Find a Job Faster - Follow Up Right

When furnishing your home or apartment, have you ever purchased used furniture, garage sale pieces, or have any advice on budgeting for your home?

Many people feel they need to have a nice house with all the furniture and fixtures being new and shiny. I have always found that new furniture was new for about a week, then it was either comfortable, or a bad purchase. With the rare occasion, the only folks that come to my house are my friends and they care about me and my family far more then my furniture. In fact, if my furniture is too nice, then they don't feel comfortable having a beer or a glass of wine and lounging around. What if they spill.....

So buy what you like, make sure it is comfortable. Look for bargains. One year I went 6 months with no coffee table, and you know what nobody cared. When I found the one I wanted it was at a small antique shop and cost me half what a new one would. Now when friends come over, they compliment me on the uniqueness and I don't freak when they put a wine glass on it.

There are more important things to use your money for then the latest style in furniture.

Summer is filled with parties, birthdays, holidays and vacations - do you have any frugal gift and vacation ideas?

I live on the Central Coast of California. It is a destination spot for visitors from all over the world. But for some reason when it came time to take some time off, I would always head for parts unknown. We would drive to Tahoe, or Monterey, or head for San Diego. We would spend 6 hours on the road, a couple hours getting settled and then off we would go to be a tourist. Off course some of the spots were so unique that the time seemed well worth it, such as Yosemite or the American River.

The down side was I always seemed to be more tired when I got back then when I left and this seemed to defeat the whole purpose.

Then one year we said heck with this, we booked a hotel 20 miles up the road, right on the beach. The money I saved on gas allowed me to get a very nice room overlooking the ocean. Within an hour of leaving our house we were on a balcony, sipping drinks and relaxing. By eliminating the travel I gained almost a full day of relaxation and I took up kayak surfing for some fun in the sun. When I got home at the end of the weekend, I really felt relaxed. I had gotten away, but the getting away wasn't more work then fun.

We now are able to do this every 6 weeks or so, versus once every 6 months. Since it is so easy we can combine going to the movies, or theater, or a club. Since we do it regularly we know where all the hidden non tourist spots are and we know exactly which restaurants are the best.

So if you are looking for a way to take a break from work, I say find those gems in your own back yard; a little bed and breakfast or hotel that is close with all the amenities, splurge, don't drive. You can even say you are helping save the environment by staying close to home.

Time for a spur of the moment interview...

How much cash do you usually carry in your wallet?

I carry a large amount. Probably on the order of $300 to $500. I do this because when I was young I got in trouble with credit cards. Before I knew it I had $5000 in debt. So I cut up the card and went to cash. If I didn't have it in my pocket I could not spend it, simple as that. So I got use to it and now it is a habit

How much is in your wallet right now?
$435

What's your favorite bill/note ($1 or $2 or $5 or $10 or $20 or $50 or $100)?
$50s, They are large enough that they do not fill my clip, but small enough that most stores will take them

Are you a silver, or gold or platinum person?

Who cares, I only worry about the interest I pay

Do you "credit-union"? If not, why not?

Yes we have an account with a credit union, but only because it is close. Not sure I see much difference between a bank and a credit union.

Have you ever found a penny and picked it up? Why?
Yes and always. How arrogant to not pick it up,,, besides it is lucky.

Are you an online banker?
Yes

Have you ever wondered or read into what those crazy designs are on the dollar bill?
I have wondered, but only for a few seconds, then on to more important things.

Why the heck is everything financial-related so boring and uninteresting? or is it?

Because it doesn't really relate to the things that matter other then to get them. Joy comes from relationships, not $$$

Die broke or pass it on?

I would like to have a enough left to create a college foundation for my grandkids and their grandkids.

Some books can be life-changing. What books have changed your perspective, and why would you recommend them?

Ayn Rand - "The Fountainhead".

Hard to describe but when you read the book you have to question some of your hard held beliefs. Particularly if you are young and an idealist who wants to tax the rich to feed the poor, until there are not rich to tax. (An old rock and roll saying from Ten Years After).

This book allowed me to realize that perhaps my values were skewed and forced me to look at what I thought was of value or real.

Hard read, but well worth it.

Looking for a job? Here's a helpful link...

I S A B O N T - Keep track of the positions applied for, resumes you've sent out and contacts you've established while job hunting. A must use tool for all post college graduates and serious career searches. Click here and hop to it.

Retirement

Recent grads do not normally worry too much about retirement. It is the nature of the beast when you are under 30 to think about something that is at least 30 years in the future. But we all know that Social Security is probably in significant jeopardy and even if it is still in place when you retire it will probably provide less then 15% of your need.

So what to do? The answer today is to participate as soon as possible in your 401K. Max out and never draw on it. You get the power of dollar cost averaging and the power of compounding growth. The concept of dollar cost averaging is that if you invest the same amount every month, then when stocks are up you buy less and when it is down you buy more. This is a great way to build wealth. The second the power of compounding growth means you will be doubling your money every few years. I can still remember the month that my growth in my 401 K exceeded the amount I was putting in. A 401K participation is what allowed me to retire (kind of) at 50 with enough money to live on the interest the money makes.

So my advice is when you are young and healthy, the 401 K is probably the benefit to look for.

"Working your way up", how have you done it? What obstacles did you personally face?

It is always a challenge to find ways to work up in a company. The implications is always that you are in competition with others and that favoritism will rule.

I do not believe this premise and in my career it did not work this way.

I have found that by following some simple principles / processes you will move up because there are so many people who don't so you are quickly recognized as an achiever / leader.

They are as follows.

1. Work Hard, always give a bit more then expected. This may be coming in 10 minutes early and not leaving as soon as the day is done, it may be putting a bit of flash in a report, or simply double checking your work so the common errors don't show up.

2. Treat everyone with respect. Both above and below. It doesn't matter how smart you are or how well you do the job, if people don't like you, they will avoid you and they will pass you over when choosing bosses.

3. Always take on extra responsibility. In general do it without asking for more money. The money will come. It is the old adage " You Dance Like You Don't Need the Money"

4. Train those under you to do your job. It is not commonly understood, but you can not move up until someone is able to back fill you. It is very common for people to hold on to information about their job believing they are protecting themselves. What they are doing is locking themselves into that position so they can not move up.

5. Look for opportunities for the company to grow or excel that are out side your normal responsibilities. Think like an owner, not an employee. Find ways to improve the company.

I can almost guarantee that if you learn to live the above simple principles you will excel and move up in any organization and as a corollary you will probably happier then a good percentage of the population because the same principals allow you to have pride in what and how you do it.

When is the right time to ask for a raise

In general there is never a good time to ask for a raise. If you have a good relationship with your boss / company raises should be accomplished at regular intervals. There are a couple of exceptions to this rule.

If you are given a new job, title, or significant increase in responsibility then it is legitimate to ask if additional compensation comes with these responsibilities. Do not be surprised if the answer is that in the next cycle this will be considered. The employees that I have seen get the largest raises over time are those who take on the task with the understanding the money will follow.

Implicit in this relationship / understanding is that you received fair compensation when you hired on. This is the most legitimate time to negotiate your salary and when you can expect increases over your present compensation. If this is the first real job, do some research so you know what is reasonable for the position you are hiring on to. Do not be afraid to negotiate this. Almost every employer I know will make an offer at a lower price then they are willing to pay. This is because a large percentage of people will counter and an employer needs to be able to counter as well. It is also reasonable to enquire about any probation period and if a raise can be expected at the end of this period.

One strong word of caution, never, never, never lead off with this discussion.

First and foremost you must determine if you are a fit for the job, if the job is a fit for you and if the corporate culture is a match for where you wish to work. You should be inquiring / demonstrating how you can benefit the company through hard work, not how you can get a job and what it pays. If you are successful in this exercise, when the offer comes you can then negotiate. Be prepared should you be asked how much you want and respond that you would like to be paid a fair compensation in line with your peers and the position and responsibility you are anxious to assume. Try not to put a price on yourself unless you are confident that you know that number and you will not take less.

I have seen many people state a required starting salary thinking they are starting negotiations. When this number was over what the employer could pay they where taken out of the running. In later discussion I learn that the would have taken less. It is much better to hear what the employer offers, add 10 to 20% and see if that is attractive. It keeps your options open and allows you to make informed decisions when you are not in the interview mode.

Finally the quickest way to raises is to take on functions that are outside your normal responsibilities. Any employer worth their salt will give the larger raises to the folks who are demonstrating they are willing to do more then they are paid for or assigned.... It is just good business sense and leads to a win win situation.

Taking out a loan

Taking out loans are like any other purchase. I have taken loans out for many reasons. Loans are in general never the first choice. The first choice should always be to save for what you need. Of course there will come a time when you need something you just don’t have the cash for and you have to get a loan… A car… A house or some other large purchase. When you find yourself in this condition, the simple rule is the same rule you apply to the purchase of any commodity. Pay the least you can. Loan fees come in three forms. 1. Initiation fees, 2. points to get a better rate, and 3. the interest you pay. You should always take the second two and average them to an annual interest rate you compare from loan to loan. Pick the loan with the lowest Annual Percentage Rate (APR) Do not be fooled with teaser rates or rates which are not put in terms of the APR. The initiation fees are fees you pay someone to get you a loan or process the paper work. Try to avoid these if at all possible by obtaining the loan yourself.

One final thing it is always good to establish your credit before you need it. Get a credit card, use it slightly and pay it off every month. This process establishes your good credit for when you really need it.

Owning a home

To many the dream of owning a home seems unreachable. I think however one may need to realize that the first home will not look anything like their parents and perhaps you might even have to buy something that needs some tender loving care. I bought my first house when I was still in college, if you could call it a house.
It was a 3 room cabin in the hills above the college. It was heated by a wood stove and to get water I had to clean out and replumb to an underground spring. It was on 3/4 of an acre of the hardest hard pan you have ever seen and the only thing growing on it was prickly brush. I spent $12,000 and it was every cent I could beg or borrow from friends and family. The place was so bad, my mom only visited once and her nose was in the air the entire time.

But and here it the big but, I was able to put in a bit of elbow grease, fix it up, slap some paint on it and when I graduated I was able to sell it for $27,500. Sure small numbers now, but the principle still holds. This gave me the money for a down payment when I went to my first job in Seattle and ever since then I was able to buy a house where ever I went.

So my advice is hold you nose and buy what ever you can afford, fix it up and move up. In a few years you will look back on those times fondly and proudly and you will have achieved the American dream of owning a house.

How the heck do you figure out your taxes? Do you do them yourself or do you take them to a friend or service?

Taxes, the evil IRS, how do I cope. I have always been a believer in doing my own taxes. I believe I am the one who cares the most about me and with the inexpensive tax packages available today it is just not that tough.

When doing the taxes I always end up explaining to someone the difference between tax avoidance (a right you should exercise to the extreme) and tax evasion which is illegal and unethical.

The American tax system is extremely complex. But this means you can probably find a clause that works to your advantage. Understanding the code allows you to transfer this knowledge to your business life and makes you sensitive to what others are going through and paying.

While I will always try to avoid taxes, when the time comes to pay what I owe, I do it with a bit of pride. First you have to make money to have to pay taxes and second, my taxes are what help to pay for the American lifestyle and all you have to do is look around a little to know that we have it pretty darn good.

Open questions

Hi there! New blogs will be uploaded soon. In the mean time, as a graduating student, are there any questions you'd like me to address in an upcoming blog? It’s easy, just post a comment (staying anonymous is OK too) to ask a question!

Dude, where's my money? What to expect when first starting your career.

Wow, we are on a thread here and again it seems like the wrong question to me, but perhaps I am not being fair.

The standard scale for any job is available from many sources, whether it is an engineer or a teacher. Expectations should be established on that basis.

I have seen young folks that worked for me that got out of college and forgot they still had limitations. They bought a new car, new clothes, a big screen etc., then would come in and complain they did not make enough money. Somehow they felt the employer was short changing them. They forgot what the going value was for what they did. Many times they became bitter because they thought after 4 or 5 years of college they would be on easy street.

So the key is to understand what money you will get and just like you did in college budget your expenses and live within your budget. Be prepared to buy the used car and perhaps still eat at home. Understand you are starting out and the big bucks come when you have paid your dues and bring exceptional value to your job.

Personally, its not all about work and money - Here's some insight into my passions and how to foster yours too.

Passion versus work and money.

I am afraid I will be in the minority here. I believe that one should be choosing a career that is driven by passion and what you love to do. If you do that it isn't work, it is joy and when you work for joy the money just seems to come.

That doesn't mean you shouldn't have a personal life I am just not sure that they don't begin to blend. I think in this day and age the challenge really comes in managing your time versus letting others manage it for us. We all know what is fun, the question becomes do we set aside time for it. Does the cell phone rule us or do we rule it. Can we put down our blackberry and let it beep until we are ready to deal with it or must we answer every time it beeps.

My personal passion early in my career was to launch space shuttles. It took me three jobs to get to where I was involved, but once I got there I felt my dreams were underway. This allowed me to work long hours but to never be tired. I look back on that period of my life with great pride, joy, and satisfaction. Because it was what I dreamed of no job was too small and no challenge to large.

Work for joy, not money and the rest will take care of itself.

How to get that job you want and keep it. What employers look for in an ideal candidate.

Obtaining a job and keeping it are two separate subjects.

Obtaining a job as a college graduate has a lot to do with attitude and preparation. Attitude is best summed up when comparing two phrases I hear from job applicants. One job applicant will say "I am looking for a job", and what I hear is I am looking for a paycheck.

This is not too appealing because there are hundreds of people looking for a paycheck, the bigger the better. A better phrase is "I am looking for work", which can be followed with "and I have done some research and your company will provide me the opportunity to learn and extend my skills."

The old saw is to dress up, sit up straight, look the interviewer in the eye and most of all be prepared to offer value. If you are interviewing for an entry level job in accounting, be smart enough to know that excel is a tool they use a lot. In fact almost any job I interview if the college grad doesn't know basic office tools they are in an uphill struggle. Word, excel, and if they know PowerPoint great. These are all tools that can be learned with a minimum of effort and bring value to most employers day one.

So Google the place, know what their issues are, who are there competitors, how many offices, etc, something to show you cared enough about them to at least spend some time preparing.

Keeping the job is different.

Here it is a willingness to work. I know of no employer who expects a new employee not to make mistakes. But they will all watch how quickly you head for the door when the clock reaches quitting time. They will notice if you come in early. They will notice if you take long lunches or spend a lot of time on the football pool. The general rule I have always used to succeed is to always exceed my bosses expectations on items I can. So come in 10 minutes early for the coffee etc... and be working at start time. Leave 10 or 15 minutes after quitting time. Always, always, always meet deadlines by either performing, or going back in before they are due and letting the boss know you are going to miss them. When ever you go into talk to the boss bring a paper and pencil.

As you have probably noticed by now non of this has to do with any particular job or function, that is because employers are more than happy to train, and understand mistakes from an employee with the right attitude, but hate it when an employee acts like they are just there to punch a clock and get paid. At this phase of your career effort and attitude will carry you as you gain expertise, later when you have paid your dues you will be better equipped to take it easy, but by then if you are successful you will have developed the work ethic so you won't.

Having USC loyalty ultimately helps, here's how it helped me...sort of...

USC Loyalty.

My response to this is probably not going to be popular, and may not even get posted.

I have not found USC loyalty to be of much value to me. I do not mean that I am not proud to be a Trojan and that it does not reflect well on my resume and I am sure it helps if you are job searching. I also fully respect the education I received and that brought value to what I can offer others, but professionally and personally.

What I mean is that once I got in the real world, performance, commitment, and expertise were much more important. I did not find that anyone cut me a break because I was a Trojan.

I do feel an affinity to USC for sports and it is fun to root for the alma mater. It gives focus to the spectator part of watching college sports and it provides fodder for conversations such as introductory sales talks or striking up conversations with others.

I will continue to look for ways to benefit from USC loyalty but to date it has all been on the social side of my life.

My Definitions of financial products/services and how it applies after graduation.

Many people approach personal finances in different ways which suit their need.

One of the most common mistakes made is to over use a credit card. A dollar here a dollar there and soon you are not able to pay off the monthly cycle. My personal preference is cash. I establish what my weekly or monthly budget is and then I carry cash to pay for everyday items. This is a hard feed back loop because when I run out of money I can not spend anymore. The $3.95 for a cup of coffee becomes much more real if I have to reach in my pocket to pay for it versus swiping a card that doesn't come due for a month.

Debit cards are also becoming popular. One trick I recently heard is that when you need cash from a card, go to a large store like Wal-Mart and buy a stick of gum or what ever and then get additional cash versus going to an ATM and paying $2 or $3 on a $20 cash advance. (In my day that would be called a usury crime, charging that high an interest rate).

So from my personal perspective, I pay my monthly items from a free checking account, I use cash for my daily incidentals and I try to only use my charge card for online, travel or big ticket item (items I may want to return) purchases. I try to pay all charge cards off by the end of the month.

Woulda Coulda Shoulda - If I knew then what I know...

During my undergraduate college days (1978) I was married with a small baby. We lived in the mountains above Chico in a small two room cabin with , a small Ben Franklin Stove for heat and a water supply from a spring which I had to clean out and refurbish before we could begin to use it. This was a little one bar cowboy town and the community regularly ran out of water during the hot summers. I received about $400 a month from the GI bill and I had to provide food, rent, gas and all school costs from this money. During the summers I worked as a Gypo lumberjack, cutting trees on public land, loading it on my buddies truck and hauling it about 60 miles to a mill. Sometimes I would haul water from Chico to the residents for a fee and I was never embarrassed to take any manual labor I could find.

At the time, I thought life was rough, horribly constraining, and unfair because I could see rich kids from San Francisco and LA with parents who paid for everything they needed, including the latest styles and extra party money. But now looking back on it, those days of struggle were what built my grit, my closeness with my son, and my understanding of what had value and what doesn't. So to answer what would I have done different, I would say that instead of those days I spent wasting time thinking life was rough, I would have reveled in it. I would change my attitude and realize that everything I was going through was toughening me up, making me ready to face the real world.

I would have smiled more and frowned less and enjoyed the little pleasures regardless of how much money I had.

Who am I? What is one of my Greatest Financial Achievements?

My Name is Steve.

I have been an Systems Engineer on Space Systems such as Titans and Atlases, I was a Convoy Commander on shuttle missions, was the CEO of a IT company and now work on projects I enjoy as an independent contractor. These include doing senior engineering on a homeland security project to protect domestic water supplies, founding the National Association of Working Seniors, www.workingsenior.com and acting as the CFO and CMO for a small web development company, www.nit.cc.

My greatest financial feat was three years ago when I reached what is called financial critical mass. This means having enough money or investments so that you no longer have to work and therefore you can work for joy. This was achieved by delaying gratification on things my peers may have been doing to allow me this luxury. For example when my friends were getting new cars I was riding the bus, when they were buying big flat screen TVs I was satisfied with my 35 inch tube model. Instead of buying a new large house I added a second story to my existing home.

All of these acts may seem cheap or tight, but what I learned is happiness is not driven by what you have but by what you do and who you help. All of this led to the point that at 50 I was able to retire, with my home paid for and enough money to only have to do what I want to do. Now I help my friends with their businesses or coach my grandkids or simply go Kayak surfing if I feel like it.

So as I said in Blog issue one, start saving now and never stop.