What is Your Budget for Investing in Yourself?

by Don Smith

All products and services featured on this site are independently selected by our authors and editors. If you buy something through links on our site, we may earn an affiliate commission.

“Ultimately, there's one investment that supersedes all others: Invest in yourself,” Buffett says in a recent interview with Forbes. “Nobody can take away what you've got in yourself, and everybody has potential they haven't used yet.”

With returns of 25%-1000% or more, investing in yourself has proven to be far and away one of the best investments you can make. Once you've made the investment in improving your earning potential, you can reap the dividends for a lifetime.

Why is it then that so many people invest every extra penny they have in either “assets” that rapidly decrease in value like cars, or low return vehicles such as houses, stocks, bonds, or money market accounts yet fail to invest in themselves? If you can make a relatively small investment in coaching or a few courses that allow you to make significant leaps forward in your life, why would you not make that investment?

Certainly investing in yourself follows the law of diminishing returns as there is a limit on how much employers or clients will be willing to pay for your services, but the ceiling is much higher than most people realize. If you can guarantee that you will earn someone more money than they pay you, there are people out there who will pay you virtually any amount.

It's like an IQ test. If I pay you $100k and you make me $200k, that's a good deal. Millionaires understand that. Business owners understand that. The broke guy scrambling to come up with the money to pay for coffee doesn't get it.

That's why I didn't hesitate when I decided to invest $100 in a funnel building class the other day after reading tons of success stories, and another several hundred on software and creative material. I was trying to figure out the best way to promote our Workout Challenge which is designed to help people get healthy to ultimately save lives and knew I needed help. It's one of the best courses I've ever taken on marketing, and it is already well on the way to paying for itself in the first two weeks, and I'm not even done. That's not an expense, it's an investment.

It's why people still go to college even though costs are skyrocketing. They know that the average college graduate makes nearly $30k a year more than a high school graduate. If you got through elementary math, you could figure out that 40 years times an extra $30k each year is about $1.2 million difference over an average career lifespan. That'll pay for a lot of education.

What is your budget for investing in your own growth?

Investing in yourself pays dividends

About the Author 

Don Smith

Happily married with five kids, Smith owns a technology company, is the founder of this site, has served on the board of directors for multiple companies, and loves playing soccer, hiking, and mentoring.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}

I recall experiencing some serious hardships in my life. During these episodes, I felt completely bound, handcuffed by circumstances. Facing, feeling and

Read More
Freedom Sits on the Other Side of Fear

I stared at my carry on this morning. One thought hit me: “No thing really matters.” I decided to donate my jeans,

Read More
No Thing Really Matters

I read how Jeff Bezos’ net worth reached $200 billion recently. He seemed to be admired by many and equally loathed by

Read More
Look in the Mirror Before Criticizing a Titan

One of the strangest causes of business failure unfolds before my eyes routinely. Preventing this root cause of struggle is incredibly easy.

Read More
1 Bizarre and Easily Preventable Cause of Business Failure

I scanned my email a few moments ago. I observed roughly twice the number of emails I normally get. Feeling largely calm,

Read More
How Do You Handle a Daily Double?

Reading and processing this post slowly may feel highly uncomfortable to your mind. In a world of users, people being used and

Read More
Do You Use Get Used Or Truly Help People?

Delegate, delegate, delegate. Most business books you read will tell you to learn how to delegate if you want to get more

Read More
When You Shouldn’t Delegate

“I have no time to work on my goals,” you say with drooping shoulders and tired eyes. Your colleague replies, “I know

Read More
10 Work Habits That You Need to Beat To Succeed

My wife and I woke up around 8:30 today. We decided to take a hike in the Hike Peaks Wilderness Area of

Read More
Do You Choose Short Term Comfort over Long Term Freedom?

One common flaw seems to plague humans. Human beings waste precious time and energy trying desperately to befriend people not resonant with

Read More
Do You Try to Befriend People Not Resonant with You?

Here’s one I owned and released over the past year: holding back with my blogging campaign. I know this sounds like madness

Read More
What Self Sabotage Habits Do You Need to Own and Release?

Many are thinking about the fun toys they'll get with their tax returns in the first few months of each year. That's

Read More
7 Ways to Invest Your Tax Return


Get new articles and course discounts from leading providers every Friday in your inbox with your free subscription!