Human Capital Value: What Drives Your Paycheck

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When I was a kid, money didn’t really matter to me. I never thought about what it could do, or why I would someday need it. The only time I would ever think about money was when I didn’t have enough to buy that computer game I wanted. I don’t remember how I got money back then, but I know that it wasn’t through an allowance, doting grandparents, or any other simple means. It always frustrated me that I didn’t ever get as much as I wanted. I wanted instant gratification.  I’ve since learned that instant gratification isn’t even worth anything. There is only one thing we get paid for: Value! This article isn’t a how to article, or a list of reasons why or anything like that. It is simply an article that presents a principle. This principle, if then applied, will improve your lifestyle. You’ll earn more money and then be able to have more time freedom.  That’s the end goal. All we want is more time freedom to spend doing what we want to do with the people we love.

Human Capital Value

Family Shadows with a child to demonstrate Human Capital ValueHere is a simple principle that should govern your entire financial life: YOU GET PAID FOR WHAT WORTH YOU ARE CAPABLE OF PROVIDING! I don’t mean to yell, but I believe that we get paid what we can produce. It means that our paycheck reflects the skills and aptitudes that we have honed and cultivated. I call this human capital value. I mean think about it. If you read more, you’ll know more, therefore you will be able to do more, and therefore get paid more. This is real. If you are an honest and trustworthy person, you’ll be able to handle greater stresses. That means people will be able to rely on you more. That means they will be more inclined to pay you. You see, the value you can bring to other people’s lives directly correlates with your money brought in. This principle is so important because it directs us in so many facets of life. Ty Crockett, the owner of this website, taught me a great lesson in this regard. He told me about the attitude he used to have at his job. When people would ask him to do things, he’d say no. He then had a paradigm shift. He then started saying yes to all of the favors his colleagues asked. He started learning more, being able to do more, and people appreciated him. They now call him their “go to guy”. He has also developed excellent relationships with his bosses and has gotten raises. He provided value for his co-workers, they noticed and appreciated him more. This principle also helps you do more. Just like the example with Ty, when you try to provide value for others, you end up growing. You end up trying to do things you’ve never done before. This will build your human capital value and you will be able to provide more. This then becomes a virtual cycle that not only pays well, but it is also very fulfilling.

Exo-centric

Hands holding a gift with a black background This principle, in essence, is all about being focused on those around you. As I said, it pays well, but what’s more important is that it fulfills you. One of the big reasons why I like to write for this blog is I want to give people hope. This, for me, is a great part of my life’s mission. I want people to feel better, more capable, and more hopeful after having read my posts. It makes me feel good. It also helps me write better. When we focus on others, things just work out. I know it’s not always easy and we do have to take care of our own needs like prebudgeting, budgeting, buying real estate, and all that, but eventually, we get to a point where all we want to do is take of other people. So find ways to give value to others. Don’t worry about compensation. If it doesn’t come right away, it will build up and flood in upon you. Keep watching our blog for tips and tricks on how to develop your skills so you can provide more value for others. Until then, I’d love to hear your success stories below.

Justin LewisHuman Capital Value: What Drives Your Paycheck

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