Work That Asset – HumbleDollar

Great advice for young workers. I urge you to read the full article  

WHEN ASKED, most people say their most valuable financial asset is their home. But what gave them the financial wherewithal to buy that house, as well as to purchase a car, buy food and pay for vacations? It was their career. Everything that has a financial component in our life starts with our earnings potential.

Take a young adult making $60,000 a year. Assuming a 2% annual raise, he or she would haul in nearly $3 million over a 35-year career. Our objective should be to continually improve the trajectory of our earnings, so we enjoy greater total career income. Problem is, life often has other plans for us. The coronavirus—with its devastating impact on many folks’ income—is just the latest example.

Every day that we don’t maximize our full earnings potential is a day of earnings lost forever. But there’s a silver lining: Today’s stay-at-home orders, social distancing and self-quarantines provide us with time to reassess our career. We should ponder who we are, who we want to become and what impact we’d like to have on the world. Intrigued? Here are four tips:

Source: Work That Asset – HumbleDollar

One comment

  1. One more. If your ability to earn a living is an individual’s “most valuable financial asset” and if the goal is to “maximize our full earnings potential”, well, you might have added a fifth component – “paycheck insurance”.

    Life insurance: Need varies. But for those of us who work for money (unlike those whose money works for them), a family who loses the “most valuable financial asset” to a premature death will be challenged.

    Disability: Social Security Disability Income benefits apply to most workers should they become disabled – but only if they qualify: an inability to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment(s) which can be expected to result in death or which has lasted or can be expected to last for a continuous period of not less than 12 months. Less than 40% of SSDI applications are approved. And, the average monthly benefit is $1,236. For detail, see: https://www.cbpp.org/research/social-security/chart-book-social-security-disability-insurance

    Unfortunately, only 1/3 of workers have Long Term disability coverage needed to supplement Social Security. For detail, see: https://blog.disabilitycanhappen.org/how-many-americans-have-disability-coverage/

    To paraphrase the Capital One ads: “What puts money in your wallet?”

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