2 min read

How Much Should You Invest in Your Personal Growth Every Year?

How Much Should You Invest in Your Personal Growth Every Year?

The world is now flooded with books, seminars, and courses on personal growth—many of them good. But how do you know where and when to sign up, or how much you should be spending right now?

For years, I’ve been a self-leadership advocate—encouraging those around me to invest time and money in their personal growth, while practicing the same habit myself.

The concept is solid—if you want to grow, you need to invest in yourself.

The only problem? Execution. I'll admit that my investment is sporadic at best.

After all, how much should you invest in your personal or professional growth?

Brian Tracy answers that question in his book No Excuses, when he breaks down what he calls “The 3 Percent Formula”:

Invest 3% of your income back into yourself, and your earning ability will continue to grow.

For me, this was a light bulb moment.

The 3 Percent Formula makes it easy to budget self-leadership, and it scales—so your investment grows alongside your tangible success.

According to Brian, the most profitable 20% of companies in each field typically set aside 3% of their revenue for training and development—and the investment pays off.

But you don't need to be a Fortune 500 company to reap the rewards of a 3% investment back into your growth.

Here are a few examples of what The 3 Percent Formula looks like, depending on where you’re at in your career:

  • Scenario 1: Annual income = $25,000; 3% = $750 ($62.50 per month).
    Attend a local conference, subscribe to Audible, and read one new book every month.
  • Scenario 2: Annual income = $50,000; 3% = $1,500 ($125 per month).
    Travel to attend a conference, subscribe to Audible, and read two new books every month.
  • Scenario 3: Annual income = $100,000; 3% = $3,000 ($250 a month).
    Travel to multiple conferences, subscribe to Audible, read two books a month, and schedule a mid-year session with a personal business coach.

Other avenues of investment include membership sites, counseling, or a weekend getaway to set (or review) your annual goals.

That’s the beauty of the 3 Percent Formula—committing to an investment that scales helps you keep success from outpacing your skills.

This means you're less likely to burn out, hit a ceiling, or fall behind in your field.

I've adjusted my annual budget.

Now 3% of revenue is set aside for personal development—an investment in myself and my team.

The 3 Percent Formula acts as a budget barometer, making sure you invest sufficient funds in your personal and professional growth.

If you want to grow, you need to invest.

So what are you waiting for? Go ahead and do the math.

Question: What could 3% of your income pay for, which would boost your personal growth?