Net Present Value of your Career

2/22/2021, By Adrian Choo

Have you tried calculating the NPV (Net Present Value) of your Career?
Your NPV is the sum total of ALL your future earnings, TODAY.

The formula is as follows:
Your Annual Income x Number of Working Years Left x Growth Multiplier (GM).

So, for a 40 year old who makes $100k/yr who plans to retire in 25 years, his NPV today is $2,500,000 x GM.
So, if he were to win a $1m lottery today and stopped working, he'd still be losing at least $1.5m in his lifetime.

But why do I bring up the Career NPV topic?
Because some thoughts come to mind.

1. We need to view our Career as an Asset that continues giving us monthly dividends (salary) and be thankful for it.

2. Any unplanned breaks (eg, retrenchment) will dent your NPV.

3. What exactly is this GM (Growth Multiplier) and how can I calculate it? We shall talk about it in our next post.

4. If our Future Career is worth at least a $1m+ to us today, wouldn't it make sense to invest even up to a month's salary (less than 0.05% of your NPV) on Career Training that could DOUBLE your Career NPV?

I'll share with you the 3 factors affecting your GM (Growth Multiplier) tomorrow, and how you can make it work for you!