Little money? Invest in yourself. More money? Invest in others.

When there isn’t much capital to play with, the biggest returns you’ll get is from investing in yourself.

Let’s say someone is thinking about investing $1000. They find a stellar 10% annual return. Should they invest?

• ROI: 10% is a great return by most measures
• Total dollar return: $100 may not make a big difference

In money coaching conversations, I often get questions like: How much should I invest? And I’d often go back to basics: what are your goals?

Once I understand someone’s goals, it’s much easier to think about how money can be allocated to different buckets in life. Just as valid as any investment in the stock market (or crypto) is investing in yourself, whether that’s psychological well-being or personal development.

When the total return on investment — even if it’s a good ROI — does not change someone’s life, then I would point them to invest in something that would materially change their life. Here are 3 scenarios:

When to invest in yourself (and wait on investing)

1. No emergency fund yet: Give yourself peace of mind by building a financial…