How to invest in yourself correctly and what is really worth investing in

What does it mean to invest in yourself

When they say that you can invest in stocks or real estate, everything is more or less clear. The principle is obvious here, but the nuances can be explored.

Investing in yourself is a complete mess. For example, stylists on Instagram can submit a purchase of a bag for 100 thousand under this sauce. Which looks questionable: is it a justifiable expense or a waste?

Investing - investing capital with the aim of making a profit.

In the case of investing in yourself, we are talking not only about material income, but also about improving the quality of life. But people are different, and they have different needs and starting positions. Therefore, you will have to determine what investments mean investing in yourself.

Let's take the same bag. Obviously, it cannot be an investment by itself: bought, demolished, thrown away. It is possible that it will be more durable than an analogue for 5 thousand, but hardly 20 times. On the other hand, if this is a limited collection of an eminent designer, perhaps in a quarter of a century the bag will be able to sell at auction several times more expensive. Finally, let's say you're a journalist looking to interview a designer. The designer does not give interviews to anyone, but you know that he always communicates with customers himself, and purchasing a bag is a chance to persuade him. Spending $ 100,000 here is a high-risk (very!) Investment, although if things grow together, your career could change dramatically.

Learning at the same time is always considered a good investment in yourself. But if this is a passing online course of another info-gypsy, where you will not learn anything and will not be able to make useful contacts, this is already a useless waste.

Therefore, before calling any expenses an investment in yourself, you need to analyze how much profit this will bring you in the future. And if you receive income in one form or another, it is worth investing.

Warren Buffett American entrepreneur, one of the richest people in the world.

The most valuable asset you have is yourself. Anything that improves your talents and skills is worth doing.

How to choose a direction for investment

The question must be approached rationally and focused on objective indicators, and not on emotions. While dreams and feelings will certainly have to be considered, you are not a robot.

Larry King TV journalist, writer.

The most important product you will ever have to sell is yourself.

Accordingly, think of yourself as a product that you are bringing to market or developing. For example, try to rate yourself on the SWOT system, where you analyze:

Strengths - in this context, we are talking about your developed skills and personal qualities, thanks to which you achieve success; it is your competitive advantage that helps you get value.
Weaknesses (weaknesses) - qualities that interfere with striving for success.
Opportunities - The circumstances and external factors that contribute to success.
Threats - circumstances and external factors that impede achievement.

Potential investment directions are hidden in these positions. You need to build on strengths and develop weaknesses, spur the creation of favorable circumstances, and lay straws where threats can force you to back down.

You can use any other ready-made technique or find your own way. The point is to understand what you are worth as a product now and how you can make yourself more valuable.

Keep in mind: when it comes to personal investments, you can invest not only with money, but also with lost income. For example, if you usually took a part-time job in the evenings, and then decided to spend these hours on training, then you will lose part of your earnings. But if, thanks to the lessons in the future, you can do without part-time jobs, isn't it worth it?

What is the best investment

There is no one list for everyone, but there are some positions that will suit almost everyone.

Education

If you do everything right, it will significantly increase your income in the future. True, here you need to think carefully about what you need to find out what skills to pump, where and from whom to learn. To earn really a lot, it is worth striving to become not even the best in the profession, primacy in this sense is a matter of time. Being a unique specialist is really cool.

Benjamin Franklin American politician, diplomat, polymath, inventor, writer.

Investing in knowledge brings the highest returns and the best dividends. If a person lightens his wallet in favor of the mind, then no one can rob him.

Financial literacy

On the one hand, this is also education. But it is definitely worth putting it in a separate category, if only because financial literacy implies a different approach to money. The previous point implies development in order to get more money. This one is what to do with them.

Robert Kiyosaki American investor and bestselling author of Rich Dad Poor Dad.

Every dollar spent on financial education will return tenfold to you.

Health

Feeling well and being free from pain directly affects quality of life and performance, so it is directly related to income. But the costs will be less if you regularly check the state of the body and treat diseases in the early stages, as well as spend time and money on their prevention.

Mental well-being

Again, this point could be part of the previous one, but deserves a separate discussion. When you have a hole in your tooth, it hurts. When you have a hole in your soul, you may not even notice. But this does not mean that it does not affect your life, decisions, desires. Working with a psychologist will introduce you to yourself, help you understand emotions and realize what exactly you want.

Comfort

Unsuited coaches urge you to get out of your comfort zone, but you should first enter it. Under stress due to the production of cortisol, the body is mobilized. And the effect can be positive: non-standard solutions come to mind, productivity increases.

But prolonged exposure to stress is detrimental. Therefore, it often makes sense to invest in comfort. For example, move closer to work so as not to waste time in traffic jams and public transport and not to get annoyed.