Don't just count costs. Understand value.
Versed in Value is a way of reading worth across your money, your work and your character, because I think the same few principles run through all three. I'm working it out in public, one principle a month.
Three kinds of value, one set of principles
Most advice treats money, career and ethics as separate subjects with separate rules. In my experience they behave more like one system: the habit that grows your savings is the same one that builds expertise and trust, and a shortcut that looks cheap in one area tends to cost you in another.
I work in finance and spent a year in internal audit, where the job is checking whether things are worth what they claim to be. I don't have all the answers, but I want to bring that same scrutiny here. Every principle is read three ways:
Economic value
What is this worth? The difference between price, what you pay, and value, what you get.
Professional value
What problem do I solve? Being valued for the problems you solve rather than the hours you put in.
Ethical value
What do I stand for? The filter that stops a short-term gain from costing you long-term trust.
Twelve principles, one a month
Each month takes one principle and follows it through all three kinds of value: what it means, how to use it, a real case where it held or failed, and where it stops being true.
| Month | Principle | In one line |
|---|---|---|
| The physics of value | ||
| 1 | Compound interest | Small, consistent actions grow into wealth, expertise and trust. |
| 2 | Opportunity cost | Value is defined by what you give up to get it. |
| 3 | Entropy | Without upkeep, savings, skills and character all decay. |
| The market of value | ||
| 4 | Asymmetry | Upside and downside are rarely equal, so weigh them separately. |
| 5 | Scarcity | Rarity raises value, but lasting wealth comes from what you generate. |
| 6 | Leverage | Doing more with less, and carrying the responsibility that comes with it. |
| The perception of value | ||
| 7 | The audit | Value is not what you say it is, but what you can show. |
| 8 | Signalling | Value has to be seen before it can be rewarded. |
| 9 | Volatility | Stability is rare; resilience is the asset worth building. |
| The legacy of value | ||
| 10 | Solvency | Can your money, your energy and your conscience last the long run? |
| 11 | Alignment | Incentives drive behaviour, yours included. |
| 12 | Net worth | The final balance sheet includes what can't be counted. |
Follow Versed in Value
The first essay, on compound interest, is on its way. Email me and I'll let you know when it's out. In the meantime, the Platform Presence toolkit puts some of these ideas to work.