If you know me, you know I preach the importance of building human capital. This is just a fancy way of saying professional athletes should constantly invest in building skills outside of sports. Although human capital isn't a financial asset, it is directly related to your ability to pursue wealth creation.
Human capital is defined as the skills, knowledge, and experience possessed by an individual, viewed in terms of their value or cost to an organization. By building your human capital, you make yourself more valuable to an organization. And just like in sports, the more valuable you are, the more you will likely be compensated.
If you're wondering how you can develop your human capital, here are a few things you can do:
1. Pursue higher education: The most obvious way to build your human capital is to educate yourself. Maybe you want to finish your undergraduate degree or pursue a Master's or PhD. However, education does not have to come in the form of higher education. You can also develop your human capital by reading books, watching educational videos, listening to podcasts, learning a new language, or reading Rosecrete's blogs!
2. Gain practical experience: If you're anything like me, you learn a lot better by doing. Find something that interests you and do it. Interning or partnering with a business in an industry of your choice is a great way to gain experience.
3. Volunteer for a cause: Volunteering is a great way to build your human capital and make an impact on the community at the same time! You might also meet some like- minded people who may present other opportunities to you.
4. Improve your communication skills: Strong verbal and writing skills are required for nearly every organization. Effectively communicating your thoughts and opinions is vital in any relationship, personal or professional. These skills take time and practice so keep at it!
5. NETWORK: I can't stress enough the value of networking. We've all heard the cliché, "it's not about WHAT you know, it's about WHO you know." I want to take that a step further and say, "it's not ONLY about who YOU know, it's about who knows YOU!" Grow your network and doors will open for you that you never thought imaginable.
6. Stay healthy: Health is wealth. Without good health, how productive can we really be? Your health is not just physical - it's mental, emotional, spiritual, you name it. Take care of yourself.
7. Start early: Just like investing, the earlier you start, the better! Getting a head start on your post-athletic career DOES NOT mean you are giving up on your dream of being that 15 year vet in the league. It shows maturity and responsibility that will bode well for you in the long run.
In sports, you are taught to perfect your craft. Building your human capital is no different. It takes consistency and hard work. Like many investments, you may not see the fruits of your labor immediately, but over time, it can pay dividends!
We all know that life after ball is LONG! What are you doing today to make sure you are prepared for it?
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Reggie D. Ford, CPA is the Founder and President of Rosecrete Wealth Management. Rosecrete provides personalized, comprehensive financial services to affluent and high net worth clients. Rosecrete focuses on sports, legal, and medical industries with a passion for helping younger generations with early retirement planning.
Securities and Advisory Services offered through LPL Financial, a Registered Investment Advisor, Member FINRA/SIPC.
For a list of states in which I am registered to conduct securities business, visit my website at www.rosecrete.com.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
Investing includes risk including potential loss of principal.