Mapping Your Career Path Can Lead To Higher Earnings
BY CHRIS WILLIAMS
In my last post, I posed the question, “When is a good time to teach financial literacy?” and shared what I believe are the 5 principles of financial literacy: Earning, Spending, Borrowing, Saving & Investing, and Protecting. That previous post focused on passing financial knowledge along to my children. But these principles are important for anyone, no matter what stage of life you’re at.
In this article, I want to talk about this first of those financial principles: earning. Specifically, how mapping a career path can help you improve the probability of attaining your desired position and earnings.
Like many workers, you gain a wide range of skills and experience the more time you spend in the workforce. You may even make a few career changes along the way, like I did before I became a Financial Advisor.
Throughout these different work experiences, there are three components to compensation: first, the value of work you do; second, the value of how well you perform your work; and third, the value of keeping you employed (relative to replacing you with someone else.)
Keep these three components in mind as we discuss how to map a career path that will lead to your dream job, and potentially maximize your earning power.
There’s one piece of advice my Dad shared with me regularly: “A short pencil is better than a long memory”. To me, that means starting to map your career path by putting pen to paper, or fingers to keyboard in the modern sense. The physical action of writing your career plan down demonstrates your intentions and produces a contract of accountability. Keep in mind your plan will need to be flexible, but you should still write it down to hold yourself accountable.
So, what should be the first step on your career path? I recommend working backwards from your dream job, plotting out the steps that will get you there from where you are now. Find out what skills, experience, training and certifications your dream job will require, then learn how to add these skills to your toolbelt.
Employment sites such as salary.com and glassdoor.com can provide guidance for salary ranges. Salaries can differ widely by region, so use these resources if your career path calls for relocation.
Integrate networking into your map as well. It may be cliché to say it’s who you know, not always what you know. Building connections in your chosen field will be valuable as you follow your career path to different
employment opportunities.
Be mindful to take time and recognize the progress you make along your career path. The steps may seem slow and incremental, and short cuts may not be all they seem. Still, be open for opportunities to stretch your
skill set—these chances are likely to be among the most valuable experiences you have in your career.
Do you really need to map out your career path to reach a higher income level? An easier and quicker way may be to simply ask for a raise. That may get you to the earnings you need, but think about what you’ll need to do once you’re pulling in more wages. If it’s just additional income you require, a part-time or freelance job may be sufficient. I recommend seeking a side opportunity that offers skills and experiences that will help you reach your career destination.
Another thing my Dad always said to me: “Plan to fail if you fail to plan.” I take that to heart when I talk with clients about mapping their career path. Short-cuts are out there, but a career path serves you better
at reaching your destination in the long run.