This article originally appeared at I Will Teach You to Be Rich in a slightly different format.
Finding a job can be tough. Competition is fierce, and even if you’ve got the skills, it’s a challenge to make yourself known to the right people. According to Michael Hampton, Director of Career Development at Western Oregon University, informational interviews are a valuable networking technique that can give you an edge on your competition.
The informational interview is designed to help you choose or refine a career path. You can learn how to break in and find out if you have what it takes to succeed. Spending time with one of your network contacts in a highly focused conversation will provide you with key information you need to launch or boost your career.
An informational interview is not the same as a job interview. It’s an opportunity to find out more about a particular career or company. These sorts of interviews can be valuable for anyone, not just those looking for a new job. You might consider this approach if:
You’re a recent graduate exploring possible career opportunities.
You have an established career, but would like to discover what it might be like to work for another company.
You feel as if you’ve done as much as you can in your current job and are interested in changing fields.
By meeting with somebody experienced in the field you’re considering, you can find out more about what the work is really like, about how much it pays, and about the drawbacks.
The First Rule
Before you begin seeking informational interviews, it’s important to understand a couple of rules:
The first rule of informational interviews is: do not ask for a job.
The second rule of informational interviews is: do not ask for a job.
If you meet with somebody under the pretenses of gathering information and you attempt to turn the encounter into a job application, you’re just going to make her angry. If, after the interview is finished, she thinks you’re promising and she has a position available, she’ll contact you. Do not ask for a job.
Conducting the Informational Interview
Your first step is to find people with jobs that look intriguing. Once you’ve identified some likely candidates, prepare a simple phone script to make sure you get everything you need in your initial contact. It can be helpful to approach the informational interview as if you were a reporter. Pretend you’re gathering information for a news story. This can help calm your nerves. Make sure to adhere to the following guidelines:
Ask politely. If the person declines the interview, respect her boundaries. If she accepts, select a time and location that works for both of you. (Phone interviews are fine.) Confirm the time and location.
Be prepared. Dress appropriately. Be punctual. Do your homework — learn what you can about the company from trade magazines, press releases, and past (and present) employees. Research will allow you to skip questions that could have been easily answered via another source. You want to use this opportunity to ask more intelligent, relevant questions.
Listen. Be ready with a list of open-ended questions. Let the interviewee talk about herself. Good questions include:
“What is your typical day like?”
“What do you like most (and least) about your job?”
“How does your company differ from its competitors?”
“What is the future like for this industry?”
Take notes. Remember that you’re conducting this interview to gain insight into a possible career. Write down anything that might be important. Ask follow-up questions.
Be brief. Keep track of time. Don’t rush the interview, but don’t overstay your welcome, either. If you’ve done your homework, you know which questions to ask. Get the information you need in a timely fashion, and then let the person return to her workday. Pay attention to signals that it’s time to leave.
Don’t forget to send e-mail or a brief hand-written note to thank the person for taking time out of her day to meet with you.
Informational interviews aren’t just for job seekers. You can use them to locate mentors or to pick the brains of experts on a favorite subject. I’m preparing to write a book, for example, and have been fortunate to find half a dozen authors who have been willing to take time to describe their experience with the publishing process.
Further Reading
If you’d like more information on this subject, follow this inter-related web conversation:
Although the primary rule of the informational interview is to never ask for a job, there is an exception. Says Western Oregon University’s Michael Hampton:
If you discover a job that you want to apply for during the interview, wait. The next day, call the employer and tell your contact that the informational interview not only confirmed your interest in the field, but made you aware of a position that you would like to formally apply for.
The best part about the informational interview? Few people use them. Add this weapon to your arsenal, and you’ll have an advantage on everyone else who’s out there looking for a job.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
We are going to under the cover and discover $14 an hour is how much per year.
For most Americans, this is hovering near minimum wage.
Let’s get this straight… This is not a livable wage.
If you are in high school or college and have support from your parents, then this is great spending money for you.
However, if you are making it on your own, $14 per hour will not make ends meet each month.
For most people, being at minimum wage is common and the goal is to make your way up the payscale and quickly!
In this post, we’re going to detail exactly what $14 an hour is how much a year. Also, we will break it down to know how much is made per month, bi-weekly, per week, and daily.
That will help you immensely with how you spend your money. Because too many times the hard-earned cash is brought home, but there is no actual plan for how to spend that money.
When living close to minimum wage, you must know how to manage money wisely.
More than likely, you are living paycheck to paycheck and struggling to survive until the next paycheck. Take a deep breath and make this minimum wage just a season.
The ultimate goal is to make the most of your hourly wage with inspirations to make more money.
If that is something you want to do, then keep reading. You are in the right place.
$14 an Hour is How Much a Year?
When we ran all of our numbers to figure out how much is $14 per hour is an annual salary, we used the average working day of 40 hours a week.
40 hours x 52 weeks x $14 = $29,120
$29120 is the gross annual salary with a $14 per hour wage.
Breakdown of 14 Dollars an hour is how much a year
Typically, the average workweek is 40 hours and you can work 52 weeks a year. Take 40 hours times 52 weeks and that equals 2,080 working hours. Then, multiply the hourly salary of $14 times 2,080 working hours, and the result is $29,120.
That number is the gross income before taxes, insurance, 401K, or anything else is taken out. Net income is how much you deposit into your bank account.
Work Part Time?
But you may think, oh wait, I’m only working part time. So if you’re working part time, the assumption is working 20 hours a week at $14 an hour.
Only 20 hours per week. Then, take 20 hours times 52 weeks and that equals 1,040 working hours. Then, multiply the hourly salary of $14 times 1,040 working hours, and the result is $14,560.
How Much is $14 Per Month?
On average, the monthly amount would average $2,426.
Annual Amount of $20120 ÷ 12 months = $2426 per month
Since some months have more days and fewer days like February, you can expect months with more days to have a bigger paycheck. Also, this can be heavily influenced by how often you are paid and on which days you get paid.
Work Part Time?
Only 20 hours per week. Then, the monthly amount would average $1213.
How Much is $14 per Hour Per Week
This is a great number to know! How much do I make each week? When I roll out of bed and do my job, what can I expect to make at the end of the week?
Once again, the assumption is 40 hours worked.
40 hours x $14 = $560 per week.
Work Part Time?
Only 20 hours per week. Then, the weekly amount would be $280.
How Much is $14 per Hour Bi-Weekly
For this calculation, take the average weekly pay of $560 and double it.
$560 per week x 2 = $1120
Also, the other way to calculate this is:
40 hours x 2 weeks x $14 an hour = $1120
Work Part Time?
Only 20 hours per week. Then, the bi-weekly amount would be $560.
How Much is $14 Per Hour Per Day
This depends on how many hours you work in a day. For this example, we are going to use an eight-hour workday.
8 hours x $14 per hour = $112 per day.
If you work 10 hours a day for four days, then you would make $140 per day. (10 hours x $14 per hour)
Work Part Time?
Only 4 hours per day. Then, the daily amount would be $56.
$14 Per Hour is…
$14 per Hour – Full Time
Total Income
Yearly Salary (52 weeks)
$29,120
Yearly Wage (50 weeks)
$28,000
Monthly Wage (173 hours)
$2.426
Weekly Wage (40 Hours)
$560
Bi-Weekly Wage (80 Hours)
$1120
Daily Wage (8 Hours)
$112
Net Estimated Monthly Income
$1,853
**These are assumptions based on simple scenarios.
Paid Time Off Earning 14 Dollars an Hour
Does your employer offer paid time off?
As an hourly, close to minimum wage employee, more than likely you will not get paid time off.
So, here are the scenarios for both cases.
For general purposes, we are going to assume you work 40 hours per week over the course of the year.
Case # 1 – With Paid Time Off
Most hourly employees, get two weeks of paid time off which is equivalent to 2 weeks of paid time off.
In this case, you would make $29120 per year.
This is the same as the example above for an annual salary making $14 per hour.
Case #2 – No Paid Time Off
Unfortunately, not all employers offer paid time off to their hourly employees. While that is unfortunate, it is best to plan for less income.
Life happens. There will be times you need to take time off for numerous reasons – sick time, handling an emergency, or even vacation.
So, let’s assume you take 2 weeks off without paid time off.
That means you would only work 50 weeks of the year instead of all 52 weeks. Take 40 hours times 50 weeks and that equals 2,000 working hours. Then, multiply the hourly salary of $14 times 2,000 working hours, and the result is $28,000.
40 hours x 50 weeks x $14 = $28000
You would average $112 per working day and nothing when you don’t work.
$14 an Hour is How Much a year After Taxes
Let’s be honest… Taxes can take up a big chunk of your paycheck. Thus, you need to know how taxes can affect your hourly wage.
This is why you always wondering why your take-home pay is so much less.
Also, every single person’s tax situation is different.
On the basic level, let’s assume a 12% federal tax rate and a 4% state rate. Plus a percentage is taken out for Social Security and Medicare (FICA) of 7.65%.
Gross Annual Salary: $29,120
Federal Taxes of 12%: $3,494
State Taxes of 4%: $1,165
Social Security and Medicare of 7.65%: $2,228
$14 an Hour per Year after Taxes: $22,233
This would be your net annual salary after taxes.
To turn that back into an hourly wage, the assumption is working 2,080 hours.
$22233 ÷ 2080 hours = $10.69 per hour
After estimated taxes and FICA, you are netting $10.69 an hour. That is $3.31 an hour less than what you planned.
This is a very highlighted example and can vary greatly depending on your personal situation. Therefore, here is a great tool to help you figure out how much your net paycheck would be.
$14 an Hour Budget – Example
You are probably wondering can I live on my own making 14 dollars an hour? How much rent can you afford at 14 an hour?
Using our Cents Plan Formula, this is the best case scenario on how to budget your $14 per hour paycheck.
When using these percentages, it is best to use net income because taxes must be paid.
In this example, above we calculated that $14 an hour was $10.69 after taxes. That would average $1853 per month.
According to the Cents Plan Formula, here is the high level view of a $14 per hour budget:
Basic Expenses of 50% = $926
Save Money of 20% = $371
Give Money of 10% = $185
Fun Spending of 20% = $371
Debt of 0% = $0
Obviously, that is not doable when living so close to minimum wage. So, you have to be strategic on ways to decrease your basic expenses and debt. Then, it will allow you more money to save and fun spending.
To further break down an example budget of $14 per hour, then using the ideal household percentages is extremely helpful.
recommended budget percentages based on $14 per hour wage:
Category
Ideal Percentages
Sample Monthly Budget
Giving
10%
$73
Savings
15-25%
$194
Housing
20-30%
$728
Utilities
4-7%
$121
Groceries
5-12%
$231
Clothing
1-4%
$24
Transportation
4-10%
$109
Medical
5-12%
$243
Life Insurance
1%
$21
Education
1-4%
$12
Personal
2-7%
$36
Recreation / Entertainment
3-8%
$61
Debts
0% – Goal
$0
Government Tax (including Income Tatumx, Social Security & Medicare)
15-25%
$574
Total Gross Income
$2427
**In this budget, prioritization was given to basic expenses. Thus, some categories like giving and saving were less.
$14 An Hour Salary Calculator
Now, you get to figure out how much you make based on your hours worked or if you make a wage between $14.01-14.99.
This is super helpful if you make $14.25, $14.50, or $14.75.
Living on $14 Per Hour
Living close to minimum wage can be a very difficult situation.
Is it doable? Probably not for long.
You just have to be wiser (or frugal) with your money and how you spend the hard-earned cash you have been blessed with.
A lot of times when people are making under near the minimum wage mark, they feel like they are in this constant cycle that they can never keep up with (which completely makes sense it is hard!).
When your thoughts are constantly focused on how you are struggling to keep up with bills and expenses, that is all you focus on.
You need to do is change your money mindset.
This is what you say to yourself… Okay, I am making near minimum wage for now. I have aspirations and goals to increase how much I make. For now, I am going to make sure that I am able to live on my 14 dollars per hour. I’m going to try and avoid debt and payday loans at all costs.
Other Tips to Help You:
Check your minimum wage for your state and city. You might find a higher minimum wage in a nearby city.
Look to living in a lower cost of living area to stretch your money.
Find ways to minizine your basic expenses.
Thrive with a frugal green minimalist lifestyle.
Decide if a roommate or moving back with your parents would help.
Bike or walk to work.
In the next section, we will dig into ways to increase your income, but for now, you must focus on living on $14 an hour.
5 Ways to Increase Your Hourly Wage
This right here is the most important section of this post.
You need to figure out ways to increase your hourly income because I’m going to tell you…you deserve more. You do a good job and your value is higher than what your employers pay you.
Even an increase of 50 cents to $14.50 will add up over the year. Even better $15 an hour!
1. Ask for a Raise
The first thing to do is ask for a raise. Walk right in and ask for a raise because you never know what the answer will be until you ask.
If you want the best tips on how specifically to ask for a raise and what the average wage is for somebody doing your job, then check out this book. In this book, the author gives you the exact way to increase your income. The purchase is worth it or go down to the library and check that book out.
2. Look for A New Job
Another way to increase your hourly wage is to look for a new job. Maybe a completely new industry.
It might be a total change for you, but many times, if you want to change your financial situation, then that starts with a career change. Maybe you’re stressed out at work. Making $14 an hour is too much for you and you’re not able to enjoy life, maybe changing jobs and finding another job may increase your pay, but it will also increase your quality of life.
3. Find a New Career
Because of student loans, too many employees feel like they are stuck in the career field they chose. They feel sucked into the job that they don’t like or have the potential they thought it would.
For many years, I was in the same situation until I decided to do a complete career change. I am glad I did. I have the flexibility that I needed in my life to do what I wanted when I needed to do it. Plus I am able to enjoy my entrepreneurial spirit.
4. Find Alternative Ways to Make Money
In today’s society, you need to find ways to make more money. Period.
There is no way to get around it. You need to find additional income outside a traditional nine to five position or typical 40 hour a week job. You will reach a point where you are maxed on what you can make in your current position or title. There may be some advancement to move forward, but in many cases, there just is not much room for growth.
So, you need to find a side hustle – another way to make money.
Do something that you enjoy, turn your hobby into a way to make money, turn something that you naturally do, and help others into a service business. In today’s society, the sky is the limit on how you can earn a freelancing income.
5. Earn Passive Income
The last way to increase your hourly wage is to start earning passive income.
This can be from a variety of ways including the stock market, real estate, online courses, book sales, etc. This is where the differentiation between struggling financially and being financially sound happens.
By earning money passively, you are able to do the things that you enjoy doing and not be loaded down, with having a job that you need to work, and a place that you have to go to. And you still make money doing nothing.
Here is an example:
You can start a brokerage account and start trading stocks for $50. You need to learn and take the one and only investing class I recommend. Learn how the market works, watch videos, and practice in a simulator before you start using your own money.
One gentleman started with $5,000 in his trading account and now has well over $36,000 in a year. Just from practice and being consistent, he has learned that passive income is the way for him to increase his income and also not be a slave to his job.
Tips to Live on $14 an Hour
In this last section, grasp these tips on how to live on $14 an hour. On our site, you can find lots of money saving tips to help stretch your income further.
Here are the most important tips to live on $14 an hour. Highlight these!
1. Spend Less Than you Make
First, you must learn to spend less than you make.
If not you will be caught in the debt cycle and that is not where you want to be. You will be consistently living paycheck to paycheck.
In order to break that dreadful cycle, it means your expenses must be less than your income.
And when I say income, it’s not the $14 an hour. As we talked about earlier in the post, there are taxes. The amount of taxes taken out of your paycheck is called your net income which is your home $14 an hour minus all the taxes, FICA, social security, and medicare are taken out. That is your net income.
So, your net income has to be less than your net income.
2. Living Below Your Means
You need to be happy. And living on less can actually make you happier. Studies prove that less is better.
Finding contentment in life is one thing that is a struggle for most.
We are driven to want the new shiny toy, the thing next door, the stuff your friend or family member got. Our society has trained you that you need these things as well.
Have you ever taken a step back and looked at what you really need?
Once you are able to find contentment with life, then you are going to be set for the long term with your finances.
Here is our story on owning less stuff. We have been happier since.
3. Make Saving Money Fun
You need to make saving money fun. Period.
It could be participating in a no spend challenge for the month.
Check out the 200 envelope challenge (which is doable on your income)
It could be challenging friends not to go to Target for a week.
Maybe changing your habits and not picking up takeout and planning meals.
Whatever it is challenge yourself.
Find new ways of saving money and have fun with it.
Even better, get your family and kids involved in the challenge to save money. Tell them the reason why you are saving money and this is what you are doing.
Here are 101 things to do with no money. Free activities without costing you a dime. That is an amazing resource for you and you will never be bored.
And you will learn a lot of things in life you can do for free. Personally, some of the best ones are getting outside and enjoying some fresh air.
4. Make More Money
If you want if you do not settle for less, then find ways to make more money. If you want more out of life, then increase your income.
You need to be an advocate for yourself.
Find ways to make more money.
It could be a side hustle, a second job, asking for a raise, going to school to change careers, or picking up extra hours.
Whatever path you take, that’s fine. Just find ways to make more money. Period.
5. No State Taxes
Paying taxes is one option to increase what you take home in each paycheck.
These are the states that don’t pay state income taxes on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
It is very interesting if you take into account the amount of state taxes paid compared to a state with income taxes.
Also, if you live in one of the higher taxed states, then you may want to reconsider moving to a lower cost of living area. The higher taxes income tax states include California, Hawaii, New Jersey, Oregon, Minnesota, the District of Columbia, New York, Vermont, Iowa, and Wisconsin. These states tax income somewhere between 7.65% – 13.3%.
6. Stick to a Budget
You need to learn how to start a budget. We have tons budgeting resources for you.
While creating a budget is great, you need to learn how to use one.
You do not have to budget down to every last penny.
You need to make sure your expenses are less than your income and that you are creating sinking funds for those irregular expenses.
Budget Help:
7. Pay Off Debt Quickly
The amount that you pay interest on debt is absolutely absurd.
Unfortunately, that is how many of these companies make their money from the interest you pay on debt.
If you are paying 5% to even 20-21% or higher, you need to find ways to lower that debt quickly.
Here’s a debt calculator to help you. Figure out your debt free date.
Make that paying off debt fast is your target and main focus. I can tell you from personal experience, that it was not until week paid off our debt that we finally rounded the corner financially. Once our debt was paid off, we could finally be able to save money. Set money aside in separate bank accounts and pay for cash for things.
It took us working hard to pay off debt. We needed persistence and patience while we had setbacks in our debt free journey.
Jobs that Pay $14 an Hour
You can always find jobs that pay $14 per hour. Polish up that smile, fill out the application, and be prepared with your interview skills.
Job Search Hint: Always send a written follow-up thank you note for your interview. That will help you get noticed and remembered.
First, look at the cities that require a minimum wage in their cities. That is the best place to start to find jobs that are going to pay higher than the federal minimum wage rate. Many of the cities are moving towards this model so, target and look for jobs in those areas.
Possible Ideas:
Cashiers
Back of the house restaurant staff
Landscape Laborer
Retail jobs
Paraeducators at schools
Janitors
Farm help
Warehouse workers
Fast Food Restaurants workers
$14 Per Hour Annual Salary
In this post, we detailed 14 an hour is how much a year. Plus all of the variables can impact your net income. This is something that you can live off.
How much is 14 dollars an hour annually…
$29120
This is under $30000 per year and you need to make at least $43k a year.
In this post, we highlighted ways to increase your income as well as tips for living off your wage.
Use the sample budget as a starting point with your expenses.
You will have to be savvy and wise with your hard-earned income. But, with a plan, anything is possible!
Learn exactly how much do I make per year…
Know someone else that needs this, too? Then, please share!!
Inside: Do you have a passion for something, but don’t know what to do with it? This guide will help you find a career that is perfect for you and match your interests and values.
This is something all of us wonder, right?
What should I do for a living?
Am I doing what I should do as a career?
Did I make the right decision with my career?
Or is it time to switch gears and find something that I love to do and make money at the same time?
I have been asking this question so many times, I finally decided to make a list of answers.
This is not just for those who want to know what they should do with their lives; it’s also for anybody looking for some new ideas on how they can fit into a career that will bring them satisfaction and happiness.
Recently, my middle schooler was asked, what do you want to do beyond high school? And he looked at me shell shocked.
Remarkably, this question of what should I do for a living is a doozy to answer. So, don’t feel alone if you cannot answer it… yet.
How do I find out what I should do for a living?
The first step to finding out what you should do for a living is to identify your skills and interests.
What are you good at?
What do you enjoy doing?
Once you have a better idea of your strengths and passions, you can start researching your options.
The bottom line…you must be happy to spend the next decades doing what you picked.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Tips for finding a career you love
When you’re looking for work, it’s important to remember that there are many different ways of making a living. You can be an artist or designer in your own home studio, or run your own business. The key is to figure out what your interests are, and then find a way to use those skills in the work you love doing.
The goal of this article is not just to help you find a job that pays the bills, but to help you find work that is satisfying, meaningful, and fun.
Here are some tips to keep in mind as you go through the process of figuring out what you want to do with your life.
#1 – Focus on You
Don’t listen to people who tell you that you should do one thing. If your parents want to see you be a doctor, or if your friends think it’s important for you to have a “real” job, you might be tempted to listen to them.
Don’t let anyone else tell you what your passion is, or how you should spend your life.
Determine what’s important for YOU!
As you go through the process of figuring out what to do with your life, keep in mind that there are many different ways to live a happy and fulfilling life. You don’t have to be a doctor to help other people. You don’t have to work in an office all day, every day.
Do what you love and the money will follow.
If you do something that you love, you will never have to work a day in your life. If you do what you love, and are good at it, people will pay for that service or product.
Do what makes YOU happy. If you’re not happy, no one else will be either.
Don’t let anyone tell you what to do with your life. You should never have to justify your decisions or choices to anyone. You are the only one who has to live with your decisions and choices.
Do what you want, not what other people want for you or think that you should do. Period.
#2 – Identify What Interests You & Makes You Tick
There are a variety of ways you can go about finding out what interests you. You can read books and articles on different topics, talk to people with various careers, or take online quizzes and assessments – like this what should I do for a living quiz.
The first step to finding the right career for you is to identify what interests you intellectually.
What fascinates you?
What makes you feel like you are not working?
How do you want to spend your free time?
Once you know what fascinates you, the next step is to figure out how you can turn this into a career. Then, pursue your career interests relentlessly so you can reach your full potential.
#3 – Uncover your Strengths
Identifying your strengths is the key to finding opportunities that will be a good fit for you and enable you to reach your full potential.
Here are some things to take note of:
Pay attention to what you enjoy doing.
Notice when you feel most energized and engaged.
Consider what you do well naturally.
Reflect on feedback you’ve received from others.
Ask yourself how you can use your strengths more often in your current role or situation.
Once you know what they are, make sure to pursue opportunities that are based on them. This will help you stay focused and motivated in your work and life.
#4 – Match Your Values With Your Interests
Your values are the things that are most important to you in life. They guide your decisions and actions. They direct you to live a life that is meaningful to you.
There are many ways to identify your values. One way is to think about what is most important to you in different areas of your life, such as your relationships, work, leisure activities, and so on. Another way is to think about what you would like people to say about you when you are no longer here. What do you want them to remember about you?
Once you have identified your values, it can be helpful to write them down or share them with someone who will support and encourage you in living according to them.
When you link your values and interests together, it creates a powerful combination that can help you to live a more fulfilling and meaningful life.
When you know what is important to you (values) and what makes you happy and excited (interests), it becomes much easier to make decisions about how to spend your time and energy.
For example, let’s say one of your values is “family” and one of your interests is “cooking”. You could combine these by cooking meals for your family members or friends. Not only would this be enjoyable for you (because it aligns with your interest in cooking), but it would also be meaningful because it would be an act of love and care for those closest to you (which aligns with the value of family).
#5 – Consider your Lifestyle
Are you okay living below your means? Or do you prefer to flash your cash?
If you tend to spend money frivolously or struggle with saving money, then you need to be a high-worth earner. If you are okay living stingy, then a modest salary will probably work for you.
Keep in mind your lifestyle and what would be the best fit for you.
Consider if the hours are flexible, if you’d have time for hobbies and other interests, and how the commute looks. Sometimes rethinking your opportunities can give you a better perspective on what’s truly important to you.
Other Questions to Ponder:
Do you want a job that will consume most of your time?
Do you want a job where you can have a good work-life balance?
Are you okay with being tied to one location or have the flexibility to move around?
Are you willing to travel for work? If so, how often and how far?
What are your salary expectations? Are you looking for health benefits, paid vacation, or other perks?
Ultimately, there are many factors going into your decision. When considering a new potential career opportunity, it’s important to think about more than just the paper qualifications and the salary.
#6 – Spend Time Doing your Research
The best way to find a career you love is to first figure out what it is that you’re passionate about. What are the things that make you excited to get out of bed in the morning? Once you know what your passions are, research careers that align with those interests.
This just doesn’t happen overnight.
In fact, I recently went back to something of interest to me years ago because it would provide the time freedom I desired.
Spend time doing your research and following all the steps we cover in this post.
#7 – Find a career that matches your skills and interests
It can be difficult to identify what you want to do with your life, especially if you’re feeling lost or uncertain.
However, once you’ve identified what areas of interest might suit your skillset, try to link these interests with some type of career options.
Consider how your interests would fit into potential careers before choosing one.
It’s important to consider how your unique passions would fit into certain occupations or fields of work before choosing one. This will help you find a career that is satisfying and fulfilling. Consider the skills and interests you have and search for job openings that match them.
Start by researching the field you’re interested in.
# 8 – Talk to people in the field
There are a few ways to find people to talk to about your career interests. You can start by talking to friends and family members who might know someone in the field you’re interested in. You can also look for professional organizations related to your field of interest, or search for networking events in your area.
When you’re talking to someone about their career, it’s important to ask questions that will help you learn more about the field and whether it’s a good fit for you. Some questions you might want to ask include:
What does a typical day look like?
What is the most challenging part of the job?
What are the biggest rewards of the job?
These people will have better insights than what you can find searching the internet.
#9 – Get experience in the field
Oh, I cannot tell you how important this step is!
You have heard a similar story… my son dreamed of being an engineer and we planned to send him to engineering school. After his internship, the thought of being an engineer sucked the life out of him. Glad we learned this lesson before we spend money on his college education.
That is why I believe schools like this are so important to get real-life experience doing what you think you want to do for a living.
Consider internships or volunteer work to get your foot in the door.
Gaining experience can help you learn more about a particular field or company, and whether or not it’s the right fit for you.
#10 – Be open to change
Here are some things to keep in mind with change.
1. Change can lead to new opportunities: When you’re open to change, you’re also open to new opportunities. Embracing change can help you find a new job, start a business, or even move to a new city.
2. Change can help you grow: Personal growth is important for a fulfilling life. Change can challenge you and push you out of your comfort zone, leading to personal growth.
3. Change can be exciting: If you’re bored with your current situation, change can be exciting. It’s a chance to start fresh and experience something new.
4. Change can be positive: Even if it’s difficult, change can ultimately be positive. It can lead to improved relationships, increased happiness, and a better life overall.”
15 Most Popular Working for a Living Jobs
Many people want to know what they should do for a living.
For some, it’s not as easy as just “doing what you love.” There are definitely jobs out there that allow you to do what you love and make a living.
But first, we need to talk about the types of work available.
All salary estimates from Salary.com.
Registered Nurses
Registered nurses are in high demand and make a good living. They work with patients to assess their health, provide treatments, and help them recover.
Average Pay: $65k-70k per year
Education Needed: You need to have a nursing degree from an accredited school. You will also need to pass the National Council Licensure Examination for Registered Nurses (NCLEX-RN)
Police Officers
Police officers are responsible for upholding the law and maintaining public safety. A successful career in law enforcement requires strong communication skills and the ability to stay calm under pressure.
Average Pay: $54k-72k per year
Education Needed: Requires a college degree
Security Officer
More people are looking for security officer jobs as the world becomes increasingly dangerous. Security officers are in high demand and are usually the first responders in an emergency situation. It’s a challenging and rewarding career that can make a difference in people’s lives.
Average Pay: $32k-53k per year
Education Needed: Depends on their background and previous experience.
Real Estate Agents
If you’re looking for a job that’s in high demand, consider becoming a real estate agent. With the right education and licensing, you could be helping people buy and sell homes in no time. You must be comfortable marketing yourself and closing sales.
Average Pay: $38k-140k per year
Education Needed: Real estate agents need to be licensed in order to work. The real estate agent licensure test has a written and practical exam that must both be passed. In order to pass, you will need to know about contracts, financing, legal issues, and more.
Nursing Assistant
One of the most popular jobs in America is nursing assistant. It requires little training and pays relatively well. The work can be demanding, but it is also rewarding, and many nursing assistants feel a sense of satisfaction from their work.
Average Pay: $29k-41k per year
Education Needed: The Nursing Assistant job requires a high school diploma or equivalent, on-the-job training, and certification.
Delivery Driver
One of the most popular jobs in America is being a delivery driver. There are many positions for delivery drivers with different companies. Popular companies to work for include UPS, FedEx, and Amazon.
Average Pay: $39k-54k per year
Education Needed: Minimal. To become a delivery driver, you need to have a valid driver’s license and be able to lift heavy objects.
Firefighter
The most popular jobs in the United States vary from year to year, but there are always a few constants. Among these are firefighters, who protect lives and property from fires and other emergencies. They undergo rigorous training and must be physically fit to do the job.
Average Pay: $54k-94k per year
Education Needed: To become a firefighter, you need to have completed high school and be at least 18 years old. You will also need to pass a physical test and complete a training program.
Customer Service Representative
A customer service representative is the front line of a company and often the first interaction a customer has with the brand. The customer service representative’s job is to handle customer complaints, provide product information, and handle other inquiries. In order to be a successful customer service representative, one must have excellent communication skills and be able to stay calm under pressure.
Average Pay: $28k-44k per year
Education Needed: Minimal. Most require on-the-job training.
Dental Assistants
Dental Assistants are needed in every dental office. They help the dentist chair-side and perform a variety of tasks such as: take X-rays, prepare patients for treatment, sterilize instruments, and more. The Bureau of Labor Statistics projects that the number of jobs for Dental Assistants will grow by 18% from 2016 to 2026.
Average Pay: $32k-50k per year
Education Needed: To become a dental assistant, you will need to complete an accredited program and pass certification exams.
Nanny
One of the most popular jobs, and one that is likely to continue being in high demand, is nannying. To become a nanny, it is important to have experience with children and to be comfortable caring for them.
Average Pay: $37k-51k per year
Education Needed: You should also be CPR certified and have a clean background check.
Medical Assistants
A medical assistant is responsible for a variety of tasks in a doctor’s office, such as handling insurance claims, scheduling appointments, and helping the doctor with examinations.
Average Pay: $33k-44k per year
Education Needed: The job requires certification from an accredited program and on-the-job training.
Home Health Aides
Being a home health aide can be a rewarding career. Home health aides assist people who are unable to care for themselves in their own homes. They may provide basic needs such as bathing and dressing, or they may provide more specialized help, such as caring for someone who has Alzheimer’s disease.
Average Pay: $23k-33k per year
Education Needed: In order to be a home health aide, you need to have a high school diploma or equivalent, be at least 18 years old and have a driver’s license.
Personal Assistants
Being a personal assistant is a profession that helps people with various tasks. These tasks can include things like preparing meals, cleaning, and running errands. There are many different types of personal assistants, but all of them must have good communication skills and be able to multi-task.
Average Pay: $50k-83k per year
Education Needed: None
Graphic Designer
A graphic designer creates visual concepts, using computer software or by hand, to communicate ideas that inspire, inform, and captivate consumers. They develop the overall layout and production design for advertisements, brochures, magazines, and corporate reports.
Average Pay: $39k-65k per year
Education Needed: Many hold a bachelor’s degree in graphic design or related fine arts field.
Marketing Manager
A marketing manager is responsible for planning and executing marketing campaigns that promote a company’s products or services. They must have a strong understanding of marketing principles and be able to develop creative strategies that will engage consumers
Average Pay: $47k-94k per year
Education Needed: Usually need a least a bachelor’s degree, but the experience is more important.
High Paying Career Opportunities that Pay Over $100k a Year
There are many popular career choices that people will argue about. For example, which is the best job? This section covers jobs that pay over $100000 a year.
These jobs typically have six-figure salaries and require years of schooling and training.
Software Engineer
A software engineer is someone who designs, creates, tests, and maintains the software that makes computers work. They design, develop, test, and maintain the software that makes our lives easier. As technology advances, the job of a software engineer becomes more and more important. Writes code, tests, and debugs programs and perform a variety of complicated tasks.
There is a high demand for software engineers in the airline industry. Pilots need software engineers to design, develop, and maintain the software that controls the aircraft. They also need software engineers to help with the maintenance and troubleshooting of the software.
Average Pay: $65k-130k per year
Education Needed: Requires a college degree. Many have master’s degrees as well. To become a software engineer, one must have a strong foundation in mathematics and computer science.
Database Administrator
A database administrator is responsible for designing, implementing, maintaining databases, and troubleshooting databases while ensuring their availability 24/7/365. They work with clients to understand their needs and create databases that meet those needs. Database administrators need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-150k per year
Education Needed: May require a bachelor’s degree in area of specialty or require certification.
Investment Banker:
A career as an investment banker can be quite fulfilling, as you will be responsible for helping companies raise money by issuing and selling securities. You will need to have a good working knowledge of financial markets, as well as excellent communication and organizational skills. As well as provides analysis of opportunities and potential investments, assists clients with the formulation of investment proposals, and provides guidance on the structuring and negotiation of transactions.
Average Pay: $56k-110k per year
Education Needed: College degree is typical and may require an advanced degree.
Air Traffic Controller
Air Traffic Controllers work in airports to ensure safe and efficient air travel. They monitor aircraft and make sure they follow all the necessary safety procedures. They also direct the movement of flights and keep an eye on traffic congestion. An air traffic controller is key for the safety of the pilots and passengers.
Average Pay: $54k-120k per year
Education Needed: Requires certification from the Federal Aviation Administration (FAA).
Petroleum Engineer:
There is an increasing demand for Petroleum Engineers. They are responsible for the exploration and production of oil and gas and work in a variety of industries, including energy, mining, and transportation. They develop plans to extract oil and gas from deposits below the earth’s surface and new ways to extract oil and gas from old wells.
Average Pay: $82k-120k per year
Education Needed: Requires a bachelor’s degree in engineering. May specialize in reservoir engineering, drilling engineering, or production engineering.
Anesthesiologists
Anesthesiologists are responsible for the care of patients during and after surgery. They monitor patients to make sure they are safe, help them breathe, and make sure they are comfortable.
Average Pay: $310k-520k per year (most anesthesiology assistants make well over $100k)
Education Needed: Requires a bachelor’s degree. Then, medical schools are offering anesthesiology education.
Airline Pilots
Being an airplane pilot is a very demanding job. Pilots need to be able to stay focused for long periods of time while flying. They also need to be able to make quick decisions while flying. Pilots also need to be able to multitask while flying. With travel demand constantly growing, there will be a growing need for pilots.
The airline pilot profession is a very demanding one that requires a great deal of education and training. It takes many years of dedicated study to become a qualified airline pilot.
Average Pay: $125k-163k per year
Education Needed: In order to become a certified pilot, pilots must first complete an accredited undergraduate program. After that, they must complete a professional pilot training program that can last anywhere from 1 to 4 years. Finally, they must pass a certification.
Psychiatrists
There are many different types of psychiatrists and their job duties vary. Psychiatrists are typically employed as full-time employees in hospitals, clinics, or private practices. A psychiatrist’s job duties may include diagnosing mental disorders and providing treatment.
Average Pay: $190k-300k per year
Education Needed: Usually required to have a graduate degree in psychiatry and pass a psychiatric board examination.
Orthodontists
Orthodontists are a type of doctor who specializes in the treatment of teeth and jaws. They use orthodontic appliances (braces and retainer devices) and other treatments to correct problems with teeth and jaws. Orthodontists typically work in private clinics and hospitals.
Average Pay: $100k-210k per year
Education Needed: Required to have a four-year undergraduate degree in dental hygiene, dental medicine, or dental technology. After completing an orthodontic residency, they must pass the American Board of Orthodontics (ABO) license examination.
Day Trader
A day trader is someone who makes a living by trading stocks, commodities, or currencies. They do this by buying and selling stocks, commodities, or currencies at the right time, and making a profit. This means that they are constantly on the lookout for opportunities to make money. A day trader typically works from home and may use a computer, telephone, or other electronic devices to trade.
Average Pay: $65k-120k per year
Education Needed: Required None required. However, many have a background in finance or economics.
Hedge Fund Manager
A hedge fund manager is a person who manages hedge funds. Hedge funds are investment pools that are used to protect investors from losses. Hedge fund managers make money by investing money in different types of securities.
Being a hedge fund manager is a very demanding job. It requires a lot of skill, knowledge, and experience. A hedge fun manager must be able to analyze financial data and make decisions quickly. He or she must also be able to communicate with clients and other employees of the hedge fund.
Average Pay: $87k-131k per year
Education Needed: Hedge fund managers must have a strong educational background. Studying finance or economics is usually necessary.
Web Developer:
A web developer is responsible for creating and maintaining websites. They work with clients to understand their needs and create a website that meets those needs. Web developers need strong technical skills, as well as good communication and problem-solving skills.
Average Pay: $97k-140k per year
Education Needed: College degree required. Must have certifications as well.
Network Engineer
A network engineer is responsible for designing, implementing, and maintaining networks. They work with clients to understand their needs and create networks that meet those needs. Network engineers need strong technical skills, as well as good communication and problem-solving skills
Average Pay: $73k-120k per year
Education Needed: College degree required. Must have certifications as well.
Trade Jobs that Pay A lot More than Minimum Wage
Trade jobs often come with good pay. This is because they require specialized skills and training. Some of these jobs include welders, plumbers, and electricians. Many trade jobs also come with good benefits packages. This includes things like health insurance and retirement plans. Some even offer the choice to join a union.
For example, welders and power plant operators can make an average of $23 an hour. Plumbers and electricians can make an average of $30 an hour.
Power Plant Operator
Aircraft Technician
Welders
Plumber
Construction Manager
Electricians
Real Estate Appraiser
HVAC Technician
Elevator Mechanic
Radiation Therapists
Boilermakers
Most Needed Job Opportunities
There are a number of jobs that are on-demand and in high demand right now. These jobs may have different requirements or be in higher demand in certain areas, but they all offer the potential to make a good living doing something you love.
There are many trade jobs that are in high demand right now. This means that there are more job openings than there are people to fill them.
This list of the top five jobs in demand right now was formed with the help of Best Colleges.
Nurse Practitioner
A Nurse Practitioner is a type of doctor who helps patients with a wide range of health problems. They work in a team with other doctors and nurses to care for patients.
Nurse Practitioners are trained to diagnose and treat a wide range of health problems, which can include everything from common colds to more serious diseases.
Average Pay: $100k-140k per year
Education Needed: Medical training is beyond what a registered nurse needs. A Master’s in nursing is required as well as state licensure.
Genetic Counselor
A genetic counselor is a healthcare professional who helps individuals and families understand and adapt to the medical, psychological, and social implications of genetic disorders. They work with patients to provide risk assessment, education, and support for inherited conditions.
Genetic counselors are poised for rapid growth and long-lasting job security due to advancements in genomics and genetic testing.
Average Pay: $67k-99k per year
Education Needed: Master’s degree in genetics and board certification.
Occupational Therapy Assistant
An occupational therapy assistant (OTA) is a healthcare professional who helps people regain and improve the skills they need to live and work independently. They provide rehabilitative services to patients who have sustained an injury, have a disability, or are experiencing physical and/or cognitive changes.
This may include helping individuals improve their mobility, balance, and coordination through exercise programs; improving the social skills of children with developmental challenges; working with people who have mental health conditions to help them participate in daily activities; or providing support to elderly patients who want to remain independent.
Average Pay: $52k-76k per year
Education Needed: Associate’s degree and field experience.
Physical Therapist Aides
Physical therapists aides help patients who have physical problems such as bed sores, fractures, and paralysis. They work with the physical therapist to help the patient move and perform activities of daily living. Typically duties include helping patients with exercises, massages, and other treatments.
Average Pay: $30k-38k per year
Education Needed: Physical therapist aides must have a high school diploma or GED and pass a criminal background check.
Information Security Analyst
The information security analyst job market is projected to grow by 33% over the next three years, making it one of the fastest-growing job markets. Information security analysts are vital to the protection of data and are responsible for the protection of computer systems and networks from cyberattacks and data breaches. They work to protect an organization’s most valuable assets- its data.
Average Pay: $70k-103k per year
Education Needed: Most have a Bachelor’s degree in software engineering or computer science. Also, many have certifications.
Thinking to Follow Your Passion – Cool Jobs to Do
There are a variety of jobs that you may not have considered that can be a great fit for you.
If you’re looking for a career change or just want to try something new, here are a few jobs you may want to consider. These jobs offer great opportunities and allow you to do what you love every day.
Video Game Programmer or Designer
If you love playing video games and have some creativity, you may want to consider becoming a videogame designer. This job allows you to use your imagination and creativity to create new and innovative gaming experiences for players all over the world.
Average Pay: $53k-185k per year
Education Needed: A college degree in computer programming is preferred. However, you can program get a certification and start working sooner.
Virtual Assistants (VA)
Being a virtual assistant can be a great way to make some extra money. It can be a lot of work, but with the right skills and equipment, it can be a lot of fun. Virtual assistants work with people all over the world, so there is always something new to learn. A VA has very flexible hours and can set its own schedule.
Average Pay: $39k-52k per year (depending on how much you hustle). Very common to make more.
Education Needed: None. But, this virtual assistant training is highly recommended.
Video Producer
There are a variety of video production jobs that are in high demand. If you have the skills and are passionate about video, there are plenty of opportunities out there. You could work as a video producer for a news organization, create video content for a website, or work for a company that produces video content for marketing purposes.
Average Pay: $47k-100k per year
Education Needed: Most have a college degree in design and video production. But, experience is preferred.
Tour Guide
If you are good at giving information tours, you may want to consider becoming a tour guide. Tour guides give visitors an overview of a particular place or attraction. They must be knowledgeable about the history and culture of the area they are touring, and be able to answer visitor questions.
Average Pay: $22k-44k per year
Education Needed: None.
Fashion Stylist
Detail-oriented people who have a passion for fashion and design can make a great living as a stylist. Stylists are in high demand, especially in the fashion industry. They typically work with clients to help them choose outfits or styles that will suit them, as well as style photo shoots and provide consultation on current trends.
Average Pay: $47k-64k per year
Education Needed: This is a job where you get popular by your experience and referrals.
Translators
Being a translator can be a very rewarding and challenging career. The most popular jobs for translators are in the legal, medical, business, and technical fields.
Translating is a very versatile job that can be done in many settings. Learning about the different types of translation and which language pairs are the most popular can help you get a better understanding of the field.
Average Pay: $43k-72k per year
Education Needed: Typically hold a bachelor’s degree. Must be proficient in at least two languages.
Social Media Manager
If you are able to communicate well, have strong writing and communication skills, and have some marketing experience, you may want to consider becoming a social media manager. A social media manager is responsible for developing and executing a social media strategy for their employer or client.
A social media manager is responsible for creating and managing a company’s social media presence. This includes creating content, monitoring activity, and engaging with followers.
Average Pay: $49k-75k per year
Education Needed: A college degree in marketing is preferred.
Event Planner
Event planners are in charge of organizing and managing events. They come up with ideas for events, coordinate with various departments to make them a reality, and keep things running smoothly. Event planners can work for businesses of all sizes, from small businesses to multinationals. There are many different types of event planners, so if you’re interested in a career in events, you should explore this avenue.
Average Pay: $47k-70k per year
Education Needed: Many have a college degree, but that is not mandatory. Strong organizational skills, attention to detail, and ability to work under pressure. Experience is best.
Florist
There are many cool jobs that you can consider if you are interested in the floral industry. A florist can work in a variety of settings, such as a grocery store, a restaurant, or a ballroom. A florist can also work as a freelance artist, creating floral arrangements for special events. This is a creative outlet for many and comes with flexible hours. However, work can be seasonal and require working on weekends and holidays.
Average Pay: $35k-76k per year
Education Needed: Nothing special. Just have an eye for creativity and a love of flowers.
Work Opportunities to Make Real Money
How do you want to make money? There are many ways. You could choose a career in medicine, law enforcement, or any other occupation that ultimately benefits society and helps people thrive.
Many people believe a business degree is worth it, but may not be the best choice for you.
Here are real jobs to make real money at work.
Teacher
One of the most popular jobs in America is teaching. Teachers are needed in every state, and the profession offers great stability and benefits. We need our teachers to teach the next generation.
Average Pay: $39k-80k per year
Education Needed: In order to become a teacher, you need to have at least a bachelor’s degree and be certified in your state. Many pursue a master’s degree in order to receive higher pay.
Veterinarian / Veterinary Tech
There are a lot of different jobs in the veterinary field, and if you love animals, chances are you would enjoy working with them. Veterinarians work with all types of animals, from pets to livestock. Veterinary technicians work with animals in veterinary hospitals, performing tasks such as recordkeeping and taking care of furry patients.
Average Pay: $60k-150k per year / $25k-55k per year
Education Needed: Becoming a veterinarian is much like going to college to become a doctor requiring specialty degrees. However, a vet tech only needs a high school diploma.
Construction Worker
Being a construction worker can be a challenging, but rewarding experience. It can be a great way to meet new people and build some amazing structures. The job requires a lot of physical labor, but it can also be very rewarding to see a project come to life. If you are interested in becoming a construction worker, be sure to research the profession and prepare yourself for the challenges that will come with the job.
Average Pay: $26k-47k per year
Education Needed: Starting out no experience is needed. To become a project manager, you will need a college degree.
Marketing Assistant
A marketing assistant helps with a variety of tasks in marketing. They may be responsible for monitoring and managing budgets, creating and distributing marketing materials, or working with customers to improve their experience with a company. If you have a strong interest in marketing and are comfortable working in a collaborative environment, a marketing assistant role may be a good fit for you.
Average Pay: $34k-57k per year
Education Needed: A college degree in marketing is preferred.
Truck Driver
One of the most popular jobs in America is a truck driver and a heavily needed position. The Bureau of Labor Statistics reports that there are 1,187,500 truck drivers employed in the United States.
Average Pay: $45k-58k per year
Education Needed: A high school diploma or equivalent is typically required to become a truck driver.
Administrative Assistant or Office Manager
The Administrative Assistant position is one of the most popular jobs in America. The role generally entails providing support to managers and employees, handling office operations, and managing schedules. In order to be successful in this career, you’ll need strong organizational skills and proficiency in Microsoft Office.
Average Pay: $35k-55k per year
Education Needed: None
What Should I Do for a Living FAQs
You enjoy going to work,
Your work makes you feel fulfilled.
Your skills are utilized and challenged.
You feel like you are making a difference.
This is why it is important to spend time making a decision on what to do for a living.
You’re not passionate about your work
You’re always stressed out
You dread going to work
You’re not challenged by your work
You don’t feel like you’re making a difference
It is better to make a decision to move out of the wrong career to maintain your happiness in life.
Research other careers that might be a better fit for you and consider making a switch.
Your interests can give you clues about the types of careers that might suit you. Your skills can help point you towards careers that will make use of your strengths.
Passions:
What are you passionate about?
What topics can you talk about for hours without getting bored?
Skills:
What natural talents do you have?
Are you good at working with your hands, or do you prefer working with your mind?
Do people often come to you for advice or help with problems?
Values:
What is important to you in a job?
Do you want to feel like your work makes a difference in the world, or do you just want a steady paycheck?
Do you prefer working independently or as part of a team?
Personality:
Are you an extrovert or an introvert?
Do people describe you as spontaneous or cautious?
Work environment:
Do you prefer working indoors or outdoors?
In an office or from home?
With animals or with people?
When it comes to choosing a career, it’s important to consider what kind of personality traits will make someone successful in their chosen field. Also, knowing your values can help narrow down your career options.
How can you create a career you love?
Your career is one of the most important aspects of your life. It’s what you spend the majority of your time doing, and it can have a huge impact on your overall happiness and satisfaction with life. That’s why it’s so important to find a career that you love.
When you have a career that you’re passionate about, it doesn’t feel like work. You’re more likely to be engaged and motivated, and you’ll be more likely to stick with it even when things get tough. Plus, pursuing a career that you love can lead to all sorts of other benefits, like increased success and earning potential.
There is no reason why you can’t create a career that brings joy into your life every single day!
How can you make a living doing what you love?
What are you good at? What do you enjoy doing? Which things are you naturally drawn to?
Those are the areas you need to focus on.
Once you have a plan, it’s time to start making money. There are a number of ways to do this, but the most important thing is to get started and keep moving forward.
Remember, it takes time and effort to build a successful business or find an enjoyable career.
What Should I Do Now?
There’s no single answer to the question “what should I do for a living?”
Everyone has a different idea of what they would like to pursue.
There is no right or wrong answer when answering this question, but if you are struggling with the decision-making process, take note of these most popular jobs and the skills you need to get them.
But by exploring your interests and values, you can find a career that is a perfect match for you.
No matter what your interests or skills may be, there is sure to be a cool job out there that is perfect for you.
You could also become an environmental scientist, web developer, or event planner. There are many exciting and rewarding careers out there – you just need to find the one that’s right for you.
Then, at the next social event, you can be proud to answer “what do you do for a living?”
So what are you waiting for? Start your search today!
More Ideas for You:
Know someone else that needs this, too? Then, please share!!
Inside: You are wanting to work from home. Here are the best non phone work from home jobs. Exactly what you wanted to find.
Are you looking for a work from home job but don’t want to deal with people? You’re in luck!
There are plenty of non-phone jobs that allow you to work from the comfort of your own home.
This is becoming more and more popular because it allows you autonomous work without the influence of talking to others.
Plus we will cover the best non phone work from home jobs! There are many options available.
To help you get started, we’ve compiled a list of the 35 best non-phone jobs for you:
Can you work from home without talking on the phone?
Yes, you can work from home without talking on the phone.
More and more jobs are transitioning away from the use of a phone. So, there is no better time than to transition yourself.
Best non phone work from home jobs
Here is a comprehensive list of the best non phone work from home jobs.
You will find a variety of part-time, full-time, and contract opportunities in a wide range of fields. Also, the opportunity to become your own boss.
1. Stock Trader
Stock traders must have a good understanding of market trends, economic forces, and have the ability to make quick decisions based on their analysis.
The benefits of working as a stock trader include high pay, job security, and the potential to make a lot of money if the stock market is performing well.
Additionally, stock traders are able to work from home and have flexible hours, meaning that they can plan their working day around other commitments.
Personally, this is one way I make money is by trading stocks and options. Join the $1000 in a day club.
2. Video Editor
A video editor is someone who works with audio and visual content to create cohesive and engaging visuals for either commercial or creative purposes.
They use various software programs to manipulate video clips, sounds, and images in order to create a compelling story. The role of a video editor involves careful attention to detail and the ability to utilize a wide range of software and hardware.
The advantages of a job as a video editor include the potential to work from home and create a flexible schedule, as well as the potential to make great money, depending on the level of experience.
Additionally, it can be a great way to express creativity and further develop important skills.
On the other hand, one of the major disadvantages of working as a video editor is the high stress level that comes with the role.
Video editors are often under pressure to deliver projects under tight deadlines, which can lead to increased pressure and stress. Additionally, there is often a steep learning curve, as video editing requires a lot of technical knowledge and experience.
3. Proofreader
Proofreading is a non-phone work from home job that involves reading and carefully reviewing written documents for errors of spelling, grammar, syntax, and punctuation. It also involves making sure that the text makes sense and is consistent with the document’s purpose.
Proofreaders are expected to identify and correct errors as they appear in the text.
The pay for proofreaders is typically between $44k and $58k per year.
To make the job easier, I would take the Proofreading Anywhere course to understand what is expected of you.
4. Data Entry Jobs
Data entry clerks are often required to sort, organize, and verify the accuracy of data before entering it into the computer system.
Additionally, this type of job does not require any prior experience and can be learned quickly.
Data entry clerks can usually make an hourly wage, which makes it a great option for those looking for a side income. Furthermore, data entry clerks are often hired for short-term or part-time projects, allowing them to pick and choose their hours.
5. Writer
Typically, the role of a writer is to produce content, such as blog posts, articles, product reviews, press releases, and more, for various companies.
Writers must have a good command of the English language and demonstrate great grammar and spelling in order to be successful. Additionally, writers must have the ability to create content that is search engine optimized and persuasive.
Many people have found the Earn More Writing course helpful to bump start your freelance writing potential.
All in all, freelance writing is a great way to make a living and offers flexible hours, the potential for long-term growth, and higher pay rates.
6. Web Search Evaluator
Search engine evaluators have the important job of ensuring that search engine results are relevant and accurate to the user’s intent.
For example, a user might enter the search query ‘chocolate cupcake recipes’, and the search engine should return relevant results such as recipes. If the search results are irrelevant or inaccurate, the search engine evaluator is tasked with rating them accordingly.
Search engine evaluators typically earn around $20 per hour and can make up to $40k a year if they take the job as full-time professional.
7. Virtual Bookkeeper
A virtual bookkeeper is a professional who can provide bookkeeping services to businesses from remote location.
Most people choose to work for themselves as a bookkeeper with a bookkeeping side gig (or full-time business).
One of the main benefits of working as a virtual bookkeeper is that no college degree or qualification is needed to get started. Generally, bookkeepers charge around $80 an hour or more for their services.
Finally, you can learn more about getting started with Bookkeeper Launch to help you become a freelance bookkeeper.
8. Image Reviewer and Photo Editor
Similar to a video editor, a photo editor’s duties include, but are not limited to, ensuring that images display the desired quality, accuracy, and clarity; checking for visual consistency across all images; editing images to make them look more appealing; and providing feedback on the images.
Additionally, they may be responsible for curating collections of images, creating new content, and managing projects.
For those looking to sell on Shutterstock, this is a great side hustle.
9. Create and Sell Printables on Etsy
With a little creativity and the right software, you can create unique printables that customers can purchase and print out themselves.
This can be a great way for you to make passive income with minimal effort.
In fact, my friends Cody and Julie did so well selling printables; they now teach others how to make a living creating and selling printables.
10. Selling on Amazon (FBA program)
This is a way to make money by reselling products you find online or in brick and mortar stores on Amazon for a higher price.
Amazon will ship the products to your customers, handle customer service, and even provide storage for the products.
With the right amount of work and dedication, you can make quite a bit of money with FBA.
11. Blogger
With blogging, you have the ability to work from anywhere in the world with just a computer and an internet connection.
You can write about whatever topics you are passionate about and be your own boss.
You can also make money blogging through various income streams such as affiliate marketing, paid sponsorships, ads, and more.
12. ESL Instructor
The job of an ESL (English as a second language) instructor is to provide English language instruction, usually via webcam, to those who are not native English speakers.
The benefits of this job are numerous: it allows for flexible hours, can be done from anywhere in the world, and offers an opportunity to make a difference in the lives of learners from all over the world. Additionally, being an ESL instructor allows one to learn about other cultures, stay up to date with language trends, and gain valuable professional experience.
To get the job, you need to have a thorough understanding of the English language and pass any certification tests.
This is a great type of job that pays weekly.
13. Virtual Assistant
A virtual assistant (VA) is a professional who provides administrative and technical support to clients remotely. They help with a variety of tasks like answering emails, data entry, blog management, bookkeeping, editing, proofreading, marketing, research, filing documents, and customer service – to name just a few.
The type of services you offer will depend on your skills, experience, and education.
The biggest benefit of working as a VA is that you can work from home and set your own hours.
And the pay can be quite lucrative, with rates ranging from $25 to $100 an hour.
If you’re interested in becoming a VA, Kayla Sloan offers a free workshop that teaches people how to become Virtual Assistants and makes up to $10,000 a month. Download her Virtual Assistant checklist.
14. Accountant
An accountant is a professional who is responsible for tracking financial records and preparing financial statements for a business or individual. They ensure that their clients’ finances are accurate and in compliance with applicable laws and regulations.
One of the primary benefits of working from home as an accountant is flexibility. You are able to work your own hours and set your own schedule. This allows you to create a better work-life balance and also gives you more time to spend with your family.
15. Freelance Jobs
A freelancer is someone who does work for themselves and not for a company.
This is typically contract-type work.
You can find freelance jobs on sites such as Upwork, Fiverr, or People Per Hour.
The best way to freelance is to know your own skills and how to monetize them.
16. Editor
An editor is a professional who is responsible for reviewing and improving documents, whether that be in print, online, or even on video.
Editing involves ensuring accuracy, flow, grammar, and style. This is a great non phone work from home job because it allows for great flexibility and does not require a college degree.
Most positions are freelance which means that you can work on your own schedule and take on as much work as you can.
17. Social Media Manager
Social Media Managers are in charge of maintaining a client’s presence on a variety of social media sites, such as Facebook, Pinterest, Instagram, Snapchat, YouTube, Twitter, and Google Plus.
They are expected to respond to comments, manage brand partnerships, create posts, photos, and videos, and track analytics to come up with an effective marketing strategy to promote their client’s accounts.
In addition to creating content, Social Media Managers typically monitor and moderate what is posted on the client’s social media accounts. They are usually responsible for ensuring that the content is appropriate and that the rules and regulations of the platform are followed.
The potential salary range for Social Media Managers can vary, but they can typically make $78000 per year.
18. Transcriber
A transcriber’s role is to convert audio recordings into written documents. They listen to audio files and type out what they hear.
Transcribers have the advantage of being able to work from home and can earn up to $21 per hour or more if they start their own business. They also have the potential to increase their wage upon gaining more experience.
Additionally, transcribers do not need to interact with other people, making it an ideal job for those who are more introverted or prefer working alone.
Finally, there are various resources available to help transcribers get started, including free mini-courses and companies that hire experienced and beginner transcribers.
19. Marketing Associate
As a Marketing Associate, you’ll be responsible for a wide variety of tasks, including developing and executing marketing campaigns, conducting market research, creating content, and managing and optimizing paid search, video creation, and other digital marketing efforts.
Additionally, you may be asked to support customer service via live chat, social media, text, and email.
The ideal candidate for this role will have excellent communication skills, be proficient in typing and have excellent spelling and grammar, and be passionate about social media platforms.
20. House sitter
A house sitter is someone who stays in a home while the homeowners are away and provides care for the premises and any pets that the homeowners may have.
The job of a house sitter includes tasks such as watering plants, taking out trash, and performing general maintenance of the property.
House sitters can benefit from the opportunity to experience different places, save money on rent, and have some extra time to explore their surroundings.
Platforms such as TrustedHousesitter.com make finding house-sitting jobs easier than ever before.
21. Online Tutor
The role of an online tutor is to guide students in their studies and help them understand a particular subject or skill virtually, through video chat or online software. Plus you have the opportunity to work with students from different countries.
Online tutoring jobs vary in requirements, but typically a bachelor’s degree or current college enrollment is needed.
They provide instruction and guidance, assist students with assignments, answer questions, and give feedback on their progress. The tutor also has a responsibility to motivate and encourage their students to stay on task and reach their academic goals.
22. Pet-Sitting Jobs
Pet sitting jobs can be a great way to make some extra money from home while spending time with animals (and not people)!
With Rover, you can earn anywhere between $10 and $20 an hour for dog walking, $20-30 for overnight stays, and some people are even making $1000+ a month in metro city areas. As a pet sitter, you have to stay at home with someone else’s pets and they pay you for taking care of their pets.
Rover.com is a great platform to find pet sitting jobs as they offer a wide range of services such as dog walking, pet sitting, and pet care.
23. Personal Stylist
Personal styling is an exciting and relatively new job that offers the opportunity to work from home. The role of a personal stylist is to help clients express their individual style through the selection of clothes, accessories, and other items.
It involves curating a set number of clothing items and accessories based on the client’s fashion profile. This job requires an eye for detail, an innate sense of style, and creativity.
It’s perfect for creative individuals who are passionate about fashion and have an eye for details.
24. Website Tester
Website testers are typically paid to assess the overall user experience on a website and provide feedback on how to improve it. W
You do not need a phone to complete your tasks; they only require a laptop with a webcam and microphone to record your observations.
Website testing is a non-phone work from home job that pays good money to ensure that websites are user-friendly. It is a flexible and straightforward way to make some extra cash.
25. Closed Captioner
A closed captioner is a person who transcribes audio into text for specific use on video.
This is a great job for those who learn and work better visually, as well as those who can type quickly and accurately. This type of work allows for a very flexible work schedule, meaning you can work when you are most productive and there is no need for any phone interactions.
You get the freedom to work on your own schedule and make a decent amount of money doing something that doesn’t require phone conversations.
26. Online Test Scorer
An online test scorer is responsible for scoring assessments such as tests, exams, and essays from students of high school or college. This job requires a certain level of expertise, as the test scorer must be able to interpret and evaluate the quality of the assessments accurately and fairly.
The test scorer must also be able to maintain the confidentiality of the students’ answers and grades and be able to provide feedback that is relevant and constructive.
This job typically requires a bachelor’s degree, and it is often seasonal with part-time hours.
27. Translator
The role of a translator is to take a language and convert it into another language, be it oral, written, or audio.
Translators not only have to be multi-lingual and have a good command of grammar and spelling, but they also need to be able to convey the meaning of the words they are translating accurately. They can work on a variety of projects, from subtitling to full-length books.
There is a wide range of online platforms on offer, so translators can pick the one that best suits their skill set and desired pay rate.
28. Graphic Designer
A Graphic Designer is someone who is skilled in using platforms like Photoshop, Canva, and other software to create visual and graphical designs.
Typically, these designs are used for things like logos and branding materials, websites, social media content, or clothing.
You must have a creative flair, as well as knowledge of graphic design and the required software. In order to be successful, they must have a computer with a good internet connection and the programs necessary to do the job.
29. Medical Coder and Biller
A medical coder and biller are responsible for translating a patient’s symptoms, diagnosis, and medication prescribed by a doctor into codes.
These codes are then entered into a database for the biller to use, who will turn them into a bill to be submitted to the patient’s insurance company.
The average pay scale for medical coders and billers can range from $45k – $65k per year, and they can find many remote positions on job sites like Indeed.com.
30. Instructional Designer
The role of an Instructional Designer is to research, write, design, and create training courses and manuals for a variety of people, such as educators, students, and employees.
Instructional designers need a degree in the subject being written about, or a degree in education, and should enjoy writing and editing. Working from home as an Instructional Designer has many benefits.
Working from home in an Instructional Designer role gives you the freedom to explore new methods and techniques to create the best possible course or manual.
31. Non-Phone Remote Nursing Jobs
With more and more companies offering remote work opportunities, there are many non-phone remote nursing jobs available.
The type of work ranges from utilization review nurses, clinical research associates, and data abstractors all work with data and compliance, ensuring procedures are being followed correctly and that they are medically necessary.
Companies such as Cigna, CVS, Flatiron, PPD, and UnitedHealth Group are just some of the many hiring companies offering these types of remote nursing positions.
32. Fraud Investigator
Fraud investigators are in demand in many industries, including financial institutions, e-commerce stores, healthcare companies, and insurance companies. As a fraud investigator, you’ll be tasked with looking for fraud, abuse, and irregularities in financial transactions.
If you have an eye for detail and like doing research, this could be a great non-phone job opportunity for you.
Companies usually require customer service experience or a criminal justice degree and/or a CAMS certification (Certified Anti-Money Laundering Specialist). It’s a great way to make a good income without having to pick up the phone.
33. Community Moderator
A community moderator is a person who oversees online forums, groups, and social media accounts to ensure that rules and regulations are being followed, questions are being answered, and spam and junk content are being removed.
It is an online opportunity where moderators can be employed to manage and moderate comments on various social media sites and chat rooms.
The benefits of working as a community moderator include the opportunity to work from home and a flexible schedule. Additionally, moderators will gain experience in digital engagement, such as moderating forums, chatting with customers, managing communities, and buzzing on social media.
34. Netflix Tagger
The Netflix Tagger is a real job opportunity that allows individuals to work from home watching movies and tagging them with the appropriate keywords, genres, and descriptions.
This job is ideal for those who have a passion for movies and experience or education in radio, television, and film.
Working as a Netflix Tagger (also known as Metadata Analyst) is not only rewarding but it is also beneficial for those who want to work remotely without having to make phone calls or talk to customers.
35. Provider Enrollment Specialist
A provider enrollment specialist is a non-phone work-from-home job that involves researching, reviewing, analyzing, and managing provider enrollment applications to ensure they are in compliance with guidelines.
Provider enrollment specialists usually require prior experience in medical terminology, appeals, claims, or customer service, and may also require an associate’s or bachelor’s degree.
36. Survey Taker
By completing surveys, survey takers are able to share their opinion and help inform companies and brands on how to provide better products and services that meet customer needs and expectations.
Benefits of working as a survey taker from home include the flexibility of being able to work at your own pace and the ability to earn extra income while working whenever and wherever you choose.
Additionally, survey takers can take advantage of cash, rewards, and sweepstakes entries as compensation for their time.
It is not a way to get rich, but it is a great way to make extra money on the side.
Here are the top legit survey platforms:
37. Chat and Email Support
Chat and email support workers provide customer support and assistance via email and online chat. They are responsible for responding to customer inquiries and resolving customer issues.
This customer service-oriented position does not require the use of a phone.
Chat and email support workers must be able to answer customer questions and respond to their inquiries quickly and accurately. They must also be able to use active listening skills and type quickly.
Companies often provide chat and email support workers with guidelines for providing customer support, and they may also require workers to understand their products in order to provide effective customer service.
Are non phone work from home jobs legitimate?
The answer is yes! In fact, there is a growing number of non-phone work from home jobs for those who don’t want to be on the phone all day.
Whether you’re a mom with kids and pets running around, or if you find customer service work draining, there are good options out there for you to make money from home without being on the phone.
In conclusion, non-phone work from home jobs are legitimate and provide a great opportunity to make money from home without being on the phone.
FAQs
Ultimately, the skills needed to succeed in non phone work from home jobs will depend on the type of job you are pursuing.
More than likely, you’ll need excellent typing skills, excellent spelling and grammar, and the ability to troubleshoot and solve issues, among other skills.
However, many of the jobs mentioned above pay between $15 an hour to $50 an hour.
Some companies may also offer a base salary plus bonuses or incentives.
Fortunately, there are plenty of non-phone jobs available for remote workers that don’t require a diploma.
However, you may have to take some online courses to excel faster in your field.
Many on this list are great low stress jobs that pay well without a degree.
Yes, there are software or tools needed for non-phone work from home jobs, depending on the type of job.
More than likely, you will need a computer and a reliable internet service.
Are you Excited to Work from Home Job No Phone?
Working from home has become increasingly popular over the years, as it offers flexibility, comfort, and the ability to work from anywhere.
All of these jobs that offer the best comfort and increased focus is working from home on the laptop. The advantages of this job include flexibility in schedules, the ability to remain in control of your own workspace, and enhanced focus as there is less noise and distraction.
With the number of remote job leads that are available, you are sure to find the perfect work from home job that suits your needs.
In addition, working from home gives you the freedom to work in a location of your choice. You no longer have to commute to an office or be bound by office hours.
Also, you can take breaks when you need them and work in a comfortable environment.
Which career choice are you going to look into?
Know someone else that needs this, too? Then, please share!!
“You don’t have to be world-class great to make a great living doing what you love,” Jonathan Fields writes in Career Renegade, “if you are willing to step outside the box, approach your passion differently, find innovative ways to mine that passion for money, and work like crazy to make it happen.”
In Career Renegade, Fields draws upon his own experience, as well as that of others, to provide a blueprint for those willing to take that entrepreneurial leap of faith.
Career Renegade is an odd book. Its title and marketing might lead you to believe it’s about careers. As I write this, it’s the number one book in Amazon’s “job hunting” category, which is baffling. Career Renegade isn’t about job hunting or changing careers. It’s about taking your passion and turning it into a business. It’s about entrepreneurship. As long as you expect this going in, it’s a great book.
Profiting from your passion Career Renegade starts by exploring the relationship between what we do and what we love. Fields encourages readers to examine their own lives to discover what it is they’re passionate about. His message is that although it might seem impossible, although it might take some hard work, you can turn your dreams into a career.
“The paths to transforming a moneyless passion into a lucrative future are limited only by your own creativity,” Fields writes. Career Renegade suggests seven possible paths for turning passion into profit:
Redeploying your passion in a hungrier market. Do what you love in an area where there’s high demand.
Refocusing and mining the most lucrative micro-markets. Sometimes the solution is to narrow your market, to focus on doing something valuable for a select group of people.
Exploiting gaps in the information needed to excel at an activity. Fields argues that one way to succeed at doing what you love is to provide information that nobody else offers, or to offer it in a way that others don’t. Get Rich Slowly is an example of following this path.
Exploiting gaps in education. Beyond just providing information, some people can profit by directly teaching others.
Exploiting gaps in gear or merchandise. Using this path, you turn your passion into a product. You “build a better mousetrap”, so to speak.
Exploiting gaps in community. People value networks, and if you’re the first or best to create one devoted to your subject, you can become the leader in the field. Fields mentions Ladies Who Launch as an example of taking a passion for community-building and it into a career.
Exploiting gaps in the way a pursuit is provided. The final path is to make it easier for people to do what you love (and what they love).
Fields writes that it’s possible to “turn your passion loose in unexpected places”. He cites the example of Liv Hansen, a young woman just out of school who couldn’t find a job in the art world. She went to work at her mother’s bakery, and began to create fanciful designs on the wedding cakes and cupcakes. Though this may not have been how she had planned to use her art degree, it turned out to be profitable and fulfilling work.
While the first half of Career Renegade is devoted to helping you find your passion, the second half is all about developing an entrepreneurial mindset and marketing your idea.
What if you’re not an entrepreneur? Many of my friends love their jobs and have no desire to become self-employed. They use hustle, passion, and patience to make the most of working for somebody else. It’s very possible to make a great living doing what you love without striking out on your own.
My wife, for example, just isn’t an entrepreneur. Kris loves her job as much as I love mine. She enjoys her co-workers and the workplace culture. She has no desire to work for herself. What does Career Renegade have to offer folks who don’t want to become entrepreneurs? I asked the author to comment on this. Jonathan Fields responded:
I lean strongly toward taking more control and being an entrepreneur. And, most of the people in my book seem to be wired that way, too. But that’s not necessarily true.
There will still be some people that just want to keep working for someone else. The cool thing is, you can tap many of the market research strategies that I lay out in the early part of the book to not only test your idea, but identify other people and companies to connect with. They’ll reveal companies who are doing something similar, then you can:
approach them for a job, or
build your personal brand online to showcase your abilities in the area of your passion, then tap social media to find key influencers and hiring managers and make them aware of your showcase
That whole process is largely what the second half of the book is about.
All the same, I’d hesitate to recommend Career Renegade to somebody simply hunting for a new job. I don’t think it’s appropriate.
Career Renegade also suffers from one of the same flaws as The Power of Less [my review]: it’s tech-centric. Its examples and suggestions are based on the assumption that you can leverage the web and social media to make your business succeed. This isn’t always true. My father’s passion was to start a small manufacturer of custom boxes. There is nothing that Twitter could offer my family’s box factory. Podcasts and blogs won’t help either. It’s not that sort of business.
The bottom line Career Renegade is not a bad book — not at all! It is, however, a book aimed a narrow target audience, one much narrower than the cover and title might lead you to believe. Entrepreneurs are a subset of the general population. This book is written for a subset of entrepreneurs.
There’s a lot of fine information here for those interested in launching a business in which the internet will play a key role. I love the case histories that Fields uses to flesh out his topics. I never tire of reading how other people have managed to turn their passion into a business. I can learn a lot, for example, from reading how Anita Campbell moved from lawyer to blogger at Small Business Trends.
Career Renegade is a great book — for a certain type of person.If you believe you might enjoy working for yourself — even if you don’t know what it is you’d do — this book is worth reading. If you are looking to start your own business and if that business requires a strong online presence, this book is a tremendous resource. But it’s not the next What Color is Your Parachute?
As an Economic Unit in a Capitalist Economy, you probably spend most of your time scurrying about Maximizing your Utility. Right?
You buy things which give you pleasure, or sell them when the cash you’d receive is greater than the pleasure of keeping them. You choose the job that offers the best tradeoff between things like pay, stress, and time consumed, in an industry you chose based on the same criteria.
Even your leisure time is rationally allocated, optimized to get the most happiness from a finite amount of time, with cost factored in and weighed against the amount of extra work required to pay for leisure spending.
Although you’re probably having a good laugh at my deliberately optimistic oversimplification, this is the basis of free-market capitalism itself, and to a certain extent it works. In fact, most of the good aspects of our great leaps forward since the industrial revolution are byproducts of this free enterprise and trade. Neat inventions in food production, medicine, clothing, and everything else that brings us long lives and comfort, are side effects of the incredible ingenuity unleashed by setting smart and hard-working people free to run.
If that were the whole story, we could just shut down the government and sign an Ayn Rand novel into law and be done with it. But anyone with a deeper understanding of the market system is probably waiting to point out the other side of it:
Most of the bad aspects of modern society are brought about by the failure of humans to properly maximize their utility.
In other words, we make some incredibly stupid decisions. And the byproduct is pain, untimely death, and inefficiency.
The standard opinion on this inefficiency is that it’s just a few bad apples in an otherwise good system. Most of us do well at running our lives, don’t we? We know what we want, and our system is good at delivering it to us. But I’d say there is more to the story.
Most Americans, for example, are deep in unnecessary debt, overweight and poorly nourished, inactive and stressed out, and self-sentenced to a mandatory career of unsatisfying work just to stay afloat. We constantly buy things we can’t afford and don’t need, and the majority of the trading we do does not increase our net happiness.
We’re so easily manipulated that advertisers and politicians can pull our emotional strings with ridiculous ease just by replaying the same transparent ruses day after day, decade after decade.
“This $60,000 truck will bring you power and freedom to escape to the Hills of Freedom while towing your bigass boat.”
“This $60,000 SUV will keep your children save while adding a nice veneer of prestige and quality to your suburban life”
“Vote for my political party, and I’ll protect you from the other side who wants to drive this country into the shitter, attack your most core values, and take away all your prosperity for themselves.”
And all of this is done with virtually no awareness of how we are affecting our own ecosystem – the tiny veneer of air and plants that is the only thing between us and the lifeless vacuum of space. In fact, it would be difficult to imagine a less efficient way to maximize “Utility” than what the modern consumer does.
Given all this freedom, why do we screw things up so royally? Is there a way to maintain the power of the market while getting around the general idiocy of our own species?
Fortunately, the answer is built right into you, in the form of the genetic program you received at birth. The reason we suck at running our own lives is that we are evolved and programmed for a completely different set of surroundings. But this handicap can be overcome: by learning about our own weaknesses, we can compensate for them and lead much more productive, powerful and happy lives.
This is where the title of this article comes in. I recently read the book Predictably Irrational by Dan Ariely at the recommendation of some readers. It’s not often that I find a book that crystallizes so many interesting concepts in one swipe, but this book does it. Everything the author proposes just makes so much sense. But as an MIT behavioral economist with mutiple books and over 75 published papers on his resume, these are not just the blowhard opinions of a financial blogger – the man actually does his own research and has an uncanny way of sharing it with the world with perfect accessibility.
There were a few key lessons that stuck with me after finishing this book. They are useful not just as curiosities of human nature, but as practical tools for overriding our innate ridiculousness and learning to live life more sensibly. When applied to personal finance, this equates to easily amassing way more money than everyone else.
And then of course, using that wealth in a more rational way in order to have a much more fun and generous life.
Relativity
Humans make decisions in relative terms, rather than absolute ones. Given a restaurant menu with varying prices, people tend to avoid the most expensive item, but are very comfortable choosing the second one on the list. Restaurants have learned this, so they will often insert a “decoy” expensive dish (which may cost no more to prepare than the others), which allows them to raise the price of everything else, making all alternatives look like comparative bargains. The same thing happens when shopping for clothes, cars, or television sets.
Rationally, we should be comparing list prices to all other ways of meeting the same needs, and to our own income. But our genetic wiring wants us to make quick decisions and move on, and in prehistoric times, comparing in relative terms was the way to get this done.
But this built-in flaw has implications on much bigger things than restaurant choices. We design our entire lifestyles by looking around us to see what everyone else is doing. Most of us position ourselves in the middle of the herd, and start feeling deprived if we sense we are near the bottom. The problem arises when the herd is comprised mostly of sheep, responding blindly to their own irrational instincts. So as a society we have a tendency to automatically run ourselves straight off of the nearest cliff.
Market Norms vs. Social Norms
Most of us know that it is socially inappropriate to ask our friends to cough up money when we invite them over for dinner, or to offer money to a romantic partner in exchange for sex. But if you take those exact two human needs and reframe them differently: it is normal to pay for a meal at a restaurant and the world’s oldest profession continues to thrive.
This is the core of the distinction between “market” and “social” norms. As it turns out, humans obey different rules when operating in a business environment, than they do when they perceive they are among friends and family.
We are more generous when we are reading from the Social Norms playbook, and we enjoy our lives more when doing it. This is why countries and cultures with stronger family and friendship bonds tend to be happier than the cold and impersonal market-driven ones – even if their incomes are lower.
You can use this to your advantage. By bringing more social exchanges into your life, you can live more happily and build a safety net that protects you from the sharpest edges of the market system. I saw a nice example of this about a year ago, when a close friend stopped by and saved my house from flooding as part of a routine visit to water the plants. Invite your neighbors over for dinner, share children back and forth for babysitting, and loan out your tools, lawnmower, and weekend labor as much as you can.
And if you run a company, bring some social norms into the way you treat customers and employees. Instead of dinging people with every conceivable fee or squeezing employees with the lowest legal level of vacation allowance, expand your trust and generosity towards them. Watch as their dedication to you grows and provides benefits much greater than the costs.
Loss Aversion and Overvaluing What We Have
When I wrote the opening story about ‘losing’ $12,000 in an earlier article about Strength, I took some heat in the comments about it:
“You did’t lose the twelve grand, Mustache, you just didn’t get the money in the first place! Totally different.”
But that choice of words was deliberate. I work hard to remind myself that although it feels different to have a brand-new $12,000 car roll off a cliff because I forgot to set the parking brake, or have an expected $12,000 deal fail to materialize after doing all the work, the financial effect is exactly the same, and thus I should not worry about either of them.
In everyday life, loss aversion messes with us more than we realize. We hesitate to sell things we are no longer using, because we become attached to them.
“I can’t sell my pickup truck for $12,000 – I paid $30,000 for it just a few years ago!”
“I don’t want to invest in stocks, because there might be a big crash which causes me to “lose” money. I prefer to keep the money in savings where it is guaranteed not to fluctuate.”
“I am afraid to seek out a new job or find myself a new home closer to work, because I might lose some of the comforts that I have grown accustomed to in the current situation”
.
The way to get around this is to recognize your own irrational loss aversion, and work to compensate for it.
For example, I keep a Craigslist app on my phone and fairly ruthlessly fire out ads to sell unused things when I stumble across them in the storage area of our house. I try to replace emotion with the more rational friend of statistics when deciding whether I should invest money, buy a more full-coverage type of insurance, or take any other form of risk. And in our upcoming move where we are “losing” over 1000 square feet of living space, I remind myself that there is no fundamental rule of humanity that dictates three people will be any more happy with 2600 square feet of interior space than they will be with 1532 square feet. I program myself to feel the “ChaChing!” instinct, which creates immediate gratification in the event of good monetary decisions, to compensate for my natural tendency to want shiny things NOW instead of investing for later.
Marketing and How it Plays Your Ass Like a Puppet
The thing about all of these cognitive biases is that even if you don’t round them up and get control of them, somebody else will. For over a century, the field of Psychology has been unearthing these things and studying them rigorously, discovering the joys and hilarious downfalls of the human animal. And for almost as long, marketers have been picking up the research and honing it for their own advantage. I recently read a quote from the head of one of the country’s largest ad agencies, which went something like this,
“It is generally understood in our industry that we aren’t fulfilling wants and needs – we are creating them. A new product first needs to create a market for itself, before it can be sold into it.”
Isn’t that revealing? I still admire many of the funny and creative people of the advertising industry and my own Dad worked most of his career in it, running his own one-man agency for much of my childhood. In fact, some of the lessons of that industry have surely soaked into my own approach, and you could view this blog as an ongoing Anti-Advertisement which aims to apply some of those principles in reverse.
But by golly, if you are going to be out there trying to kick ass in life and as an Economic Unit, you’d better go to battle with proper armor. And that means understanding your evolutionary weaknesses so you can avoid their tendency to turn you into a Consumer Sucka. We are all idiots at heart, but the more successful among us learn to compensate for our idiocy.
So I’d like to give my thanks to Dan Ariely for writing this book and his amazing contributions to society so far – I’m off to read the rest of what he has written.
By Peter Anderson2 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited April 17, 2013.
If you’re leaving a job that you’ve been at for a while it can be tough to think about much else beyond trying to find a new job, or getting acclimated to your new one. There are resumes to brush up on, skill sets to improve and connections to make.
There are other things that you need to think about beyond a new job, however, that are important as well. Things like doing a 401k rollover from your old job’s plan to an IRA you’ve set up on your own.
So where do you start?
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What Are Your 401(k) Options When Leaving A Job
When you’re leaving a job, you have several different options of what to do when it comes to your 401(k).
Leave it in the current plan: You can just leave your 401(k) where it is and not touch it. If you’ve got a great plan that has good low cost investments and low fees, you may want to consider doing this. The thing is, usually you can do better to moving to your own IRA through a discount brokerage or mutual fund company.
Cash it out: You can choose to cash out your 401(k) plan when you leave the job. Honestly though I think this is an awful idea because if you’re not 59 1/2, you’ll be subject to a 10% early withdrawal penalty, along with your current combined state and federal tax rates. Assuming you have a combined rate of 35%, and a penalty of 10%, you’re only going to be left with 55% of your money. If you had $100,000 in the account, you’ll be left with $55,000 after penalties and taxes. Don’t lose out on all that money just by withdrawing it early.
Roll it over to an IRA: Rolling over your 401(k) to an IRA that you’ve set up at an external brokerage or company like Vanguard is probably the best option. It will allow you to have access to more and better funds, lower costs and more control.
Roll over to a new 401(k): If you already have a new job and 401(k), you may want to consider rolling the funds over if it’s a good plan. Typically you can do better rolling to an IRA, however.
So when it comes down to it, my suggestion is to roll the funds over to your own IRA at a company like Vanguard, or a discount brokerage.
Reasons To Rollover Your 401(k) To An IRA
There are a variety of reasons why you may want to rollover your 401(k) to your own IRA once you’ve left your old job. Here are a couple of the biggest:
Better investment options in an IRA: When you invest in your company sponsored 401(k) the plan that they have set up may not have that many investment options, or the ones that they do may not be the greatest. Many only offer one index fund, something like a S&P 500 index fund, and a few other low cost options. Rolling over your funds will give you more investment options in order to maximize your returns.
Lower fees in an IRA: Quite often a 401(k) through your company will have a bunch of pre-selected mutual funds that don’t have very good expense ratios. On top of that the plan may have an annual management fee or other miscellaneous fees. By moving to your own IRA you can select low cost mutual funds and index funds that will allow you to cut down on expenses.
It should be stated that there area few situations where you may not want to rollover your 401(k), but I won’t go over those here as they’re few and far between. Situations like if you’re retiring early, planning a roth conversion, or situations where you’re dealing with a large amount of company stock.
How To Rollover Your 401(k)
When you’ve decided to rollover your 401(k) to an IRA, there are a few steps you’ll need to go through.
Open an Individual Retirement Account (IRA): If you haven’t already, open an IRA at a discount brokerage, or mutual fund company. Here’s a post looking at how to choose a IRA custodian.
Contact your old 401(k) provider, get forms: You’ll want to contact the provider of your old 401(k) to verify that you don’t have any limitations on rolling over funds. Then request the forms you’ll need in order to initiate the process. Make sure to ask what information you’ll need from your new IRA plan.
Contact your new IRA provider, verify account setup: You’ll want to talk to your new plan administrator, whether it is a discount brokerage or company like Vanguard, and verify that your account is ready to receive transferred funds. Next, verify any information that you need for the old 401(k)’s transfer forms.
Fill out the forms, verify direct rollover of funds: When you have the forms, make sure that they are completely and correctly filled out to ensure no costly mistakes. Make sure that you’re asking for a trustee-to-trustee transfer or direct rollover of the funds. Have them send the check directly to your new IRA company. If your old company does an indirect rollover and cuts a check for the balance of your 401(k) in your name they will withhold 20% for taxes. You are then required to deposit the total amount of your balance (before 20% was deducted) into your new 401(k), or you could be subject to taxes and a 10% penalty for the amount under your total balance – a penalty for early withdrawal. For example, if you have $100,000 being rolled over, in an indirect rollover the company would cut a check for $80,000 and withhold $20,000 for taxes. Then you are required to take the $80,000 plus $20,000 of your own money and deposit it at your new IRA within 60 days, or be subject to taxes and penalties. The extra 20k that was withheld for federal taxes will be returned when you file your return as long as you deposit all 100k in your new plan.
401(k) To IRA Rollover Conclusion
Leaving an old job can be stressful, and sometimes it can be a pain to try and roll over on old 401(k) – but it’s an important thing to investigate.
Typically your best bet is going to be either to roll your funds over to an IRA with a discount brokerage or mutual fund company, and to do a direct rollover of funds so you don’t have hairy tax situations to mess with. There are other options to take, so make sure to investigate it for your own situation and proceed down the best path for you.
You’ve accepted a great job in another state. Now, you have to find housing. That can seem like a daunting task when you don’t know the area. This is where corporate relocation services come in. ApartmentGuide explains what corporate relocation companies do, how they can help you and what to expect, when you’re moving for work.
They take care of the moving
Corporate relocation companies are hired by your employer. They take care of packing and moving your belongings. This takes a load off of you, so you can focus on having a great first day at work. The truck can get pretty hot. If you’re moving during the summer, they may not be able to pack things like candles, lotions etc. These things may explode or melt in the truck due to the heat.
They help you find a new home
Part of the corporate relocation services package is helping you find a place to live. They have business relationships with the local real estate agents who can help you find a home that suits your needs.
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They help you find temporary housing
It’s understandable that you would want to physically see what options you have before jumping into a lease. The time of year which you accept the new position will determine availability. Most companies offer temporary furnished housing (or a hotel) until you can move into your new place.
What about your current lease?
When you accept a job in a new state, companies would rather you start sooner than later. If you are in the middle of a lease, the corporate relocation company will work with your new employer and landlord to buy you out of your lease. The sooner you can move and start work the better.
What about your car?
If you’re flying to your new home, your car will be shipped to you when you move. Typically, you’ll receive a rental car until your vehicle arrives.
What about your pets?
What to do with your pets can be stressful. If you are unable to take your pets with you on the plane or in the car, some companies offer pet relocation services too. You should not have to part with your fur baby simply because you took a job out of state.
What about your belongings?
When you’re ready to move into your new place, the company will bring your belongings to you. The only thing you have to do is unpack. Your items are insured should anything happen to them.
Hot Tip: There is usually a deadline to file a claim, so you want to make sure you are diligent with your unpacking.
What about the boxes?
Once the unpacking is done, you can breathe a sigh of relief. But what do you do with all those boxes? Some companies will come pick them up, but if not, you have options. You can sell them, give them away for free online, or you can take them to your local recycling center.
When you’re starting a new job out of state the last thing you want to worry about is your move. You have a lot on your mind learning a new job and adjusting to a new culture. Moving is hard work, but a good relocation service will effectively ease that burden so you can smoothly transition into your new home.
They lived in a modest 1,800 square foot home. They both drove Buick’s that were both completely paid off.
He retired from a manufacturing plant and she a grade school as an English teacher.
Despite their simple ways, they were both millionaires and were one of the first clients I landed as a financial advisor.
So what was the secret sauce? Did he buy Apple stock a few decades ago? Was it some crazy pension buy out? A salty family inheritance?
How about none of the above.
When I asked the husband what their secret was he shared the story about how every time he received his paycheck he would ALWAYS take a portion and purchase savings bonds (Remember: this was long before 401k plans).
That simple routine, which became a good flippin’ amazing financial habit, was the catalyst for them becoming millionaires.
It doesn’t matter if your goal is to become debt free, increase your savings, or become millionaires; all off them require you have good financial habits.
Everybody wants to be financially stable, but unless you have plan to get you there, it’s not going to happen.
Here are 27 that will enable you to set (and reach) your financial goals.
1. Live Within Your Means
This strategy is the foundation of all good financial habits. In fact, I’m not exaggerating when I say there will be no point in setting good financial goals until and unless you come to the point where you can live beneath your means.
Seriously.
There’s nothing complicated or strategic about this habit. If you take home $5,000 each month, you live on $4,500 – and bank the rest. As your savings and investments grow, your financial situation will improve dramatically.
2. Pay Yourself, You Deserve It
If you’re having trouble with the whole concept of living beneath your means, it’s time to pay yourself first. If you have a 401k (or some other employer retirement account) this is a simple way to automate the process of saving money. Allocate a certain percentage, or even a certain dollar amount, to come out of your pay each pay period, before you even see it.
Without you even noticing it, the money is transferred to savings and investment accounts, and turns into real money as the years pass. If you don’t have an employer sponsored plan like a 401k, see #17.
3. Give Yourself a Consistent Raise
Good financial goals are more easily achieved if you can build progress into your savings and investment funding. You can do this gradually by increasing your payroll savings once each year.
You can do this almost painlessly by increasing the savings payroll deduction – whether it is for retirement or some other savings or investment account – by increasing your deduction by one percentage point per year.
Let’s say you are participating in your company’s 401(k) plan with 6% of your pay in order to take advantage of the company‘s 50% matching contribution. In the coming year, increase your contribution to 7%. Plan on doing that each year, until you meet the maximum contribution you’re allowed to make.
While this is a great start, the reality is you need to save at least 20% of your income if you have any hope of retiring early (or at all). If you want to get super ambitious and retire at 30, you can take a page out this guy’s playbook and save over 50%.
When I encounter someone only saving around 5% I challenge to increase it by 1% each quarter until they reach at least 10%. From there adjust I have them adjust accordingly so they barely feel the extra amount deducted from their paycheck.
4. Buy Value
By “buy value,” I mean you neither by the cheapest goods, nor the most expensive. Instead, you look to buy the best value for the money. Sometimes it’s worth it to cough up a little extra dough for a product you know will last, rather than paying bottom-dollar for shoddy merchandise you’ll have to constantly replace.
On the flip side, keep in mind not all products are better simply because they’re more expensive – often they’re just more expensive because of perception. Read reviews and shop around.
5. If You Have to Borrow, You Can’t Afford It
Credit is an awesome thing when you’re buying something big, like a house or a car. Very few people have $150K sitting around in cash to buy a home, so for those things, borrowing makes sense. But adopting good financial habits means avoiding schemes to stretch your paycheck. Credit cards are probably the most common way to do this.
6. Pay Your Bills Ahead of Time
Paying bills late is another strategy to stretch the paycheck. But it’s also kind of like robbing Peter to pay Paul. All it does is give you a false sense of how much money you have, and then puts you under tremendous pressure to cover the difference later. By paying your bills ahead of time, you will gain more control over your finances, and that will make it easier to adopt good financial habits.
My wife is the queen at this! Instead of waiting until she receives our credit card bill, she logs into our accounts and pays it off in the middle of the month. There’s no way she’s allowing any interest to accrue!
7. Read One Financial Book Each Year
If you want to become financially stable, you’ll have to seek advice from the financial masters. Easy to do, since nearly every one of them has at least one book available.
Take advantage of that knowledge. If you only get three or four bankable ideas from reading a single book, think about how many you’ll get from reading a dozen or more.
Some of the personal finance books that I’ve enjoyed over the years include: Dave Ramsey’s Total Money Makeover, David Bach’s Smart The Automatic Millionaire, Ramit Sethi’s I Will Teach You to Be Rich. And…well there is of course the book on the left:
Shameless plug: My book, Soldier of Finance, can be purchased here.
8. Track Your Spending
If you don’t have a budget, then you probably don’t have even a remote idea where all of your money is going. This is one of those good financial habits you absolutely must adopt you if want to get control of your finances.
By tracking your spending, you will be able to identify the areas of excess. Eating out for 50% of your meals? Cut that back to even 25% and cook or brown bag the rest, and you’ll have a nice chunk of change to contribute to paying down debt or building up your savings.
Start tracking your spending now – you may be surprised to find where your money is actually going.
9. Spend Less Time Watching TV
Don’t think watching TV has anything to do with becoming financially stable? Guess what? TV is nothing but a giant advertising venue, and I’m not just talking about the commercials. Even TV shows advertise certain wares through a little thing called product placement.
It’s a place where “sponsors” come to peddle their wares, and often, to make you feel insecure because you’re not buying what they’re selling.
Much of our spending, especially impulse spending, is driven by time spent in front of the TV. The less time you spend watching it – and the ads it bombards you with – the less money you’ll feel compelled to spend on things you don’t need.
Plus, by watching less TV you can read more books!
10. Balance Your Checkbook Regularly
With online banking, it’s easy to ignore this step. After all, the balance is available to be checked every day. But the balance does not reflect upcoming charges or outstanding checks. If you aren’t fully aware of these, it could lead to an undersized balance, or even bounced check fees. No bueno.
Balancing your checkbook helps you to avoid these pitfalls, so you know exactly how much cash you have at all times.
11. Shop Without Your Credit Cards
Not only will this keep you from running up your credit card balances, but if you have to use cash or your debit card to make your purchases, there’s a very good chance you will spend less money than you would if you are shopping with a credit card, because you can’t just pay it off later.
It’s real money, being used right now, which helps you make a wiser decision in the checkout line.
12. Pay More Than the Minimum on Your Credit Cards
And speaking of credit cards, if you want to become financially stable, you will need to get rid of those balances. If you haven’t been successful in paying off your credit cards in the past, then you should commit to paying more than the minimum payment due.
On top of paying more than a minimum, you should consider consolidating your credit card debt under a single 0% balance transfer card. Once you do this all those high interest cards will be under a since zero interest card saving you money.
This will speed up the payoff of your credit cards without having to come up with huge sums of money to do it. You will simply be accelerating the payoff, and if you pay enough, it will happen more quickly than you think.
Pay attention to your credit card statements. They will often tell you how long it will take to pay off your balance if you only pay the minimum payment, and how long it will take if you pay a fixed amount slightly higher than the minimum payment. Most of the time, there’s a difference of several years.
Yes, I said years.
13. Dust Off That Business Idea You’ve Been Putting Off
Do you have a business idea you have been putting off for quite awhile? You may want to give it a serious try. The internet has made starting and running a business easier and less expensive than ever. Case in point example is my buddy, Steve Chou, who was able to replace his wife’s $100k income by launching an online store.
Another example closer to home is my wife’s blog. She was able to replace her full-time income from her corporate job after starting her blog in about a year.
Best of all, you can run a side business for as long as you like, and that can provide you with an extra source of income. It’s important to set good financial goals, but you also have to carry them through. Starting a business is one way to do that – even if you only do it on a part-time basis
14. Learn to Say “No” to Yourself
This is important when you are shopping, or just out and about. This is really about getting control of impulse buying. You’re out somewhere, and you see some item you like, and you buy it because it doesn’t cost that much. Even worse is the ability to purchase things online nowadays and have it delivered to your doorstep in just a few days. If you do that several times a week, the spending can really add up.
Making just 20 impulse purchases (or fancy coffees) per month at an average of “only” $5, adds up to $100 spent on stuff you really don’t need. That’s $100 which isn’t going into savings or investments, or to paying down debt.
One trick is to enforce a “72 Hour Rule” on any purchases, especially online items. If you really think you need to buy <fill in the blank>, after you add it to your cart make yourself wait 72 hours before you purchase it. After 3 days you should get a good feel whether you really need the item or if you just want it (and don’t need it at all).
15. Learn to Say “No” to Your Kids
If you have children, learning to say “no” to them is doubly important. First, kids being kids, they always want something. And that something tends to get more expensive as they get older. You can save a lot of money by learning to say “no” to the random things they see and decide they can’t live without.
Keep in mind, I’m not telling you not to give your kids birthday or Christmas gifts, or things they truly need. Rather, it’s about their own impulse buying – seeing something and wanting it – but instead, they’re using your money. Telling them “no” will keep more money in your pocket.
But the second issue is even more important.
How you spend money, and particularly how you spend it on your children, has important implications for the attitude they will have toward money when they grow up. Though saying “no” isn’t always easy, it’s a way of teaching an important financial lesson. It teaches your kids they can’t have all the candy in the store, and that’s something they need to grasp in preparation for adult life.
16. Buy Term and Invest the Difference
Everyone needs life insurance, but everyone complains about how expensive it is to buy it.
There is a better way.
Buy term life insurance. Because it costs only a fraction of what whole life costs, you not only save money on the premiums, but you can buy more coverage. And that money you save on the premiums can be invested to build a large investment for the future, which by itself is its own form of insurance.
17. Start a Retirement Savings Plan
Good financial habits can be elusive if you don’t have a retirement savings plan of any kind. But if you don’t have a plan through your employer, there are plenty of options. You can open up a self-directed traditional IRA or a Roth IRA through tons of different platforms. Either will provide the type of income tax deferral that is the essential to building a healthy nest egg for retirement.
If you don’t have a retirement savings plan, what are you waiting for? Set one up today, and start funding it with any money you have available.
Seriously. It’s better to start contributing a little bit now than to wait until you can contribute a lot. You can even fund it through payroll savings deductions through your employer. Our top choice is Ally Invest with the rest of best options for IRA’s here.
18. Refresh Your Emergency Fund on a Regular Basis
There’s a lot of talk on the web about building an emergency fund, but far less in regard to replenishing it once you’ve taken money out of it. And if your living expenses increase over the years, you can even find your emergency fund is no longer adequate.
Take a look at your emergency fund at least once each year, and determine if it is sufficient to cover at least 3 to 6 months of living expenses, based on your current expense level. If it isn’t, set up a plan to refresh it as needed. It’s hard to remain financially stable without a well-stocked emergency fund.
19. Save For Specific Goals
A lot of people understand the importance of saving money in an emergency fund, and for retirement. But less well understood is saving for specific goals. Those goals could include saving money for your children’s college education, saving money to replace your car without having to take a loan, or saving money to make major repairs on your .home.
This isn’t just about saving money – it’s also about becoming self-funding. That means you pay cash for the kinds of major things other people borrow money for.
I’m a huge believer in revisiting your goals every 90 days. I started this over 4 years ago and I’ve seen my revenue nearly triple while taking more days off than I ever have. So yes, I’m a HUGE advocate of goal setting. Here’s a quick peak on my last quarters goals as well as my goals for 2015.
20. Know What You’re Paying
A lot of people are not terribly concerned with investment fees, so long as their portfolios are growing in value. But there’s more going on with investment fees than people normally think. A difference of just 1% in investment fees can make a substantial difference over time.
For example, let’s say you have a $20,000 investment account earning 10% per year. If you pay 2% in investment fees, that will give you a net return of 8%. Over a ten year period, the investment will grow to $43,179.
But let’s say you have the same investment, but you pay only 1% in investment fees. That will give you a net annual return of 9%. After ten years, the investment will grow to $47,347.
That’s a difference of well over $4,000 over ten years. The difference is even more dramatic over 20, 30, or 40 years.
It’s also important to understand the type of investment you own and the fees associated with it. Recently, I had a new prospective client that owned a variable annuity. She didn’t understand how it worked or what she was paying per year to own it. She actually thought she was only paying $50 per year to own it when, in fact, she was paying over $3,500!
Moral of the story: investment fees matter!
21. Give to Others
This could donating your time to a charity or cause, tithing, or cooking a meal for a friend in need. The point is to put others needs before yours.
It’s easy to put our own worries and concerns at the forefront but when you start focusing on others, the payback is unmeasurable.
22. Become the Go To Guy/Girl at Work
Everybody wants a raise at work, but not everyone wants to do what it takes to get one – especially in a tight job market. The same is true for promotions.
But if you want to fast-track your career, work to become the go-to guy or gal in your office. That means taking on meatier work assignments and stepping up to help management and coworkers when needed. It’s not easy, and it’s not an immediate fix, but it can really payoff in the long run.
23. Get to Work 15 Minutes Early Each Day
By getting to work 15 minutes early each day, you can dramatically improve your work performance, and even reduce your stress levels. Just taking the extra time to organize your day, such as creating a to-do list that makes sure you get the most important tasks completed first, can give you a jump on the competition – your coworkers.
That can be an important part of improving both your productivity and your visibility at work. And that can eventually lead to a bigger paycheck.
24. Cut Down on Your Spending Allowance
Even people who budget can sometimes be lax when it comes to their personal spending allowance. That’s the money you use for entertainment, for casual spending, and for that latte at Starbucks.
Everyone needs a certain amount of free-spending built into their budget, but it’s equally important to make sure it doesn’t get out of control. Since it tends to be spent in small amounts over long periods of time, it’s easy to get carried away with spending on this front.
Start by giving yourself a fixed allowance for free-spending each month. Then gradually begin cutting it down to a more manageable number.
25. Cut Down on Restaurant Meals
Eating in restaurants has become so common these days we hardly notice it. But if you find yourself eating out three, four or more times per week, your restaurant habit has become a major expense without you even realizing it.
Track the number of times you eat out each week, and begin reducing it. This is an excellent way to save money painlessly. And it may force you to sharpen your cooking skills. The Food Network is there to help you with that, should you need it.
26. Drive Your Car a Few Years Longer
If you are accustomed to taking out five year loans on your cars, then replacing them as soon as the loan is paid off, you need to realize that’s a very expensive way to drive. The longer you drive it after the loan is paid off, the less expensive your auto expense will be. That’s another of those good financial habits that will point you in the right direction, and bring you to financial stability more quickly.
The average age of a car in the US is now 11.4 years. That isn’t to say you have to drive your car until it dies, but you should be able to drive it for as long as 10 years. And for the love of man, repeat after me:
Reliable transportation does NOT mean you have to buy a brand new car.
If you are paying $500 a month for a car payment, and you can keep the car an extra five years after, that will be an extra $30,000 in your bank account ($500 X 60 months). You’ll lose some of that to repair bills, but nothing close to $30,000.
27. Learn to Love the House You Live In
Some people make it a practice to trade up on their home every time they get a promotion or a new job. If you want to become financially stable, it’s critical you learn to live beneath your means – which was the first strategy on this list.
If you can keep your house payment stable while your income rises, you can redirect the additional income into savings, investments, and non-housing debt. That will improve your financial situation a lot more quickly and efficiently than buying a larger and more expensive home every few years.
So there you go – 27 good financial habits that you need to not go broke – and to become financially stable. Pick just a few of them, and watch your finances get better.
By Peter Anderson4 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 9, 2012.
We’re in the midst of tough economic times and a lot of people are finding themselves in situations where they need to come up with money quickly in order to pay for one debt or another. Whether it’s IRS tax debt or needing to replace a broken water heater, there are times when people find themselves with a large bill with no emergency fund to pay it. So what do you do in a situation like that? For many people the answer is to take out a 401(k) loan. Up to 3/4 of company 401(k) plans have a provision available to do a 401(k) loan, and up to 30% of people with one of those plans have taken advantage of that and taken out a 401(k) loan.
Taking out a 401(k) loan can be a legitimate road to take if you’re dealing with a serious financial situation like IRS debt or a foreclosure. You should also be aware, however, that there are risks to taking out a 401(k) loan.
How 401(k) Loans Work
Before we get too far into talking about the pros and cons of the 401(k) loan, let’s look at how they typically work. Different plans may have different rules and regulations surrounding 401(k) loans, but typically they’re pretty similar.
Minimum withdrawals: Most plans will have a minimum amount that you can take out when doing a 401(k) loan, typically anywhere from $500-1000. They do that in part to try and discourage people from taking out small amounts from time to time to pay for smaller bills, to discourage people from short-circuiting their investment gains.
Maximum loan amounts: Typically you’re allowed to borrow up to 50% of your vested balance in your 401(k) account, but no more than $50,000. Also keep in mind that quite often you won’t be able to borrow from your vested company matching funds, but only personally deposited and vested funds.
Payment terms: Usually 401(k) loans have a 5 year payment term, and the interest rates are usually set at prime rate plus 1%. If you’re taking out the loan to buy a home, longer terms may be available.
Fees to process your loan: Many plans will charge a fee just to process your loan – a fee anywhere from $50-100.
When taking out a 401(k) loan be sure to know what the provisions and stipulations of doing one are with your company’s 401(k). Depending on what the fees are, maximum or minimums may be, you may not want to go down that road.
Pros Of Doing A 401(k) Loan
I’m not a huge proponent of doing a 401(k) loan just because I think it short-circuits the gains you could see in your retirement account, and it carries some significant risks. That being said, there are some situations where I might consider doing one.
For example, if you’re in a situation where you’ve got a large IRS debt that you need to pay, I think a 401(k) loan might be preferable to getting in trouble with the IRS. You don’t want to go to prison. Or if you’re in danger of going into foreclosure, or losing a vehicle to repossession, you may want to consider it. Just know the risks.
Here are some reasons why a 401(k) loan can be a good thing.
Very little paperwork needed: Typically a 401(k) loan requires very little paperwork and can be done regardless of if you have an actual need. In many cases it’s as easy as making a phone call or clicking a few links in your online account. The only time you may need additional paperwork is if you’re using it for a home loan.
Paying yourself interest: When you get a loan from your bank or a credit card you’re going to be paying interest to them on the loan proceeds. With a 401(k) loan you’re paying yourself interest. Sounds like a good deal right?
Easy repayment: Quite often a 401k loan repayment comes directly out of your paycheck. That makes paying your loan back easy – it comes directly out of your paycheck so you never see the money and feel the pinch of losing it.
While I don’t typically suggest a 401(k) loan, it can be an option if you’re in a pinch and you have to pay off a pressing debt right away. There are some positives of doing one, but you also have to be aware of the significant risks – which we’ll look at next.
Cons Of Doing A 401(k) Loan
There are some considerable risks to be aware of when doing a 401(k) loan. If you’re not careful they could come back to haunt you.
Fees, fees, fees: If you’re not careful you could be losing quite a bit of money to fees. There can be loan origination fees, and in some cases annual maintenance fee. So for example, if you take out a $1000 loan, and then have a $75 origination fee and $25 maintenance fee on a 5 year loan, you would end up paying $200in fees – or 20%. That’s a steep price to pay. Be careful to know what fees your plan charges.
Defaults, penalties and taxes: If you go into default on your loan for one reason or another it will mean that the money will be taxed at your normal rate, and you’ll be charged a 10% early withdrawal penalty. That could mean a huge tax payment when it comes to tax time, something most folks may not be prepared for, especially if the money is already spent.
Money taxed twice: When you repay your 401(k) loan, you’re using post-tax money to repay it. But since the money is then going back into a pre-tax account, it will then be taxed again when a distribution is taken in retirement. Double taxation!
Moving jobs or being fired means loan comes due: If you end up deciding to move to a new job, or if you get let go from your current job, the 401(k) loan will automatically come due in full – although usually there is a grace period of 60-90 days. If you can’t pay in that time you’ll be subject to a 10% penalty and your normal tax rate just like a normal default. That can mean upwards of 35-40% in taxes and penalties. So when tax time comes, you may have a big tax bill at a time when you can least afford it!
Lost retirement gains: When you take money out of your 401(k) you’re taking away from any gains that your retirement funds may have made during the interim. The cost can be especially great if you take the money out at the bottom of the market and it isn’t returned to the account until later when the market is higher. You lose out on any gains your money may have made.
So as you can see there are a ton of cons associated with taking out a 401(k) loan. There are risks associated with the fees charged, penalties if you default or lose your job and can’t pay in full, and the lost opportunity cost of not realizing investment gains. Those are some pretty serious things to consider.
Try Considering Other Options First
My suggestion when it comes to taking out a 401(k) loan is to avoid it if you can and try other options first. What are some other options?
Try saving up an emergency fund in advance so that when you have a need for a large chunk of cash you’ve already got it saved and ready to go. That’s what I’ve done with our 12 month emergency fund – so that when big bills come due, like my recent $5000 tax bill, it wasn’t a problem because we’d planned ahead.
Another option is to open and use a Roth IRA account for your retirement savings instead. When you use a Roth, you can withdraw your Roth IRA contributions at any time without any tax penalties, so you can avoid those risks of the 401(k) loan. You’ll still be having the risk of losing out on investment gains, but at least you won’t be paying taxes or penalties.
If and when you decide to go down the road of a 401(k) loan, however, make sure that you’re doing your homework. Go run the numbers using a 401(k) loan calculator and see just what interest rates you’re actually paying. That may help you to decide if it’s actually a good deal.
Have you ever taken out a 401(k) loan? If so, how did it turn out, did you pay it all back, or did you face paying taxes and penalties? Tell us your 401k loan experience in the comments.