Invest in Yourself First: The Most Underrated Strategy for Building Wealth

Everyone wishes they had more money. Whether you’re on the cusp of reaching millionaire status or you’re just starting out in the “real world”, trying to put together a plan to boost your net worth, everyone wishes they had more money in the bank. When most people think of ways to accrue more wealth, they think of markets, stocks, and other savvy investments. However, there’s an important step to building wealth that you may be missing: investing in yourself.

When it comes to investing in yourself, we’re not just talking about opening an Etsy shop or attending an occasional seminar that focuses on the connection between mindset and success. Instead, investing in yourself is about an ongoing approach that will directly impact your personal wealth strategy.

Keep reading to find out more about how and why you should make investing in yourself part of your personal wealth strategy. You might just find that you’re worth the extra time, money, and energy that will be required.

Mindset and Confidence Fuel Success

Somewhere along the way, you may have accepted the myth that confidence is a bad thing that should be equated with arrogance. That’s simply not the case. In the business world, confidence is often referred to as “executive presence.” Modern lingo refers to it as “aura.” Whatever word you want to use, the fact remains that confidence is a good thing when it comes to building your worth, as long as that confidence is based in reality.

When you invest in yourself and begin to better understand who you are, your strengths, and how you can use your skills to improve your financial standing, you have good reason to be confident. Confidence can create opportunity, and opportunity pays dividends, at least when you’re ready to take advantage of them.

Spend some time investing in yourself so you can both better recognize your personal strengths and cultivate new ones. You probably have several abilities and skills that are tucked away inside that you don’t even know about. At the very least, you probably don’t realize how they can help you generate wealth.

Working with a coach or a mentor, reading mindset-focused books, and attending high-impact workshops can help you develop new skills while tapping into those that you already have. When you’re confident, you’ll be able to boldly walk through doors that open for you in a professional setting. It’s also a fact that people who exude professional confidence are more likely to receive better opportunities in the workplace. Don’t be afraid of being confident. You don’t have to let it devolve into cockiness or arrogance, but you can be sure of yourself and what you bring to the table.

Skills and Education: Your Fastest ROI

One of the best methods of investing in yourself is found in investing in skills and education. If you want to make more money for doing what you do, you need to become one of the best at doing it. Even if you don’t become the best in the world, you can become the best in your company. The goal of improving your skillset and expanding your knowledge base is to facilitate a positive career growth return.

If you don’t believe that this is true, consider an NFL roster. The starting quarterback who has won multiple MVP awards is going to earn a higher salary than the third-string quarterback who rarely gets off the bench. Why? Because the starter is better at what he does than the player who sits behind him. In a professional setting, it’s up to you to make yourself more valuable. While your company may offer some training programs, they probably aren’t going to be as invested in your professional growth as you are.

Your earnings potential is directly impacted by your education, certifications, and hands-on experiences. When you bring more to the table, employers are more likely to pay you more. Additionally, when you build an extensive knowledge base and have experience, you can often strike out on your own, become your own boss, and generate more personal income.

There are plenty of great examples of this in the business world. Consider executives who have invested in leadership training and public speaking, before leveraging those skills into promotions, bigger projects, and the confidence to launch their own firms.

Take the time to consider your skillset and compare it to the things that are most valuable in today’s business landscape. For instance, the tech industry is booming, and technology has completely revamped virtually every industry from healthcare to real estate. Is there something within the tech industry that you’re good at? If so, invest in becoming even better at it. This allows you to increase your value, which should eventually result in a positive career growth return.

Build a Personal Development Budget

Even if you’re not a business owner, you can invest in your brand. You may never have thought about yourself as a brand, but when you’re trying to sell yourself, that’s exactly what you are. You need to make sure that people understand that when they employ you, they’re getting your expertise, specialized training, and the skills that you bring to the table. In the same way that a business owner invests in developing their brand, you need to make a budget that will govern how you manage the money that you’re spending on yourself.

Your budget needs to cover everything that you could possibly spend money on that can help you expand your capabilities. This includes leadership and executive coaching, public speaking seminars, high-impact retreats, and strategic networking events. You can even include the books that you buy into your budget. This allows you to monitor how much you’re investing in yourself.

Playing Both Offense and Defense

At its core, financial planning involves playing offense and defense. Unfortunately, you don’t get to choose only one thing to focus on, at least not if you’re going to reap self-investment benefits. Your offensive approach is about growing in your abilities and skills. Meanwhile, defense is about having cash on hand and being flexible when things don’t work out the way you’d hoped they would.

Take some time to consider what it means to be on offense. Offense is what you’re doing when you’re taking steps to make yourself better. Going to seminars, reading books, and investing in professional development are all forms of offense. These things help you learn more about your field, the market, and even yourself. Conversely, defense is about how you’re protecting what you’ve accomplished on offense.

There are multiple ways that defense matters when developing your personal wealth strategy. What if the company that you’re working for gets sold to a company that absorbs your role, and gives it to someone who already works for them? What happens when you’re working for a company that closes its doors and you get laid off? In those moments, the offense that you played can set you up for success in the next chapter. You’ll be more confident when presenting yourself to potential employers, and the skills that you’ve acquired can help you stand out in a crowded field of candidates.

However, you’ll also need to have played some defense. What if you’re unemployed for three months longer than your severance package pays you? Having liquid assets on hand can help you withstand those periods. In the same vein, if you experience a health issue that leaves you unable to work for an extended period, you’ll need access to cash to keep yourself afloat. When you’re investing in yourself and your professional growth, remember to put some money back for tough times.

Start Reaping Self-Investment Benefits Today

Investing in yourself may not provide financial benefits today, especially if you haven’t been putting money into your personal and professional development. As is the case with any type of investment, it’s about what happens in the future. You’re not going to attend a public speaking seminar this weekend and then get promoted to the VP of contracts in your firm on Monday. However, when you start investing in yourself, you can put yourself in a position to receive those promotions a year from now.

The self-investment benefits that you reap today are more about your mindset. When you’re more confident in yourself, that will quickly translate into your professional life. By identifying your skills and investing in improving them, you can be in the right position when the time comes for you to take a step forward.