When you go to the bank and check your balance, you get a hard number. If that balance is positive, it’s a good thing. Seeing how much money you still have is a useful thing and you know exactly what to rely on next time you go shopping.
Net worth isn’t able to say everything about your entire financial worth as a living person. The human capital relates to your ability to increase your net in the years to come and it’s a bit more challenging to measure. Even though there are formulas that may give you a number, you can’t ever get a precise number on the human capital.
In order to get a better understanding, let’s take two individuals that present similar annual income. One of them is much younger than the other and that’s an important matter. The young man still has many years ahead to improve his financial status. Even though the older man still has some years ahead, he’s not going to have the same number of opportunities. For each of them, it’s important not only to earn as much as their potential but also to increase their potential.
Here are some ways to give a boost to that human capital.
- 1 1. Get more experience
- 2 2. Educate yourself a lot more
- 3 3. Go beyond your industry
- 4 4. Be that skill-full subject matter expert
- 5 5. Start involving
- 6 6. Nourish your human network
- 7 7. Get better at public speaking
- 8 8. Take care of your health
- 9 9. Have an early start
- 10 10. Write down your thoughts
- 11 Conclusion
1. Get more experience
It’s time that you understand that your 9 to 5 job isn’t enough for your development. Your job doesn’t define you and you should always look for more opportunities in order to extend your experience. It’s important to develop a work ethic in which you push yourself a bit farther, getting to some higher levels that you’re expected, thus boosting your human capital.
2. Educate yourself a lot more
The opinions about whether some certain levels of education are useful or not are quite divided out there, but you need to see the full picture before jumping to any conclusion. The “ROI” (Return on investment) is slowly becoming a popular term. The return isn’t related just to the salary you get at the end of the day, but also includes the income that you get in your life as you’re practicing all that skills that you acquired.
When you’re always looking to educate yourself, your mind stays active and ready to do the hard work. Your ability to learn new things (cognitive skills) gets better, helping your mind receive easier new ideas.
All of these qualities sure mean something and are important for improving your human capital.
3. Go beyond your industry
Some while ago we assisted in the crashing of the housing market that caused many mortgage brokers to be left without a job. Many of them didn’t have the skills for some other type of industry. Therefore, they were forced to shift from the six-figure commission-based income to the low-wage sale training positions. Some of them simply waited for the market to recover.
When you have skills in an industry that is rather constant, no matter the market cycles or various external factors, you present a higher human capital than someone whose job is always related to the changing circumstances.
4. Be that skill-full subject matter expert
Don’t just focus on your duties at work. Try to excel in various aspects of your job. You should always ask and get informed about other people’s functions and how to manage other people. Step out of your designated roles and try to know as much as you can about everything that happens at your job. It’s not only going to increase your human capital, but it’s also going to make you ready for another job when the opportunity comes knocking on your door.
5. Start involving
No matter the area of your interest, go find the organizations that develop activities related to it and get involved. Volunteering for a non-profit organization is a great chance for expressing your passion, but also for improving your image to the world. And this adds up to your human capital, for sure.
6. Nourish your human network
You may give a boost to your human capital by focusing on the people who know you in many ways. The more people know you and your skills and interests, the higher the chances for you to get more opportunities. Expanding your network isn’t enough though and you should also nourish the most important people you know.
This relationship goes both ways and it’s important that you give help to someone in your network, every time you’re asked.
7. Get better at public speaking
When you’re a confident and efficient speaker/presenter, you are a few steps ahead of someone with the same knowledge and technical skills, but isn’t able to sustain his points of view in front of an audience.
You may try Toastmaster for improving your public speaking skills, for sure. But you may very well try some acting as it teaches you the most important things in public speaking: emotional communication and presence. Achieving these skills isn’t just going to make you a better public speaker, but it’s also going to help you boost your human capital.
8. Take care of your health
No matter how swamped you may feel, make time to be physically active and keep an eye on a healthy diet too. If you’re determined to increase your human capital, you need to take the right path for extending your lifespan.
You need to live longer so that you have the ability to earn income. As it’s not always up to you to stay healthy (accidents do happen), it’s up to you to control as many as aspects as you can.
9. Have an early start
No matter if your mind is set for looking to increase your human capital or you’re simply on a seek quest, you need time on your side.
You do need the time to investigate your human capital. The earlier you start the search and the improvement, the more time you’re going to get for earning that income.
Therefore, the younger you are, the easier it’s going to be for you to change your path and start another career. The ability to do this counts a lot for human capital.
10. Write down your thoughts
The easiest way to give out your thoughts out into the world is to write online. Some of these methods may be important to your human capital growth.
Unless your mind is set on journaling for increasing your income, keeping a journal of your daily activities isn’t the way to do it.
It’s better to write from your area of expertise and under the name that you’d like everyone to know you as an expert. The more and the better you write, the more your human capital is going to grow.
A low level of human capital isn’t going to get you far and you’re going to need higher risks to get a higher return. Human capital is essential for the whole financial value so you always need to increase it.
Here are some methods to improve your education:
Take classes online
No matter if you’re after a degree or not, you should enroll in some online courses. They may be a bit more challenging than the classroom-based courses, but you get the chance to learn whenever you have time.
Online courses need more teamwork than traditional courses do, so you need to make time to team up with your classmates.
Get a bachelor’s degree
You increase your human capital by becoming more flexible. You need to find a good program (community college isn’t a bad idea at all) and take the classes you want until you get a bachelor’s degree.
Take classes that don’t relate to your field
Even if you have a steady job, finding some new fields of interest is always a good idea. You don’t need to leave your job, but taking classes related to your passion may improve your versatility while making the desire to work in that specific area a lot stronger.
If you’re passionate about baking, take baking classes and try to learn as much as you can about it. You may never know when you have to change your path so having something up your sleeve is a good thing.
Get a goal of certification
Nowadays, it seems more helpful to have a certification and not so much a degree anymore. For instance, you may find it a lot more useful to have a certification for various hardware and software. This way, you are more flexible and able to work in various, yet related, areas, giving you an advantage. Not only you’re not limited to job opportunities anymore, but it may also put you on the top when it’s promotion time. Knowing a lot more in more than just one area of expertise makes you the right candidate for a better job, thus increasing your human capital.
Always improving your skills, always staying connected and learning new things, related to your passion or out of your comfort zone can only bring good things to your human capital, expanding your horizon.