Do you know your net worth? Many people think they do, but make the mistake of basing it on their current financial condition. They subtract the present value of their liabilities from the present value of their assets and arrive at a net present value of their financial condition.
The problem with this approach is that it gives no consideration to earnings potential. You are actually worth more financially if you have a higher future earnings potential than you are if you have a lower future earnings potential. If you don’t believe it, just ask a lending institution for a loan when you don’t have an expectation of future income. The resounding no in your loan request denied letter should convince you.
Unless you are preparing a standard financial balance sheet, consider changing your view of net worth. More importantly, if you want to increase your net worth, focus on increasing your value to your current and future organization. Develop and leverage your experience, skills, knowledge and education. Maintain and improve your dependability, longevity, work ethic and access to other resources that would be of value.
Invest not just in your financial assets, but in yourself. As one of America’s most influential founding fathers, Benjamin Franklin, said, “If a man empties his purse into his head, no man can take it away from him. An investment in knowledge always pays the best interest.”
Here are five investments you can make to increase your future value and true net worth:
1 – Stay current in your field. Read books, attend seminars and collaborate with others who are considered experts in your field. Practice and apply what you learn. Teach and mentor others whenever possible. Teaching teaches you as much as others.
2 – Exceed expectations. Don’t get into the rut of meeting expectations. Look for opportunities to exceed expectations. Find ways to go “over the top”. It is often just as easy to exceed expectations as it is to meet them. As Zig Ziglar says, “there are no traffic lights on the extra mile.”
3 – Think strategically. Think and behave in a way that puts time on your side. Rather than put temporary fixes in place that will need your attention again later, fix problems at their root cause. Learn to spot opportunities to improve the status quo. Make good decisions that will pay future dividends.
4 – Pursue personal development. Build an accurate self-awareness. Understand your strengths and personal development needs. Learn how to leverage your strong points and innate talents. Work on improving your skills, behaviors and attitudes where needed.
5 – Maintain good health. The better your health, the more energy you will have, the better your mental acuity will be, the more confidence you will have and the longer you will have the choice to be a productive employee. Maintain self-control, exercise regularly and follow good nutritional habits.
Don’t leave your future to chance. Invest your time, energy and money intentionally in these five areas and watch your true net worth soar.
Increase Your Net Worth - Invest in Yourself - To learn more about this author, visit Mike Hawkins's Website.
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Mike Hawkins
(Visit Mike's Website)
MIKE HAWKINS is president and principal of
Alpine Link Corporation. Mike consults,
trains, coaches and leads companies and
individuals to their peak potential. He is
a respected business columnist, adjunct
professor and thought leader on
self-improvement, leadership, business
planning, process optimization and
consultative selling.
Prior to Alpine Link Corp., Mike Hawkins
had the distinction of having direct
hands-on experience throughout all the
primary activities in the enterprise
selling value chain. He excelled as an
engineer in product development with
Halliburton. He was a successful salesman
and marketing executive with IBM. He
worked as global general manager for
Scient, a fast growing e-Business Systems
Innovator, and held the position of
executive vice-president for LogicaCMG, a
global consulting and IT solution
provider. He has worked in multiple
industries including management
consulting, information technology,
financial services, manufacturing,
construction, telecommunications and
utilities.
See www.alpinelink.com/Mike
_Hawkins_Biography.asp for Mike's full
biography. Mike can be reached at mike@alp
inelink.com.
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