Have you ever thought about applying the financial decision making tools to your own career? When we think in monetary terms,we use different ways and means to create it, grow it, maintain and secure it. On similar lines, we can build our career too. Once you find out how it is relatable to your career, it makes sense and you thrive to work on it just like you do for your finances.
- Net Present Value: A strong NPV shows guaranteed and sustainable cash flow. Instead of focussing on the current situation, looking for profitability spread throughout different points of time would serve you better. NPV makes sure you do better in the future rather than focussing just on the current cash flows.
When you apply the same tactics in case of your job, you will avoid focussing on the immediate returns like salary. A job comes with many other perks too. NPV in this case means growth in terms of salary and ESOPs. Your job should be able to deliver some attractive returns not immediately but for sure in a shorter span after joining it.
- Compounding: Merely getting a job does not relieve you from the task of maintaining it and making it fruitful. Deliver your work with consistency. Be a person of repute and make people rely on you. This helps create a strong relationship network. When you get compound interest instead of simple interest, how do you feel? Your work and relationships give you a compounded outcome. Organisation is anyways going to pay you for your work as per the job agreement, but the extra effort that you put will result in pay hike, key position or role play in the group, increments, promotions etc.
On the contrary if this tool is not used effectively, it can put you in a reverse scenario where you could even lose your job. Switching of jobs at short intervals, relationship disasters, non submission of work, frauds etc could land you in trouble.
- Diversification: In a portfolio all our investments stand diversified amongst various options. Similarly, when you find a job, do not just stick strictly to what has been assigned to you. Deliver your tasks investing all your time and skills but at the same time try to learn to be productive in the work environment. Develop new skills. Because when need arises, you might be required to work with different groups of people or you may be required to do a different task. Diversifying here will make you grow into an all rounder. Learning something new will keep you away from aghast of changes.
- Return on investments: When you invest somewhere, you have clear expectations of getting something in return. And that return covers all the risks and efforts that you put in along with the cost incurred to yield profits. While choosing a job, pay attention to what and how much you have to deliver and what will be the outcome in your hands? It could be in terms of number of hours, stress levels, job responsibilities, frequency of travel etc. If the pain that you take is not worth the pay package offered to you, scratch that job offer from your list.
Your own financial goals play a big role. When you are in need of money, you may not consider perks that will be given to you later based on your performance, rather you would go for a higher salary offered now. You could have an ambition to work in a company that could have made you wait, you may forgo negotiations etc. if you get an opportunity to work for it.
Thus, understanding the job profile, applying the same principles of financial investment and planning will surely help you make better choices.
Smrutirekha Bhoi