No matter how much value you create or how hard you work, you will never reap large rewards or find security in your position if there are other people who can do the same job for the same price.
Your ability to extract value is dependant on your irreplaceability. So even if you are responsible for bringing in large profit to a business, if there are people who can do the same for $30,000/yr, you will only ever make slightly more than $30,000.
This truth about work should be clear and easy to see, but most people don’t see it.
It is scary to think about being replaceable, so we like to imagine that we are special. We tell ourselves stories about how hard working we are and how unique our abilities to create value are and in the end most people drastically overestimating their value.
When they don’t get a raise, a bonus, or they get laid off all together they are blindsided and shocked because they’ve been hiding in a fairytale about their unique abilities.
Simply accepting the uncomfortable fact that you are replaceable, puts you ahead of most people.
It doesn’t feel good, but it orients you with reality and gives you the perspective you need to start working on things that will make you less and less replaceable.
If you live in the false illusion, you will never get to work on building the skills and social capital (or trust) that will actually make you irreplaceable in the long run.
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