The Best Investment for Freelancers Isn't Stocks or Real Estate (Invest in Yourself)

I recently spent ~$1,300 on two courses from Barry Hott that significantly increased my ability to come up with winning Facebook ads for my clients (the freelance service I offer).

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Most freelancers would call me crazy. "Alex, you could have put all that money in the S&P 500 and gotten a guaranteed 10% return!"

Here's what they don't understand: At my level as a freelancer, the ROI on investing in myself is exponentially higher than any traditional investment.

This year alone, I've invested tens of thousands in myself: $97 mini courses, two accelerators ($1,300 and $2,500), renewed my Hampton membership for $10,000, and my Soho House membership for $6,000.

Total investment in myself this year? Over $25,000.

And it's the best money I've ever spent.

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‍What Does It Mean to Invest in Yourself?

Most people hear “invest in yourself” and think it means buying books, journaling more, and drinking green juice at 7 a.m. Cool. That’s self-care. Not self-investment.

For freelancers, “how to invest in yourself” is simple: spend money (and time) on things that directly increase your earning power. More skill. Better positioning. Stronger network. Cleaner execution.

Because you aren’t a company with “assets.” You are the asset. And if your skills, confidence, and connections aren’t growing… your income eventually hits a ceiling.

When you invest in yourself the right way, you’re buying leverage. Leverage that lets you solve bigger problems, charge more for the same work, and stop competing with everyone racing to the bottom on price.

Ask yourself one simple question before you spend a dollar: “Will this help me make more money, faster, or with less effort?”

If the answer is yes, that’s not an expense. That’s an investment. If the answer is “maybe one day,” save your cash.

This is why freelancers who understand how to invest in yourself early pull away so fast. They don’t wait until they’re “ready.” They use investment to become ready.

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Why Self-Investment Should Come First

Let me be clear: I'm not against traditional investing. I actually dollar-cost average into index funds regularly, and I think every freelancer should build wealth through diversified investments.

But here's the key: At our level, investing in yourself should be the priority. If you only have $5,000 to invest this year, putting it into your skills and network will likely generate better returns than putting it all in the S&P 500.

➡️ Self-investment is for wealth creation.

➡️ Traditional investing is for wealth preservation.

As a freelancer, you ARE your biggest asset. Your earning potential isn't limited by salary bands, corporate hierarchies, or annual review cycles.

The S&P 500 might give you 10% annually. But one new skill, one better process, one stronger network connection can increase your income by 50%, 100%, or even 200%.

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The Math That Changes Everything

Let's break down the real numbers:

Traditional investment: $10,000 in S&P 500 = $1,000 annual return (~10%)

Self-investment: $10,000 in skills/network = Potential for $50,000+ additional annual income

Think about it: If a $2,500 course helps you raise your rates by just $25/hour, and you work 20 billable hours per week, that's an extra $26,000 per year. That's a 1,040% ROI.

You can't get that return in the stock market.

I've seen this play out repeatedly. The freelancers who invest heavily in themselves are the ones charging premium rates and building networks that consistently send deals their way.

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‍Best Ways to Invest in Yourself

If you’re serious about learning how to invest in yourself as a freelancer, here are the ones I keep coming back to:

1. Skills that directly increase revenue

Not “interesting.” Revenue. If a skill helps you get better client results, pitch more confidently, or charge more… it’s worth it.

2. Your network (aka deal flow)

Talent gets you in the room. Relationships keep you booked. It can be a community, a mastermind, or simply being around people who play bigger. This stuff compounds fast.

3. Your environment and execution

If your workspace is chaos and your days are random, your results will be random too. Environment shapes performance. The right environment makes it easier to show up like a pro (even when you don’t feel like it).

4. Your personal brand (the thing that keeps selling when you’re offline)

A better newsletter, better writing, better case studies, better positioning. This is the long game. It’s also how you stop relying on “cold outreach roulette.”

And if you're thinking, “Okay, cool… but I’m not even consistently getting clients yet,” start here: how to get your first freelance client. That’s the fastest way to turn self-investment into actual income.

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My Personal Investment Portfolio

Here's exactly where I put my money:

Skills Development: Barry's ad course taught me creative strategies that improved client results by 30%.

Network Access: Hampton membership connects me with other entrepreneurs doing 7-8 figures. The conversations alone are worth the $10K.

Environment: Soho House gives me a professional space to work and meet interesting people. Environment shapes performance.

Continuous Learning: Even $97 courses often contain one insight that changes how I approach client work.

The $2,499 accelerator I just joined below? It's specifically designed to help me make this newsletter better, which directly impacts my personal brand and business growth.

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When Self-Investment Goes Wrong

Not all self-investment is created equal. I've wasted money on:

• Courses I never finished
• Communities where I didn't engage
• Tools I bought but never used

The key is strategic investment. Ask yourself: "Will this directly improve my ability to serve clients or grow my business?"

If you're still transitioning from 9-5 to freelancing, start small. A $97 course that teaches you one new skill is better than no investment at all.

Remember, most freelancers don't have a sales problem (they have a skills problem).

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The Old Freelancer Way vs. The Modern Freelancer Way

The old freelancer way:

• Save every penny for "financial security"
• Invest all extra money in index funds first
• Learn everything for free on YouTube

The modern freelancer way:

• Invest heavily in skills and network first
• Treat yourself as your primary asset
• Pay for premium knowledge and access, then diversify into traditional investments

If you’re building an actual offer instead of freelancing randomly, start thinking like an owner of a freelance digital marketing business. That mindset shift changes what you invest in (and what you stop wasting money on).

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Your Action Step

This week, audit your investment strategy:

1. How much did you invest in yourself last year?
2. How much did you invest in traditional assets?
3. Which investment generated better returns?

Then commit to one self-investment this quarter. A course, a community, a coach, or a conference.

Build your traditional investment portfolio too - dollar-cost averaging into index funds is smart. But don't let that get in the way of investing in yourself if you have limited capital.

Right now, bet on yourself first. The ROI is unmatched.

Disclaimer: This is not financial advice. I'm sharing my personal experience and perspective. Consult with a financial advisor for investment decisions.

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