Lifestyle

If you can have a small reward now or a larger reward later which would you choose? Why? Do your personal, financial, and lifestyle choices mimic this choice? There seems to be something going on in our culture and The Naked Economist explains they involve key bad habits:

1. Entitlements-- politicians who offer short term rewards forsaking the future help to reinforce delusions of unrealistic entitlement.

2. Flat college and high school completion rates-- school isn't for everyone, but is it the best choice for you or just an easy short term way out?

3. America's near-zero saving rates-- insane, risky, stupid, and we all know it!

4. Chronic federal budget deficits-- our own government can't even provide a decent savings model; don't look to it for an answer.

5. A lack of vision for how ambitious collective endeavors can change the trajectory of our lives-- the author explains a lack of social programs is to blame, but I don't think they are the answer as there is plenty of private sector inspiration-- learn from it and act!

Instant Gratification Nation: Can We Still Sacrifice for the Future? [Yahoo! Finance]

So, it's that time of year where people are graduating from college and they need to figure out what's next. You always knew you could make it big, but now you've gotta act and the more time that slips by after college, the more depressed you'll get when you aren't making it! Alright, I was just kidding about that-- of course you will make it. It's important to take some steps toward your dreams and goals (if you've even set them yet) as soon as possible. You can start your post-college days off right by doing these 9 things after graduation:

1. Create a resume

   If you haven't done this yet, then you probably haven't started applying for jobs. It's important to have a document that shows people what you have done. If most of your experience is through school projects, then place your education history before work. Otherwise, place work history before education. The most important factor is to make sure you tailor your resume's work and/or education experience to match the jobs you are applying for. Don't have experience? Then volunteer for a local organization, make a blog and document stuff you have done, find a way to get experience you can link to the job requirements. This gives you something to add to your resume and talk about when you get the interview as well.



2. Get a job

   Unless you plan to immediately go back to school, it's time to start insuring a future income and for many people this means getting a job. Unless you start a company, you will need to find an employer and then apply and interview for a job. Have the perfect employer in mind but they aren't hiring? Send them a resume anyway.



3. Start saving now

   Don't wait until you have money to start saving and managing money. Get in the habit of saving NOW. It's a whole lot easier to manage money when you don't have much of it, and getting used to storing away a percentage of it will help you continuously grow your savings as you get better jobs and earn more money. I'd highly recommend opening up a high interest savings account (contact me for a referral and $25 free from ING Direct).

   
   

   Afterward, setup a reoccurring saving plan or direct deposit so you ensure a percentage of your income is automatically saved.

   
   

   Once you have saved up enough money to support yourself for 3 months, move the money to a special emergency fund. It's very easy at banks like ING to create multiple savings accounts and you can move the money to a new account.



4. Don't spend more than you make

   You will never become wealthy if you spend all your money. This means you should make sure that every month, week, even day not to spend more money than you are making.



5. Start building a network

   Don't know where to start at finding a job or don't know how to meet new people without a classroom or dorm? Join a local young professional organization and begin making connections. Getting jobs through people who already know you is one of the easiest and best ways to do it! Even if you already have a job chances are you probably won't retire from it. When I moved away from Metro Detroit to take a job for a video hardware company I finally started meeting quality people once I found a young professional group that had monthly mixers plus other fun events like baseball game outings and hosted speakers. Eventually, I moved back and started my own young professional group called Young Professional Connection and have since met even more interesting business people, friends, and connections.

   
   

   Even if you don't need connections for a job, meeting quality, smart, fun people your own age or older will be beneficial to provide practice interacting with people, talking about yourself, remembering names, etc., etc... the reasons go on!



6. Plan your student loan payments

   If you weren't lucky enough to get out of school with zero loans, it'll be important to 1) determine when you have to start paying your student loans back, and 2) determine when and how to consolidate your federal student loans. Right now, interest rates are falling, and there's a good chance student loan rates will go down this summer. It may pay to consolidate your loans after this to fix your payment amounts and interest rate for the term of your loan payments. You also have to determine over what period of time you want to pay your loan back. Personally, I see the student loan debt more like a business sees debt-- as leverage. I'd rather keep extra cash in my savings to provide security and flexibility now, than to put it all toward paying my student loans off early. Besides, chances are, if you're not making too much money yet, you can deduct all your student loan interest for years to come.



7. Move out, one day

   Chances are your parents don't want you at home forever, and even if they do it's probably a good idea to get out on your own. There's a certain maturity and sense of self when you support your own place and lifestyle. Watch-out if you're looking at the fanciest houses or apartments. It's important you don't try to out-do everyone at first and overspend yourself before you get off the ground. Remember, the money you don't spend now and save has a lot more time to generate interest and make your life easier in the future. This opportunity cost should be taken into account when you start spending your money on reoccurring bills like a house or apartment and everything that comes with it.

   
   

   If you aren't anywhere close to looking at fancy places and instead wondering how in the hell you're going to afford anything, it may be wise looking at getting a roommate or two, or perhaps you need to go up a couple steps and find a job?



8. Work hard, play hard

   Mix it up! Don't spend all your 20s just working or just playing. Do a mix that's right for you. I remember a friend who never seemed to do anything or go anywhere or spend any money. I kinda had the impression he wasn't doing it right-- for me, it's all about adventures, and traveling mixed in with working, starting businesses, meeting new people, and more. Then one day out of the blue, my friend, still in his early 20s announced he was throwing a party celebrating his netting his first million dollars from online advertising he did on his computer in his bedroom-- now there's a way to do it. Do what's right for you, but don't forget to mix it up at some point in your 20s, at least.



9. Choose your own path

   Remember those Choose Your Own Adventure books? They were so cool cause you could read different stories in the same book by making your own choices. Wasn't that fun! Well, life's kinda like that-- except it's real. Push to make it a life you want to live and don't be afraid to try things cause you might fail. Failure is a part of the process, and sometimes it's required before you find the right way to do things. The important thing is to actively pursue the life you want, and there's no better time to start than now!

Was sent a link to Coert Visser's blog about the book Luxury Fever. It talks about how Americans are spending more and more on luxury goods, even in times when earnings for the average person aren't going up.

I continually see all sorts of fancy new cars on the road and fancy new houses and I wonder how people afford these. I think the answer typically is they can't afford these. They either have enough money just to make the monthly payment on their financed luxury or they end up having to try and sell it for a loss.

Maybe I'm missing something, though. Maybe the people where I live are the ones with all the money and the people in other suburbs or in the cities are the ones who are really suffering. I don't know, though, here in Michigan things are pretty tough all around.

This article explains how exercise, $2 lunches, and a list of fun activities can leave you and your finances in the best shape ever (even if you are a busy young professional like me trying to succeed in all of life's opportunities)...

The past month part of my continuous self-improvement regimen has included getting healthier. This has involved upping the amount of exercise I do, cutting down the quantity of food I eat, and curbing the amount of beer I drink! Of course, one of the many benefits of getting healthier like this is you also can spend less money. When you're busy biking, working-out, or swimming, you aren't buying as much junk and you aren't out spending money on other things. In this article, I detail the process of getting fit by exercising more, replacing combo meals with the $2 lunch, and how doing these and other fun things benefit you as a young professional physically, mentally, and in the wallet.

EXERCISE, YOUR LIFE DEPENDS ON IT
Since the time I was around 16 I have been going to the gym on and off. When I was 19 I got more serious about it and usually went 3 times a week. When I was 23 and getting to the end of my degree I started going to the gym less and less. I got a lot accomplished in those years, but my muscles also went to crap, my gut got a little bigger, and like any college student when I wasn't studying I was spending more time partying with friends. One day I decided it was time to turn it around and here are some of the things I did to get healthier:

1. Start going / go back to the gym
There's different philosophies of how many times a week to go. I would say a good rule of thumb is at least 3 times a week. Some people will go more and that's great if you can pull it off.

2. Find recreational activities that double as a workout
Try biking, rock climbing, spelunking, kite boarding, or just jogging. If you have other people to get together with then try putting together a simple game of Frisbee, or basketball, or even soccer (fútbol for the rest of you in the world). Try to do these activities on many of the days when you aren't at the gym. Or, perhaps, instead of driving to the gym, jog or bike up there instead, getting your cardio out of the way in the process.

3. Take adventure trips instead of fat and lazy trips
Like I've mentioned in some of my earlier posts, this year I tried some new adventure trips at the encouragement of a friend. It was a blast! Dog sledding, snowshoeing, cave exploring, cross country skiing, jet skiing, snowboarding, etc. Don't think you have to be great at any of these. You don't even have to be athletic to do many of them. Just get out there and try it!

EAT BETTER, BUT DEFINITELY EAT LESS
I realized while struggling to eat better in a world (country) that makes low quality, fast, and cheap food available, I wasn't always going to be able to eat something that wasn't fried or microwaved. However, these less healthy foods are alright if you at least keep portions to a smaller size. Realistically, if you're sitting at a desk, you don't need a combo meal for lunch consisting of 1000+ calories of meat, fries, and pop (soda, for those of you outside the Midwest). Better yet, forget the combo meal mentality. Do you really even want everything you get? Buy the smaller hamburger or chicken sandwich. Buy the small fries or onion rings. Get water to drink. Fast food may not be the most healthy thing you can eat, but there are options which are loaded with fewer calories and will save you money too. Here are a few ideas for eating and spending less if you can't avoid the fast food:

1. Wendy's
Crispy Chicken Sandwich, Small Chili, Water.
Price: $2.38 (vs. $5+ for small Spicy Chicken combo meal)

2. Burger King
Whopper Jr., Small Onion Rings, Water.
Price: $2.12 (vs. about $5+ for Whopper combo meal)

3. Subway
6" Sub of the day, Baked Potato Chips, Lemonade
Price: $4 (vs. $7 for 12" sub combo)

4. McDonald's
Hamburger, Small Fries, Water
Price: $2 (vs. $5+ for Big Mac combo meal)

THE SECRET WAY THAT WORKS FOR ME
So, I've been implementing some of these methods for the past couple months and am happy to say I've lost over 5 lb. while putting on some muscle, slimming down the tummy, and as a result I am feeling better both physically and mentally all day and night! My routine has consisted of the following:

1. Attempting to only eat $2 lunches
You'll see many of the food options I list above are a considerable savings when you eat less. Soda/pop is a huge markup for fast food restaurants and it'll help you save a lot of money when you don't buy it from them. I got the idea for the $2 lunch after watching a Donny Deutsch interview with John Paul Mitchell who literally went from living on $2 a day to becoming a multi-millionaire business owner in the haircare industry.

2. Working-out at the gym Tuesday, Thursday and Saturday
I've been riding my bike a mile or two to the gym and then doing my usual routine of a 30 minute jog on the treadmill at a conservative pace and then free weights, machines, and sit ups/push ups for strength training. Note: I'm not trying to body build or put on huge muscles, I'm simply trying to build a moderate amount of muscle to help keep my bones strong and help encourage my metabolism to burn more calories and fat.

3. Doing something fun on Mondays, Wednesdays, and Fridays
Sometimes this is still just hanging out with friends, going out to dinner, or going to a bar. Other times, though, perhaps it's a longer bike ride, swimming, jogging outside, or taking a walk in the evening. I find there were things I used to do as a kid that were known to be fun, that we as adults sometimes look at as a chore or exercise routine, e.g. riding the bike, swimming at the pool, or running around. Finding your inner-child and remembering what used to be fun before you drove, or drank, or partied can help you decide what to do on these days.

4. Traveling, small or large
While shopping at the mall can be dangerously tempting to spend money, if you have some self-control all that walking around and window shopping can add up to a good calorie burning exercise. And of course, flying down to the Caribbean and scuba diving, or heading out to Steamboat to go snowboarding, or walking around Manhattan for a day can be great adventures that really add to your fitness level.

HOW TO GET YOURSELF STARTED TODAY
I know it can be a little hard to get yourself motivated to try new things and let go of old habits. Here are some ideas you can try to help yourself build-up momentum and strength in the quest for a fitter, healthier life:

1. Instead of just giving it up, replace it with something less bad
While perhaps dropping an unhealthy habit cold turkey may lead you back to it a few days or weeks later, if you replace it with something that's at least better you may find it easier. For example, looking above, I have not yet been able to drop the fast food habit, but by changing the way I eat fast food it's helping me get closer to my fitness goals.

2. Buy a book
Go to the bookstore and find a book about exercise, fitness, or diet that looks right for you. Try to implement some of the advice within and see how it works.

3. Have more sex
Let's not overlook the obvious, right? It burns calories like anything else, and perhaps you'll end up with better looking abs than the person doing 20 sit ups every day. You may also end-up with something more like a child or an STD, though, if you aren't careful!

4. Stop drinking pop/soda
Replace this with water! Even if you switch to light beer or coffee, you'll lower the amount of unnecessary sugar in your diet, possibly avoiding diabetes. Of course, this is only a trade-off as these replacements can have their own drawbacks.

5. Take a walk at lunch
Eating at lunch and then just going right back to your desk can leave you feeling tired. Find a park close to where you work or go to school and take a 10 minute walk before going back. You'll probably feel more alert and ready to give the afternoon your best after enjoying a short mini-vacation at lunch time.

6. Read a book
Exploring your mind and imagination instead of hurting your body can save you money and make you feel good about yourself.

7. Do a mini-triathlon workout
Bike to the gym, run on the treadmill, do your workout, bike to a pool, swim, and then relax with a nice dinner.

8. Make a list before grocery shopping
Decide what you're going to buy before you go. This will help you from impulse buying unnecessary products that are just going to get in the way of your fitness success. It's alright to buy some cookies, but whatever you do make sure you don't go shopping on an empty stomach!

9. Play some music
If you know how to play an instrument, then do it. If you don't, perhaps try taking one up. The energy it takes to play some instruments can be very intense.

10. Do the things you used to do before you had any money and grew up
When we were all kids, most of us were fitter, had more fun playing outside, and hated the taste of things that were bad for us like coffee, cigarettes, wine, beer, and diet pop! It's alright and maybe good to leave some of these grown-up things in your life, but try to use your past experience to your advantage today.

I hope you'll find some of these suggestions help you in your quest for a long, successful life!

My friend Matt sent me a link to a good article entitled 23 Pieces of Advice that College Graduates Don't Want To Hear. Here are a few pieces...

2. Deal with your debt before it gets worse.

6. Spend less than you earn.

8. Start saving for your retirement right now.

12. Don’t underestimate the importance of having health insurance.

17. Network, network, network.

18. Put time and energy into worthwhile friendships.

Check-out the full article on SavingAdvice.com.