Investing In Yourself
When we think about personal development and traditional investing, we think about two totally different realms. On the surface they may seem vastly different, one tends to be about skills and learning, while the other numbers and probability. Personal development even gets referred to as “investing in yourself”. Be it your career, your mental well-being, or even a hobby. With that wording choice, it could seem like the only parallel between the two is the fact money is involved (spending money on courses and classes adds up..). However these seemingly two polar opposite ideas actually have a few striking similarities in their underlying principles and the pathways to success.
That is because both endeavors demand time to see real gains, consistency in practice to make meaningful headway, and a strategic focus on areas of strength. These three aspects are common practice in the investing world and should become more readily accepted ideas in personal development:
1. It takes time to see real gains
Everyone wants a “get rich quick” scheme. Ones that people expect will send them “to the moon” and have a big payout. In investing, you can’t expect overnight wealth; instead, wealth is built gradually through compound interest and smart decision-making over the long term. The same goes for our development. We want to “life-hack” our way to being better, expecting quick fixes (done once) to have long lasting effects and we don’t need to worry about it ever again! But that just flat out doesn’t work. True growth unfolds over time as we cultivate new skills, habits, and mindsets. We need to actually commit the time to working on these areas to see lasting improvement. Whether it's mastering a new language, honing leadership abilities, or improving emotional intelligence, significant growth doesn’t occur overnight.
2. It needs to be Consistent
Regular contributions to an investment portfolio yield cumulative returns. We don’t just drop $500 into an account and expect exponential growth, we need to make sure we are consistently adding funds to see that investment really grow. Steady contributions are more likely to yield favorable outcomes over time. So the more money you invest (even in small amounts) the more it grows. The same goes for our personal development. That 30 minute seminar we took a year ago on mindfulness isn’t going sustain us very long (we probably forgot most of it the next day). Consistent actions, such as daily practice, learning, and self-reflection, compound to produce profound personal growth.
3. Invest in what you know (and is strong)
One of the oldest pieces of investing advice (for folks just getting started) is to “invest in what you know”. This idea advises investors to focus on industries or companies they understand, enabling them to make informed decisions and mitigate risk. Rather than focusing on companies they don’t full comprehend that are underperforming. Even legendary investor Warren Buffett suggests people should invest in companies they understand. Where it gets lost is when we make the leap to personal development, and it is almost the opposite. Typically speaking we are told to spend time developing out weaknesses (or areas we don’t know) because that will make better. When in reality, the opposite is true. If we spend too much time focusing on our weaknesses, our investment will only go so far. Instead we should spend that energy in areas where we possess knowledge, passion, and aptitude. We should be developing our strengths. By enhancing existing strengths and interests, we can maximize our potential for growth and fulfillment. Whether it's pursuing a career aligned with our passions or investing in skills that complement existing strengths, focusing on familiar territory increases the likelihood of success.
The sticking point is, when we “invest” in ourselves, the payout isn’t always visible. With traditional financial investing, there is a literal payout. We can see the efforts of time, consistency and strength focused approach in actual dollars earned overtime. Sometimes that personal development might translate to a bigger paycheck, but if what we work on isn’t related to our professional role that doesn’t happen. What is the return on investment (that sweet sweet ROI) with our personal development? It is about us becoming a better version of ourselves. Doing things we are proud of, that have a positive value add to our life beyond dollar signs. Becoming a better person, friend, parent or partner. The payout of which is priceless.
In the end, both are about the same thing; growth. One of them is about financial capital, and the other is personal capital. Starting with something small, and thinking of different ways to make it bigger and better. Be it a small financial investment in a well-researched company, or even a small time investment in a skill we would benefit from developing. Our development is about more than dollars earned, or increasing our net worth. It is about improving our self-worth. Ultimately, that is where we will find fulfillment. Not in the enrichment of our accounts, but in the enrichment of our life, and the lives around us.
