BellaOnline Forums Money Investing Human Capital and Investing

Human capital is your ability to make money. How does this relate to investing? One theory is that you should invest inversely to your human capital. Do you know what your human capital is?

Human Capital and Investing

Do you feel your job/career is stable and secure? Or is your income erratic and uncertain?

No one is impervious(or at least very very few people) to losing their job or loss of income. The best thing is to come up with a realistic plan and see it through in spite of the obstacles that crop up along the way. You should start out with the basic assumption that there will be challenges and have some alternate plans in place just in case.

I like your point about factoring challenges and having alternate plans. Many things can happen in life to cause a job loss. Anything from a health problem and disability to the company one works for merging with another company and firing workers. It does seem that some careers/jobs have a little more security. As I understand it, tenured professors can't be fired. Of course, many other problems can still befall them. Then you have those who are self-employed who can have gaps in their income just because of the nature of their business or work.