Supercharge Your Career for Long Term Financial Security

office pictures may 2012 002Proactively managing your career is essential to your long term financial success.  While traditional financial planning is important, it’s crucial to invest in yourself and your career.  The return you can earn from a serious commitment to your career may be better than any investment return you may reasonably achieve.  Strategic attention to your career can result in increased long term income opportunities, a job you love, job security and resources to build your investment portfolio.

It’s too easy to become comfortable and complacent with your situation and settle for less compensation and job satisfaction than you deserve.   The first step toward supercharging your career is to understand yourself.  Evaluate what makes you happy and where your passions and talents lie. Consider how you can best utilize your skills, interests, and experience. Research potential opportunities in your current field as well as in new career fields.  Information about a variety of careers,and what they pay, is available in the Department of Labor’s Occupational Outlook Handbook www.bls.gov.ooh.  Information on salaries can also be found on www.payscale.com and www.salary.com.

After doing your research and identifying some career opportunities, decide on your definition of career success and develop a plan to achieve this.   Career success is not based on luck but on strategic planning, action and commitment.  Establish some long and short term career goals to keep you on track toward meeting your plan.

To help achieve success, think of yourself as a brand of one.  In everything you do, consider your image and how people perceive you.  You have a reputation to build and maintain which should demonstrate trust, dependability, competency, enthusiasm and professionalism.  Don’t think of yourself as an employee but as a company of one who is working to bring success to your current firm.  This in turn will bring you success.  Be reliable and meet your commitments, proactively resolve problems and look for smarter ways to do business.  Do what is needed to get the job done, don’t lose site of the big picture, and focus on the bottom line.  Work strategically and watch for opportunities to meet the needs of your boss and your team.

Nurture relationships, be a team player, and keep a positive attitude.  Continually demonstrate how you can be of value to your boss, colleagues and clients.  Work in a collaborative manner and help others look good and get ahead.  Develop a strong personal network and find a mentor to assist you with your current job and exciting options for the future.

Proactively stay abreast of industry and technological changes. Seek out opportunities to learn and grow through continuing education and formal education.  You will experience more success if you embrace change and innovation.

Your career and ability to earn a good living can be your greatest financial asset – manage and nurture it to maximize your financial security.

Give the Gift of Financial Wisdom this Christmas

Jane Young, CFP, EA

Jane Young, CFP, EA

This year, the best Christmas gift for your adult children may be the gift of financial wisdom. Unfortunately, most young adults successfully graduate from school without a practical understanding of personal finance.  Starting out with a solid foundation and some smart financial habits can help your children live a happier, more fulfilling life.

Upon graduation from school, young adults are starting with a blank slate.  They are probably accustomed to a frugal lifestyle that is more about friends and experiences than expensive cars and fancy restaurants.  Before they take on a host of new financial commitments, encourage them to establish a lifetime habit of living below their means and saving for the future.  Work with them to develop a budget, establish an emergency fund and save for the future.  Help them to avoid the common tendency to increase their expenses in lock step with their income.  They can experience more freedom and opportunity by living below their means and gradually increasing their standard of living.

Another concept that is not taught in school, is the difference between good and bad debt.  Help your children understand the danger of high interest rate credit cards and consumer debt.  Encourage them to limit the number of credit cards they use and to get in the habit of paying credit card balances in full every month.  Also explain the importance of establishing a good credit rating by paying their bills on time.  Help them understand that low interest, tax deductible mortgage debt can be useful where high interest credit card debt can be very detrimental to their financial security.

It’s also important for them to understand some basic investment concepts including the power of compounding.  For example, if they invest $100 per month for 30 years for a total investment of $36,000, in 30 years with a return of 6%, their money can grow to over $100,000 due to compounding.   They have the benefit of time! By investing early, they have tremendous opportunity to grow their money into a sizable nest egg by retirement.

Understanding the importance of diversification and the relationship between risk and return is also essential.  Encourage your kids to avoid putting all of their eggs in one basket and help them understand that getting a higher return requires taking more risk.  It’s best to invest in a variety of investment options with different levels of risk and return.  Caution them that anything that sounds too good to be true probably is.  There is no free lunch!

To augment the personal wisdom that you can share, consider buying your kids a book on personal finance for Christmas.  Some books to consider include The Richest Man in Babylon by George S. Clason, Coin by Judy McNary, The Young Couples Guide to Growing Rich Together by Jill Gianola and the Wealthy Barber by David Chilton.