Managing your Personal Finances Wisely

Moneywise24 Personal Finance



Balanced Living Standards: Cheap, Cheaper, Cheapest? 0

Posted on December 07, 2009 by admin

I stumbled upon an article the other day, unfortunately I only quickly browsed the site and completely failed to write down the URL. Nevertheless, the article was an interesting one; it described how a woman from Latin America paid back her 25,000 USD loan within a couple of years, by taking on two jobs, letting her children live with her parents, and moving into a 100 USD per month apartment.

Although when I read the article, I felt great empathy and respect for the woman paying off a huge debt within such a short time, I felt somewhat confused when I started thinking it over. The article implied, that the woman had achieved something amazing, which she did in a sense. But:

  • I live in Western Europe, it is impossible for me to find a place which would cost me only 100 USD per month.
  • If I had children, would I really give them to live with my parents for as long as a couple of years?
  • Would my parents approve of me giving them my kids to take care of?
  • What is the use of paying off a debt, if it means living in absolute poverty for a few years?

Especially the last bullet point, whether I would sacrifice my life in order to pay off debt quickly, set me to think. Yes, living on the verge of poverty would let me pay off my debts much sooner. However, at the same time my life would come at a full stop; I would not be able to develop myself in any sense, since I would not have the financial means.

Usually, it is recommended (and many banks and land lords apply this rule also) to spend about one-third of one’s net income on rent or mortgage; in the more expensive metropoles, it could also be as much as half of one’s net income. This does not mean, that exepenses can not be reduced. Many people spend only 25% of 20% of their net salary on rent, meaning they are theoretically spending less than average on rent. The money that is saved could be spent on paying off the debt in addition to what is spent on paying off debt already. This way, debt can be repaid more quickly while a certain living standard is maintained.

I am big fan of finding the right balance between living standards, personal development, income and expenses. Sure, some people simply do not have this choice. But sometimes, people do have a choice and still they opt for the hard way. In many cases, this applies to income the same way; people choose a job or a profession which will reduce their social lives to virtually zero, yet offering them a great salary with a company car and bonuses. Five years later, some get a burn out… was it really worth it?

Possibly Related Posts:


  • Add to favorites
  • Blogger
  • del.icio.us
  • Facebook
  • Google Buzz
  • Haohao
  • MSNReporter
  • RSS
  • Tipd
  • Twitter
  • YahooBuzz
  • Digg
  • email
  • MySpace
  • Reddit
  • StumbleUpon
  • Technorati

The Perfect Job Interview: 10 Do’s and Don’ts to Remember 2

Posted on November 23, 2009 by admin

Dearest readers, I presume that at least on a few occasions in your life you will be confronted with the job interview… at least I hope so. Your first one even might be already during high school or university, but as soon as you receive that valuable piece of paper, life is getting pretty serious; and hopefully it will not be the only job interview you will have in your life.

Some people might be naturally successful during a job interview; they understand the dynamics, the most important do’s and don’t, while some others simply don’t get to the point of getting the contract. I am not promising a bullet proof method for getting that contract, but there are a few simple things to remember before, during, and after the job interview, which may dramatically increase your chances. Below are 10 suggestions to give you on your way, but of course, if you feel that any important do or don’t was omitted from this article, I am very much looking forward to your comments.

#1: Do dress to sell

You are a salesperson, you are selling all of your knowledge and a specific amount of time to a corporation. In a sense, you are a company yourself. Therefore, dress like a business person. I feel each and every man or woman should have at least one very official business outfit readily available. Even if you know, that the company has a very informal style, it does not mean you can show up in jeans during the interview. Make sure your hair is neatly cut, groom well, smell well, and simply be the person for the job.

#2: Do not assume everything will go with the flow

Prepare well for the interview. Each company and business culture has its own set of rules, but there are a few things which reoccur over and over again. These include questions such as “tell me something about yourself”, or “where do you see yourself in 5 years time?”. Buy a book on job interviews, and study the most common questions, prepare the answer well, so that you instantly know how to answer a question when it is asked.

#3: Do your homework on the company well

One of the most embarrassing situations you might get into is to ask a question, which is obvious or which you should have known. Therefore, always research the company before the interview. Where does the company have offices?Which are their business units? How many employees do they have? How much turnover did they have last year? What is the current price of their stock?

#4: Do not fidget

Everyone is nervous during the job interview, but it is also expected that one can control his/her nervousness up to some degree. Therefore, try not to fidget with things like a pencil, or your hands. Be cool.

#5: Do show confidence

Being confident is very powerful. It means walking up straight, with the shoulders relaxed and slightly pushed backwards. When seated, lean in and show interest in the topic, look your counterpart(s) in the eyes frequently, but without creeping them out. Always have a block note and a pen readily available to take notes if necessary.

#6: Do not lie

Selling yourself means putting yourself in the spotlight in the best possible way, but without lying. For example, if you are taking a Chinese course since a month or two, you may tell your counterpart that you speak Chinese, and that you have the potential to be put on China-relevant projects in future and grow to a more prominent position within the company. However, telling your counterpart that you speak Chinese fluently would be merely lying. Any lie will most probably be revealed sooner or later, and the result is usually immediate termination of the contract.

#7: Do engage in small talk

Small talk is a powerful tool to get to know your counterpart a bit better on a more social level. Moreover it is a powerful instrument to build a more personal connection. Give your counterpart the opportunity to start the small talk, and engage in it actively. You may also ask your counterpart a few questions. However, be careful not to become too personal. Typical small talk topics to start with are the weather or whether you had a good trip. Avoid any topics which involves strong personal opinions, such as politics, religion or sexuality.

#8: Do not talk more than you have to

Nervousness often causes a person to say more than is necessary. Some employers may use this against you by simply remaining unresponsive after you have finished answering. It is not uncommon, that the silence is so discomforting to the applicant, that the applicant starts elaborating his answer even further, and therewith sharing information which he never intended to share. The best way to cope with this is simply to keep your mouth shut, and keep the silence. After half a minute or so, you may ask something like “do you have any more questions?”.

#9: Do have one or two questions available for the end of the interview

As a future employee, you really want to demonstrate that the position and company interests you. Therefore, you will want to ask a few questions. Personally, one standard question I use is “why do you enjoy working for company xyz?”. This will give me some personal information how my counterpart sees the company, and it is information which is not likely to be found somewhere publicly.  Best is to write your questions down on your note block, that you should have with you, and put it on the table during the interview. The benefit of doing this is, that even if your questions are automatically answered during the interview, you can still show that you have given a thought about it. You can even state that you had for example written three questions down, which have been answered already. Again, referring back to #3, do not ask questions that you should already have known.

#10: Do not expect everything to go automatically

Once the job interview is over, thank you counterpart, and make an arrangement of when you will hear a result, or at least further information. The company should generally stick to that. If not, give them perhaps two more days time, and then call the person you had the interview with to inquire about it. Some companies might even use this as a test, in order to see how bad you want the job and how persistent you are. Always remain active, not passive.

Possibly Related Posts:


  • Add to favorites
  • Blogger
  • del.icio.us
  • Facebook
  • Google Buzz
  • Haohao
  • MSNReporter
  • RSS
  • Tipd
  • Twitter
  • YahooBuzz
  • Digg
  • email
  • MySpace
  • Reddit
  • StumbleUpon
  • Technorati

Book Review: Outliers by Malcolm Gladwell 0

Posted on November 18, 2009 by admin

An outlier is someone who demonstrates extraordinary performance. He is someone who we call extremely talented. However, how are outliers born?

In his book Outliers, Malcolm Gladwell takes a closer look at what makes people so successful, and why. In an entertaining and well written way, Outliers explains the relationships between hard work, ambition, passion, and pure luck, using many real-life examples, such as that of Bill Gates. All examples and theories described in the book are the result of extensive research.

For those readers, who want to obtain a greater understanding about what characterizes success, I would greatly recommend Outliers, by Malcolm Gladwell.

ISBN: 978-0-316-05628-1

Possibly Related Posts:


  • Add to favorites
  • Blogger
  • del.icio.us
  • Facebook
  • Google Buzz
  • Haohao
  • MSNReporter
  • RSS
  • Tipd
  • Twitter
  • YahooBuzz
  • Digg
  • email
  • MySpace
  • Reddit
  • StumbleUpon
  • Technorati

How to Reduce Your Debt in 5 Steps 0

Posted on November 18, 2009 by admin

Being in debt has become quite normal in today’s world: people buy real estate and take a mortgage, a loan is taken in order to buy a car, a television or the newest Playstation is quickly bought with the credit card, and this month’s phone bill seemed to bit slightly higher than usual. Actually, debt does not have to be all that bad… if it planned and under control.

And this is where problems arise. Often, debt is not under control. It seems to increase, a second credit card is being applied for, and it seems like a never ending story, until at a certain point the debtors want their money back, and then…

uh-oh.

The worst that can happen is when the complete existence of a person is about to collapse completely; real estate is confiscated by the bank, credit cards are being blocked, in many countries debtors have a certain right to claim a part of the net salary of the individual directly from the employer, and the story goes on. The worst that can happen is to file for a personal bankruptcy. However, if you have not yet reached that stage, perhaps there is still something that can be done.

A few simple things might help to reduce debt. Reducing debt is never fun, but it is the price to pay.

Track your income and expenses

The very first thing you need to do is to track your income and expenses by the cent; it will make your cash-flow visible, and it will allow you to plan and make a budget. Assuming that you have money to spend, the easiest way to keep book is by using Excel, or another spreadsheet program. For each transaction, you will need to need to make an entry in your ledger, so that by the end of the week or month you can it all up. You can then compare the totals of your expenses with your income, and also with the budget you created.

Save where ever you can

Rigorous expense reduction is the next step. Here, you need to know the exact difference between needs and wants, and it is absolutely essential that you concentrate on what you really need for a living, and how you can make substituations in order to live more cheaply. For example, you may want to investigate how Skype could help you as an alternative to stay in touch with friends, you may want to use public transportation more often, or you may need to give up your daily visit to Starbucks.

Hire a debt consultant

In many countries, there are debt consultant who are either subsidized or fully paid by the government. Find out if this is the case, and hire someone who can help to get you out of debt. Firstly, this person will give you a very precise picture of your current situation. But more importantly, he is also an independent consultant, who is able to engage in negotiations with debtors if applicable. By hiring a debt consultant, debtors will see that you are willing to do everything to reduce and pay off your debt, and thus they are more likely to engage into an agreement.

Do not create new debt

Don’t overdraw your bank account, don’t take any new loans, and destroy your credit cards. The last thing you need is a new loan of any kind.

Assess your income

If being unemployed or having a very low income is one of the reasons for being in debt, you may want to assess your current position; what do you have to do in order to get a job, or a better paid job? Do you need education? More experience? Or perhaps there are already some opportunities for the taking. Pursue your career if you can. Browste the job postings, and build on your network.

Reducing debt is not an easy task, especially in a world where money seems to play such an important role, and where companies want to motivate us to spend more of it via sophisticated marketing strategies. However, being debt free is something to look forward to, and in the end: there are any more important things than money alone.

Possibly Related Posts:


  • Add to favorites
  • Blogger
  • del.icio.us
  • Facebook
  • Google Buzz
  • Haohao
  • MSNReporter
  • RSS
  • Tipd
  • Twitter
  • YahooBuzz
  • Digg
  • email
  • MySpace
  • Reddit
  • StumbleUpon
  • Technorati

Why Does it Not Pay Out to Be the Most Hard Working Employee? 0

Posted on November 15, 2009 by admin

Yesterday, I met up with a friend of mine for a coffee. As we exchanged some interesting topics, the topic started changing towards career issues. At a certain point, she stated:

“I don’t understand, I am a hard working employee, I deliver the best possible quality, I have been with the company for years, and meet all possible deadlines. And yet, this work is not getting me anywhere. My colleages get all the best options in the company, they get promotions, or new challenges”

Sounds familiar?

As our conversation progressed, I started to develop a better understanding of her situation. Her goal is to be fully committed to her work, and her manager. She wants to make herself irreplacable through the quantity and quality of her work, hoping management will see the great potential that lures inside of her.

The only problem is, that by having made herself irreplacable by all the knowledge she has and the hard work she delivers, management does not want her to leave her current position. She has become so irreplacable, that it has started to work against her. Whereas she has been taking upon all the work, others have had the opportunity to get involved into other activities and build a network throughout the company.

For anyone seeking an interesting career, it is essential to build a diverse network of contacts throughout the company, attend meetings, give presentations, or go for lunch with colleagues and managers. Extremely hard working employees will often skip such events in order to get some more work done. But this is an approach, which will work against you on the long run.

Possibly Related Posts:


  • Add to favorites
  • Blogger
  • del.icio.us
  • Facebook
  • Google Buzz
  • Haohao
  • MSNReporter
  • RSS
  • Tipd
  • Twitter
  • YahooBuzz
  • Digg
  • email
  • MySpace
  • Reddit
  • StumbleUpon
  • Technorati


↑ Top
SEO Powered by Platinum SEO from Techblissonline