Invest in Yourself

What's the most profitable investment you can make?

Some people would tell you it's the stock market. Other people would point to mutual funds, precious metals or municipal bonds.

Make no mistake, all those investments can offer you a great payback. But there is another investment that promises far greater rewards. I am talking about investing in yourself. Dollar for dollar, investing in your own education promises vastly greater wealth creation compared to any other investment you can name:

• Appreciation that outpaces any stock. Education unlocks your wealth creation potential. It lets you earn bigger paychecks, negotiate more lucrative deals, acquire more valuable properties and open successful new companies. It helps you take your life wherever you want it to go. I can't think of another investment that can promise anything comparable.
• Greater income and dividends. An investment in the right course can quickly add tens of thousands of dollars, or more, to your annual earning potential. If you invest $100 in a mutual fund or some municipal bonds, the most you will have after a few years is $200 - and even that is pretty optimistic. Again, education outperforms all other investments.
• Diversification. With a sound education, you can reinvent yourself in countless new ways. As your knowledge grows, you can start new businesses, buy a business or real estate investing. People buy mutual funds to diversify their investments, but even they can't take you all the places that a good education can.
• Long-term security. A stock can lose half its value tomorrow. That can't happen to you, because your education gives you lasting value. And the more you know, the more you are worth in the world.

Ultimately, your real wealth is not in your bank account, but in the value of what you know. That's true of Warren Buffet and the other ultra-rich people you have read about in this blog. And it is true of you too.