This Week In Your Wallet: Double The Money, Double The Fun?
“I have a secret for you. This secret will allow you to double your income in 18 months for only five more hours of work per week.”
That’s how Carl Richards (The New York Times’ Sketch Guy) begins his recent column. Riveted yet? If the offer wasn’t a scam, how many of you would take it? If you said yes, would you also take the offer to “triple your income in 18 months for 10 more hours per week?” Or to quadruple it for 15 hours? Quintuple it for 20? “At what point would you answer ‘No’?” Richards writes.
It’s something to think about. After a certain income level, if someone isn’t happy with what they’re bringing in, 20 percent or 50 percent more is not likely to increase their happiness. According to research from two Nobel prize winners, emotional well-being and income rise together to a certain point — about $75,000 — and after that, happiness seems to plateau. So if you aren’t financially strapped when it comes to the essentials, can save regularly for the future and sometimes splurge on a vacation, you’re set. If happiness is your measuring stick, that’s where the concept of “enough” starts to come into play.
Now, of course, there are regional differences on what it costs to live comfortably. (This Research by Advisor Perspectives suggests it differs by income level for each state, adjusted for cost of living.) But there are also personal ones.
In order to figure out what that might look like for you or your family, sit down and make a list of your values and your goals. (For example, making $10,000 more versus missing family dinner a few nights a week — the answer will look different for everyone based on their situation and goals.) Richards suggests having an honest conversation with yourself or your spouse or partner about how much might be “enough.” If you don’t have it, keep chugging along to reach that point. But “if you do have enough, and you’re still not happy, what makes you think you would be happy with enough times two?” he writes. And… on a related note… if you find yourself saying yes to things not for the money but because you find it hard to say no, check out this helpful piece by Kristen Wong, also from The New York Times.
Kicking Off The Job Hunt
Let’s switch gears and talk kids — and their very first job hunt. (How many of you remember your first full-time job? Mine was at Working Woman magazine, and my starting salary was $11,500 a year, which is as low as it sounds, although my rent in Brooklyn was just $400 a month. I taught SATs on the side, got a little help from Mom and Dad and still managed to wind up in credit card debt. But that’s another story for another time.) Many kids worry that if their first job isn’t their dream job, they’ll never get there — but as most of us know, career paths are often a very, very winding road. Credit.com has 50 things college grads (or anyone) can do to score their first job, including: Don’t discount internships — they can help you get real-world experience on your resume and might turn into full-time work if you play your cards right. Take people in your industry who you respect and look up to to coffee (offer it as: “My treat!”). And when it comes to your resume, keep it to one page, remove references to high school if you’re graduating college and make sure to highlight leadership skills. Then, customize it for each position you apply for.
And whether you’re still in the application process or starting a new position, MONEY has time-management tricks people wish they knew in their twenties, including advice to stop multi-tasking (it kills focus) and break big goals down into manageable chunks on a schedule or to-do list. Know that no two tasks ever hold the same importance (so prioritize — in that aforementioned first job, I would sit down with my boss and my legal pad each morning and do “priorities”), and always know the one thing you really need to get done that day.
Cell Phone Savings
As Destiny’s Child sings: “Can you pay my bills? Can you pay my telephone bills?” The answer is no, of course. But Money Talks News does have tips for monthly cell phone savings. First, know that family plans can shave off a significant cut — and the more lines you have, the more the price per line drops. (For example, on Sprint’s Unlimited plan, a five-line family plan costs $24 per line per month, meaning savings of more than $300 a year per person when compared to single lines on the same plan.) There’s no rule that says you can’t do this with friends as well, but you’d need to be very careful to make sure everyone is responsible and financially fit. (The account goes under one person’s name, and that person is responsible if one person doesn’t pay.)
Next, consider switching carriers — many smaller carriers use the same cell tower infrastructures as the major ones, meaning you won’t lose quality of coverage. For example, MetroPCS uses T-Mobile’s network, and both plans offer unlimited talk/text and 3 GB of data, but the MetroPCS plan would save you $240 a year when compared to T-Mobile’s. If you do decide to jump to a different company? To best avoid the chance of bill overlap, sign up with the new carrier about four days from when your current billing cycle ends. (This will allow a couple of days’ padding for your old carrier to release you.)
Have a great week,
Jean
