When thinking about how to increase their cash flow, many people immediately jump to a simple solution:
If I make more money, I’ll be able to increase my cash flow.
It’s true that increasing your salary, or figuring out a way to bring in more money for you and your family, will help to boost your cash flow. Unfortunately, it’s not always as easy as asking for a raise, or finding time in your busy schedule to pick up freelancing, or additional part-time work. This is especially true if you’re well-established in your career.
You have plenty of responsibilities as it is, but still need to find a way to establish a long-term strategy for increasing your net worth. The solution you’re looking for might be found in focusing your energy on increasing your human capital.
Human capital is the economic value of your skills, experience, and knowledge. Although it can be challenging to assign a value or figure to your human capital, the truth is that it’s one of the most valuable assets you have.
Growing your human capital, often times, happens organically. As you progress through your career, the value you provide through the work you do increases. You learn through your experiences, and expand your skill set. Over time, the value you provide corresponds with an increased financial value. If you’re a business owner, you may be able to charge more for services. If you’re a career professional, you may receive pay increases or promotions.
However, you don’t have to wait for your human capital to increase on it’s own. There are ways that you can focus on making yourself a more valuable asset - and increasing your net worth as a result.
Are you ready to take charge of your net worth, and increase your human capital? Let’s walk through a few ways that you can start growing your value as an individual.
Continue Your Education
Many people who are mid-way through their career, or are starting to think about retirement, may let continued education fall by the wayside. It doesn’t seem like a priority when you have so much professional experience to tap into when growing your career. However, finding small ways to continue your education can make a big impact. Here are a few ideas to get you started:
Grow Your Experience
Growing your experience doesn’t have to mean taking on endless new responsibilities at work. Instead, look for opportunities in your career and your personal life that will expose you to new experiences. At work, this could be offering to sit in on project meetings you usually don’t participate in, or volunteering for a board or group within your organization.
Get Involved in Your Community
Looking beyond your career, consider getting involved in your community to increase your human capital. Whether you’re passionate about a specific community organization, want to attend a local industry-focused meet-up, or decide to spend some time each month volunteering, community involvement is a great way to access new opportunities and expand your experiences. You’ll bring a new perspective to your career, and you may be able to connect with your colleagues on a new and unique level that opens up other professional opportunities for you.
Expand Your Skill Set
Everyone could use to expand their skill set. Pick an area where you’re less confident in work or in life, and find a way to grow your competency. For example, if you regularly have to speak in front of board rooms, or in large conference settings - but public speaking makes you uncomfortable - enroll in a local Toastmasters program. If you want to understand how to lead your team more effectively, ask a respected colleague to mentor you, or explore books that have been written on leadership that resonate with you.
The more you’re able to grow your value as an individual, the more opportunities will become available to you - and the more you pursue these opportunities, the more likely you are to grow your net worth. By investing in yourself, you’re investing in your future.
If you want to learn more about increasing your human capital, and finding ways to grow your wealth, contact us today. We’d love to talk with you about your financial and career goals, and help to put a strategy in place that supports your finances and your lifestyle.
Wood Smith Advisors, a woman-owned Registered Investment Advisor (RIA), is a fee-only financial services firm that partners with its clients to simplify their financial lives. We focus on women, entrepreneurs, and individuals with complex financial situations, providing objective and competent advice, education and services to help them develop and build their businesses and reach their financial goals. We can be reached by clicking here.
"Finance Made Simple" blog posts are intended for educational purposes and not for specific advice. Each person’s situation is different. Consult your financial advisor for advice relating to topics discussed.