Posted by Dave Lorenzo - Business Coach

Free Money Finance has posted an interesting case study of three different careers.  Here’s the eye-opening information:

• The case  assumed that there were four college students who graduated at 22 and started with jobs making $25,000 a year each.

• It assumed that Graduate A didn’t manage his career very well and only had a 3% average annual increase in income.

• It assumed Graduate B did an adequate job of managing his career and through pay increases, promotions, and job changes was able to increase his salary by 5% annually on average.

• It assumed Graduate C did a pretty good job of managing his career and was able to increase his salary by 7.5% annually on average.

• It assumed Graduate D did an excellent job of managing his career and was able to increase his salary by 10% annually on average.

Note: These are AVERAGE annual increases. In any given year, the amount could be higher or lower, but these are the averages.

So, where did each of these end up when they retired at 65? Here are the results:

• Graduate A ended up making $89,113 the year he turned 65. He earned $2,226,210 in his career.
• Graduate B ended up making $203,742 the year he turned 65. He earned $3,778,575 in his career.
• Graduate C ended up making $560,408 the year he turned 65. He earned $7,699,175 in his career.
• Graduate D ended up making $1,506,002 the year he turned 65. He earned $16,316,019 in his career.

This case clearly shows the power of creating value and marketing yourself (demonstrating value).  People who follow a career of continuous imporvement (assess their sitution, create value, demonstrate value) will be in the position of Graduate D. 

Filed under: Career Intensity Challenge
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