Thursday, April 26, 2012

Do You Need to Stick to One Career?

by: MD | Write a Comment

A little bit ago I looked at two ways to make money and how you can improve your financial situation in your 20s. Today I wanted to expand on the discussion of career choices in your 20s and what you can do for the rest of your life. There seems to be this notion that you need to figure out what to do with the rest of your life at an early age.

Do you need to stick to one career in your 20s? Are you stuck with the first career choice that comes your way?

I wanted to share two quick stories first…

Example #1:

I remember when I was in Jamaica many years ago I got into talking about career choices with an older dude by the bar (isn’t that how most discussions begin on a trip?). While our girlfriends chatted about shoes I got some life-changing advice from this guy. He suggested that your 20s are the best time to actually try out different jobs until you find what works for you. He told me that school wasn’t worth it for him. Instead he worked for construction for a year. Then he spent some time in business working an entry level job. He eventually learned enough and saved enough money that he bought his own franchise. He nows runs his own business. He told me he has no idea how he got there but that it was worth trying out a bunch of different jobs first.

Example #2:

I met a friend’s cousin who had just landed a full-time job in his company. He told me that the main benefit of landing the steady work was that he was now too old to be moving around careers. He felt that being in his late 20s meant that he should find one job and just stick with it. He wasn’t willing to bounce around any longer.

Do you need to stick to one career? ABSOLUTELY NOT. Your 20s are a time where you can experience life, try out different careers, and see what it is that you are truly made out of. Do you really want to stick with the first job that comes your way? That’s life marrying the first person that you kiss?

There are always going to be ways that you can find apprenticeships vacancies. It’s all a matter of keeping your eyes and ears open. You can also start your own business. You can form a partnership. You can land a sweet union gig. You could even win the lottery. You can go back to college. You can upgrade your credentials. You can do anything that you want. Anything can happen in your 20s. What do you have to lose by trying out a few careers until you find one that works for you?

 

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Wednesday, April 25, 2012

Improving Your Car’s Gas Mileage

by: Green Panda | Write a Comment

Cars can be a big monthly expense if left unchecked. For us, we want to optimize our budget by minimizing total operating costs on our vehicles. With our car purchases we try to look at both how much the car costs upfront and how much it would cost to own it year after year.

One of the factors that led us to buying our sedan was the gas mileage. According to the government’s notes on fuel economy the Accord gets an average of 21 mpg city and 31 mpg highway. When we examined other Accord owners actual mileage on sites like Fuelly, we found quite a few drivers averaging 28mpg or higher. honda accord gas milage

Fuel Saving Tips

While gas prices are fluctuating a bit right now, it seems that over the long run they will continue to rise so improving our car’s mileage is a priority. (Even if prices fall, you still save money on fill-ups.) If you’re looking at paying less at the pump, here are some tips to get you started. Some of them may be familiar, but a few of them can cause you to drive a bit differently next time you get behind the wheels.

Drive Less

I know it sounds too obvious, but it’s important. Many times the most wasteful trips are the errands you could have completed by simply walking to and from or just taking your bike. Before you go on a trip, just double check to see if you really need to drive over there or if you can just walk over.

If you can take care of several errands in one run instead of doing multiple trips through out the week, your car’s gas mileage is typically higher.

No Distractions When Driving

Besides avoiding accidents, being a more conscious driver can save you a lot with gasoline. How? You can see the traffic patterns and reduce acceleration and braking constantly. If you noticed traffic is building up in front of you, you have time to either slowly decelerate or switch lanes to main your speed. Hitting the brakes or the gas pedal can decrease your fuel efficiency.

Track Your Performance

Just as tracking your actual spending can help you improve your finances, using sites like Fuelly (or keeping records yourself) to record your car’s average gas mileage can save you quite a bit of money. If you’re a competive person by nature, set yourself a challenge to beat other drivers with their gas mileage.

Check Your Tires

Besides making sure your ties are inflated properly, you should shop for a tire set with lower rolling resistance. They can improve your gas mileage a bit; Consumer Reports notes you can save $100/year replacing a worn tire.

Thoughts on Saving on Gas

I’d love to hear your ideas on saving on fuel costs. What tps do you have on improving your gas mileage? If you’re looking for more tips about transportation costs and car shopping, please check out theses posts:

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Tuesday, April 24, 2012

3 Reasons Why You Need a Credit Card Right Now!

by: Kristina | Write a Comment

Good Morning Green Panda Readers and Happy Tuesday.  Today is the last Tuesday in April and if you planned to achieve some personal goals before the end of the month then you have to carpe diem and get moving.  Your personal goal could be to lose weight before the end of the month, it could be to start saving regularly, or it could be to finally apply for your first credit card.

Applying for a credit card is a very smart financial decision because it helps us build a strong credit score.  Having a credit card can also help us with a short term cash flow in between pay checks if money is a little bit tight each month.  Just as having a credit card can be helpful in building a credit score, it can also be damaging. If we misuse our credit card the financial consequences can be devastating. Overspending and carrying a balance on our credit card that we cannot afford to pay off can cost us a lot of money in interest charges.  It can also cause us a lot of stress if we are worrying about how to make our credit card payments.

You can apply for a credit card at your local bank branch or over the phone with a customer service representative. Many banks offer a specific credit card for students with several student advantages and a very low (or no) fee.  Most banks will ask students for proof that they are enrolled in school full time so it may be better to apply for a credit card at your local bank branch.

Here are 3 Good Reasons Why Your Need a Credit Card

1. It Helps Build Your Credit History.  Using our credit card every month and paying it off in full helps us build a good credit history and credit score.  Having a good credit score can help us get a job, rent an apartment, and even get lower interest rates on our other financial products and services such as home or auto insurance.

2. It Will Establish Your Financial Future.  Establishing a credit history by using a credit card will help us get approved for future loans and products such as a car loan, a line of credit, or a mortgage. They key to using our credit card responsibly and not accumulating debt starts with the credit card application.  We should apply for a limit that we are able to pay off each month, just in case we max out our credit card one month.  If we can afford to pay off the entire balance each month we will save on interest charges and we will also maintain a good credit score for our financial future.

3. You Can Build a Relationship With Your Bank. The more products we have with our bank the more of a relationship we can build with them.  If we are a long time client of the same bank and if we have several products with them it means that we are a profitable client for the bank.  If we are a profitable client for the bank they may be willing to help us out if we ever need a favor such as reversing service fees or lowering our interest rates.

Photo by Robert Scoble

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Monday, April 23, 2012

So Many Investment Options…So Little Time to Choose.

by: Kristina | Write a Comment

Good Morning Green Panda Friends.  Today we are helping you start your financial life by helping you choose the right investment options for you. Our banks offer many different investment options, our personal banker may suggest different investment strategies, but it is always a smart financial idea to know our investment options before we make an appointment at the bank.

College Students may not always have the luxury of saving money.  Very often college students live on a very tight budget because they don’t work a lot due to their school schedule; but they have a lot of expenses with the cost of tuition, books, as well as living expenses. Even though student budgets are tight, it would be a smart financial strategy to get in the habit of saving regularly…even if it’s only $25 per month in a High Interest Savings Account.  Every little bit of savings adds up to a lot of money over time.

If you are able to save a little bit of money during your four years of college it will be very comforting to graduate college with some money in the bank.  After graduation college students will have a variety of options on how they want to start their lives; and having money saved gives us the freedom to choose how we want to start our lives.

Once recent college graduates start to work full time the amount of money that they can save increases, therefore their investment options will also increase.

Here are some different investment options for recent graduates:

- Term Deposits are a very common investment option for new investors.  Term Deposits are a fixed rate investment which locks in our money for a certain period of time in exchange for a guaranteed interest rate.  There is no risk when investing in Term Deposits since they are not linked to the Stock Market. In some cases Term Deposits can be cashed prior to the maturity date (aka the term) with a penalty and possibly the forfeit of our interest.

- Mutual Funds are an excellent investment option to diversity your investment or retirement portfolio. Mutual Funds are a pooled investment which means that people invest their money and the mutual fund manager invests the lump sum of money based on the mutual funds investment objectives and strategies.  The Mutual Fund Manager will purchase a variety of Stocks and Bonds in order to create a well balanced and diversified investment.  Mutual Funds are offered with a variety of risks from very low risk such as Money Market Mutual Funds to very high risk such as Sector Mutual Funds (i.e. Energy, Technology, and Precious Metals etc.)

- Precious Metals seem to be a hot investment trend right now.  Unfortunately people don’t seem to understand that if you are hearing about the investment trend in the news it is probably after the spike in the value.  Investing in one particular sector or type of investment can be very high risk; however it can be a profitable addition (in moderation maximum 20%) to a well balanced investment portfolio.  Investing in one sector is a high risk investment and therefore investors may experience fluctuations in the short term, but we always have to keep in mind that it is a long term investment.

Photo by David Paul

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Friday, April 20, 2012

Yakezie Challenge Time

by: MD | Write a Comment

Yesterday we looked at the idea of hard workers getting exploited at work. This is a common concern for new employees in the field because you’re going to be eager and ambitious to work, which is a positive quality to have. The concern comes in being taken advantage of. Has your work ever been exploited?

Let’s look at the top Yakezie links:

1. The Act Of Writing And Saying What We Do Not Understand @ Yakezie.

2. Our New Home Wish List @ BITFS.

3. Want to be more productive? Create a NOT To-Do list! @ Wealth Informatics.

4. Basics of Insurance: Why we Need Insurance? @ One Cent at a Time.

5. Long Term Benefits of a Frugal Lifestyle @ Life and My Finances.

6. 529 Plans and Saving For College Infographic @ The College Investor.

7. Comment on I Was Wrong About Apple by Someone @ Buy Like Buffett.

8. Do You Really Need a Credit Card? @ FSFYA.

9. Tax Day Rambling @ Retire by 40.

10. What Would You Do with a Cash Windfall? @ Free From Broke.

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Thursday, April 19, 2012

Do Hard Workers Get Exploited at Work?

by: MD | Write a Comment

Are you a hard worker? Do you take initiative on the projects that you work on? Are you worried about being exploited in the workplace? Well this piece is for you then.

The truth is that hard workers will always be exploited by the lazy people out there looking to get by without doing much. There’s always going to be someone in your class or in your department that wants to get ahead without doing anything. You’re always going to meet characters that want to take the credit without putting in the same effort.

Before we get into the idea of being exploited for being a hard worker, let’s look at a common question first. How can you work harder than everyone else in your first job or in one of your classes?

  1. Always show up early. Running late is embarrassing and not conducive to productivity at all. You need to get into the habit of coming early so that you’re never behind and trying to catch up.
  2. Take on the challenging projects. When there’s a project that everyone else is running away from, you need to step up and take o this daunting task.
  3. Ask for feedback. You don’t need to be afraid of your manager. You should be asking them for feedback to see where you stand. It’s your career. It’s your livelihood.
  4. Don’t give up. Persistence is key. You need to keep on pushing through. If you give up, then you’ll be known as a quitter.

Now that you know how to work harder, how can you avoid getting exploited at your first job?

  • Watch who you associate with.
  • Watch your progress in the company.
  • Avoid shady characters.
  • Put a spin on your work.
  • Take ownership for what you do.

That’s how to avoid being taken advantage of for your hard work.

Should a hard worker be afraid of being exploited? Not at all. There will always be lazy people around. There will always be someone looking to take credit for your work. While it may happen to you at one point or another, you shouldn’t be afraid of putting in your best work. The one time that you do get taken advantage of will be nothing compared to when you finally do get credit for the high quality of work that you deliver. At least that’s what I experienced in college.

This brings me to my next point. I’ve learned one simple thing about life when it comes to school, work, or anything else in general. What is this?

Everyone is where they deserve to be.

This means that at the end of the day everyone is going to be where they deserve to be. This applies to school, work, and even working out. How’s this possible?

In school you can take advantage of others for one class or another. However, at the end of the day you’re going to have to step up when it comes time to write the final exam. How will you pass the exam if you’re used to piggybacking off others?

In work, those that consistently deliver results will get promoted, make more money, and have a more enjoyable experience at work.

In working out, those that put in the work will see the results.

Simply put, everyone is where they deserve to be. A hard worker will end up where they belong.

Are you a hard worker? Please don’t be afraid of getting taken advantage of. Keep on doing what you’re good at. Good things will happen to you. You just have to be consistent with your high quality of work.

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Wednesday, April 18, 2012

Best Cars for College Graduates to Drive

by: Green Panda | Write a Comment

I mentioned before that if you can skip out on car loans, you can instead put that money to good use for other financial goals, including investing for your retirement. Now I wanted to help out by sharing some used cars that you can buy with money saved that have a track record of reliability. I also want to highlight how looking at total cost of ownership can keep more money in your hands and give you more options financially and otherwise.

Reliable First Cars

There are several sources you can use to find a reliable car. One of my personal favorites is Consumer Reports. Every issue they review different car models and once a year they have a through special all about cars, both new and used. In fact when I was checking out this year’s issue for our own car hunt, I found affordable and reliable used cars, you should consider for your next buy: reliable used honda

  • Acura TSX
  • Ford Fusion
  • Honda Accord
  • Honda Civic
  • Hyundai Sonata
  • Mazda6
  • Mercury Milan
  • Nissan Altima
  • Subaru Impreza
  • Toyota Camry
  • Toyota Corolla
  • Toyota Prius

Depending on your budget, you may have to look for an older (but gently driven car). While looking by year made allows you to get some of the latest features, don’t forget to look at actual mileage on the car. A car with lower miles can be a better deal than a newer car, especially if the owner was meticulous.

Operating Costs for Your Car

When you get down to the last few cars, they may seem to be too identical to distinguish. That situation can make it difficult to decide which one to buy.  That’s when you need too look at how much the car will cost you year by year. Basically you need to look at 3 factors before making the final decision:

  • Gas costs: No one can predict the price of gas over the next year, but looking at history and at recent events one can assume that prices will increase. That means your potential car’s gas mileage is bigger factor. Don’t get an SUV because you want it. Choose a car based on how you’re actually use it most of the time. You may find that a smaller sedan is great for your day to day activities and will cut your gas fuel ups in half.
  • Insurance costs: Before you buy a car, give your insurance company a quick call and get an estimate of the premiums. You may be surprised at how much it can be. At the very least you can use the chance to see if your company is still offering competitive rates.
  • Maintenance costs: Using sites like Consumer Reports and Edmunds can help you decide if you can expect to have a ton of repairs in your future.

When you look at both the upfront and long term costs, you’re helping yourself save more money. That money saved can be used to fund your next car or you can use it for investing.

Thoughts on Buying a Car

How many of you plan on buying a car some time this year?

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Tuesday, April 17, 2012

How To Start Your Financial Life after College

by: Kristina | Write a Comment

Good Morning Green Panda Readers.  Some of us may be about to experience a major milestone is our lives, in a few weeks some of us are going to be graduating from college.  After college our professional and financial lives truly begin.

After graduation we may be forced to find a job, manage our income, pay off our debt, and start saving for our retirement for the first time.  Being out of school and in the work force full time definitely comes with both some personal and financial freedom.  Our individual life really truly begins after graduation because we are suddenly not living on a class schedule and we now have the freedom to do what we want when we want.  However, if we are not careful we could end up making devastating mistakes that could end up costing us for a very long time.

Use these helpful tips to start your financial life off on the right foot after graduation:

- Find a Stable Income.  The main reason why students go to college is to become educated and find a job in their field of study.  As soon as we graduate from college (or even during our last semester) we should start applying for full time jobs in our field of study.  Recent graduate students should not expect to find a job at the top of their profession, but even an entry level position helps us gain work experience in our field and with our employer.

- Budget Your Money Carefully.  After college graduation we may be forced to actively manage our budget for the first time; this includes paying our bills on time, repaying our debts on time and making sure that we have enough money each month to pay for our living necessities. Paying our rent, buying our groceries, and personal entertainment expenses are all factors that we have to include in our monthly budget planning.

- Save Regularly. As soon as we have a regular income we should also start saving regularly.  We may be tempted to spend all of our money because we are excited to have our new found stable income, but we have to get in the habit of saving money on a regular basis with each pay check. Saving for the short term in a High Interest Savings Account or in Fixed Income Investments (Bonds etc.) are both great ways to establish good savings habits at a young age.

- Invest for the Long Term.   We have to make sure that we budget in some money for long term investing when we are planning our monthly expenses.  Saving for a down payment on our first home or saving for retirement are very common long term investment goals. The advantage of investing for the long term is that we only have to save a little bit each month (or with each pay check) because a little bit of savings can add up to a lot of money over the long term.  We can also take some more risk with our investment options when we are investing for the long term. Try investing in a Balanced Fund or an Equity Fund for your long term investing.

Photo by AntoGros

 

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