In today’s economy, we could all benefit from earning more money. Am I right?
However, increasing our income has become something that tends to feel over complicated, as if it was rocket science or something. when it all boils down to one simple principle; if you want to earn more money they you need to create more value.
It really is that simple.
CREATE MORE VALUE
People are compensated based on the tangible value they create for a third party. In other words, you work and you get paid for it. If you specialize in your field, you will bring more value, therefore your income goes up. Experts are always paid more than people with no specialized skills or knowledge.
Let’s look at lawyers as an example. The value of an activity such as defending someone’s innocence is a higher value activity than an activity such as cleaning. That isn’t to infer that the person doing the job has less value as a human being; it’s simple to say that a lawyer charging $250 per hour to defend against a serious allegation is creating more tangible value in terms of their output than the cleaner being paid $10.
Now, take that one level further and if the generic lawyer is charging $250, then a Jones Act lawyer might charge an extra $100 an hour, due to the fact that they have specialized into a niche area of law that very few lawyers practice in. Similarly, if the case were very significant (i.e. defending the client could go to prison for a long time), then the lawyer might be able to charge more because the value of the output (i.e. staying out of prison) is of such great value.
Put simply, if you want to earn more, you need to create more value, because the more value you provide, the more you will earn. The only way to increase your value is to never stop learning and growing in your niche area…
There are two ways to learn; first is through experience and the second is through education.
It should however be noted that learning is not limited to academic education. For instance, if you were to learn how to invest in property, this wouldn’t be accomplished through a university education, but through taking self-development classes on investing and finances.
You want to have a laser focus, as education is ultimately an investment – both in time and money. When considering a course, you want to focus on the increased value you’ll be able to provide as a result of taking the course to work out if it is a worthwhile investment.
Is it really this simple? Yes, it really is! Think about your current job or a job you have had in the past. What did it take to get promoted? What does it take for professional with a licenses (teacher, doctor, lawyer) to get paid more? They have to specialize, learn and self develop. That’s it! Start today, find 1 way that you can increase your value and start working on that.
Check out these great blogs for more tips and ideas for getting your life/work/money balance under control…
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