When we think about investments, we often direct our attention to categories such as stocks, bonds, and real estate. What we don't think about often is our most valuable asset, which is our ability to earn an income and how we can grow that income faster. Almost 20 years ago, I met an extremely successful business owner who gave me a simple lesson: Invest 2% of everything you earn back into your ability to grow your income.
So, what does this mean exactly? Investing in you is like diversifying your portfolio investments. It means that you might take a chance and invest in that side hustle you think could be a business. It means investing in a training course or advanced education that could further your current career. It means investing in a personal coach who could improve your business performance. It could also mean investing in an exercise or nutrition program that could give you more stamina every day to accomplish more.
The bottom line is that we spend money on vacations, entertainment, food, and other expenses that generally don't grow our income. We also invest money in 401(k)'s, IRA's, real estate and brokerage accounts that may grow our net worth. But ask yourself this question, "Have I ever considered what investing 2% of my income in myself would do to my earning power so I could have more money in life?" It's the best advice I've ever received, and I do it every single year.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc. Request a FREE consultation: www.oxygenfinancial.net
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