The Long-Term Value of Investing in Yourself

Research & Sources / Personal & Career Development

Put a small amount of money into an account with interest and leave it there. In the first years, almost nothing seems to happen. Then the interest starts earning its own interest, and after twenty years the sum is surprisingly large. Investing in yourself works the same way. Small, steady investments in skills, knowledge and relationships compound over a career.

Why we under-invest in ourselves

Busy professionals invest in everything except themselves. The business gets new software, the house gets renovated, the car gets serviced. But learning, reflection, health and relationships get whatever time is left, which is usually very little.

The reason is simple: the returns are slow and invisible at first. A course this month does not show up in next month’s results. Just like compound interest, the payoff comes later.

What compounds

Skills. Anders Ericsson’s research showed that expertise is built through years of deliberate practice with feedback.¹ Each skill you build makes the next one easier to learn.

Self-knowledge. Understanding your strengths, patterns and values improves every future decision. Gallup found that people who use their strengths daily are six times more likely to be engaged.²

Relationships. People you help today become the network that helps you tomorrow.

Health and energy. The basis for everything else, and the hardest to rebuild once lost.

Does investing in support pay off?

Research on coaching and mentoring suggests it does. Meta-analyses found that workplace coaching has positive effects on learning and individual results.³ Mentoring is linked to greater career satisfaction and commitment.⁴ These are not overnight results. They build over time, like interest.

How to invest a little every week

• Two hours a week for learning: reading, a course, practice in a new skill.
• Fifteen minutes on Friday to reflect on what you learned.
• One conversation a week with someone outside your daily circle.
• Daily basics: sleep, movement and breaks are investments too.
• One larger investment a year: a programme, a thinking partner, a sabbatical, a new experience.

The cost of not investing

Not investing is also a choice. Skills slowly drift out of date, relationships fade, energy runs down. Like an account that loses value through inflation, the decline is quiet but real.

What this means for you this week

• Look at last month and count the hours you invested in yourself.
• Book two hours of learning time in next week’s calendar.
• Choose one larger investment for the coming year.
• Reach out to one person you would like to learn from.

Start small, stay steady, and let time do the rest.

Sources

1. Ericsson, K. A., Krampe, R. T. & Tesch-Römer, C. (1993). The role of deliberate practice in the acquisition of expert performance. Psychological Review, 100(3), 363-406. doi.orgExpert performance grows through deliberate practice: focused work on specific weaknesses with feedback.
2. Sorenson, S. How Employees’ Strengths Make Your Company Stronger. Gallup. gallup.comPeople who use their strengths every day are six times more likely to be engaged on the job.
3. Jones, R. J., Woods, S. A. & Guillaume, Y. R. F. (2016). The effectiveness of workplace coaching: A meta-analysis. Journal of Occupational and Organizational Psychology, 89(2), 249-277. doi.orgWorkplace coaching has positive effects on learning, attitudes and individual results.
4. Allen, T. D., Eby, L. T., Poteet, M. L., Lentz, E. & Lima, L. (2004). Career benefits associated with mentoring for protégés: A meta-analysis. Journal of Applied Psychology, 89(1), 127-136. doi.orgMentored people report more career satisfaction and commitment; effects on pay and promotion are positive but small.