8 smart ways to invest in yourself

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."
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).

Jeffrey Golden, a financial planner in New York, points out that in addition to the tax benefits, there are other less tangible (though valuable) returns on an investment like this. Upgrading where you live or work causes other people to upgrade the way they see you. "Very fancy," one editor wrote to me, when I sent around my change of address. My office isnt fancy, but it adds to my cachet that other people think so.

Change your management style

This may seem like a small point, but how do you handle it when you underperform relative to your expectations? Do you beat up on yourself? Cry on your shoulder?


"You need to figure out which management style works for you," says Dalton. If you tend to be the hard-driving type, it might help to be more exacting with yourself. Set firm goals and deadlines; be strategic about meeting them. Perhaps enlist the help of a colleague or friend who can help you stick to a plan. If you're the type that thrives on compassion and understanding, you'll need a softer touch. In that case you might want to have a more gentle sit-down meeting with yourself about your progress. Otherwise you might see your No. 1 employee go into a slump.

Advertise, advertise, advertise

Pamela Pekerman may only be a journalism undergrad with a drive to work in magazines, but she already knows the value of the power accessory. "I just got a Louis Vuitton bag, and I call it my investment," Pekerman says. "You need that one piece that upgrades you -- and then who cares if youre wearing an H&M T-shirt?"


Um, Im wearing a $9.99 H&M blouse, and my Louis Vuitton seems to have gone missing, but whatever.


Pekerman is right. Most of us cant afford to buy a 30-second spot during the Super Bowl to make the world sit up and take notice. But how you look speaks volumes about how you see yourself -- and most important, how youd like others to see you. This is not carte blanche to "invest" in Armani suits and a Cartier watch, but rather to build awareness of how your appearance helps to advance your presence in the market.

Bring in the consultants

Theres a key moment in the expansion of any business where the management team has to decide when its time for outside assistance. Levin, of the New York Enterprise Report, reached that point recently when he decided to move his online publication into print as well. "Technically, these are things I could learn to do myself," he says, "but I dont want to take any chances, so Im calling in the experts."

Whether you need a life coach, a personal trainer, a baby sitter or a tax adviser -- dont skimp because you feel like you cant afford it. If its the most efficient way to achieve your goals, its worth it.

Diversify your assets

Of course, your profit margins should always be measured in terms that are more than financial. Jeffrey Golden gives the example of the many clients hes worked with who approached their retirement years with their finances in good shape -- while their personal interests and hobbies had all but atrophied. "Thats when I say to them, Have you thought about investing in quality-of-life issues?" Golden says.


Most of us forget to think of our hobbies and passions as investments, but theyre an important part of a well-balanced investment strategy. As Castleman and her co-authors say on their Web site, www.goodadvicepress.com, which offers a number of financial self-improvement tips: "Like any good portfolio, the best investments you can make in yourself are diversified, carefully managed and geared to the long term."


And they are rewarding in ways that may not show up right away in your bank account.

Cheers,
eleena