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- Money -
basic money management
by fergus mellon

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How you manage your money is a truly personal decision and you will find what works for you, below are some starters in how to manage your finances in a simple but effective way.

Credit Card Calamity.  Early on in your career it may be difficult never to have credit card debt (you are likely managing the twin evils of student debt and a comparatively low salary), but really try to steer well clear of it.  Why?  You are throwing money away on the interest (and interest really is tomorrow's salary: you are taking what you will earn tomorrow to pay for the purchases you make today).  If it is an emergency (health, car repair etc.) of course credit cards are good for that interim help but you are paying for that help through the huge interest fees that the banks are making off of you.
 
So what am I saying?
 
Always aim to have at least a dollar balance in your bank account at the end of every month (do not go overdrawn!) and when you get a windfall (annual bonus) put it away (either save it or make an early loan repayment).  Do not blow it on a watch, pair of shoes, handbag etc.
 
It ain't worth blowing your cash to keep up with the Joneses. 

Early Loan Repayment.  In the above section I recommended making an early repayment on your student loans.  Why?  For the same reason that saving early can really add up to a nice lump sum due to the magic of compounding (see next section on Saving for Retirement), so it works in reverse for loans.  If you can make an extra loan payment, even a small one, over the life of your loan you will save money on the interest.  Over time, managing your finances and having no debt will give you more to spend every month.  While it seems normal for everyone to carry debt, this is a pretty new value and I can assure you, you will be better off by avoiding debt as best you can.
Ignore Mr. & Mrs. Jones.  I still have a $60 watch and have no shame in wearing it despite many peers having the fancy Rolexes or Cartier watches and looking like a "success".  I don't need to show that I am doing ok and would say that you don't either.  Buy nice things and enjoy your life, of course, but don't feel you need to bankrupt yourself to keep up with the crowd.  It ain't worth it as the crowd will later find out when they have to pay off their credit card bills.  They will have a debt mountain that even if they can service it, will have to cutback on their lifestyle to get their finances in order.  If you on the other hand have not accumulated credit card debt you will have a far more stable life (and will be richer to boot as you will not be paying interest on your purchases).  In addition to reading "I Will Teach You To Be Rich", there is another good book on this from the 1990's called "The Millionaire Next Door" which focuses on how to be a power saver.  When I read it, I found that I had definitely not followed the best practice that both authors recommend.  I wished (and wish) that I had!

Next section: Saving for Retirement

Related content: Be a Financial "Prepper". Preparing for a Downturn

​Like this section?  Buy "Early Stage Professional: starting off right".  Got feedback?  Send it to [email protected]

Getting a Job

Resume
The Application Letter 
​
The Free Conundrum: Should You Take an Unpaid Internship?
Informational Interviews 
Taking a Shortcut: Using Your Network 
Dealing with a Low GPA
​Responding to Recruiters
The Job Interview
Interview Questions
Questions You Should Ask
Simulations 
Interviews with Other Applicants
Dealing with References
Negotiating Your Salary
How to Resign (if you already have a job)
​
The First Week
You Don't Get the Job: Getting Feedback
​Keeping Motivated Through the Search

Wise Words

Annual Reviews
Layoffs.  The Afterlife
Your Manager As Partner
Owning Mistakesh

Crushing It

What Time Should I Start? 
What If I am Running Late? 
Taking Vacation
Sick Days 
Working Outside Office Hours
​
How to prepare for One/Ones
Making Meetings on Time 
Business Presentations 
Social Media, Personal Email and Hanging Out on the Web
Give it Six to Nine Months to Feel @Home
Be Your-professional-self
Staying Positive

USA Today Columns

How to get started on LinkedIn: Do this, not that
Warning: Avoid smartphone shame at work.  Keep them out of sight
To succeed, be a Giver in the workplace, not a Taker
4 ghoulish personality pitfalls to steer clear of at the office
​
How to coach today's not so entitled Millennials as they join the rat race

Crushing IT

Money

Library

WISE WORDS

Bureaucracy

Copyright © 2016 - 2020
  • Home
  • Getting a job
    • Must Do's - Resume
    • Must Do's - Application Letter
    • Must Do's - Internships
    • Groundwork - Informational Interviews
    • Groundwork - Your Network
    • Groundwork - GPA Issues
    • Groundwork - Recruiters
    • Dealing with Rejection - Feedback
    • Dealing with Rejection - Keeping Motivated
    • Closing the Deal - The Interview
    • Closing the Deal - Interview Q's
    • Closing the Deal - Your Questions
    • Closing the Deal - Simulations
    • Closing the Deal - Group Interviews
    • Closing the Deal - References
    • Signing On - Salary Negotiation
    • Signing On - How to Resign
    • Signing On - First Week
  • Crushing It
    • The Hours - What Time Should I Start
    • The Hours - What If I Am Running Late?
    • The Hours - Taking Vacation
    • The Hours - Sick Days
    • The Hours - Working Outside Office Hours
    • Professional Skills - One/Ones
    • Professional Skills- Making Meetings on Time
    • Professional Skills - Business Presentations
    • Professional Skills - Social Media, Personal Email
    • A Level Head - Feeling @ Home
    • A Level Head - Be YourProfessionalSelf
    • A Level Head- Staying Positive
  • Wise Words
    • Achieve - Focus on the Results
    • Achieve - Leading from the Start
    • Achieve - Showcase Your Work
    • Achieve - Small is BIG
    • Achieve - Take Action
    • Achieve - Your New Job. A Plan
    • Career Management - Annual Review
    • Career Management - Annual Review Feedback Meeting
    • Career Management - Annual Review: How to Guide
    • Career Management - Career Contentment
    • Career Management - Careers Happen
    • Career Management - Career Journey
    • Career Management - Choosing a Mentor
    • Career Management - Development Planning
    • Career Management - Discomfort Is Good
    • Career Management - Freelancing and Employment Gaps
    • Career Management - Mentally Healthy Choices
    • Career Management - Mentorship Explained
    • Career Management - Post Graduate Degrees
    • Career Management - Promotion Frustration
    • Career Management - Promotions. Move out to move up
    • Career Management - Selecting Your Company
    • Career Management - Understand Yourself
    • Finances - Preparing for a Downturn
    • Finances - Retirement Saving (1)
    • Finances - Retirement Saving (2)
    • Finances - Workplace Benefits
    • Hindsight - Balance the Short- with Long -term
    • Hindsight - Embrace Learning & Your Manager
    • Hindsight - Focus at Work
    • Hindsight - Millennial Reflections
    • Hindsight - Regrets: Time, Money & Pride
    • Hindsight - Take a Career Mulligan
    • Hindsight - Take Advice Sparingly
    • Hindsight - Transition from College
    • Hindsight - Winning Nicely
    • Hindsight - Work Hard. Be Honest. Have Fun
    • Managing Up - Manager as Partner
    • Managing Up - Manage Up to Move Up
    • Managing Up - Mastering Your Manager
    • Managing Up - New Manager
    • Managing Up - Questions For Your Manager
    • Managing Up - Secret Skills of Managing Up
    • Managing Up - Yes Power
    • People & Teamwork - Be a Giver
    • People & Teamwork - Collaboration is Power
    • People & Teamwork - First Time Manager
    • People & Teamwork - LinkedIn as Networking
    • People & Teamwork - Networking Hacks
    • People & Teamwork - Networking as Relationship
    • People & Teamwork - Networking Simplified
    • People & Teamwork - Reputations Travel
    • People & Teamwork - Teamwork as Leadership
    • Sliding Doors - Decision Paths
    • Sliding Doors - Success Requires Luck
    • Speed Bumps - Chutes & Ladders
    • Speed Bumps - Layoffs & Survivors Guilt
    • Speed Bumps - Laid Off? Take a Breath
    • Speed Bumps - Layoffs. The After Life
    • Speed Bumps - Owning Mistakes
    • Work Life - American Work Culture
    • Work Life - Ask Why
    • Work Life - Be Yourself. Be Genuine
    • Work Life - Browned Out?
    • Work Life - Business Travel Guide
    • Work Life - Calendar Management
    • Work Life - Change is Certain
    • Work Life - Difficult Situations
    • Worklife - Focus on Fiyah
    • Work Life - Ghosting
    • Work Life - Help the Early Stage Professionals
    • Work Life- International Remote Working
    • Work Life - In the Zoom
    • Work Life - Mom Skills
    • Work Life - Office As A Stage
    • Work Life - Office Ghouls
    • Work Life - Pre Vacation Checklist
    • Work Life - Returning to Work
    • Work Life - Smartphones & The Office
    • Work Life - Speak Up
    • Work Life - Stage Fright
    • Work Life - Startup Glamour
    • Work Life - Stress Management
    • Work Life - Take A Walk
    • Work Life - Tasks We Hate
    • Work Life - They Quit
    • Work Life - Unlimited Vacation
    • Worklife - Vacation Overview
    • Work Life - Welcome the Newbies
    • Work Life - "Work" From Home
  • Money
    • Money - The Basics
    • Money - Saving for Retirement
    • Money - Retirement Saving
  • Library
    • Book Reviews
    • Webinar Hub
    • USA Today Columns
    • Buy Early Stage Professional
    • Bureaucracy
  • Help Center
    • Annual Reviews
    • Career Speed Bumps
    • Managing Up
    • Promotions & Career Planning
    • Stress Management