Lending Club Blog

Your Biggest Asset

What is the one, biggest asset that most people have, which many people including you may not even realize is an asset? If you look at your life as a financial system, with assets causing money to “flow into” your life, you will want to pay attention, as this post will be about your biggest asset and what you can do with it.

The biggest asset that most people have, including you, is their earning ability. It is your ability to go out into the work force and be paid wages for value that you contribute to any organization. Many people do not view this as an asset, but when they are laid off or without a job for any other reason they quickly realize how much money they were earning and bringing into their lives.

According to the U.S. Census Bureau (pdf), an average person with “some college” and no college degree will earn $1.5 million in the United States. A person with a Bachelor’s degree will earn $600,000 more, for a total of $2.1 million. This is not a small amount of change; this is the biggest income producing asset for most people.

Realizing that the income you earn is coming from an asset is an important concept. This is not money that should be all spent before the next paycheck. Rather, you should convert this income into other assets. Cutting spending and putting more money into savings and investments is one way of doing this. Buying term life insurance is another way to protect your income if a family depends on that income.

The personal savings rate averaged less than one percent for the last two years across the United States, which means that if you start saving 2%, 5% or even 10% of your income, you will be better off than most everybody in this country. And the sooner you do that, the more of that income from your earning ability can be converted to other real assets.

Thursday, April 10th, 2008 at 11:45 am

Comments (0)

Recommended

Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Lending Club CEO Renaud Laplanche Receives Tribeca Disruptive Innovation Award

Read More »
April 29, 2016

Lending Club Business Financing Review

One of the biggest challenges of owning a small… Read More »
April 27, 2016

Lending Club partners with Funding Circle and Prosper to launch Marketplace Lending Association

Read More »
April 7, 2016

Lending Club Welcomes Maryland and North Dakota Investors!

We’re now open to retail… Read More »
February 23, 2016

What is Lending Club?

More than one million Americans have achieved their financial… Read More »
February 16, 2016

Get ready for tax season! Lending Club Now Offering TurboTax Integration for Form 1099s

Read More »
February 12, 2016

Lending Club Success: Surpassing $16 Billion in Loans

Founded in 2007, Lending Club’s… Read More »
February 11, 2016

Credit Performance Update

Summary: Credit performance of our standard program is coming… Read More »
February 7, 2016

Critical Small Business Financing Issues

A recent Harris Poll survey conducted on behalf of… Read More »
December 17, 2015

More Data Coming for Investors

We’re always seeking feedback and looking to make the… Read More »
November 10, 2015

2014

We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w