For high-earning professionals in their 30s and 40s, there is a constant temptation to find the fastest way to grow your net worth. You want your portfolio to get bigger, so you might be tempted to chase the latest stock trends or high-risk investments. But if you truly want to build lasting wealth, you must first learn how to maximize your human capital.
Years ago, leadership author and communicator Andy Stanley shared a profound podcast episode titled Better Before Bigger. His premise was simple: Leaders always want their organizations to get bigger. But if you grow a flawed system, you don’t get an optimized large organization; you just get bigger flaws. To sustainably get bigger, you must first get better.
As your Personal CFO, I believe this is the ultimate Metanoia for young wealth builders. Before you worry about getting “bigger” returns, you need to focus on getting “better” at your craft.
The Trap of “Bigger” Without “Better”
When you are in the Accumulation Zone, your investment portfolio is likely much smaller than it will be in retirement. Even if you score a massive 20% return on a $50,000 portfolio, it only yields $10,000.
Instead of agonizing over trying to beat the market to make your portfolio bigger, your time and energy are much better spent increasing your income. If you focus on getting better—earning a promotion, building a specialized skill set, or growing your business—you can easily increase your annual salary by $20,000 or more.
That increase in income is entirely within your control.
How to Maximize Your Human Capital
In the world of finance, “human capital” refers to the present value of all the future income you will earn over your lifetime. For a 35-year-old professional, your human capital is worth millions of dollars. It is, without a doubt, your greatest wealth-building asset.
To maximize your human capital, you must treat your career like an investment:
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Invest in Your Skills: Spend time and money acquiring certifications, coaching, or education that makes you indispensable in your industry.
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Protect Your Time: Delegate tasks that drain your energy so you can focus on high-value work.
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Optimize Your Network: Surround yourself with peers and mentors who push you to elevate your professional standards.
When you become the best at what you do, your income naturally scales. You get better, and your cash flow gets bigger.
Let Your Personal CFO Handle the “Bigger”
So, what happens when you successfully maximize your human capital and your income grows? You need a flawless financial system to capture that new wealth. Remember, scaling a flawed financial habit just creates bigger financial problems (like extreme lifestyle creep).
This is where a Personal CFO steps in.
While you spend your time and energy getting better at your career, we build the automated wealth building systems to handle the bigger. We automate your savings, manage your tax strategies, and invest your capital in a globally diversified portfolio.
You focus on the human capital. We focus on the financial capital.
