Ever heard about the cost of stagnation?
I am not sure if it’s a widely known concept, but let me explain what I mean by that.
It’s similar to how so many of us don’t understand the cost of keeping our money in a savings account vs investing it in stocks or other assets that grow faster than the rate of inflation!
Let me elaborate on this.
Typically, savings account in, say India, gives you an interest of 3–4% per annum. Now, the rate of inflation (CPI) is typically 5–7%, sometimes even more. So, in essence, the cash in your savings account is depreciating every year. One needs to invest it in assets that give you better returns over a long period.
Something similar happens in our personal lives too!
Everyone looks at the cost of books, courses, coach and experiences that help us grow, but nobody considers the cost of being in the same place one year from now
Every day, we spend so much money on things that last only a few days, sometimes hours. But think ten times before investing in personal growth or development.
Spending $100 to purchase an online course to learn something new seems expensive, but we seldom think twice before spending the same amount on drinks with friends.
The cost of stagnation is far more than what you and I can ever imagine
How to Apply the Cost of Stagnation to Personal Growth?
Now that we understand the cost of stagnation, the next question that comes to mind is what do I do with that awareness. How does one apply the cost of stagnation to personal growth?
Here is one simple rule I made a few years ago:
10% of your income should be reserved for personal development
It can be as simple as buying a camera for someone who wants to learn photography or paying for cooking classes. Investing in your hobbies and passions is part of personal growth. It can also be about spending on experiences such as workshops, seminars, adventure sports or travel, things that helps you grow. Or hiring a coach for your business or health needs.
Remembering this one simple rule will allow you to grow continuously and avoid stagnation. It will also help you justify your expense on personal development and make the right choices.
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