Tag Archives: food

Combining Your Passion and Values With Income

Often when students or even middle-aged employees are considering which career path to choose they run into a dilemma. “Should I choose a greater income or sacrifice money to do the things I love?” many ask themselves. Even as a college student I have met and spoken with many older folks who find themselves still in a situation of questions.

Countless people go through their life without truly finding something that is both enjoyable and lucrative (or at least enough to pay the bills). Most people have heard of the classic situation of an artist or writer who lives in their parents basement. But what about the countless others out there who are in similar, yet less extreme situations?

Teachers a good example of this. Many of them make just enough to pay the bills, yet work long hours and stressful lives. Assuming they are doing something they enjoy (which I believe many of them are), how do teachers continue to do what they love while keeping the financial strain at a minimum?

There’s no easy answer to this question. I’m going to simplify a process I have used in my own life (before even exiting college) that has allowed me to understand myself better going into my “working years”. If your financial situation isn’t stable, you may have to work a J-O-B while you get these questions figured out.

1. What do you value?

Ask yourself, if you had only 24 hours to live, what people, places and activities would you care about? What would make your last 24 hours feel “full”? The answer to this can be revealing. As soon as you have grasped the things that matter most to you, begin looking at the things you want to pursue that match those values….

2. What do you love to do?

Everyone likes to do something. Maybe you love math. Or maybe writing or reading are your favorite. Or maybe science has always been a blast. There are numbers things you could find enjoyable. Find some of the top things and list them.

3. What are you good at?

This can be hard to know just looking at yourself. It may take honest questions with people who know you well to pinpoint what you’re good at. Maybe you are a eloquent or articulate writer. Or maybe you can organize things efficiently and effectively. Or maybe you are a natural leader. Or maybe you always have found analyzing numbers and facts easy. Whatever thing(s) you find stand out, those are some things you should double down on.

With these three questions answered you now have set the parameters. Your values dictate where you will never work. For example if you value family, your probably won’t work for a drug gang that breaks up families. Or if you value moral integrity, you probably won’t become a jail robber, even if your greatest skill is stealth and deception.

With values as your parameter, your passions are the arrow, pointing you towards a career field. Lastly your abilities and talents are the final part of the puzzle in determining what position best suites you.

For example what if you value family. You’re also highly interested in personal finance. As you become interested in the subject, you realize that you’re best at analyzing data and making good decisions. Upon looking at these three angles you will determine that becoming a personal financial planner suites you best!

I used the example of myself but you can use these questions for any situation or interest. Overall, these questions are simple, but they may take time to answer completely. And as if often the case, they may lead somewhere that doesn’t pay well. In that case you can either work somewhere on the side, take a pay cut or continue looking for that thing that is both fulfilling and pays the bills. Good luck in your journey!

3 Factors to Look at When Determining Where to Live

As a financial blog, I have dealt a lot with individual personal finance issues, like what to invest in, how to budget, and what to do in different areas financially. Here I want to step back and cover 3 financial factors that you should think about when considering a city to live in. While these three aren’t the only things to think about, they certainly will cover the broad range of financial determining factors:

Job and Career Potential

Here you’re just trying to get an idea as to how easy or hard it will be to have employment, and sustain employment in your chosen career field. Two of the things to consider are the unemployment rate, which is a good indicator of how many people who want jobs have them, and job growth. With job growth you want to look at the number of new jobs being created, specifically in your career field, over the last decade.

Cost of Living

Housing costs will be broken down into to two big areas: housing and everything else. When looking at housing, there are usually two broad options available. You can either rent or you can buy. You are going to want to compare the costs of rent vs the rest of the country. Pay special attention to the rent increases. For example maybe your area currently has slightly higher rents than the national average, but over the last couple years the rents have been skyrocketing. You want to be mindful of areas in which the costs of living, including rents are rising quickly.

The second housing option to look at is homeownership. What is the average costs of a home in the area. This can vary greatly from one neighborhood to another. For example one neighborhood might costs $300,000 but just across the road might be $250,000 for a similar house. Find the area you’re thinking about and start comparing prices.

After paying for housing there are the rest of the general costs associated with living and breathing. These costs can include food, insurance, transportation, recreation, and especially taxes. Taxes are a huge part of your yearly expenses. There are income taxes (both federal, state and sometimes city), as well as sales tax and property tax. Look at these rates for you area.

Long-Term Stability

The last thing you want to look at after job potential and cost of living is the general stability in the area. The stability of the area is both the economic factors and the political factors.

For example look at one of the leading factors of growth for cities: population growth. Take a look at the recent trend in population. For example are massive amounts of people entering or leaving the area? This might be a sign that things are changing. With the change in demographics and population comes changes in political preferences.

Maybe these changes will lead to political leadership upheaval in the local government. Think about how these changes could potentially impact your life in terms of local taxes, regulations, social programs, and building projects in the future. Are you okay with these potential changes and the uncertainty that comes with them?

Conclusion:

Overall, these three factors can paint a pretty clear picture of the financial concerns about one area over another. After going through them, you should know whether this area is something you would want to consider moving to. Naturally though, there will be others things of concern, like climate, education, health and other issues. While these concerns might not directly impact your finances, most of them should be looked at closely for the effects they could have down the road.

3 Fun Things To Do With Your Money

Give it

If you’re a Christian this can be represented by tithing. However for non-christians generosity can still play a big role. Consider giving to charities, friends, organizations, causes and people in need.

With technology there are now so many ways to connect and give to others. Giving can change the way you see the world around you, make you more compassionate, and just make you feel better about yourself in general.

Enjoy it

Enjoying money can be fun! I remember spending money to go out to eat at a nice restaurant. It felt like such a reward to myself for the work I had done. Enjoying money, specifically money you’ve earned, can feel very, very good.

Stop and thing the ways in which you could enjoy your life and your money today. Prioritize the fun with your long-term goals about investing, giving and leaving a legacy. Often people struggle with spending too much money on things that don’t actually provide enjoyment. That is just stupid.

If you’re buying something or going somewhere to impress someone else you are committing two mistakes: 1) You’re spending money you could be investing or giving (which in and of itself isn’t a crime) and 2) you’re spending money on something that doesn’t really matter to you. Leaving a little money for your future should always be at the back of your mind. Which leads us to the third thing…

Grow it

Not a lot of people in society enjoy investing. The truth is, not many people have really gotten into investing, which hurts them more than they know. When I opened my Roth IRA, I put $5,500 in it. Even in the first half year it grew to almost $6,000, a $500 increase. I was pumped.

Realistically though, investing in a well balanced, thought-through planned investment portfolio isn’t always going to go straight up. Sometimes, even often, the balance is going to go down a little. That’s part of investing.

But as your balance grows steadily over time, you will begin to see why so many people are hooked on investing.

Conclusion:

Prioritizing these three things is both a challenge and a beautiful dilemma. It can feel like a blessing to have resources (money) to mange for your future and for your family’s future. That’s why it’s so important to think about these three things.

7 Things That People Never Spend Enough Money On

1. Paper

That’s a strange thing to lead the list with. However paper represents a mentality in the U.S., and especially in other countries, that puts people in a scarcity mentality. I’ve been personally at fault of doing this. Often I’ll try to save paper by writing on the other side or cramming everything on to one page.

This is particularly true when I am in school. I’ll take notes by putting everything close together. Any learning and memorization expert will tell you that leaving space on the paper gives your brain room to process and compartmentalize concepts and facts in your brain.

You need to be comfortable using up more paper, even if that means spending a minuscule amount more.

2. Seminars

Honestly this type of personal improvement hasn’t been something I’ve looked into in the past. However in recent months and years I’ve begun to see how others have used these as networking, learning, and inspirational events.

3. Health

I hope most people value health over money. The natural outcome of this value priority is that you should be spending the money you need to to keep your health at its prime. Don’t forget about health.

4. Others

Pouring money into others, whether through time and experiences, or generous gifts of items and money, is both a heart-warmer, and a perspective-changer. As soon as you begin to look outside yourself to help others, life becomes a ton more meaningful.

5. Car Maintenance

Changing the oil, replacing break pads, and doing general maintenance on your vehicles is a responsible thing for adults to do. It feels like you’re throwing money away, but in the long-term it can save you money in emergencies, breaks, and issues.

6. High Quality Items

Often it is wise to skip the name-brand items and go with cheaper things. This is especially true with things that don’t matter as much like cereal brands or food in general. However if you find an item is cheaper than another, this doesn’t mean instantly that it’s a deal. It’s possible that down the road you’ll spend money on replacing that cheaper item.

7. Books

Call me old fashioned, but I find books are particularly useful in learning. I have personally read hundreds (yes hundreds) of nonfiction books in my free time. While spending $1,000 on books (both e-books and physical books) can seem like a big waste of money when the library is just down the street, I see books as an investment.

When you see nonfiction books as resources and insightful gems of knowledge, it becomes natural to look at the cost-benefit of each book as a more than worthwhile investment.

I personally find physical books to be easier on my eyes and simply to read than e-books.

Conclusion:

Seeing every purchase as an investment can be a fun game to get your mind racing on ways to save and spend money wisely.

Should You Work on a Tip-based Salary or Hourly?

Do you value security or potential of higher income? That is essentially what it comes down to. Over the last few years I have had the opportunity to work in both the back (the grill line) and the front (as a host and busser) of the restaurant. I’ve had the opportunity to work at higher end restaurants (a sushi restaurant) with positive work atmospheres as well as lower-priced restaurants (Cracker Barrel) with slight less positive work environments.

Which is better?

To me clearly the former. However often because of connections, resume or simply location, starting at a higher end restaurant isn’t always an option. Although to be clear, higher end doesn’t always mean more positive work environment.

So back to the original question, which is better, to work at a tip-based job or something more stable like an hourly job?

If you believe in your abilities to work hard, be personable, sell to customers, and meet the basic requirements of your job, then the tip-based job will pay you much more over the long-term. However if you aren’t sure of you skills then working an hourly job can be better.

There are 2 keys that you need to follow when working a commissioned job verses a regular job:

1) How much you make is ultimately up to you (and the overall business of the restaurant)

Taking responsibility for every aspect of your job, especially when you get paid via tips, is crucial to making money. If you don’t acknowledge and adapt to weaknesses, mistakes and challenges along the way, you won’t be able to make the money you are probably aiming for.

2) Communicate with your supervisor as well as your fellow employees

Without communication, especially when the restaurant is busy, you risk losing your income, confidence, and sanity all at once. When things get busy, it can be especially easy to slack off when it comes to taking to the people around you. However when this happens items get dropped, customers, employees and managers get pissed, and you usually don’t get the type of tip you were striving for.

Ultimately I recommend getting a tip-based job over an hourly job simply for the reason that it can challenge you more and usually brings in more income.