to make your career goals a reality? If you’re not sure, speak to someone who has the type of job you’d like to have. For example, if you’d like to become the site manager of the construction site you currently work on, spend time with the current foreperson. Inquire about education, accreditations, and specific skill sets. Ask for some specific advice on what you could do in terms of education and skills to advance your career. If you don’t have those kinds of connections, reviewing job postings for your dream job can be equally beneficial. The postings should clearly state the skills, experience, and education required for the role.
When you have a clear idea of where you want to take your career, you can determine the appropriate level of investment in your own education and skills. Whether you hit the books or not, develop skills that will give you a competitive edge and make you difficult to replace. Competitive skill sets provide leverage during salary negotiations and greater options for advancement and promotion.
CAN Education BE a Bad Investment?
There are two ways in which education can be a bad investment. The first is if you overdo it with student loans and lines of credit, meaning you get more than what you need in order to have extra spending money or make car payments. This will thrust you into unnecessary debt, which is very hard to pay off upon graduation.
The second is if you choose a program with limited employment opportunities available in that field. This would force you into a situation where you are required to complete additional, and more practical, education or face unemployment or a lower salary after graduating. Yes, you still need to be true to yourself and what you want to study, but blend that with practical skills. So if, for example, you’re doing a fine arts major, you may also want to take classes on bookkeeping so you could potentially get a job managing an art shop while still enjoying the beauty of art.
Practical skills are vital and you often get those through a combination of courses and working experiences. So do your best to blend these together. Ultimately, though, getting an education will always pay off in that it will broaden your thinking, which can then be applied to whatever you put your mind to.
CHAPTER 3
Get Organized: File Folders, Banks, and You
Organization truly is the key to success. In fact, on the road to wealth and splendour, getting organized is the most important step to take. This process is often referred to as “getting your financial house in order.” It may sound a little intimidating, but it’s not. It can actually be fun.
The Tools of the Trade
Meet Erica, age 26. She works full-time and rents a small apartment with her roommate. Unfortunately for both of them, Erica has never been very good at managing her money. She never knows how much money she has in her chequing or savings accounts, and her unpaid cell phone and credit card bills are always stuffed inside her purse or into the glove compartment of her car. Often, her debit/ATM card and credit cards are declined at stores. Erica jokes with her friends that she never knows when her phone bill is due until her cellphone service is cut off. This is funny enough until she gets stuck on the highway with a broken-down car and no cell phone service to enable her to call for help.
Erica needs to get organized! If you read the last paragraph with a sinking feeling in the pit of your stomach, don’t worry. It’s never too late to start!
File Folders Are Your Friends
If you don’t track your money, you’re going to lose it. So the first step in your organization process should be to set up a file-folder system, whether electronically or using good old-fashioned paper file folders. If you’re like me, and some of your important documents are still sent to you by snail mail, you may need a tracking system that is a combination of both electronic and paper. If you go the paper route, head to your local office supply store and purchase multicoloured folders, labels, and an accordion case or one of those desktop hanging-folder contraptions.
Files are important because they allow you to separate and manage all the paperwork pertaining to the different areas that affect your financial, personal, and career life. Filing also gives you an opportunity to review your financial and personal information more carefully.
Here are some examples of file names that might be relevant for you:
Bank statements (if you have more than one account, make a file for each and include the account number or type of account on the tab for easy reference)
Utility bills, such as electricity, gas, and water (again, one folder for each utility)
Cell phone bills
Receipts
Credit card bills and related materials
Pay statements
Tax/government-related materials
Investment statements
Resumés and letters of reference
Health information
Certificates of achievement
School information
School expenses
Employment information
This should be enough to get you started. As you work your way through the stacks of important papers in your dresser drawers or on your desk, you’ll probably find other materials that should be given a file. But don’t get too carried away! You don’t need a file for every piece of paper that makes its way into your home. A rule of thumb: file only the things that are important to you and that could significantly affect your life.
When you organize your files, put them into an order that makes sense to you — alphabetical, most frequently used, whatever. Just choose a system that will allow you to remember where things go.
The Not-So-Dreaded Spreadsheet
Although some people run screaming at the thought, a truly great way to get organized with your finances is to set up budgets using a computerized spreadsheet program (chapter 4 has more information on budgeting). Most software packages come with a basic spreadsheet program, and that’s all you really need. It allows you to insert formulas to add and subtract numbers automatically, or dates to assist you in planning for certain purchases.
You can also use your computer to create a list of “big-ticket items” that you can work toward purchasing as time progresses. For example, you could list items like a bicycle ($350) or car repairs ($900) or a down payment on a house ($10,000). Similar to what I suggested in chapter 1, put your list someplace where you’ll see it on a daily basis (I have mine taped to my desk at home). It will help motivate you and keep you focused on your goals.
Let Technology Work for You
Getting organized with your banking and investments is easy when you have online access to your accounts. All you have to do is log on for a few minutes to check your investments, your bank balances, pay your bills, whatever! Make sure you register for your bank’s online services (you may need to see a customer service representative to do this). If you’ve started to invest, you can use the Internet to track the performance of almost any stock, bond, mutual fund, or index or exchange-traded fund. Some good sites are:
www.bloomberg.com
www.finance.yahoo.com
