3 Reasons Why you should Increase Your Earning Power

3 Reasons Why you should Increase Your Earning Power Increasing your earning

3 Reasons Why you should Increase Your Earning Powerhow to make money

Increasing your earning power is synonymous with improving your skills. Anybody who is diligent in his craft and skills shall be the flag bearer in whatever place he finds himself.

People do not realize this. They take granted their ability to increase income. Ironically it takes most people over half a lifetime to be able to generate enough earning power that they could give them a minimum satisfaction. All the time you have invested through education and working experience in learning and mastering your craft and improving your skills have all been in an effort to improve your earning power.

Enlarging your earning ability can be likened to the expansion that happens in the muscle. They both have the same base for expansion – Regular Practice. And if you decide to leave your earning ability as it is, it won’t remain the same as most people would think. It will rather depreciate in value just like the muscle. So many laws hunt-down your earning ability. One of them is inflation, second is the government (through taxes) and third is the advancement in technology.


Inflation influences your earning power negatively because it increases your spending power.  A major inflation in a country may affect your company and they would, of course, cut down the size of your salary. This is at the organizational level. An increase in the general price level of goods and services will cause companies to adjust their salary scales. This will cause a necessary increase in expenses regardless of how your salary was cut down. You can only avoid this by sourcing augmentative means of balancing reduced cash flow.

2. The Government

We have been taught over time be good citizens but nobody teaches the government to maintain good governance. So many studies show that as economies advance, the tax rate increases. Advanced economies of the world run heavily-taxed societies. This explains the 21st-century mindset where people are seriously thinking of ways to earn more outside the control of the Government. Government increase taxes when income is still the same. There is no government that ever increased minimum wage alongside increased tax.

3. Advancement in Technology

As technology advances, the income of the technologically relevant will increase while that of the technologically irrelevant will remain the same or shrinks. Take for instance a financial company that has been operating manually and the management decides to upgrade to digital accounting. The few accounting staff that is competent with digital accounting will be retained while the incompetent one will be laid off as the company may not be able to finance the training and development of all the staff.


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