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| Uncommon Sense | 8 smart ways to invest in yourself
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If you're reluctant to put money toward your goals, remember that your future is your best investment. Here's how to look sharp for your personal IPO.
By MP Dunleavey
You may not technically run your own business, but thinking of yourself as a small-but-scrappy startup can be a smart way to take stock of the way you invest your time, energy and money.
"If you were thinking of your life as a CFO would, youd look at the (profit-and-loss) statements, balance sheets and so on," says Francie Dalton, president of Dalton Alliances, a business consulting firm in Baltimore. "And youd keep a close eye on each line item -- like time, energy, attitude, outcomes."
While this may sound foreign, the reality is that we all make decisions every day about how we invest our personal capital. And the yield on those investments would be much greater if we considered the potential returns. If you dont, says Dalton, "then you arent executing your fiduciary responsibilities to yourself as the primary resource of Your Life, Inc."
I know what you're thinking, and no, I haven't given my fiduciary responsibilities as CFO much thought lately, either. So I've consulted a roster of experts and herewith present the results of my duly diligent research for your personal enrichment.
Develop your business plan
It doesnt matter whether youre a free-lancer like me or you work for a real company. You need a plan. "Especially these days, when you cant rely on corporate America," notes Nancy Castleman, co-author with Marc Eisenson and Gerri Detweiler of "Invest In Yourself: Six Secrets of a Rich Life." "This is not for GE or Ma Bell or wherever you work. This is for you, for your family."
Related resources on MSN Careers and MSN Money
So sit down and think like a CEO about what your goals are. Do you want a promotion? Permission to telecommute? To enter a new field or start your own business? "Establish your current state and your desired state," says Dalton. "Once you know where you are, its easier to figure out where you want to be."
Next, quantify your goals. Dalton points out that this is where most of us fail in our attempts to invest in ourselves. "Its not enough to say you want to be fit in 04," she says. "Whats your (ideal) cholesterol level? How much do you want to weigh? If a company is well-run, there are measurable outcomes from each department."
Invest in new equipment
Yesterday, the idea of shelling out the bucks on some high-tech wireless device seemed like an extravagance. But recalculate that decision according to its effect on your productivity.
When Robert Levin was starting up his publication aimed at small- to mid-size businesses, New York Enterprise Report, he spent thousands on a loaded new laptop that would allow him to monitor his business from anywhere. "It was a huge expense for me at the time," he says, "but thats how I was able to launch the Web site."
Amy Brownstein, president of her own eponymous PR firm, was reluctant to harness herself to a PDA. But because she conducts business on both coasts and at all hours ("My business is hardly 9 to 6"), she finally invested in a Blackberry -- and it changed her life. "My productivity increased because I can stay in touch with all my clients at the touch of a button. And if I get an idea, I can shoot it to someone instantly."
Encourage staff development
Where you want to be may require skills you dont yet have. Keeping in mind Daltons "current state" vs. "desired state," what sort of knowledge do you need to move forward? Whether its a new programming language, public speaking skills or even social graces that would enable you to hobnob with the hoi polloi, acquiring these tools is an important investment of your time and energy.
And your efforts may pay off in very tangible ways. Greg Ragland, co-founder of the Executive Vocabulary program, says one study found a strong correlation between vocabulary scores and position on the corporate ladder.
Given your own goals, you may not need to whip out that old SAT study guide. But you do need to figure out which skills will yield the highest return in your own life.
Upgrade the physical plant
When I decided to incur the additional expense of renting an outside office, it didnt make immediate financial sense. I had just moved in with my then-fiance: Why not take the money I was saving on rent and sock it away? By now, six months later, I would have saved close to $4,000. (Minus the cost of the iPod I would have succumbed to, lets be honest.)
But as any savvy investor will tell you, its really about looking at the potential return over the long haul. I decided to view the monthly cash outlay as an investment in my bigger professional and financial picture. Having an independent office space would not only make me more productive (it has), but it would help me to see my humble writing life as more of a cottage industry (which it is).
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