I find it interesting that those in the financial planning business spend the vast majority of their time with clients on investing. Investing is important, but when it comes to financial success I believe it pales with the value of your lifetime earning capacity.
Investing wisely and putting money away for the future is a good thing to do. Upgrading your skills and having the ability to make more money, keep a job, and save a little bit of the extra income you make is even better and is likely more important in the long run.
You are a company of one. If you work for someone else it’s always a good idea to think of yourself as a company of one. As an employee you have a customer. That customer is your employer. Do you think about what you can do on a daily basis to make yourself more valuable? Do you go past thinking about what you can do to take actions that make you more valuable?
If you become indispensible to your boss two things are likely to happen. You will have longevity in your job for as long as you want to stay. You also will make yourself more desirable if you decide to leave.
Today no job should be thought of as a permanent situation. The world is just changing too quickly. If you continue working on making yourself more valuable in your present situation you will automatically be upgrading your skills which will make you both worth more money and more employable if it comes time to leave your present employer.
Know what your worth. Always know what you are worth on the open market. If you believe you could leave your present job and make more money, you have leverage. If you believe that you couldn’t match your present pay level you have a problem.
If you can make more money or at least match what you make at a different job you can afford to take risks in both your investments and your work strategies. You have options to increase your financial security.
If you have risen past your market value, you either have to upgrade your skills so you have options or get ready to change your lifestyle. It’s only a matter of time before you will have employment challenges, especially if you are paid more than the market values the work that you do. It’s important to be honest with yourself about your market value. This view will help you either be successful or struggle with not only your financial life but life value as well.
The value of your lifetime income is a complicated process. I strongly recommend that you find a financial advisor who understands this process and spend some time with them. You will want to ask good questions to determine whether your advisor understands this issue. If so, value them; they’re rare in the planning world.
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