Human Capital Analysis

Your human capital does not go on forever:

1. After the age of 25 your brain starts slowing down. What becomes easy when you are 24 years old becomes difficult at the age of 40 years old
2. You become very expensive, and add to that, your health risks, low energy makes you look an attractive retrenchment proposition versus the vibrant 30 year old
3. Globalization have made your job harsher, competitive and somewhat unstable

You are the most important asset, and it is your job to make sure you enhance and preserve this asset:

1. Certifications and courses to enhance and retain competency
2. Get an MBA
3. Network extensively
4. Develop a good EQ, maintain good communications with your peers, bosses and customers
5. Learn to negotiate well

Do it well and you enhance that 3% increment to 7% or 10%.

If you progress to make $60,000 per year,  the next 10 years you will accumulate $687,000.

If you concentrate on building wealth but failed to progress enhancing your human capital, you lose out on substantial and predictable “capital gains”. Your investmentsmight or might not generate the desired returns, but your pay compensation have a higher degree of predictability.