So we all have them - a Facebook account, a Twitter account, a LinkedIn account, etc. The question is, how do we use them to our advantage?
Yes, we can post our mood swings, write about our dog dying, or even share links from the NY Times, but what else can we do? Here are some tricks that I have picked up in this new social networking twilight zone:
- Use sites like Twitter and LinkedIn to follow influential people with careers that you want. It's great to follow celebrities and see what they're up to on a daily basis, but how does that help you? Well, I guess it does if you blog about them. If you don't, try following people that you aspire to be like. For example, I like following entrepreneurs, venture capitalists, and day traders. They provide a different prospective as to what it happening in the markets. I can use their insights to formulate my own opinions.
- Social networking sites are a great way to keep in touch with old collegues and managers. While it's great asking your best friend from college how many shots he took at his crazy birthday party, it's also a great way to remind professionals you're actively searching for a job. Remember though, if you contact managers through Facebook or Twitter, untag those body shot pictures.
Follow people who will help you go where you need to go.
Monday, June 15, 2009
Wednesday, June 3, 2009
Shopping in this Economy?
Forget about it! OK, well not completely. There are still ways to shop for your favorite items in this crummy economy. The key is to to do a little research beforehand. Here are some tips that will go a long way and save you some dough!
1) Check out fashion blogs
If you're big on shopping and keeping up with the latest trends, the best way is to read a few blogs. Add them to your Google Reader and browse through them with your morning coffee. Most of these blogs post links to sales the writer's have found or places you can save a lot of money. For example, Style It Less is a fantastic blog that provides links to outfits put together by the writer.
2) Sample Sales & Outlets
I rediscovered outlets a few months ago when I was shopping for a winter coat. I wanted a designer winter coat at an inexpensive price. I took a 2 hour drive north to Woodbury Commons in New York -- what a place. I immediately fell in love. Everything was discounted and everything was gorgeous. I ended up buying a plush purple overcoat for a reasonable price (ended up buying a plethora of other things too)
3) Online Shopping
Like many, I have embraced the world of technology. I enjoy blogging, Twittering, Facebooking, and everything else that deals with the internet. However, I was never a fan of online shopping. What if I got the wrong size? Or something didn't look as great as it did online? Well, once the economy hit my wallet, I decided to take the leap of faith. Turns out, I judged too quickly -- online shopping isn't all that bad. If you browse around, you find so many great items that you wouldn't find in the stores. You can find coupon codes with a basic Google search and almost always get free shipping or a 10% discount. Definitely a much needed saving during these times.
Hope these tips help you get those nifty items!! Happy hunting!
1) Check out fashion blogs
If you're big on shopping and keeping up with the latest trends, the best way is to read a few blogs. Add them to your Google Reader and browse through them with your morning coffee. Most of these blogs post links to sales the writer's have found or places you can save a lot of money. For example, Style It Less is a fantastic blog that provides links to outfits put together by the writer.
2) Sample Sales & Outlets
I rediscovered outlets a few months ago when I was shopping for a winter coat. I wanted a designer winter coat at an inexpensive price. I took a 2 hour drive north to Woodbury Commons in New York -- what a place. I immediately fell in love. Everything was discounted and everything was gorgeous. I ended up buying a plush purple overcoat for a reasonable price (ended up buying a plethora of other things too)
3) Online Shopping
Like many, I have embraced the world of technology. I enjoy blogging, Twittering, Facebooking, and everything else that deals with the internet. However, I was never a fan of online shopping. What if I got the wrong size? Or something didn't look as great as it did online? Well, once the economy hit my wallet, I decided to take the leap of faith. Turns out, I judged too quickly -- online shopping isn't all that bad. If you browse around, you find so many great items that you wouldn't find in the stores. You can find coupon codes with a basic Google search and almost always get free shipping or a 10% discount. Definitely a much needed saving during these times.
Hope these tips help you get those nifty items!! Happy hunting!
Friday, May 8, 2009
Starting Your Own Business Myths Solved
After my last post, I received several emails from young entrepreneurs about starting their own business.
Here are some of the many questions/concerns that were mentioned:
1) I don't have enough experience to start a business
2) I don't have a market to pitch my idea to
3) I need to quit my job to properly run my business
4) I need a business plan that details everything
5) I need a completed product to launch my business
I thought I'd share my response to these "excuses" as I know many of you are thinking about starting your own business.
Myth 1: I don't have enough experience to start a business
Fact: You don't need 10+ years of corporate experience to start a business. There are many young entrepreneurs who have taken their idea and formed it into successful careers. All you need is a successful idea.
What is a successful idea? A successful idea has to be something you are passionate about. What are things that you Google search the most? What activities do you do the most? What products do you buy the most? Answering these questions will give you an idea of what you are passionate about?
For me...
Google search: entrepreneurship, personal finance, course planning, motorcycles, and small cap healthcare stocks the most.
Activities: planning (courses, parties, trips), working out, running, biking, talking, blogging
Products: Blackberry, coffee, jewelry, clothes, books
After you have constructed your list, try to find a pattern. See where things line up. For example, I would love to plan my finances and monitor small cap health care stocks via my Blackberry.
Myth 2: I don't have a market to pitch my idea to.
Fact: Everyone has a market. Pick a small group of people out of your network.
Example:
Family members will make up the 30+ group
College friends will make up the young adult group
Co-workers will make up the blackberry-using, stock-monitoring group
Use resources like Facebook to organize your groups. Set up labels in your Gmail account and send emails straight to these labels. Market your idea through Twitter. Join Forums that talk about similar topics.
Myth 3: I need to quit my job to properly run my business
Fact: Most entrepreneurs start their businesses while still working their full-time jobs. Yes, a business requires A LOT of time and effort. It requires marketing and networking. Use your lunch hour at work to send out a few emails. Send out Facebook messages before you go to bed. Create a blog and monitor it to see when you get the most traffic. Quit your job after you have a successful business!
Myth 4: I need a business plan that details everything
Fact: This is probably the largest (and most frustrating) myth out there. YOU DO NOT NEED A BUSINESS PLAN TO START A BUSINESS. Unless you are trying to get VC funding, you do not need to write out a 10-page business plan. Yes, take the time to figure out what your expenses will be 5, 10, 15 years from now. What is your projected profit? Will your market be the same? Once you have these questions figured out, immediately start marketing your idea. This leads into Myth 5...
Myth 5: I need a completed product to launch my business
Fact: Nope. Imagine how much time and effort would go into making a completed product. And what happens if you start marketing it and no one likes your idea? Time wasted. Instead, come up with the idea, plan it out a little, make a quick drawing/outline, and begin the marketing process. Get a feel for what your customers want. Do they like your idea? Will they buy your product? Once you know this idea is something essential to your market, and then produce the final good.
The key to starting a successful business is efficient time management.
Resources that might help: StartupNation, Small Business Trends, Tim Ferriss, Ben Casnocha, Escape from Cubicle Nation
Good luck! And keep me updated on your progress!
Thursday, May 7, 2009
Be Your Own Boss, But Remember This...
Who doesn't want to be their own boss? Every day we fear for the loss of our jobs, the lay off of a friend, or a flickering red minus sign on our Bloomberg screens. So why not save ourselves from the agonizing pain of crazy-gluing ourselves to our 4x4 cubicles and start our own business?
Not a bad idea. The roadblock? The expenses that come with starting your own business. WSJ estimates that "you may need to bring in up to 20% more than before just to break even".
So does that mean you give up that fantastic idea? Absolutely not. Here are a few things you should be aware of though:
1) More freedom = Higher taxes
New Jersey pay taxes of 27% to 59% of their net income
According to the Office of Advocacy of the Small Business Administration, "Sole proprietorships face a 13.3 percent rate, small partnerships face 23.6 percent, and small S corporations face 26.9 percent."
The good news? You pay taxes after you subtract your expenses. So the higher the expenses, the less taxes you'll have to pay.
2) Insurance.
As you go onto open your small business, you'll need to factor in insurance - both for your family and your business itself. Sole-proprietor plans are difficult to get and can be expensive, so remember to factor that in.
3) Hiring
Once your business picks up speed you'll need to bring on employees. This sounds great, no? Having an intern run for your venti latte? You'll also have to deal with the headaches of watching over the employees, telling them what needs to be done, and paying them!
While these are some reasons you need to be aware of when starting a business, they're not reasons why you shouldn't start on.
Go on! Be your own boss!
Not a bad idea. The roadblock? The expenses that come with starting your own business. WSJ estimates that "you may need to bring in up to 20% more than before just to break even".
So does that mean you give up that fantastic idea? Absolutely not. Here are a few things you should be aware of though:
1) More freedom = Higher taxes
New Jersey pay taxes of 27% to 59% of their net income
According to the Office of Advocacy of the Small Business Administration, "Sole proprietorships face a 13.3 percent rate, small partnerships face 23.6 percent, and small S corporations face 26.9 percent."
The good news? You pay taxes after you subtract your expenses. So the higher the expenses, the less taxes you'll have to pay.
2) Insurance.
As you go onto open your small business, you'll need to factor in insurance - both for your family and your business itself. Sole-proprietor plans are difficult to get and can be expensive, so remember to factor that in.
3) Hiring
Once your business picks up speed you'll need to bring on employees. This sounds great, no? Having an intern run for your venti latte? You'll also have to deal with the headaches of watching over the employees, telling them what needs to be done, and paying them!
While these are some reasons you need to be aware of when starting a business, they're not reasons why you shouldn't start on.
Go on! Be your own boss!
Wednesday, May 6, 2009
Changes in 401Ks Near You!
President Obama has taken Washington by storm and is working hard to make some necessary changes. As the Democratic Party controls Congress, they are set on bringing about changes with the 2010 budget. With the downfall of the economy, many workers have lost their hard earned money in their 401Ks. About 60% of Americans use 401Ks as the primary vehicle for savings.
President Obama plans to establish a program in which all workers are automatically enrolled in the employer's retirement plan. While this wouldn't be mandatory, this plan would prove beneficial to many employees. This new plan would also repeal the last president's work that allowed mutual funds to offer advice to 401K participants.
The plan also allows employees to opt-in or opt-out of the plan. The companies that don't offer 401Ks will have to offer a direct deposit into an individual retirement account.
While the benefits of this plan are enormous, there's a big downfall - increasing prices. A plan like this might not be as cost effective and may even reduce the services the consumer receives.
What are your thoughts on this new proposal?
President Obama plans to establish a program in which all workers are automatically enrolled in the employer's retirement plan. While this wouldn't be mandatory, this plan would prove beneficial to many employees. This new plan would also repeal the last president's work that allowed mutual funds to offer advice to 401K participants.
The plan also allows employees to opt-in or opt-out of the plan. The companies that don't offer 401Ks will have to offer a direct deposit into an individual retirement account.
While the benefits of this plan are enormous, there's a big downfall - increasing prices. A plan like this might not be as cost effective and may even reduce the services the consumer receives.
What are your thoughts on this new proposal?
Monday, May 4, 2009
Lessons for the Graduate
And so the countdown to graduation begins. For most colleges around the country it's finals week, but studying all night for an international economics exam doesn't seem to be the only thing worrying students. The economic outlook is uncertain and jobs are hard to come by.
Here are 5 tips that will help you stay ahead of the curve:
1. Save Save Save
As we've been discussing savings matter. Start putting money aside immediately - as little as it may be. You never know when this might come in handy.
Craig, a friend and a co-worker, started saving the minute he graduated college. He took the money he received as graduation gifts and immediately put it aside. He continued to do this with his paychecks. After working for 3 years at a top management firm, he has been laid off. He's providing for his family through these savings! "If I hadn't started when I did, I don't know where I would be now"
2. Read the Fine Print
While in college, we used to sign all the papers we were asked to. I never bothered to read the fine print. As a graduate, this becomes very important. You will be charge early termination fees, late fees, and other unnecessary charges if you don't read the fine print.
3. What's the Total Cost?
A $20,000 car does not mean you'll only be paying $20,000. The same goes with loan consolidation and student loan payments. Repaying your loans over 20 years could increase your total payment by $5000!! Wouldn't you rather pay more every month and save in the long run?
4. My Plastic Friend (as my professor Iraj used to say)
Iraj believed plastics, aka credit cards, are our friends - as long as we treat them properly. If you don't have a credit card, apply for one before you graduate. It's usually easier to get a card as a student than as a graduate. Do not apply for more than 2 (or 3 if necessary) credit cards. I think 2 cards are more than enough when you're first starting out - I still only have 1.
Get the bank to set a low limit, pay the bills on time, and try to pay the full amount
5. Credit Scores Are More Important Than That 4.0
Missed out on making the Dean's List every semester because of that low GPA? Not a problem. We've got a new number you need to keep a track of - your Credit Score. This score reflects how much debt you have and controls how much you can borrow. A higher credit score will provide you with more options in the future.
Here are 5 tips that will help you stay ahead of the curve:
1. Save Save Save
As we've been discussing savings matter. Start putting money aside immediately - as little as it may be. You never know when this might come in handy.
Craig, a friend and a co-worker, started saving the minute he graduated college. He took the money he received as graduation gifts and immediately put it aside. He continued to do this with his paychecks. After working for 3 years at a top management firm, he has been laid off. He's providing for his family through these savings! "If I hadn't started when I did, I don't know where I would be now"
2. Read the Fine Print
While in college, we used to sign all the papers we were asked to. I never bothered to read the fine print. As a graduate, this becomes very important. You will be charge early termination fees, late fees, and other unnecessary charges if you don't read the fine print.
3. What's the Total Cost?
A $20,000 car does not mean you'll only be paying $20,000. The same goes with loan consolidation and student loan payments. Repaying your loans over 20 years could increase your total payment by $5000!! Wouldn't you rather pay more every month and save in the long run?
4. My Plastic Friend (as my professor Iraj used to say)
Iraj believed plastics, aka credit cards, are our friends - as long as we treat them properly. If you don't have a credit card, apply for one before you graduate. It's usually easier to get a card as a student than as a graduate. Do not apply for more than 2 (or 3 if necessary) credit cards. I think 2 cards are more than enough when you're first starting out - I still only have 1.
Get the bank to set a low limit, pay the bills on time, and try to pay the full amount
5. Credit Scores Are More Important Than That 4.0
Missed out on making the Dean's List every semester because of that low GPA? Not a problem. We've got a new number you need to keep a track of - your Credit Score. This score reflects how much debt you have and controls how much you can borrow. A higher credit score will provide you with more options in the future.
Wednesday, April 29, 2009
Decisions, Decisions, Decisions!
How does one decide between on job or another? Between colleges? Between cities? Hell, how does one decide between dating a lawyer or a doctor?
Decisions make up every second of our short, precious lives on this planet. We agonize over decisions we've made, asking ourselves if we picked the right choice. We flood our minds with "what if" or "i should have". And where does this leave us? We're frustrated with the decision we've made, afraid of the outcome it may bring, and positive we'll make another "wrong" decision in the future.
Maybe we should try the idea of Prof. Barry Schwartz of Swarthmore College. He suggests that we "settle for a choice that meets your core requirements rather than searching for the elusive 'best.' Then stop thinking about it". He states that people usually fall into one of two extremes - either the "maximizer" (those who always aim to make the best possible choice) or the "satisficer" (those who aim for 'good enough,' whether or not better selections might be out there).
Let's take an example to test his theory. Currently, I'm trying to figure out what my next career move should be. Should I stay at my current job, go back to school, or find a new position elsewhere? According to Prof. Schwartz, I should settle for something that meets my core requirements -- my current job. But would I be happy settling? I'd feel like I was cheating myself by not striving for the best. Prof. Schwartz would classify me as a "maximizer" instead of a "satisficers".
However, I'd like to disagree with that. I don't think I'm either a maximizer or a satisficer. Why? Because by aiming for perfection and maximizing my potential, I am accepting satisfaction in many other facets of my life. Those of us that aim for a successful career sacrifice our social lives. Those that want to purchase an Infiniti G37 convertible sacrifice a midtown apartment. So maybe the point shouldn't be to settle, but to pick your battles.
This all relates to personal finance as well -- pick and choose what you want to purchase. We'd love to have it all, but unfortunately, money doesn't grow on trees.
Find something that helps make your decision easier. For me, the economic meltdown helped confirm my decision to go back to school. For my brother, a scholarship helped confirm his decision to go to a state school. There's always something that will help make that decision a bit easier.
And hey, if that doesn't work, flip a coin!
Decisions make up every second of our short, precious lives on this planet. We agonize over decisions we've made, asking ourselves if we picked the right choice. We flood our minds with "what if" or "i should have". And where does this leave us? We're frustrated with the decision we've made, afraid of the outcome it may bring, and positive we'll make another "wrong" decision in the future.
Maybe we should try the idea of Prof. Barry Schwartz of Swarthmore College. He suggests that we "settle for a choice that meets your core requirements rather than searching for the elusive 'best.' Then stop thinking about it". He states that people usually fall into one of two extremes - either the "maximizer" (those who always aim to make the best possible choice) or the "satisficer" (those who aim for 'good enough,' whether or not better selections might be out there).
Let's take an example to test his theory. Currently, I'm trying to figure out what my next career move should be. Should I stay at my current job, go back to school, or find a new position elsewhere? According to Prof. Schwartz, I should settle for something that meets my core requirements -- my current job. But would I be happy settling? I'd feel like I was cheating myself by not striving for the best. Prof. Schwartz would classify me as a "maximizer" instead of a "satisficers".
However, I'd like to disagree with that. I don't think I'm either a maximizer or a satisficer. Why? Because by aiming for perfection and maximizing my potential, I am accepting satisfaction in many other facets of my life. Those of us that aim for a successful career sacrifice our social lives. Those that want to purchase an Infiniti G37 convertible sacrifice a midtown apartment. So maybe the point shouldn't be to settle, but to pick your battles.
This all relates to personal finance as well -- pick and choose what you want to purchase. We'd love to have it all, but unfortunately, money doesn't grow on trees.
Find something that helps make your decision easier. For me, the economic meltdown helped confirm my decision to go back to school. For my brother, a scholarship helped confirm his decision to go to a state school. There's always something that will help make that decision a bit easier.
And hey, if that doesn't work, flip a coin!
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