Summary: Beyond tangible assets like properties and stocks, your most significant financial asset is your earning ability. This ability, which encompasses your skills and knowledge to produce valuable results, constitutes up to 90% of your financial worth. Understanding and enhancing this can be the key to true financial freedom.
When asked, "What do you do for a living?" many might list impressive assets:
However, these assets, while valuable, are not your greatest financial resource. Your primary asset is your earning ability. This is defined as your capacity to achieve results that others are willing to pay for. For most individuals who are not yet financially independent, this ability represents between 80% to 90% of their financial value.
Earning ability is not just about the amount you earn, but the potential to increase that amount. Consider someone earning a modest income, say $2,000 a month. Without growth, this income won't likely lead to significant wealth accumulation. On the other hand, enhancing your skills and becoming more valuable in your field can exponentially increase your earnings.
According to a report by the Federal Reserve, human capital, or the present value of future earnings, accounts for about 70% of the total wealth for the average U.S. household. This underscores the critical role of earning ability in overall financial health.
It's enlightening to note that 99.9% of top investors have a high active income, not just passive investment returns. They leverage their substantial earning ability to build and diversify their investment portfolios. To emulate their success, one should start by understanding what they do for a living and how they maximize their earnings. This approach helps bridge the gap between a modest income and the potential for substantial wealth.
In conclusion, while assets like stocks and real estate are important, they pale in comparison to the potential of your earning ability. By focusing on and enhancing this ability, you set the foundation for not just financial stability, but potential wealth that can lead to true financial independence. Remember, it's not just about what you own, but what you can earn and achieve that defines your financial future.
Do Not Teach a Starving Man to Fish
You've heard this old saying before: give a man a fish and you feed him for a day; teach a man to fish and you feed him for a lifetime. You may even be nodding your head in agreement right now. Sorry, this saying is all wrong.
Brand Positioning Strategy
Overall, a brand strategy is a long-term plan for the growth and evolution of a public image in order to achieve specific goals. A well-defined brand strategy for any business should guide all aspects of it including consumer experiences, messaging, internal culture, and even positioning. Think of it like giving driving directions.
