Career and income: your most valuable asset
Our most valuable financial asset is our income-earning ability. According to the Census Bureau, the median lifetime earnings of a college graduate male is on average $2.4 million, in today’s dollars.
To see where your income and net worth fall among households your age, try Where Do I Stand?, built from the Federal Reserve’s Survey of Consumer Finances.
It’s important to steward our God-given abilities, talents, intelligence, and education. This means being faithful in your career and striving to do excellent work. “Whatever you do, work heartily, as for the Lord and not for men knowing that from the Lord you will receive the inheritance as your reward. You are serving the Lord Christ.” (Col 3:23-24) Someone that is trying to do their best to serve the Lord and not merely serving a manager or company will do excellent work. And as one grows their earning potential it will grow their giving potential.
This is a powerful concept, and where it is practiced, it will absolutely transform a workplace. Employees will be diligent, hardworking, joyful (for they have the privilege of working for Christ!), faithful in the performance of their duties (for they know Christ will reward them), committed to a high quality of product or work output (for they are presenting the result to Christ), and completely honest in their dealings with others (for they are speaking in the hearing of Christ himself). Any employer would be glad to have employees like this.
One should also not be afraid to negotiate compensation, whether at the job-offer stage or during an annual review at your current job. I have yet to hear of a situation where an offer was pulled because someone negotiated a salary. Usually employers have a range that candidates are eligible for but if you’ve already gotten to the stage of being given an offer, the company really likes you and will do their best to bring you on.
Income vs Savings
Income is not the same as savings. Having a high income does not automatically make you wealthy. Also, having a low income does not automatically make you poor. Building wealth comes from the absence of spending (e.g. saving). You can probably think of many examples of high income earners who are not wealthy, like pro athletes who retire but find themselves bankrupt in a number of years. There have also been examples of low-income earners who through diligently saving, investing and years of compound interest accumulate surprising amounts of wealth in the end.
Living off one income
The arrival of children in a family marks a significant and joyful shift in life. Yet, it also introduces new financial considerations, among which childcare is of particular importance. As a Christian family, it’s essential to approach these considerations prayerfully, seeking God’s wisdom and guidance in every decision. The cost of childcare is often close to how much rent or mortgage is.
The mother becoming a stay-at-home mom is one option. But this requires transitioning to a single-income household. A prudent way to anticipate the impact of this change is to “preview” the single-income lifestyle for a specific period. By living off of one income temporarily, families can gain a realistic understanding of what the change would entail. This exercise can also help identify areas for potential savings or adjustments to accommodate this new financial reality.
For the husband, this transition can inspire a renewed commitment to working diligently. By striving to provide for the family, he can create an environment where the mother has the option to stay at home, should they decide that is the best choice. This hard work is not merely about financial provision but is an expression of love and commitment to the family’s wellbeing. This should begin prior to having kids and even prior to getting married. Men should be diligent in their career (serving the Lord Christ, Col 3:24), intentionally choosing careers where they can better fulfill their God-given roles to lead their families and wives. I’d argue there are some careers that take you away from your family that practically speaking make it much more difficult to fulfill that role.
If your income ever stops suddenly, there is a checklist for that: What to do after getting laid off.