How Much Are You Worth? Understanding Your Economic Value
Written by Marcais Bowen
“Protecting your economic value is not just about securing your financial future; it's about preserving the stability and well-being of your family.
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When we ponder our worth, it's common to reflect on our personal and emotional value to those around us. The truth is, each of us is invaluable and irreplaceable, weaving a unique fabric that contributes to the lives of our families, friends, and communities. But beyond this immeasurable personal worth, did you know that you also possess an economic value? This economic value represents the financial contribution you bring to your family and household, encompassing both your income and the myriad of non-financial activities you perform daily.
Economic Value: Beyond the Paycheck
At a glance, your economic value can be viewed through the lens of your income, which is the immediate financial value you contribute to your household. However, there's more to it than just the numbers on your paycheck. Your economic worth also includes the value of non-financial tasks such as child care, household chores, grocery shopping, cooking, and chauffeuring children to various activities. These tasks, while not contributing directly to your bank account, save significant amounts of money and are critical to the functioning of a household. Your time, much like your presence, is irreplaceable and must be treated with utmost care.
Calculating Your Economic Value
To quantify your economic value, consider your annual income, the number of working years you have until retirement, and the expected growth of your income over these years. A conservative estimate for income growth is 2%, aligning with the average annual wage increase reported by 'Trending Economics'—2.48 percent from 1992 to 2023.
For instance, if your current annual income is $100,000 and you have 25 years left until retirement, your human economic value could be estimated at approximately $3,200,000. This calculation serves as a powerful reminder of your financial significance over the course of your career.
Protecting Your Economic Value
Recognizing your economic worth raises an important question: What are you doing to protect this value? One vital measure is ensuring you have disability income protection. This type of insurance safeguards your earning potential by providing financial support in the event that you're unable to work due to illness or injury. Protecting your economic value is not just about securing your financial future; it's about preserving the stability and well-being of your family.
While our intrinsic worth as individuals transcends monetary value, understanding our economic value is crucial for financial planning and protection. By acknowledging the full scope of our contributions—both financial and non-financial—we can take steps to safeguard our future and the future of those we hold dear. Your economic value is a testament to your significance in the world, not just as a breadwinner, but as a caregiver, supporter, and irreplaceable human being.
Take Action Now: Protect Your Future
Realising the immense economic value you hold brings to light the importance of protecting it. Disability income insurance is just one of the many ways you can ensure the stability and security of your financial future. But, understanding what protection you need and how to get it can be complex.
Don't navigate these waters alone. Schedule a meeting with me today, and let's explore how you can safeguard your economic worth together. Whether you're just starting out, nearing retirement, or somewhere in between, it's never too early or too late to plan for the future.
Take the first step towards securing your economic value and ensuring a stable financial future for you and your loved ones. Let us help you understand your options and tailor a plan that's right for you. Your future self will thank you.
Written by Marcais Bowen
Marcais Bowen is a distinguished Financial Advisor and Certified Health Insurance Specialist at Longevity Achieved with a profound dedication to assisting families in constructing generational wealth. His approach emphasizes the strategic use of insurance and investment products as pivotal tools to meet his client’s diverse financial goals and needs.
Marcais is committed to helping more families build a financial legacy in their lifetime.
Book a complimentary consultation call with Marcais and receive a free Wealth Insights Report with personalized strategies to meet your financial goals and needs.
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