The term “Return on Investment” is probably something you’ve heard before. And, if you have an IRA or 401(k), you understand that you want your Return on Investment (ROI) to be as high as possible.
For those that aren’t familiar with the idea of ROI, here’s how it looks in formula form:
ROI = (Investment Profit or Loss/Cost of Investment) x 100
For instance, if you invest $100 in stock, and the value of that stock goes up to $120, your ROI would look like this:
ROI = ($20/$100) x 100 = 20%
So, because you made (Net Profit) $20 out of the $100 you invested, your ROI was 20%.
If you graduated from high school, or even had some high school education, this is a pretty easy concept to understand. And I imagine that, if you were guaranteed to get a positive ROI on your investment, you would quickly transfer all of your cash to that investment.
Why, then, do you have such a hard time putting money toward the guaranteed positive ROI of your life…and that’s your health. To better understand this analogy, let’s look at a comparison of investments that you can understand.
But That’s as Much as a Car Payment!
If you’re not currently a Member at Thriveology, or you’ve never been a Member, you may not know exactly what we do. Our facility is strictly a fitness training and lifestyle development facility.
Basically, we are not like LA Fitness, or Planet Fitness, or any other Globo Gym out there (thank goodness. I can’t imagine having to share a space with 1,000 other people and actually getting in an effective workout!). Therefore, you do not come in and “do your own thing”.
Everyone who comes to Thriveology gets professional training in some form or another. We have Group Fitness Classes that are programmed by certified, professional trainers. Our Personal Training Members receive an individualized program that’s made specifically for their goals and to their liking (okay, maybe not always to their liking).
I don’t say this as a commercial for Thriveology. If you really want to know what we’re about, simply VISIT OUR WEBSITE. I say this all because this costs money. I’m sure as you were reading those words, you were thinking “that sounds expensive”.
And guess what…you’d be RIGHT! It is expensive and it does cost money…depending on your context of what that money is doing.
Does Your Car Offer a Good ROI?
For example, one of the reactions that I’ve heard from prospects as I’m showing them prices is “That’s as Much as a Car Payment!!”. Now, not all of our Memberships are on the high side. However, if you want a program that is going to give you a more individualized experience, it does cost more than a membership with less individualization.
Since you want to compare this potential investment to a car payment, let’s look at the ROI you get out of a car.
Doing a quick bit of research (I.E. asking Google), a number of articles in previous months shows that the average car payment in 2018 is $525 on a 5 year loan of about $31,000 (I’d like to point out that this is WAAAYYY higher than any of our Membership options).
Assuming that you take the full 5 year term to payoff the loan, your total out-of-pocket expense (not including repairs, maintenance and insurance) is going to be about $34,500.
Stay with me here, because this is the important part.
Now, let’s say at the end of that 5 years, you decide to trade the SUV in for a new car (because, on average, this is what happens). Again, after a bit of Googling, I found that the average trade-in value for a 5 year old SUV was about $14,500.
To finalize our understanding here, let’s calculate our ROI for our nice, fancy new SUV:
ROI = (-$20,000/$34,500) x 100 = -58%
So, thanks to a monthly investment of $525 over 5 years, you were rewarded with a negative return of almost %60!
The Investment in Your Life
Now, let’s say you take that same $525 and, instead of buying a brand new car, you decide to use it to invest in your health & wellbeing.
With $525 a month, there are a number of significant changes you can decide to make in your lifestyle:
- Join a Training Facility to workout 4 days a week – $150 month
- Increase the amount of high-quality foods you take in – $100 month
- Get 1 massage a month – $70 month
- Join an online accountability group for better eating – $100 month
- Put money into your IRA – $100 month
Instead of having that $525 work to make you feel good about the car you have, look at the opportunities you can invest in. And these are opportunities that all have a Guaranteed positive ROI. How can I say that? Because:
- If you decide to workout 4 days a week, your energy levels will increase dramatically, therefore increasing your abundance in life and overall productivity
- If you improve the quality of the foods you eat, you will lose the weight you want to lose, as well as get rid of some of those aches and pains.
- If you Get 1 massage a month, you will feel invigorated, less stressed, less anxious while increasing your overall wellbeing
- If you join an accountability group, you will build relationships with people that will help you achieve your goals and aspirations
- If you invest in an IRA, you will feel more confident about your future and your potential for a better, longer life
I know what you’re thinking “well, that’s great Jerry, but where’s the fun in that?”. And this question is a big reason why so many people get negative ROI out of their lives.
The problem with investing in your health is, it’s not tangible. There’s no instant gratification factor. When you get a new car, you can see the car, drive the car, wash the car. The car is real, in physical form.
When you invest in a personal trainer, you don’t get any “real” thing back in return. What you do get is abundant energy, lower bodyweight, better health and a higher feeling of self-worth. These are all feelings that you want and desire, yet, because you can’t see them, you have a harder time understanding the potential ROI.
So, my challenge to you is, the next time you’re deciding to invest a chunk of money into something you feel like you need, take a second to think about how you can use that money to bring a positive ROI to your life.
Maybe you decide to hire a personal trainer and improve your physical health for a long-term gain. Or maybe you put that money into investments for the possibility of a stronger future. No matter what you do, think about the ROI you’re going to get out of that money and how it’s going to make you feel in the long-run.
There are so many opportunities for you to become healthier in the present and in the future. And most, if not all, of those options are guaranteed to have a positive ROI. So choose your investments wisely because it would be a shame to waste that money on a guaranteed negative ROI.
If you want some thoughts on how to get moving today, read
THIS ARTICLE about an easy starting point.
If you need help finding where to spend your time, read
THIS ARTICLE about prioritizing your life.
If you’re ready to overcome your fears and get moving to fitness mastery, schedule your FREE Strategy Session
to learn how we can get you on your fitness journey.