break into. Or start investing in your fitness and health more proactively, which will increase your self-confidence and overall wellbeing. Or just make some more time for relaxing with a good book or podcast and centering yourself.

Depending on which methods you choose, they can have various beneficial effects on the rest of your life. You could end up with:

  • More resources for your business
  • Additional skills that benefit your current role
  • Increased confidence, energy levels, and focus
  • Improved productivity and time management skills – Leading to getting more done in a shorter timeframe
  • A more impressive resume, which can open the door for new career opportunities
  • Improved sales skills and therefore an increased capacity to generate revenue

Financial assets are where we want clients to be investing their money within their financial plan. But as outlined above often the best return on your money will often come from investing in yourself.

With the outcome of this investment being a higher income/earning capacity and therefore more money to put towards your goals and wealth creation strategy.

Ryan Porter is a Wealth Coach at Catalyst Wealth Group. His mission is to help his clients achieve financial success and live their ideal life.

Any advice or information in this publication is of a general nature only and has not taken into account your personal circumstances, needs or objectives. Because of that, before acting on the advice, you should consider its appropriateness to you, having regard to your objectives, financial situation or needs.