Moneywise24 Personal Finance

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?

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I had quite an interesting flashback lately; as I was sitting on my couch and letting some things pass through my mind, I was struck by the fact that there are so many things I could have done much sooner, and thereby enhance the quality of my life and my personal financial situation. Then, why hadn’t I? Quite simple really: I just didn’t know… or at least I didn’t know they were that important.

In order to help some of the younger readers, I have compiled my personal top 10 list of things I wish I knew when I was a teen. I sincerely hope that for some of you it would mean a positive change of where you are at, and where you are going.

#1 – I wish I had learnt earlier to set my goals in life. It may seem a bit stupid, but during my teens my top priority seemed to have a lot of fun, while at the same time I didn’t really know where I was heading. I had no real goal in life, which at a later age resulted in me trying out many things which were not going anywhere. Now, at the age of 32, I realize that what I do isn’t really what I want to be doing, and it is much harder to change the entire structure of my life.

#2 – I wish I had studied more. I focussed on the ‘fun factor’ of life so much, that I really didn’t realize the importance of a good education. At present, I have a bachelor’s degree, and I realize that many jobs that I really want require a Master’s. Also, graduates or even post-graduates earn much more than bachelors.

#3 – I wish I had worked more. I know that parents are supposed to support their children up to a specific age legally, in The Netherlands it was up to 27. However, this also means being dependent one one’s parents. There were so many things I wanted, which I never got. In The Netherlands, everyone is allowed to work when they reach the age of 15, and I wish I had grasped that opportunity, to build on my own financial freedom. Additionally, when I went to college, I took a huge loan which was absolutely not necessary; I could have financed everything by working on the side… in stead I am now stuck with monthly payments which cut a big hole in my budget.

#4 – I wish I had aimed for independence sooner. I lived at my parental house until I was 21, then I moved out because I was going to college in another city. However, I could have moved out much sooner, enjoying all the freedom of living by myself. I am sure it would have done me good, and it would have relieved me of all the pressure at home; it would have made me more mature, and given me more energy.

#5 – I wish I had started tracking my finances earlier. I don’t even remember all the money I spent on drinks, clubs, going out, and other unnecessary items. Sure, a good social life is crucial, but if I would have tracked my finances carefully, I would have discovered that there was so much savings potential; I could have gotten most out of my money.

#6 – I wish I had started investing sooner. In stead, I used to park some of my money on my savings account, completely ignoring the benefit of higher return rates from investments. Investing some of my money would have allowed me to build wealth, and my future.

#7 – I wish I had done more sports. Actually, I had hardly done any sports in my late teens and twenties, simply because I had other priorities and I was lazy. However, doing sports regularly would have given me more energy, it would have kept me fit, and it would have built a routing, making it easier to do sports at a later age as well.

#8 – I wish I had discovered the importance of networking. I always tended to see networking as some form of superficial ‘blabla’, which I could do without; I wanted to take responsibility for my own successes. Now, I realize that networking is an integral part of life, making things easier, finding the good jobs, or even getting some tips and hints on things… and it is a great way to build a large social circle.

#9 - I wish I had become entrepreneurial sooner. It is much easier to ‘crash and burn’ when you are younger: your living expenses are much lower, and since you are not accustomed to a higher living standard, it is not difficult to give things up, or to re-build a life if things go wrong. The older you get, the more difficult it becomes. Actually, I started becoming familiar with website development back in 1998, when I developed my first website Dutchtrav.com. Too bad I had never really taken the time to develop it back then, it could have generated some nice revenues.

#10 – I wish I realized the value of time. I remember myself saying ‘I can do that later’, or ‘there is still so much time’. And before you know it, you’re 30, and you realize that you could have gotten so much out of your life. The years are literally passing by, and time is lost, it will never come back again. Therefore, I wish I had learned to enjoy every single moment in my life, and living it to the max.

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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.

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Languages are said to increasingly gain importance in international business; not only are there still so many countries where English is not spoken as a second language by everyone, there are also many languages which are gaining importance.

My mother’s tongue is Dutch, and I speak an additional four foreign languages, two of which can be utilised in a business environment (English and German). I once worked for a company, which would actually pay an additional amount on top of the monthly salary for each usable foreign language. Up to then I had always seen language as a tool to make myself better understandable in a foreign country, but not as a tool to boast my career and increase my salary.

Today, the world has become even more internationalised, and foreign language is a hot topic. Apart from the fact that learning a foreign language is fun to learn and offers valuable insights in a nation’s culture, some foreign languages are increasingly gaining importance, if this is not already the case. Just consider the fact, that over a billion people on this planet speak Chinese, this is 1/6 of the entire world population. And additionally, many people in Asia speak Chinese as a second language, rather than English. How about Arabic? Hindi? Spanish?

The great benefit for your career and working environment in general is that you are making yourself more competitive by learning new foreign language. Additionally, you are demonstrating your employer, or potential employers and head hunters, that you want to keep learning a life long.

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