Career Development
Your career is your largest financial asset. A 40-year career earning $75k/year = $3M lifetime earnings. A 10% improvement compounds to hundreds of thousands.
Yet most people spend more time researching their next phone than their next career move.
The Income Equation
Income = Skills × Leverage × Market
- Skills: What you can do that others value
- Leverage: How many people your work affects
- Market: Demand for your skills in your location/industry
Optimize all three. Most people only think about skills.
The Career Levers
Job hopping beats loyalty. Workers who change jobs earn 10-20% more than those who stay [@linkedin2022]. Loyalty is rarely rewarded proportionally. If you’re underpaid after 2 years, leave.
Skills compound. 5 hours/week of skill development = 260 hours/year. Over a decade, that’s the equivalent of a master’s degree worth of focused learning.
Network is net worth. Most jobs come through connections, not applications. If you’re not making 2+ new professional connections per quarter, you’re falling behind.
Negotiate once, benefit forever. A $5k raise at 25 compounds to $50k+ over your career. Most people don’t negotiate because it’s uncomfortable. That discomfort costs them a house.
What To Do
Stagnant? Job hop. The market values you more fairly than your current employer.
Stable? Seek stretch projects. Become the expert in something valuable.
Early career? Invest in high-demand skills. Research ROI before any education spend.
Mid-career? Leverage expertise. Consult, teach, or move into management.
The Annual Career Audit
Every year, ask:
- Did my income increase faster than inflation?
- Did I learn skills that increased my market value?
- Is my network stronger than last year?
- Am I closer to work I find meaningful?
If any answer is no, something needs to change.
Definition
Human capital is the economic value of your skills, knowledge, experience, and professional network. For most people under 50, it is their single largest financial asset — worth far more than their investment portfolio. A 30-year-old earning $75k/year with 35 years of career ahead has ~$2.6M in human capital (undiscounted). Investing in human capital — through skill development, strategic job changes, and network building — typically yields higher returns than any financial investment, especially early in a career.
When This Applies
- Early career (20s-30s): Prioritize skill acquisition and career positioning over portfolio optimization — your earning power is your biggest lever
- Feeling underpaid: The market likely values you more fairly than your current employer. Research and consider a move
- Considering education: Calculate ROI before spending. Not all degrees/certifications increase earning power proportionally
- Mid-career plateau: Shift from skill accumulation to leverage — management, consulting, teaching, or building assets
- Annual review time: Use the career audit questions to ensure your human capital is growing, not stagnating
Related
- Protocol: Automate Investing (invest financial capital alongside human capital)
- Concept: Compound Interest (career skills compound like money)
- Concept: Social Capital (network is a component of human capital)
- Anti-Patterns: Wealth Anti-Patterns (single income dependence, trading time for money forever)
Your career is a 40-year project. Treat it like one.