Narrative Worth
The Evolving Concept of Worth: From Net Worth to Narrative Worth
Nearly three years ago, I wrote a piece about Narrative Net Worth. The piece reflected the work I was doing and how that tied back to the overarching concept of worth. The focus of that piece was on the individual and set the tone for how to think about building one’s narrative net worth over time.
I want to revisit that concept today.
I have since modified the term Narrative Net Worth to Narrative Worth. It is a refinement of my thinking, learning and intention to turn Narrative Worth into a value that represents the third leg of a three-legged stool, the other legs being Self Worth and Net Worth.
Narrative worth is the red thread that binds Self and Net worth together. It is the personal operating system of the individual, just as brand narratives are for organizations. It represents the ability to communicate your intentions and desires concisely and clearly.
In today's rapidly shifting world, where traditional metrics of value are continuously being reevaluated, the concept of Narrative Worth emerges as a pivotal element in understanding personal and professional growth.
While “Net Worth” quantifies financial assets, and “Self Worth” reflects one's internal valuation of oneself, Narrative Worth represents a more nuanced dimension. It encapsulates the intrinsic value of an individual’s life story and the impact of their personal and professional journey.
Narrative Worth, like Net Worth, runs similar to how financial investments grow over time. Just as the principle of compounding interest amplifies financial growth over time, the continual cultivation of one's narrative enhances its depth and reach. Each experience and achievement adds layers to one’s narrative, increasing its influence and value. Today that is captured in a resume or a CV. Tomorrow that will not be good enough. We are much more multidimensional than the industrial-age containers of the past.
Wall Street understands the value of brands. The market rewards companies with strong brands. There are metrics and equations used to assess and or assign brand value. Yet, brand value sits on the intangible line of a balance sheet.
If a brand is so valuable, how can it be intangible?
Like a brand, a person’s influence is also an intangible. Influence and the ability to persuade others are measured by results, actions taken, or measurable outcomes. Strong leaders know this. Entrepreneurs know this. People seeking to change the world know this. Influence separates those with a strong sense of worth from those who struggle to realize this capacity.
The Invisible Layer of Worth
Often, there is an intangible yet palpable aspect of our identity that we sense but find hard to articulate—this is our Narrative Worth. It is the undercurrent that runs through the entirety of our lives, intertwining with our self-worth and net worth to forge a potent expression of our identity. This concept has transitioned from what might have been considered a soft skill in the past to a critical, dynamic ability in the post-COVID era to what is now considered a power skill. Today, possessing a strong narrative is indispensable for thriving in the complexities of the 21st century.
The Essential Role of Narrative Worth
Narrative Worth is indispensable, acting as a vital, interdependent dimension that contextualizes and enhances our overall sense of worth. It provides clarity and confidence, helping individuals align with their true selves and discover their core. This alignment is critical, not just for personal contentment, but for navigating and succeeding in the external world. And, aligning one’s narrative worth with the company they work for is now front and center in our arguments for why we work, where we work and how we work.
Calculating Your Narrative Worth
To conceptualize Narrative Worth, we can think of it as an equation: Narrative Worth = Equities (Assets) - Resistance (Liabilities). Here, ‘Equities’ represent the positive aspects of your story—your achievements, experiences, and the wisdom you’ve accumulated - your Narrative Equities. ‘Resistance’ denotes the hurdles or conflicts in your narrative—those elements that detract from or disrupt your story’s flow and impact. The objective is to optimize your assets and minimize, or overcome your liabilities, to enhance your overall narrative worth.
Investing in Your Narrative Worth
When considering how much of your income should be invested in your personal and professional narrative, the consensus suggests a range from 3% to 5% of your annual income. I am surprised, but not surprised by the lack of guidance on this reality. The entire area of Personal Finance education is long overdue for an update and with it, the idea of personal development.
Two recent personal finance books have been released on this subject since my post in November 2021. I have shared both with my daughters. The Psychology of Money, by Morgan Hosel, and The Alegra of Wealth by Scott Galloway. Both are excellent primers on how to think about building your Net Worth, yet lightly touch on the notion of Narrative Worth.
I submit Narrative Worth is also a critical investment that needs deeper consideration. You are effectively the economic engine of you, plus your family as you evolve into parenthood. We have been told a college education is the manifest destiny for our future self, but today that comes at a great cost and burden. And, we now live in a time where continuous learning is the cost of entry and no longer a “nice to have”. In other words, college for life.
Today, how much you invest in yourself is more of a proxy similar to how a 401K operates. It is recommended by financial professionals that you put aside 6% of your gross income into your 401K to take advantage of company matches. And, as you age, up that to 10 - 20% to elevate the compounding nature of your investments.
Additionally, when looking into the Learning and Development world, some industry experts recommend basing a training budget on a percentage of your total payroll when looking at organizational training budgets. This is often suggested to be around 1% to 5% of the total payroll, depending on the specific needs and goals of a business (Amex Banking).
What to Do?
We are in charge of our personal narrative. The days of being pulled along in your work journey are still valid for some, but with the democratization of digital tools, the invention of the Creator Economy and penchant for being different than the generation before you - we are clearly evolving the concept of Narrative Worth into a new art form. It is time to build your Narrative Worth, for it is the most important nest egg you will ever own.
NOW (How you are realizing this today)
Do you have a budget in place for your personal development?
Do you take advantage of your corporate training budgets today?
Can you list the things you are doing now to build your Narrative Worth?
NEW (How you will realize this tomorrow)
I will sign up with a thought-leading practitioner to design my personal narrative by September.
I will take advantage of my company’s L&D budget to improve my personal narrative by the end of the year.
I will audit my narrative assets and organize them into a centralized place so I can build out validation of my Narrative Worth to date, by the end of the year.
NEXT (I see a world in which)
I see a world in which executives will realize their Narrative Worth is as valuable as their Net and Self Worths and invest accordingly.
THE PAYOFF
"I am not bound to win, but I am bound to be true. I am not bound to succeed, but I am bound to live by the light that I have. I must stand with anybody that stands right, and part with him when he goes wrong." - Abraham Lincoln
Follow me on LinkedIn. Or DM at tobin@spatialshift.com for more information.
If you are seeking to elevate your game, curious to make a change or intrigued with building your Narrative Worth book a free consultation and let’s consider the possibilities.