Best Advice for Graduates

The Wall Street Journal asked several prominent people about the best and worst financial advice they received—and their guidance for this year’s grads. Here's what each of them said their best advice was for those graduating this year:

• David Bach, author of the best-selling FinishRich books - Don’t give up if you’re not finding a job. Ask someone for an informational interview. At the meeting, get three more names of professionals to meet. That’s how he eventually landed a job.

• Paula Deen, restaurant owner, author and Food ­Network host - Get all the experience you can and be persistent.

• Robert Kiyosaki, businessman and author of the best-selling “Rich Dad, Poor Dad” books - If you’re going to be an entrepreneur, find a successful one who will teach you.

• John W. Rogers Jr., chairman and CEO of Ariel Investments - You want to be known as the best teammate in whatever organization you join. Look out for your teammates every step of the way. Be a good listener, teammate and friend, and live up to the commitments you make. Whatever you promise you’re going to do, you’ve got to do that.

• Mary L. Schapiro, chairman of the U.S. Securities and Exchange Commission - Live within your means. People need to know how to manage debt so don’t borrow without understanding the implications of the debt and how you’ll repay it.

• Carrie Schwab-Pomerantz, ­president of the Charles Schwab Foundation - Live off 90% of your income. Save the other 10%, first as a cash cushion. “When you’re young you don’t need all the bells and whistles in life,” she says.

Not bad advice, huh? All of these basically boil down to two thoughts: make the most of your career and spend less than you earn. Hard to argue with those two, isn't it?

BTW, this is not only good advice for graduates, but for all of us.

Comments

[Matt]

Good advice but I think Paula's should have said, "Hey ya'll. Get all the experience you can and be persistent. Also, you need to eat something with at least 2 sticks of butter in it a day ya'll."

[Joe]

I'd also add: realize that luck is a huge part of any major success. Its a shame that people mix up correlation and causation. Mix that with various cognitive biases and you have the market for sitessuch as this one.

[Charlie@PayLessForFood.com]

Great advice.

I have to particularly agree with Carrie Schwab-Pomerantz in the importance of savings. What I've found crucial though is to save in a way that you don't even see the money.

Its so much easier to save $100 a month when that $100 doesn't even touch your hand and you don't have the chance to be tempted with unnecessary purchases.

I would advise any new graduate to set up an automatic payment plan with their bank that automatically withdraws a small amount from their check (say $50 or so) and places it into a savings account.

[lurker carl]

To alter to Carrie Pomerantz's statement, try to live off of 75% of your income. You never hear anyone say they have too much money in savings.