As mentioned before, finance is all about how “we managers” use our resources to maximize our values. Traditional financial resources include cash, debt, investments, assets, property, insurance… but Working Finance adds one very specific element to that list, Us. We are often the greatest resource available when it comes to maximizing our values. How we invest in ourselves, leverage our abilities, and manage our work, directly impacts the reward for our labor. In times like these, our investment of time, effort and education may seem like a loss, but our response as managers is more crucial than ever. By staying invested, diversifying professionally, and thinking forward, our work may yield fruit after all.
Prior to becoming an investment professional, I faced similar vocational challenges that millions are facing now. I had just moved back to the U.S. after teaching abroad. When I returned there were not many opportunities to serve the workforce, at least in ways I had experience. As I reflected on my options the verse Ecclesiastes 9:10 stood out to me:
1.) “Whatever your hand finds to do, do it with all your might.”
I returned from China with no intention of working in the finance industry. My professional motivations (teaching, researching, and serving the community) did not seem to fit those required for financial services. As I looked for work in a more academic setting, I read the verse Ecclesiastes 9:10. “Whatever your hand finds to do, do it with all your might.” I accepted a job as a finance intern and began heartily investing in the work my hand found to do, rather than waiting for the perfect job to come around. When the time came to choose between the jobs, I had experience with, and the job I just started to grow in, I chose the latter.
I’m not saying everyone should quit their jobs and make a career change, but I am saying if you are currently employed soak up all the wisdom you can from your peers and experience. If you are currently searching for work, it may be best to just dive into a field that is seemingly less than ideal. When I began investing more thoughtfully into work, I found a career that was not only rewarding professionally, but personally.
2.) Diversify:
Professional diversification can apply to everyone and can be especially opportunistic for those currently without work. When I started looking beyond my ideal line of work, I found an opportunity to grow in a new field and apply what I had learned from others. Nearly every industry offers opportunities to gain knowledge, experience, or education to improve our work, take advantage of this season.
Many of us are just getting back to our commutes or meeting with clients in person. Take what we learned during this season of change to use it to find ways to better invest in yourself and maximize the power of your work. With a an 8 month old, my schedule is constantly shifting, but with each change I'm finding ways to invest my time in ways I couldn’t before.”
If you are an employer, employed, or seeking employment, professional diversification addresses the essential need for staying valuable. As technology becomes more efficient and consumer values change we must rise up to the problems and challenges they inherently create. Perhaps this innovation and effort will lead us to more satisfying work.
3.) Lastly Think Forward:
Arguably the most difficult task during hardship is thinking forward. During a job (or economic) transition the immediate needs can out-weigh the future ones and our financial glass may look half empty rather than half full. As a financial professional it’s part of my job to encourage families and individuals to work hard, diversify if possible, and as a last resort borrow from your future self.
The compounding effects of “cashing out” when the going gets tough can wipe out years of potential cashflows. Hopefully, if there’s a time when savings truly are needed, we have diligently tried these less costly options first:
1.) Paying off debts:
Depending on your values, working to reduce financial debt can be some of the most rewarding goals to complete. When we work hard to free up our cash-flows, we are gifting ourselves more financial flexibility in the future. Much like building a savings or retirement account, the decisions to payoff debt should certainly be considered as part of the plan.
2.) Build a Rainy-Day Fund:
If you do not have one, a rainy-day fund, or savings account, can help buy time from meeting those immediate financial needs. They can start out with a savings goal, or just as “in case” money. Either way, drawing from your savings is a better plan than from a retirement account. There are some circumstances when retirement funds make sense to use for purchases, but in general building up a savings will help save time, reduce stress, and maybe even allow you to grow your portfolio of professional skills.
3.) Start a Retirement Account.
Retirement accounts help us prepare for life beyond work and can become a means to take care of others who depend on your work. In many ways they help to build a financial legacy, and with proper stewardship, your future self, family and charities, will thank you.
While I was finishing college, I was asked, “what would you do (for work) if money wasn’t an object?” I didn’t know the answer. I cared about many different causes, I enjoyed many different academic disciplines, I had an easier time listing what I wouldn’t want to do for work. Now I see, money is and will always be an object, a tool to measure value. When we learn how to implement financial principles, our work can become a tool to maximize what we value most.
I encourage everyone to ask, “what happens when work stops?” Part of my job as a financial professional is to help people prepare for that possible outcome and even aim for that outcome. By investing heartily, diversifying professionally, and thinking forward we can better manage the resources we have to maximize our values.
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