Comments on: Your Human Capital http://www.consumerismcommentary.com/your-human-capital/ A premier personal finance blog, established 2003. Within, Flexo discusses his own experiences with money, and he and other authors comment on a wide range of personal finance topics. Sun, 12 Feb 2012 15:58:28 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Abigail http://www.consumerismcommentary.com/your-human-capital/comment-page-1/#comment-204595 Abigail Wed, 10 Mar 2010 23:44:56 +0000 http://www.consumerismcommentary.com/?p=8493#comment-204595 Good subject -- one that's near and dear to my heart! I actually just finished a post about income and self-worth, which is sort of a tangent but, I believe, still firmly related to this. This society puts so much emphasis on what you do/what you earn and who you are as a person. It can be hard for those who are out of work or, like me, disabled to really figure out our identities. That said, I do agree that earning power is crucial -- both for financial security and for a sense of self. It can be so terrifying to look into a future where you make no money. You feel helpless. That's why so many people nearing retirement are frightened beyond belief. They don't know how long they can keep working -- but they know they definitely can't *stop* working either. Knowing that you can go out and earn more money is the single greatest asset we humans have. Or so I believe, anyway. Good subject — one that’s near and dear to my heart! I actually just finished a post about income and self-worth, which is sort of a tangent but, I believe, still firmly related to this. This society puts so much emphasis on what you do/what you earn and who you are as a person. It can be hard for those who are out of work or, like me, disabled to really figure out our identities.

That said, I do agree that earning power is crucial — both for financial security and for a sense of self. It can be so terrifying to look into a future where you make no money. You feel helpless. That’s why so many people nearing retirement are frightened beyond belief. They don’t know how long they can keep working — but they know they definitely can’t *stop* working either.

Knowing that you can go out and earn more money is the single greatest asset we humans have. Or so I believe, anyway.

]]> By: steveDH http://www.consumerismcommentary.com/your-human-capital/comment-page-1/#comment-204582 steveDH Wed, 10 Mar 2010 16:28:22 +0000 http://www.consumerismcommentary.com/?p=8493#comment-204582 OMG I'm bankrupt ;-) I'm going to have to find a way to move my "Human Capital" off-balance-sheet. I don't want to sound like I'm bragging but my retirement plan is working and I'm not. Although that sounds like a zero balance of Human Capital my desire to go back into the workforce drives it way negative. Great point about the income statement as it's the only true measure of successful financial efforts. Positive cash flow should ensure balance sheet growth. I enjoy this site and often use many of your and other contributor's comments and explanation when talking to my kids and grandkids about finance - it oftentimes sounds less "parental". I also enjoy reading about your successes. OMG I’m bankrupt ;-) I’m going to have to find a way to move my “Human Capital” off-balance-sheet. I don’t want to sound like I’m bragging but my retirement plan is working and I’m not. Although that sounds like a zero balance of Human Capital my desire to go back into the workforce drives it way negative. Great point about the income statement as it’s the only true measure of successful financial efforts. Positive cash flow should ensure balance sheet growth. I enjoy this site and often use many of your and other contributor’s comments and explanation when talking to my kids and grandkids about finance – it oftentimes sounds less “parental”. I also enjoy reading about your successes.

]]> By: Vic http://www.consumerismcommentary.com/your-human-capital/comment-page-1/#comment-204572 Vic Wed, 10 Mar 2010 03:58:15 +0000 http://www.consumerismcommentary.com/?p=8493#comment-204572 Great point! For me, human capital will still depend on your chosen industry - whether you are providing services or goods. When you render services, it's your self that makes a product. This case, you need to assure that your self is always sharpened for any output it produced. When you sell goods, you are more concentrated with capitalism (as slightly different from professionalism). But whatever industry you are - you still need to ensure that quality is always preserved. Great point! For me, human capital will still depend on your chosen industry – whether you are providing services or goods. When you render services, it’s your self that makes a product. This case, you need to assure that your self is always sharpened for any output it produced. When you sell goods, you are more concentrated with capitalism (as slightly different from professionalism). But whatever industry you are – you still need to ensure that quality is always preserved.

]]> By: Flexo http://www.consumerismcommentary.com/your-human-capital/comment-page-1/#comment-204564 Flexo Tue, 09 Mar 2010 23:44:47 +0000 http://www.consumerismcommentary.com/?p=8493#comment-204564 Don't forget that many people will earn more over time, and different occupations have different growth potentials, so that should be factored in. Also, people in careers deemed "recession-proof" will have a human capital advantage. And I also believe that a varied education and an ability to adapt and learn (strong cognitive capabilities) increase this value. Don’t forget that many people will earn more over time, and different occupations have different growth potentials, so that should be factored in. Also, people in careers deemed “recession-proof” will have a human capital advantage. And I also believe that a varied education and an ability to adapt and learn (strong cognitive capabilities) increase this value.

]]> By: Financial Samurai http://www.consumerismcommentary.com/your-human-capital/comment-page-1/#comment-204558 Financial Samurai Tue, 09 Mar 2010 20:26:25 +0000 http://www.consumerismcommentary.com/?p=8493#comment-204558 One's ability to earn is simply the greatest asset out there. Get your earnings power, divided it by a risk free rate i.e. 4% (0.04), to attain the present value of what you are worth now in today's dollars. Earn $200,000 a year, your human capital value is $8 million roughly. We're much wealthier than we think! One’s ability to earn is simply the greatest asset out there.

Get your earnings power, divided it by a risk free rate i.e. 4% (0.04), to attain the present value of what you are worth now in today’s dollars. Earn $200,000 a year, your human capital value is $8 million roughly.

We’re much wealthier than we think!

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