The Best Investment You Can Possibly Make

Let's say you've been prudent with your money and you've been saving up for a while now. You might be wondering what the best place to invest your money is.  Stocks? Bonds? Real estate?

The answer is simple. The best investment you can make is in yourself.

Personal growth will give you a higher rate of return than any other investment. Improved skills and knowledge provide greater value for your money than any interest yielding vehicle.  Great communication skills make the difference between promotion and stagnation. Improved empathy allows for better understanding of your customers and helps you foster trust and loyalty over time.

Make It Automatic

Personal development experts give different recommendations for investing in yourself. Some recommend a fixed percentage of your income.  Others recommend a fixed amount each month.

 The choice is up to you. At first, the habit of investing in yourself is more important than the amount.  I use a separate bank account with an automatic savings plan that withdraws a fixed amount from my checking account each month. I use that money for my personal growth.

5 Ways to Invest in Yourself

1. Books

Books are the most economical choice. A typical self-help book will cost you $10-$20 or you can borrow one for free from the library. The trade-off is the learning is completely up to you.  You must play a very active role. Overall, books are my favourite learning tool. I typically read 1-2 books a week.

2. Multimedia Products

Audio and video programs are more common today. Many are available for instant download while others come only on CDs or DVDs.  Audio programs are typically in the $50-$150 range while video programs are $200-$500.

I prefer audio programs because I can listen to them on my iPod while doing something else or use my computer to speed up the speech. They also provide more information since you can hear the emotion in the speaker's voice (at least if they're good).

Videos provide the most information because you get so see body language as well.  However, I find they aren't suited to viewing in multiple parts - they are best view in a continuous sitting.  I usually purchase one multimedia product every 3-4 months.

3. Seminars

Seminars are hit and miss. They can be quite costly ($300 to $1000 for a three day seminar).  If you have to travel to another city, the costs jump dramatically. Some deliver massive value for the money you pay. Others are of poor quality. I only go to seminars after receiving a personal recommendation from someone or doing my own research.

The advantage of going to a seminar is the immersion experience. You can learn a lot in a few days of constant focus. Massive changes are possible.

 However, you must be aware of the post-seminar drop-off.  It's easy to be excited and optimistic at the end of the seminar. Applying what you learned in the following days and weeks, thought, can be quite difficult.  Unless you establish a plan to integrate what you learn into your regular life, you will likely go back to your old habits.

Avoid the seminar junkie syndrome.  Some people jump from one seminar to the next hoping that the next one will have "the answer" instead of taking responsibility and applying what they learned in the previous seminar.

If you do your research ahead of time and have a plan for implementation when you get back home, seminars can be powerful experiences.

4. Equipment

 Investing in personal growth is not limited to knowledge - anything that supports your improvement counts.  This includes equipment.

The simplest example is exercise equipment. Your health is inextricably connected your quality of life. Buying quality exercise equipment if you exercise at home is a great investment to make. I recently purchased a new heart rate monitor that I use when I go running.

There's a lot of software you can purchase to improve your skills. You can buy a program that improves your typing, teaches you to read faster, or helps you meditate. You could also purchase a PDA if you think that might make you more productive and organized.

One of the best purchases you can make (if you don`t already have one) is an MP3 player. I use an iPod and load it with personal development programs. I listen to it any time I am doing a physical task that doesn`t require my complete mental concentration.

5. Services

The final category is a catchall for the variety of personal services that are available. Here`s a short list:

• Gym membership
• Personal trainer
• Counselling
• Weekly classes (cooking, dancing, standup comedy etc.)
• Private lessons
• Consulting (life coach, image consultant, financial advisor etc.)
• Clubs (toastmasters, professional associations etc.)

Diversify

In the perfect world, all personal development products would provide powerful, life-changing information.  The reality is many of them suck.

Inevitably, some of your investments are going to be a complete waste of time and money. The best approach when investing in growth is diversifying much like in stocks. Some products will give you a decent rate of return and others will be absolutely life changing.

This underlies the importance of making investing in yourself a habit. You can use recommendations and reviews to make informed decisions but in the end, you won't know which products are right for you until you've worked through them.

Instead of looking for that "magic pill" that will solve all of your problems, commit to a long-term approach to your growth.  Commit to your long-term growth and know that over time, you will find that ideas and practices that will help you create the life you desire.