The Only Investment Guide You'll Need In This Recession

By Blaine Lam

Now what?

If you’re like the rest of us, your stock portfolio is in the tank. The bond market doesn’t look attractive. Layoffs and losses are scaring the dickens out of you. You can barely afford the house you’ve got, so you’re not buying more real estate. Gold, oil and commodity purchases aren’t for amateurs, not that you’ve heard anything positive about the price of aluminum lately anyway. As tax day approaches and it appears there’s nothing in the Stimulus Package for you, you’re most likely looking for a way out of this collective mess. What was it you heard about putting cash under a mattress?

Well, you can turn to your stock broker or financial planner again, if you dare, or read Forbes and Fortune and try to figure out what’s bottomed out. . .

Or you can invest in the one thing that will truly pay dividends, and best of all it’s an investment you can watch very closely. That investment, of course, is you.

Investing in yourself takes the guesswork and sense of bewilderment about who’s looking after your best interests anyway. Can you remember why you chose T. Rowe Price over Fidelity in the first place?

Yup, in these difficult times, it's all about you, and here are five great ways to invest in yourself:

1. Invest in your health. But, of course, what do we always say about what’s important? Without your health, you’ve got nothing. Looking back, Bobbie and I have said many times “we’ve never made a bad investment in our health.” We love our bikes, our cross country skis, our health club memberships, and we buy top-of-the-line running shoes. The wonderful thing about investing in health is that for most people the Number One benefit of regular exercise is stress reduction. Right there, you’ve eliminated some of the worry of watching your 401K plummet 40 percent. Besides, healthy foods are cheaper. When you’re fit, you’re more productive. You spend less on prescription drugs, not to mention expensive operations.

2. Invest in your understanding of the world. If we had seen all of this coming, of course, we wouldn’t be victims of it. Though he may have been speaking strictly about hockey, Wayne Gretzky was right about the whole thing: you don't head for where the puck IS, you head for where the puck’s going to be. If your day is past for classic education, there’s no shortage of learning opportunities, and what better weaponry than the new knowledge and new skills you can gain through volunteerism, art classes, and yes, even the internet. On that score, while there’s not much intrinsically valuable about mobile, interactive communication devices, mobile technology is becoming the foundation of social and professional networking for many. And it's your only link with most young people. Should you be looking at that new G3 phone, or updating your computer skills? Can’t hurt if you lose your job.

3. Invest in your family and friends. So, now that you’re broke because this is exactly what you’ve been spending your money on, why do I tell you to keep it up? Hey, even in a recession, you gotta keep your head on straight. Even Warren Buffet says invest in those things which have “value,” and he goes on: "When you get to my age, you'll measure your success in life by how many of the people you want to have love you actually do love you. That's the ultimate test of how you've lived your life." Then again, he can say that. He’s rich.

4. Invest in your home. I could get a client to pay me to tell you this, but the truth is, for most Americans, their best investment has been their home. The tax laws are written for you (and the Stimulus Package has incentives for first-time buyers) and it also serves as a happy retreat from the madness surrounding you. If you can do it without piling up debt, you might look at some projects that will make your home more valuable and livable.

5. Invest in your community. When I see Chris Crowell cranking 7:30 miles at run camp, modeling healthy behavior and inspiring us to live in a healthy community, I know a simple shoe purchase at Gazelle is going to benefit me and those around me. I eat at locally owned restaurants, knowing that part of their profits (and some of their food) goes to local charities. I go light on my giving to American This and National That and give to local causes whose work I see. Someone asked the other day if Kalamazoo were unique when it comes to giving. It may not be unique, but with its foundations, one of the top United Ways in the country, the largest Girls on the Run program in the country, it certainly is distinctive. Most importantly, we have a culture of sharing that allows us all to make a difference. And, people not only invest their money in the well-being of their neighbors, but they also invest their time.

Bottom line -- not a lot of people’s favorite expression right now -- there’s a part of this recession that I’m loving. Not for the pain it’s causing, but because the hard times really do bring out the best in people. It gives us a chance to work harder, think smarter, take on new challenges and value what’s really important to us.

You never know who’s doing you a favor. Dig deep and find the best in yourself.