Valuations for You
Last week, we spoke about a measure that the government and large asset owners look at: the Consumer Price Index.The CPI, at its core, displays an aggregate measure of consumer health. Monetary policy and decisions based on these indicators are intended to make life better for you and me, the consumer.But who decides what “better” looks like?We’re all well aware of the altruism of the capitalist. You can have anything you want; but at a price that is inaccessible to a lot of us.--------------------------One level of personal accountability that is available to us, however, is the ability to value our own labor.Companies are now beholden to their owners. The majority stock holders. The more you own, the more you can dictate how a company operates. The prices to set, the strategies to employ, and the wages to provide. Underpinning all this structure is the willingness of the employee to understand this system, participate, and provide much needed balancing actions that keep the economy growing sustainably for everybody.----------------------As part of an organization, every employee is valued according to an evolving valuation of the whole.This is why it’s important to understand your growth relative to the organization.Over the course of a year, do you understand the system better? Does your work have fewer mistakes, more foresight?Do you make better decisions? Mostly, humans tend to get better over time, improving with practice and learning. In this case, is your compensation being valued higher than it was a year ago?Has the organization as a whole suffered any setbacks? Have there been problems within the business? Lost revenue, and as a result, a lower stock price?Have there been wider socio-economic conditions to consider? Inflation, or deflation?---------------------It’s up to us to take part in making sure we are being paid what we are worth. That we’re given enough time to live our lives. That the protections meant to be in place do not fail those of us with less when it comes to it.Negotiating and reputation will be valuable tools, but never stop being aware of your position, the options available to you, and make sure you continue to be valued what you are worth. This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit cashflowconnect.substack.com
