Maybe you've heard this statement before: "Your network is your net worth." But what does this actually mean?
For years I was confused by this statement. I knew that it meant that the people I knew would somehow contribute to my ability to thrive financially, but I couldn't really connect the dots. For most of my adult life I've been somewhat outgoing, and I have observed many people who have huge social networks who are struggling financially. This statement didn't really add up based on my own life and my observations. Regardless, I kept hearing people say it and in so many of the books I've read.
So what does this illusive phrase really represent? I think that most of us would like to increase our net worth, and many of us have plenty of friends. So why, according to the Paycheck to Paycheck report by PYMNTS are over 60% of Americans (which includes 40% of high-earners) still living paycheck to paycheck. You might be surprised to learn the median net worth in America is right around $193,000, but when you consider that includes the extremely well-to-do and all age groups, that number feels very low when we are considering the retirement needs of most people.
While I've found frustration in this saying, I have discovered that my understanding of it has missed the mark. For most of my life I've thought of my network as being synonymous with my social network, or friends. What I've discovered recently though, is that your professional network and the friends in your social circle are not always the same.
Porter Gale, author of "Your Network is Your Net Worth", says, "I believe that your social capital, or your ability to build a network of authentic personal and professional relationships, not your financial capital, is the most important asset in your portfolio."
The more I try to understand this statement, the more I realize that the people I bring into my life need to be those who share similar values and passions as myself. It's not only that my friends should be those who have a similar sense of humor or enjoy the same recreational activities, but those who can push me to reach new heights and understanding in my career.
When I came to this realization and continue to look at the community around me, I realize that one of the reasons people struggle in life and fail to increase their net worth to a retirement level, is because they build their networks based on friendships (which are still important, by the way) rather than those who can mentor and support them to reach higher levels in their careers.
If you don't know where to start, here are a few tips to get you going:
Develop a Professional Goals list - If you don't understand where you want to be, building an appropriate network is going to be nearly impossible.
Join a local Networking Community - A few options to consider are focused searches in your local Chamber of Commerce, Guild.co, Eventbright, MeetUp, or for those of you who are a little further along in your career, Business Network International.
Ask for help from those who have the success you desire - You'll be amazed by how willing people are to help you in your journey. All you have to do is ask!
Leverage professional networking sites - LinkedIn is widely accepted as the social media platform for professionals. Here, you can follow hashtags, companies, and individuals. If you focus your efforts here, you can build relationship with others in your industry or area of interest that can lead to future careers, education, or communities for you to engage with.
Find a mentor - As you begin building your network, you will find people who are in a position that you'd like to reach. Ask if they are willing to mentor you.
There is a difference between a mentor and a coach. Mentors tell you what you need to do, while coaches will ask the right questions to draw out the best in you.
Hire a coach (when you're ready) - When you've found the right direction for your goals, you won't always know how to face certain challenges. Mentors can tell you what they've done, but coaches can draw out your creativity so that you can build your own brand.
As you get started, understand that the results you can expect throughout this process will not necessary be immediate. It takes time to build relationships and trust, as well as to develop the skills that you'll need to bring you to the next level in your career. However, as you build these skills and develop relationships, you'll discover that your network will come alive when you are ready to make career moves. This will help you to advance to different levels of leadership, earn more income, and uncover new interests and passions that will allow your net worth to grow at rates far beyond your peers.
I can't want to hear about your success. Go ahead and share in the comments section the successes you've had with developing your own network, and any networking groups that you've found to be particularly helpful.
About the Author:
JP Bachmann began his professional career in electrical automation, and transitioned into professional sales in the IT industry in 2016. He is now a national sales leader specializing in account success and company growth. JP was awarded a Business Coaching certification in 2019, and has helped to lead the Toastmasters International volunteer organization by serving as a District Director in Colorado and Wyoming from 2022 to 2023 serving 140 independent clubs and 2000 members. In 2023, JP founded TheDashLegacy.net which is devoted to enriching the personal and professional lives of those around him through continuous growth, humor, and thought leadership. JP is a professional speaker focused on Career Health, and leads workshops helping people develop career and personal goals using his own unique goalsetting method. Connect with JP by emailing him at jp@thedashlegacy.net
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