Gentlemen, most of you may not have heard of the Law of Diminishing Returns, and unless you’ve delved deeply into the field of economics then I can’t blame you. However, did you know it can apply to lifestyle as well?
Without even realizing it, we can often over-invest in a couple of aspects of our lives and leave others neglected. How can you find a balance?
Strap in gentlemen, because today I'm going over how this principle applies to our day-to-day and how you can balance your resources across education, experience, passion, and external presentation to get the best return on your investment.
1. The Law of Diminishing Returns
Like I mentioned above, the Law of Diminishing Returns in a common principle of economics. The textbooks define it as “If one factor of production is increased while other factors held constant, the output per unit of the variable factor will eventually diminish.“
Now, let’s put this in terms we can all understand.
Let’s say you’ve been craving pizza and buy yourself a whole pie to chow down. Without the pizza, your level of satisfaction was 0, but it could get all the way to 100%.
The first slice is always the best, right? So good in fact that it took your happiness all the way to 50%.
The second piece was still great, but not as satisfying as the first. It brought you up 75%.
The third slice isn’t bad and it takes you to 87.5%
At this point you’re pretty full but don’t want that last slice to go to waste – you eat it, and it only manages to push you to 93.75%.
Though the first couple of slices were great, the return on your investment got worse with each slice until it barely made progress at all.
How does this all relate to you?
Believe it or not, we have a tendency to max out our efforts on two or three of these. Education gets the lion’s share, followed by professional experience. Meanwhile, passion gets meager attention and classic men's style is left in the dust.
Now without further delay, let’s get into each facet in more detail – and how you will benefit from spreading your resources equally across all fields.
2. Concept Of Education
This is a good place for us to start addressing The Law of Diminishing Returns. Education is where most of us spend an overwhelming amount of our resources – our time, energy, and money. Collectively we average about 93.75% of our efforts here.
It’s even expected of us to make that commitment! The average yearly tuition of a standard 4-year institution is $28,000 a year with total costs rising to $200,000! This doesn’t even account for elite colleges, which can set you back almost $70,000 a year.
Is this a smart investment? Let’s consider a few factors.
First, what kind of return are you expecting on that investment? If you dedicate an ample amount of resources toward a BA in something like accounting, engineering or actuarial science, chances are you'll get an immediate return by earning a job in that very field. However, while studying something like History or International Relations will give you some valuable analytical skills – there often isn’t a specific field to jump into and you might take longer to see a return.
Let’s consider something else – Are you one of the thousands of men who found themselves spending years and tens of thousands of dollars on multiple degrees, only to find yourself hard-pressed to find work? That can happen if you overinvested in your education over your style, experience, and passions.
Instead, bear in mind what your goals are and what would constitute a wise investment in line with those goals. Which degree not only fascinates you but gives you the skills you know you’ll need for your goals? Are you interested in carpentry? Consider foregoing a traditional university altogether and attending a trade school – you’ll save money and learn just the right skills.
Keeping The Law of Diminishing Returns in mind, you could also consider enhancing your education through other means such as independent research. Spend no more and no less than the time you need in school.
3. Professional And Physical Experience
It’s hard to argue with experience when it comes to The Law of Diminishing Returns. It can be invaluable as you progress in the real world. Believe it or not, though, even that can reach a point of excess. More often than not we’ll see the same effort here as in education.
This applies for you men who have spent years in a dead-end job, staying in so you can pay the bills – even if you don’t care about it and it’s getting you nowhere. At that point, your returns have all but stopped.
Consider the industries where you would be the most successful and could put your skills to better use. Dedicate yourself to a singular project with a company where you can shine and make a strong impression. This includes unpaid internships – opportunities every man should consider, especially if he has savings in the bank.
Such an investment can see more significant returns in the form of a good recommendation or a job offer at the end of the haul.
4. Excitement & Passion
Every human being was put here for a reason, and it’s up to you to figure that out. Our passion is all about our purpose in life and what brings us joy. Most men will spend 75% here – not as robust as our education or experience but just as valuable.
How does this apply to The Law of Diminishing Returns?
It's a little more obvious how this can become excessive – if you invest so much in your passion at the cost of professional and educational opportunities, it can be a problem. Nevertheless, it’s a facet that deserves equal attention.
Invest in your happiness.
Healthy ways to invest in your excitement include investments in your own health – exercise, diet, and nutrition will go a long way to improving your attractiveness and overall quality of life.
Even a hobby or two, regardless of whether or not it helps you directly, will contribute to that happiness.
5. External presentation & Men's Style
Here it is gents, where most of us spend 10% or less of our resources. This doesn’t just account for the way you dress, but also for your body language, mannerisms, speaking skills, and etiquette.
You might argue that you don’t need this – you’ve invested in your education and professional life enough to see a consistent return.
Could that return be better, though?
Enhancing your presentation can compliment your other skills.
Imagine the results you could see if you spent more of your resources on your style education. Forging the tools of a strong first impression could open countless doors for opportunities down the road. These could take your education, experience, and passion to the next level. You never know, but you always need to be prepared.
Need help? I got you covered gents. Not only are there countless articles and videos to help you, but consider one of my free e-books or my courses to give your external presentation the upgrade it deserves.
To sum it all up gentlemen, It's a poor choice to over-invest your limited resources on any one or two facets of your life. We naturally have the proclivity to pour ourselves into our educations and jobs while allocating some effort to passion. Most men, however barely invest in their external presentation despite the benefits it can yield.
We all have limited time, energy, and money. Using The Law of Diminished Returns, you can distribute them equally across all fields so you don't get left in the dust.