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What are you actually worth on the labour market? This question may sound strange, but it is exciting, isn't it? The so-called human capital can be used to calculate this and your expected future income.
The best human capital definition that can be found on the web:
Human Capital is the entire performance potential of a person.
Of course, the definition still needs to be refined and delimited somewhat, since inflation, for example, still needs to be taken into account.
But before we talk about the details, let us calculate your personal human capital! With our Human Capital Calculator you can calculate your personal H (short form)!
We will then discuss what exactly you can do with this information and how you can improve your human capital!
How can you calculate your human capital? Are you surprised that, according to our calculator, you're practically already Millionaire are?
You can still quickly become an income millionaire in Switzerland. However, since we spend the majority of our income, we don't all have a 8-digit net worth.
If you extrapolate your salary for all the years until you retire, it adds up to quite a sum. If you now add Salary increases you end up with quite a large sum!
To Human Capital Calculation so first the time until your Retirement calculated.
Then multiply this number by your monthly income * 12.
If you add your salary increases to this, you get your so-called "salary". Employment income.
In order to be able to calculate the human capital, from the Employment income inflation deducted over the term. In other words, your salary increases are reduced by inflation.
Finally, your human capital includes your labour income, including salary increases minus inflation.
In the meantime, however, there are of course other Human Capital Definitionsthan the one used for the calculation in the human capital calculator.
So let's talk about the human capital definition for a moment, please:
To your Calculate human capital all your assessable salaries, including salary increases up to retirement, are added together. Inflation is deducted accordingly to show the real value.
Is there a simple human capital definition? In summary, human capital is your total performance potential.
So all the monetary values that can be attributed to you today, so to speak, because you will generate a certain performance and a certain added value due to your expertise.
This added value can be extrapolated over your working life and then adjusted for inflation.
Experts even say that human capital has its own Asset class is. In addition to shares and real estate, you could also invest specifically in your knowledge and thus increase your Employment income and finally your Human assets increase!
Note: As you are reading this article and consciously spending time on your education, you are increasing your human capital.
But there are also concrete tips to increase your human capital! One of them would be to Wealth Letter to subscribe. Or even better: Become part of the Finance University and increase not only your human capital, but also your wealth in the long term!
Next start in autumn. Limited places. Therefore, sign up for the waiting list.
No matter how old you are, no matter how high your current income is - you can always increase your human capital!
And if you know your personal "value", you can also promote yourself to others accordingly. Your skills have a monetary value! When you increase your human capital, you may also Salary increases expect.
So the higher your human capital (also called human assets) is, the higher your Total income and the better equipped you are financially.
Exciting: In English, the human resources department is called Human Resources (HR). According to the definition, HR accesses a pool of human capital. The higher your human capital, the more exciting you become for the labour market.
Do you have any more questions or suggestions on this topic?
Feel free to share your take on human capital in the comments!
