A promotion. More money. All your problems are over, right? Actually … No. Depending on how you treat money, your next promotion could actually make you poor.

It’s tough for many of us to accept, but for most of us, our financial security is not contingent on how much money we earn.

It’s not about how much money comes in but how much money goes out. For most of us, our lifestyle increases with increases in our income – and even increases in our available credit.

When you tie those increases in income to increases in spending, pretty soon you have this problem: Could a promotion make you poor?

Learn from others’ wins and losses.

How many celebrities and athletes who earn millions of dollars a year have we heard have gotten into financial trouble?

From MC Hammer to Johnny Depp to Lenny Dykstra to Marion Jones, the world is full of millionaire income earners with no money in their bank accounts. A couple of years ago, it was reported that about 80% of retired NFL players go broke.

On the other end of the spectrum, Oseola McCarty, a former washerwoman from Hattiesburg, Mississippi bequeathed her $150,000 fortune to the University of Southern Mississippi. At the time, she was its most famous benefactor. That $150,000 in 1999 would equal $220,957 today.

To be sure, $150,000 or even $220,957 isn’t millions of dollars. But considering McCarty’s low-wage paying job and the fact that 47% of Americans today can’t come up with $400 cash, that’s a solid amount of savings.

Likewise, consider Ronald Read, a former gas station employee and janitor. When Read died at 92 in 2014, he was worth an estimated $8 million. Read was an avid and consistent investor and lived frugally, way more frugally than I ever would. But he’s another example that it’s not about how much money you earn. It’s what you do with the money you make.

With your next raise or promotion, will you do better than McCarty or Read?

Know if you’re on a cycle of rinse, recycle, repeat.

Most of us go about making a living instead of making a life.

We go to school to get the best job we can to make the most money we can and then, for any number of reasons, spend all the money we can and then spend more money than we have. Despite each promotion and each raise, we eventually find ourselves living beyond our means.

Today we finance our phones, our music, our education, our homes, our vacations, our everything. The problem is that a growing number or economists are becoming convinced that prosperity is contingent on our property rights.

Property rights usually relate to law. However, it’s logical to conclude that if we give up our property rights by financing from the cradle to the grave everything we would otherwise own, our affluence will suffer the same negative consequence as if we had no legal rights to ownership.

If everything from music to television to mortgages to education is on a small, affordable monthly payment, when do we stop making payments and start amassing wealth? What do we pass to our heirs for our family’s long-term financial security?

Jim Rohn said, “Once in a while, somebody says to me, ‘Boy, if I had a million dollars, I’d never work another day in my life.’” He goes on to say, “That’s probably why the good lord sees to it they don’t get their millions.”

With your next raise or promotion, how long will it be until you’re back in the same financial position?

Know why you should do well.

I read and listen to a bunch of personal finance information, and it astounds me how I keep returning to the same conclusion. Financial success, even life, personal, career – any success – is contingent on your purpose or your ‘why.’

As I’ve shared here, my husband and I amassed $51,000 worth of credit card debt – despite knowing better and notwithstanding the fact that we could do better.

At the time (and like many people today), we were unsatisfied with many aspects of our lives. It’s important to acknowledge that our economy is designed to keep us feeling unsatisfied.

Television, the internet, Facebook, movies, magazines and everything else tells us that we need more of this, that, and the other thing to feel happy, feel good, be liked, or be like someone else. When everyone in the neighborhood is drinking this Kool-Aid, it’s hard not to take a sip.

For this reason, the best thing we did to turn our financial situation around was to decide what we most want and not what we think we should want or what others want for us.

When we realized our most important goals, everything came into perspective, and we could manage our financial lives accordingly. It’s because we know our purpose that we’ve turned our $51,000 deficit into a $700,000 surplus and now work for ourselves.

Learn how you can do better, even without a raise or promotion.

How do you figure out your most important goals? For us, we did a lot of personal reflection and had lengthy discussions about what we most want in life. Everything we said was put on the witness stand and cross-examined until our purpose came down to three things. For you, it may be more or less, but if it’s too much, it’s too broad.

Next, we assessed what it was that was blocking us from our primary goals. Everything from not paying attention to our cash flow to being insecure came up.

Finally, we decided what it was we were willing to do to overcome those blockers. This step helped us determine how committed we were to change our situation and lay the foundation for a strategy.

Just as climbing the corporate ladder won’t solve all your problems, your next promotion or raise won’t make you rich. In fact, your next promotion might make you poor. What happens when you get a raise or promotion and you spend right up to it? What happens when you have a vision of the things you “should” have with your fancy new job title?

It’s easy to get caught up and overspend because we have the idea that’s what you do when you get a promotion. But that thinking just puts you back where you were – or even makes things worse financially.

When we realize that it’s not external factors or our circumstances that dictate our success, but our choices and behaviors, that can be better than any promotion.

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The job of your dreams might not be what you think. And you might not need “traditional” schooling to get it.

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The unemployment rate for millennials is higher than the national average – much higher.

So, what can you do when you’re trying to find the job that’s right for you? Will you get the job you want?

The first step is figuring out whether or not the “traditional” path is the right one for you. Next, it’s a good idea to know what skills are in demand. See if one matches your needs.

In this episode, we look at why it’s hard for millennials to find a job, and address what they can do to beat the odds.

 

Concepts

  • Overview of some of the reasons millennials struggle to find the job for them.
  • The realities of a “traditional” college education and whether or not it prepares grads for the workplace.
  • Is it really harder for millennials? (Hint: probably yes.)
  • Where to go to find a job that works for you.
  • How to network more effectively.
  • The importance of being open to unusual opportunities.
  • Looking for purpose in your job.
  • The role of entrepreneurship in creating your own job.

This week’s DO NOWs are all about how to find the job that’s right for you by starting with your expectations. Write down what you expect from a job. Be realistic. Do you expect too much from a job?

Also, use this time to think about what you want to accomplish with work. Do you have a preference for a company with a mission? Do you hope for career development?

This week’s listener question deals with helping your boss understand the importance of flexibility and providing workplace options.

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Resources

Millennials: The Me Me Me Generation.
This is the real reason graduates can’t get hired.
Employers don’t think college grads are ready for the real world.
Baby boomers think millennials have it tough.

 

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You’re done with college. Get out there in the real world and start networking as if your career depends on it. Because it does.

Once in a while, we present Adulting.tv LIVE! Subscribe on YouTube to hear about future events, and share your questions about or suggestions for our next discussions!

Show Notes

Join us as we talk to Nick True from Mapped Out Money. He talks about how networking helped him find great opportunities to get started in a great career and lead a fulfilling life. He offers great insight into confidence, how to become comfortable talking to people, and how to practice networking. We also discuss networking in college vs. networking in the “real” world and establishing different networks.

Watch the video, recorded live, above, or listen to just the audio using the player below. Don’t forget to subscribe to the podcast!

Hosted byHarlan L. Landes and Miranda Marquit
Produced byadulting.tv
Edited and mixed bySteve Stewart
Music bybensound.com

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You nailed the resume. It’s time for your interview. Don’t screw it up. Walk in there, impress, and get the job.

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Did you nail the resume and end up being called up for an interview? That’s great. But now you need to make sure you crush it in the job interview.

From making a good impression to following up effectively, this episode is all about how to impress during a job interview. Increase your chances of clinching the deal and taking the next step in your career.

Concepts

  • How to prepare for the interview ahead of time.
  • Common questions you should be ready for during a job interview.
  • How to conduct research on the company.
  • Why you need to think of good questions to ask the interviewer.
  • The importance of showing up early.
  • Tips for making a good impression during a job interview.
  • How to be yourself and still show you are the right person for the job.
  • Reasons to follow up after the job interview.
  • How to use a thank-you note.

This week’s DO NOWS focus on preparing for how to act during a job interview. We talk about working through common interview questions, working on a five-year plan, and figuring out what success looks like for you.

Our listener question addresses what to do when interviewers ask questions during a job interview that you find stupid, like “What tree are you most like?” We go over possible answers, preparing ahead of time, and why that could be an indication that perhaps you don’t want the job after all.

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Looking for more quality time with your S.O.? Start a business together. Just make sure you’re really cut out for a shared business.

Many moons ago, actually 495 moons ago, my husband and I decided that we were done with our W-2s.

We were tired of working for someone else, seeking other people’s seemingly impossible approval, and letting someone else dictate our income and quality of life. So, we started our own business and haven’t looked back.

If you’re thinking of working with your life partner or spouse, you may want to know that it’s pretty awesome. It’s not just me who thinks that, as you’ll see. Others think it, as well. Here are some of the myriad of reasons to work with your partner.

You can spend more time together.

I’ll start with the most nauseous reason first. The first and primary reason we started a business together is because we want to spend more time together. We happen to like each other, so, why not spend more time together?

With traveling to and from work, preparing for work, working and sleeping, we were only seeing each other a few hours a day. We were living for the weekends, but the weekends were too infrequent and too short. So, we made an employment change.

Plus, rather than text each other all day from separate locations, we can now just look up across the table.

Masterminding.

There’s something special about growing something special with your best friend. This is usually why couples make babies. Growing a business isn’t too unlike raising children. They both take patience, perseverance, creativity, money, and love.

Holly Porter Johnson of the ClubThrifty.com says, “Working with your partner is awesome because you get to dream together! I love coming up with new ideas and bringing them to fruition with my husband by my side. There is no greater joy than growing something together and becoming successful as a team.”

We couldn’t agree more. Working with your life partner is a great way to boost all your ideas and make the most of life and business.

Dividing and conquering.

Even though it’s your own business, you still often must meet the expectations of others. Sometimes those expectations come with deadlines and sometimes they come with demands. In these circumstances, we divide and conquer.

Mrs. Frugalwoods of Frugalwoods.com says, “By dividing and conquering—and focusing on our individual strengths—as partners (in love and money), we excel at creating genuine, relatable content that not only expands our brands, but also deepens our relationship.”

We both understand our business and both have a vested interest in its success. Either of us can take the helm when necessary and we work well together the rest of the time. This makes for happier clients, better service, and a stronger bond.

Motivate each other.

Building a business is hard, but it’s easier when you build one with someone else. Getting out of bed is hard, but it’s easier to get out of bed when the person next to you is getting out of bed, too.

There are times when you just don’t wanna. Usually, we don’t have that feeling at the same time. So, when one needs a pick-me-up, the other’s there and vice versa. When it’s hard to see the bright side, the other is there to shine the light.

Working with your life partner is great when you have built-in support.

Complement each other.

There are some things he’s good at doing and there are other things I’m good at doing. This, like dividing and conquering, let’s us take advantage of each of our strengths.

Personally, my husband is great with coming up with a million good ideas. He fails on the execution of those ideas. I struggle with ideas and am good with execution.

Likewise, he’s good with technology and I’m good with words. So, with the foundation of our business being an online blog, he keeps the lights on and I keep them coming back for more.

Save cost-of-working costs.

The reason many families have multiple cars is because each family member has a different job. That’s more cars, more gas and more car insurance. When you’re a home-based business of two that shares a bed, you really only need one car.

Working with your life partner cuts down on other costs, too.

Aside from our public speaking, most of our business is behind a laptop. Therefore, we don’t need as many “work clothes,” packed lunches, and Tupperware or contracted services such as a cleaning person or personal chef. We had a personal chef for a year while we were building out business and both working a W-2.

Now we have the time to take care of these things.

Lunch dates.

Even though fewer people do work lunches anymore, some business partners have the occasional lunch date. When you work with your partner, every lunch (and breakfast and dinner) is a true-blue lunch date.

Usually, we eat lunch while we watch an inspirational talk or video on YouTube, but it’s more special watching these with your someone special than watching them alone. Likewise, when we’re inspired we have someone with whom to be inspired.

Not only are these lunch dates good quality time, but they’re also a relaxing time to brainstorm solutions to struggles we’re having. As Mrs. 1500 of 1500Days.com says, “The Mister and I have a pretty solid relationship. He’s my best friend, and I know that he has my back with anything. That part’s really important.”

If you’re considering working with your life partner, know that it’s a work relationship that can work.

It may not be for everyone, but the from the other co-working couples we know and our own personal experience, it’s pretty lit.

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Don’t assume that working with your life partner is all sunshine and rainbows. It’s not for everyone, so make sure it’s right for you before you get too far in.

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Do you want to work with your significant other? From working in a “regular” job, to potentially starting a business with your life partner, does it make sense?

It sounds like the perfect recipe for bliss. You get to work with your partner, seeing them every day? Business and pleasure FTW.

Except it’s not always rainbows and unicorns. Sometimes things get a little dicey when you mix business and pleasure with your life partner.

Concepts

  • The good side of working with your life partner.
  • Tips for spending more quality time with each other when you work together.
  • Challenges of working with someone you have a relationship with.
  • Is it possible to see each other too much?
  • The realities of the power dynamics once you start mixing business and pleasure.
  • What happens if you break up?
  • The importance of honesty and open communication in this situation.
  • How to talk about money, risks, and other issues that come with working together.
  • Why you need to get away from each other sometimes.

This week’s DO NOWS are all about trying to decide if you should work with your life partner. Look at whether it makes sense to run a business together, or work in the same department at your 9-to-5. If you already have a business together, review your roles and responsibilities. It might be time to change things up.

Finally, mixing business and pleasure sounds fun, but sometimes you just need pleasure for your relationship to work. Go have a date.

Our listener question deals with trying to figure out how to convince your S.O. to start a business with you. We look at whether or not it really makes sense, and how you can decide if it’s the right step for you to take.

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To get Adulting delivered directly to your device, subscribe using iTunes, Stitcher, Google Play, or your app of choice.

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Cheap labor. People who love you. Hiring family members for your business seems like a slam dunk. Unfortunately, it isn’t. It could go very, very wrong.

If you’ve ever started a company, you’ve probably at least considered hiring family. Just about everyone has a sibling, cousin, or nephew who needs a job – and may even have the skills to make it work.

In some cases when you hire family members, the arrangement can be fantastic. Not only are you working with someone you presumably have a deep personal connection with, but you’re helping a loved one and getting an opportunity to spend more time with them.

If it goes sour, all of a sudden you’re spending Thanksgiving with your spouse’s family and explaining to every nosy second cousin what went wrong.

This is so situational – and so controversial – it’s hard to say for sure what the best option is.

Before you make a decision about whether or not to hire family members, carefully think through the situation. Here’s a detailed analysis of the pros and cons to help you decide what’s best for your business.

The advantages when you hire family members.

A family member is always more invested in your success than a random stranger, no matter how carefully vetted they are. When you’re starting a small business from scratch, you want your employees to care as much about the idea as you do.

Someone who you’ve known for your entire life is also more willing to be honest with you.

It’s hard to give a new boss criticism, but a family member shouldn’t have a problem speaking up when they feel you’re leading the ship astray.

Anytime you’re growing a business, you need those working under you to give real feedback, not just what you want to hear. A strange face might be hesitant to share a conflicting opinion, but not your big sister who grew up giving you wedgies.

One huge benefit to hiring someone close to you is that they probably need less time to settle into the business. It often takes a few months for you to feel comfortable with a new coworker, but your family member should be able to dive into the culture a lot faster.

Author and speaker Kylie Travers has hired her sisters off and on since 2009 when she first started her business. She’s never had issues with working with them.

“My sisters and I think alike so it was easier having them work for me than trying to explain everything to others,” she said.

The disadvantages when you hire family members.

The biggest downside to hiring a loved one to help you with a business is the looming question of how it will affect your relationship.

It’s easy to imagine a scenario where you all end up millionaires sipping cocktails on a beach, but it’s just as likely you’ll end up bankrupt and out of business.

The fact is, most startups fail. If you’ve asked your cousin to quit his or her day job to help you with your dream, they might be resentful if it doesn’t work out.

This is even more concerning if they’ve invested their own money in the company. Do you want to be responsible for your loved one losing their house because they sunk their finances into your startup?

Doug Nordman, blogger at The Military Guide and angel investor said he doesn’t think it makes sense to hire family members. In general, he doesn’t believe they should work together.

“Spouses or siblings are not necessarily a deal-killer, but at best it’s neutral and it’s usually a negative,” he said.

Another issue is the possibility of having to reprimand or even fire your relative.

When you disagree with an employee, the incident stays at work. When you argue with a coworker who’s also your little brother, the quarrel can follow you to the family wedding the next day, or that holiday dinner six months from now.

How to make it work.

If you’re worried about potential problems but still want to hire family members to help with your startup business, it’s imperative to talk it through beforehand. Ask about their working style, any issues they’ve had in the past, and anything they’re worried about.

You can also establish some ground rules, such as no business talk during family events and no venting to outside family members about work conflicts. If the venture goes south, you don’t want to suddenly divide the family between the two of you.

Damien Peters has worked with his brother several times, but never for long durations. Though they’re close, Peters said they think too differently to work together on a permanent or full-time basis. While Peters said that plenty of family members have issues being colleagues, not every family needs to avoid doing so.

“If it makes sense for your skills and relationship, try it out temporarily and set boundaries upfront,” he said.

Before you hire your loved ones, consider working together on a temporary basis.

Agree that if either person wants to terminate the arrangement at the end of the trial period, they can do so without backlash. That way, you can experience what it’s like to work together but not be committed right off the bat.

In the end, you have to do what’s best for your business and your family relationships. You can’t get caught up in trying to force the situation if it’s just not working. With a little experimentation, you can figure out pretty quickly if it makes sense to hire family members for your business.

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