Newsletter: Why Develop Your Human Capital
What’s the one investment that can double, triple, or even ten-x your wealth and keep producing a steady stream of income no matter what life throws your way?
It’s human capital.
Indeed, investing in yourself is the single most valuable component of wealth building. And yet, it often doesn’t get the attention it deserves.
And, so, what exactly is human capital?
Well, you can think of human capital as the unique value that you bring to the world. In a way, it’s like an invisible backpack of everything you know and can do that adds value to yourself and the people around you.
In fact, you can think of your own human capital like you would a character in a video game, where the more skills and abilities your character gains, the more valuable your character becomes over time.
And just like in a video game, the more skills and experience you collect, the stronger and more valuable you become, allowing you to level up and take on greater challenges and responsibilities in the game of life.
Now, as critical as human capital sounds, the truth is that many individuals believe that human capital development stops after college.
The fact is, however, that if you’re looking for a way to supercharge your path to financial independence and preserve the wealth you have today, then understanding who you need to become, executing like a pro, and taking your skills to the right arena can ensure that you’re making the most of your most vital wealth-building asset.
September Financial Independence Topics
This month, we’re diving deep into three main topics:
- Ensuring that you’re not taking too much investment risk in any one asset
- Steps you can take to maximize your earnings and wealth generating ability
- How to make the most of your benefits this open enrollment season
Log in to the FI|Mastery Journey and get started on essential tasks to get your financial house in order!
The Big Questions
If you do nothing else this week, consider the following Big Questions to help keep your financial house in order:
Question 1
Develop Your Human Capital: Who You Need to Become
What might you discover about yourself if you dedicated an afternoon to journaling about your passions and values?
Understanding your authentic self as the foundation for intentional skills development. Set aside time this month for self-reflection to get clarity on your core values, passions, and vision for who you want to become. For example, you could realize through journaling that creativity, service, and leadership resonated most with you. This self-knowledge could guide your future learning.
Question 2
Develop Your Human Capital: Commit to Taking Action
What’s one actionable step you can commit to this week that will bring you closer to developing your human capital?
Execution is what bridges the gap between your goals and actual results. Make a pledge to yourself to take one concrete action this week aligned with your growth and development, no matter how small. For example, if public speaking is an area for improvement, commit to joining Toastmasters or speaking up at the next team meeting.
Question 3
Know When It’s Time to Move On
How does your current environment make you feel, and is there a place where you believe your “sunlight” might be more abundant?
While data and research are crucial, your gut feeling plays a significant role when it comes to knowing when to leave a job. Listen to Your Gut. If you consistently feel out of place or undervalued at work or in your community, it might be time to reflect and possibly make a change. Just like a plant moved to sunlight can blossom, the right environment can help you thrive.
Financial Planning Articles
- The Past is Not True
- Article: At 31, I Have Just Week’s to Live. Here’s What I Want to Pass On
- Make a Plan for Your Stuff Before Someone Else Decides for You
- A Case Study on The Importance of Taking Charge of One’s Own Heart
- Navigating Early Retirement
Analyst Corner
- Bond Fund Investors are Going Long. Should They?
- New Regime Fuels Market Narrative Flip Flop
- Slow Landing for China
- The Importance of Bonds
- The Path of De-Dollarization
