Assuming you understand the difference between needs and wants, this article will explain why it is vital for you to consider the importance of earning power. If you know the difference between more and enough, you know the importance of creating your own definition of enough instead of always wanting more. Now you may be wondering that if it is so important that you understand the difference between more and enough, than why should you care about the concept of earning power.
Well, first off, increasing your earnings does not mean that you should run out and spend it on those items that constitute more. What you make over your lifetime is what provides you with the comfortable life (which is to say enough), good investments, and the prospect of a good retirement.
Knowing how to be resourceful and how to get the most out of your earning power can become the difference between a like of debt and a life of enough means. This also has a psychological impact on the quality of your life benefits. The feeling that you are paid sufficiently for your work and expertise is a major key towards becoming happy in your profession and happy with your life as you are living it.
Here is something that happened to one of my friends a have known for most of my life. Years ago, this friend was working at the same job for about 5 years. After an array of changes the company went through, my friend found that he was moving up in the company on the fast track. When he started at the company, he was an editor with no management standing. He quickly found that he was the manager who was responsible for ten underlings in a very short time.
He noticed that his income was not reflecting his quick move up the corporate ladder. When he started at this company, he had just closed his own business and he did not have any concern at the time regarding the size of his salary. He was just happy to have a job after closing his business. He was happy with being able to have healthcare and vacation time. So, when he found himself in a management position after being fast tracked, even though his salary had doubled since taking the entry level job, it still was not on par with what the other people on her level were earning. Every time she received a promotion, the company was unwilling to give him the substantial increase he needed to achieve to remain on par with the other people on his level at the company. After all, it would have been a bigger increase (percentage wise) than any other member of his level would get there. The company revealed that it wouldn’t be right to give these major increases in pay so fast – even though his promotions were happening. At the time, he did not fight to get more money because he w3as still thankful to have the job.
After 5 years, major changes took place again within the company causing a merger with another company. In this process, his long time boss was let go. Now, his new boss was a totally different person from the boss he was used to working with. Although he got along with his new boss, he knew it was time to go.
He looked around for a new job and quickly found himself in line for 3 different jobs. Two of them did not pan out, but the third job produced an offer. He was making $50,000 at his current job and the new offer was for $70,000. Wow. Unfortunately his new job required my friend to relocate, but he didn’t mind even though he was happy in his current location.
During the final negotiations for the job, my friend asked fro $75,000. He felt that an extra 5 grand was a drop in the bucket for the company and they would want o lose him as a great candidate for the job over a measly 5 thousand bucks a year. Well, the CFO of the potential employer was aware of my friend’s current pay and asked him why he felt he was entitled to such a pay hike. My friend said that he was good and was just what the company needed in an employee. He went on to say that his current salary was a reflection of someone who had moved up the ladder faster that his pay could catch up and that he did not want to go down that road again. Well, the CFO accepted that these were valid statements, but went on to say that a final letter of hire would come in the mail. Well, this may have created some drama, but the letter came and it included stock options and moving expenses.
Even though my good friend only ended up working with that company for 2 years in total, he benefited from a huge salary hike that increased his market value for his next job.
He was not upset to only work with the company for two years because he benefited from so much during that time that he was able to move on to the next level and became a marketable candidate for his next job.
The moral here is that seeking to make more money does not have to be an evil pursuit in life. You may have to sacrifice a few things here and there, but it doesn’t have to make you an evil business person. Be sure that you also decide the best use of your extra income and be conscientious about using it for that purpose.
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