The following is a guest post from Justin at The Family Finances, the story of one family’s financial journey.
Many people think of their job simply as a means to an end. In other words, it’s just something they have to do in order to pay the bills, put food on the table, and provide for their family. But let’s look at a job from another angle.
I propose that your job can and should be viewed as an investment. I can hear it now, “How in the world is my boring 8 to 5 job an investment?” Before getting into those details let’s look at what exactly an investment is. The basic definition of “investment” is placing money or capital in something that gives a return or appreciates in value. For example, when you invest in a stock you’re putting money into a share of a company in hopes of receiving dividends or that the share price will increase. You invest money in a savings account to earn interest. You invest money in your education to increase your future earning potential.
Your job should be viewed in a similar light. My job is an income stream. Let’s say I graduate college and get a job with a starting salary of $40,000 and get an average annual raise of 2.5%. Over 40 years of work, this comes to nearly $2.7 million. This is no small amount. I know that if I put in a certain level of work, I will receive a certain return. Now, where it gets interesting is that to a certain extent I can influence that return by changing how much I invest in my job. I can do the bare minimum required for the position and my income stream will most likely stay at the same level it is now, with small annual raises that are basically offset by inflation. But if I increase my investment by taking on additional duties, taking the time to streamline a process, spending less time at the water cooler, etc. I stand a better chance at a higher income stream when my annual review rolls around. I can increase my investment by seeking additional training and education to expand my set of skills, which can also lead to a higher income. When you think about it, if I can put a little more effort into my job and earn on average a 3.5% raise, that $2.7 million in lifetime earnings jumps to $3.4 million. That’s an increase of $700K. Like so many other things in life, you only get out of something what you put into it.
We’ve all seen people at work or in school who are like this. They go that extra mile and put in the extra effort to make sure they’re putting out a quality product, be it a report, a piece of assembled equipment, or providing great customer service. Sometimes their co-workers poke fun and call them “over-achievers.” Those that say that also tend to be the same people complaining when the “over-achiever” is awarded the promotion or gets the bigger raise.
So keep in mind that your job is an investment. You can increase your return by putting a little more into it.
Editor’s Note: Thanks for this guest post Justin. Readers do you view your job in a similar light and put everything into it? Or do you find yourself just putting in the time with little motivation to get ahead?
Being self-employed I put in 150% each and every day. More more I work the more I earn.
Sean, good point about being self-employed. You definitely have to give it your all in that situation.
Well, considering my job is all commission, I have a little more incentive to actually work a little harder and put in the extra effort.
However, even when I was primarily a salaried employee, I still worked hard…just because that’s the way I do things, not really because I was smart enough to look at my job as an investment.
Jason recently posted..Recipe: Meatless Meatloaf
Jason, I always had a similar work ethic. It wasn’t until later that I made the connection between hard work being an investment. It’s pretty intuitive, but it helps when you consciously think about it.
Justin @ The Family Finances recently posted..Little Things Can Add Up To Big Things
Excellent post! I’ve been feeling this way more and more. Instead of putting extra effort into a side income, I’ve been putting that extra effort into my primary income, hopefully I’ll see results.
Jordann recently posted..Financial Milestones in Your 20′s
Hard work typically leads to results. One note is that it’s still possible to work on creating a side income while still working hard at your day job.
Justin @ The Family Finances recently posted..Little Things Can Add Up To Big Things
There was a time I put everything in, and it did nearly double my salary over a 4 year period. Now I’ve been treated so badly there I don’t care, and don’t go out of my way to try to get ahead. I think I’m at the top of my income scale here, and it’s time to move on.
John | Married (with Debt) recently posted..Life Stole Our Tax Refund
I’m sorry to hear about the bad treatment. Ideally, an employer should recognize that treating their employees well increases productivity more than trying to completely overwhelm them and not caring about them.
Justin @ The Family Finances recently posted..Guest Posting
I’ve been in that situation where the treatment by my employer just drained all my motivation. Since I do marketing work, I know that my effort directly effects how much money goes into my boss’s pockets. That can make it even more discouraging when not treated right.
This is awesome advice and something I’ve said for many years. If we view our (sometimes boring) jobs as an investment for the future, I think we could be so much more successful and even happy in our situation. It’s all about how you view it, and your mindset. I try to put everything into my work, whether it’s on the job, on a project or at home with family. The things we do in life are our greatest investments.
Great post Justin!
Carrie Smith recently posted..The Importance of Leaving a Financial Legacy
Thanks for the feedback! Taking ownership of your work definitely goes a long way in making work more enjoyable.
Justin @ The Family Finances recently posted..Little Things Can Add Up To Big Things
I’d like to view my job as an investment but I’m having difficulty trying to be an over-achiever when I don’t believe the same things as the company. I never want to sink into complacent mode where I don’t work hard though so it’s something I continue working on every day.
Young Professional Finances recently posted..How Do You Feel About Punching a Clock?
That always makes it a challenge when you don’t agree agree with your employer. The temptation is to take it personally and put less effort into your work. Just don’t lose sight of your career when those thoughts come up.
Interesting perspective. I guess I do think of my job as an investment. And so far in the last few years it’s given me better returns than the stock market. The more you put in the more you get out.
Liquid recently posted..Euro-ver Indebted
Yes you can’t complain about the high returns on your time at your job. You’d need to invest a whole lot of money to match that kind of income in the stock market.
We talk about this all the time. We often frame it as anything above a living wage for the hours we put in is a return on investment in our time, availability and education. We also have some quasi-overtime and profit sharing, too, so there’s often a kicker available for attracting new customers or working hard on top of the “work for a higher salary” incentive too.
Nick recently posted..Sometimes it’s about way more than math
Profit sharing and bonuses always make it easier to work that much harder. I’ve been lucky enough to usually get some kind of performance bonus arrangement at my jobs lately. It’s nice to have that extra motivation.
Your job can definitely be an investment. yes, you can increase your return by putting in more effort and getting additional training. However, I would like to see more people think of their jobs more as a stepping stone to not just higher earnings, but also to ownership and to a great financial legacy for their children and future generations.
Anthony Thompson recently posted..Self Manager – How to Get Your Online Business Off and Running
I’ve been looking at my jobs like that for a while now, but I keep slipping back and needing to use that stepping stone again and again. Still I’m going to keep working hard at both my jobs and my side business in an attempt to build up something substantial.
I definitely agree and view my job this way. And as a result, I have seen my income rise three-fold. But money aside, what about your time? You job (or rather your career) is an investment of your time and energy. I want to look back on my life and feel like I really accomplished something with my time, and not just watched the clock for the past 30 years.
MyMoneyDesign recently posted..Embrace That You ARE in Sales
Wow a three-fold increase is impressive. You must have really put in some solid effort. That’s also a good point about creating some kind of legacy of your career. You don’t want to look back at your career and see it as something that you weren’t proud of.
Investing into a job is a two way street. You want your employer equally to invest in you, as much as you invest into them. It’s not all about money, at least not to me, but rather about happiness and opportunity to advance.
Finally, I’ve never been a big believer in putting all your eggs in one basket, hence why I diversify my income through three streams.
I certainly agree that it goes both ways. But even if your current employer doesn’t reciprocate, you’re still building your skill set and achieving results that will be attractive on a resume to other prospective employers.
Justin @ The Family Finances recently posted..Little Things Can Add Up To Big Things
I’m not sure how many people think about their job this way, but I’m sure whoever does sees the rewards of their effort! At the end of the day, if you’re going to do something, why not give it your all? Treating work as an investment isn’t just a way to improve your financial future, but also a way to invest in your own personal growth!
Shannon-ReadyForZero recently posted..Debt Consolidation Fees and Costs
You’re absolutely right. There are all kinds of benefits to having this mindset. You usually end up making more money and make yourself a more valuable employee. Ultimately it should make you happier too.
I seem to have these genes where I don’t know how to half ass anything. I always seem to put in 100% or more into everything I do. I has worked in my favour for the most part so I guess it’s a good thing.
Jobs to me are a privilege and we need to treat them as such. So many people in the world don’t have job opportunities and never will. Those of us lucky to make an income should treasure it and work hard for it.
Miss T @ Prairie Eco-Thrifter recently posted..Reader Story: It’s Never too Late to Start: Personal Finance Planning for Over-40s
That’s definitely a good trait to have. Employers really appreciate hard workers. I usually give 100% or more, but admit that my effort can fluctuate when I’m not treated well by the company. I tend to take that kind of stuff personally.
Early in my career I took a similar approach. I treated my job as a corporation. Intel was my model. I set aside and spent a certain amount of money each year for “marketing” and for “R&D”. Companies that don’t allocate enough resources for those areas pay the price in the long run as they miss product cycles or new markets.
My colleagues thought this was a wacky idea, but it did work. The return on investment was substantial, and there were also intangible benefits, like having enough opportunities available so that I could do something interesting and work in a nice location.
At some point, however, I gradually stopped doing this, and now I am paying the price for it. No, I’m not out of work, and yes, I still make a good income. But years of underinvestment by my “career corporation” means that my career is now stagnant and my options are limited. This was a big mistake.
Note that I’m not talking about doing your best each day at work. I’ve always done that. I’m talking about spending extra effort outside of your work day to position your career correctly for the long run.
S. B. recently posted..Financial Weeds
Interesting that you’ve seen both sides of going the extra mile with your career. In some fields this is particularly important. For example, with my website marketing work, I would be quickly out of job if I didn’t make the effort to stay on top of industry developments and trends. The industry is always evolving. Some of that learning can be done on the job, but to really stay on top of things it helps to do some learning on your own time too. This is where it has helped a lot to have my own websites to test strategies with on the side.
What if you don’t have a job? Isn’t it kind of a slap in the face to us who don’t?
I don’t currently have a job and I don’t consider this a slap in the face. It is just a reminder that I am not currently investing in my future as much as I should be. People without a job shouldn’t just be content with their situation unless the situation is completely beyond their control.
Awesome post! I think like this in everything I do. Whatever you put into it, is what you get out of it. Feeling lazy or not wanting to put any effort into something? You bet the result is going to feel that way. I feel like this when I work out – the harder I work out, the more results and the faster I will see them.
I tend to think like this for work too and I go above and beyond. What sucks is that although the reward may not be easily visible while you are working hard, just know that it takes time and patience but your hard work WILL pay off!
From Shopping to Saving recently posted..How To Tell If You Are a Shopaholic
Good comparison with working out Erika. It is a pretty similar situation. If you slack off when working out, you’re not going to make much progress. On the other hand, if you put in extra effort, it is sure to pay off. You’re also right that you have to be patient to see the results of your efforts. A raise or promotion won’t come overnight. Sometimes you won’t see the benefits until you move on to a new job.
I pretty much agree with what Erika just said. The end product is always a direct result of the amount of effort one puts in.
Marissa @ Thirtysixmonths recently posted..Camping the frugal way
I think I treat my job as an investment, although it’s kind of unintentional. I am a neat freak, everything has to be organized, and done right the first time. There’s nothing I hate worse than having to re do something (or someone else’s work.) Plus I like to stay busy.
Yes for some people that extra effort just comes naturally. They cannot personally accept putting in less than their best.
I tend to be a big time procrastinator, but I can’t bring myself to only do half a job, so I always put everything I have into my work.
I have a problem with procrastination too. I’ll still manage to keep myself busy most of the time, but I have a bad habit of just putting some stuff off until another day. In my line of work that’s not a big deal though since there are rarely deadlines and most things can just be put off. The important thing is that progress is always being made.
I’ve always viewed my jobs as an investment, and as such– I want them to be successful. No matter where I work, I will find a way to contribute, a way to get noticed, and a way to find success. This approach has served me very well so far
jefferson recently posted..How to Choose a Toilet
That same approach seems to have served your blog well so far too. If you have that same kind of work ethic at your job, I can understand why you have success there too.
Yeah, I guess you’re right. But sigh, it’s still hard to go sometimes.
TB at BlueCollarWorkman recently posted..Road Rage With a Gun… for real
I’m sure the lack of ethics by your current employer plays a big role in that. Hopefully you find a new job soon that can keep you more motivated.
Your very right, a slightly larger growth in income over the years will result in a substantial difference in lifetime earnings. When I first saw the title of this post, I thought you were going to say something different. The investment part of a job in my opinion is the amount of money, over and above what you need to live, that you can save every single month. That money is an asset that you can invest and as long as you live below what you make, it will keep coming in every single month. As Dave Ramsey says, your income in your single largest wealth building tool. It’s not interest you’re making at the local credit union, it’s your income.
Kraig @ Young. Cheap Living recently posted..5 Things I’ve Learned From My 5 Year Career
Yes it can result in a significant increase in lifetime earnings if you put everything you can into your job and personal skills development. You could do the bare minimum and just hope for a minimal raise. Or you could go above and beyond and all but guarantee yourself a raise and possible promotion. Those additional skills and job achievements could also be used to secure a higher paying job elsewhere.
The whole concept has to do with our attitude, which is a total matter of choice. You perspective determines how you think, which in turn determines how you feel, which in turn determines how you perform. That goes for a lot more than just our place of employment bur the very core of our lives. Every job has acres of diamonds so long as we are looking at the job the correct way.
I have had plenty of jobs in the past that I thought were dead end. However the jobs were not the problem. The problem was in my mentality. If you are at a job that you really don’t want to spend the rest of your life at, you don’t have to. But don’t overlook other value’s that come along with the job aside from a paycheck.
Some of my lifelong friends that I have were the result of having worked together at a “dead end” job. I would have never met them had we not both worked there. So even through friendships don’t pay the bills, relationships do contribute to the overall quality of life, which is something to be valued AND they CAN contribute to income a little later down the road in many cases.
So, the J.O.B is much more than meets the eye and an investment indeed, in more ways that one.
You’re right that the paycheck is only part of the story. So much more can be gained from a random job. It doesn’t have to be doing what you want to be for the rest of your life to benefit you. Your example about lifelong friends is an excellent one. Relationships that you build can help you in all kinds of ways.