Human Capital in Personal Finance (eBook, ePUB) - Ghosh, Sam
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  • Format: ePub

We take personal financial decisions based on what we perceive as our assets and liabilities are. Young people who did not inherit much financial assets, often fall in the trap of a conservative mindset thinking that they do not have enough assets to take financial risks. This is faulty thinking given that the most valuable asset young people generally have is their ability to earn, i.e. dividends from their skills will constitute the largest cash-flows in their future. This is why financial thinking must incorporate the earning ability a.k.a. Human Capital as an asset. Doing this enables us…mehr

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Produktbeschreibung
We take personal financial decisions based on what we perceive as our assets and liabilities are. Young people who did not inherit much financial assets, often fall in the trap of a conservative mindset thinking that they do not have enough assets to take financial risks. This is faulty thinking given that the most valuable asset young people generally have is their ability to earn, i.e. dividends from their skills will constitute the largest cash-flows in their future. This is why financial thinking must incorporate the earning ability a.k.a. Human Capital as an asset. Doing this enables us to maintain and grow the biggest asset we have along with taking prudent financial decisions.

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