Free Money Finance

The Crazy Way We Work

Here's an interesting infographic on the crazy way we work.

I'm going to pick out a few of their facts and comment on them.

70% of American workers experience stress-related illnesses.

I can relate to this.

I never knew what a toll stress was taking on my body until I retired. I could literally feel the stress melting away over time. It took about six months for me to fully de-stress after working almost 30 years.

Of course, too much stress is not good for any of us. In this way, our jobs are slowly killing us every day.

33% more heart attacks occur on Monday mornings.

Uh, yeah. Because 1) people hate their jobs and 2) there's a lot of stress there. No surprise here.

In retirement, Monday becomes your favorite day. Why? Because everyone else goes back to work. The stores are quieter, the gym is quieter, the theater is quieter, and so on.

The average commute time is 47 minutes round trip.

That is BRUTAL!

Most people don't factor the physical (more stress!) and monetary (like taking a big pay cut) impact of a long commute.

Think about it this way: 47 minutes per day * 5 days per week * 50 weeks = 11,750 minutes or 196 hours or 8.2 days per year commuting. Ugh.

I never had a commute more than 20 minutes one way and if I had I would have probably hated it completely.

41% of tasks on to-do lists never get completed.

What a shock here...not really.

Most people are so busy getting to the urgent things each day that they don't get to the important things.

There's a reason Covey addressed this in his 7 Habits book.

Interesting stuff all the way around. If you want more, check out the infographic for yourself.

How to Make Over $700k More During Your Career

Here's a simple but effective way to earn over $700,000 more during the life of your career:

Start at a higher salary

Money Magazine listed a chart in its May 2016 issue that compared the career earnings of two people. They both got 5% annual raises during their careers. But one started out earning $35k a year while the other started at $40k.

The difference in salary was over $700k throughout their careers.

The person who started at $35k earned $5.0 million during his career while the person starting at $40k earned $5.7 million during hers.

This is why it's a great reason to ask for more money when you're offered a job. A few minutes of negotiation can mean several hundred thousand more dollars to you during your lifetime.

Are You Happy at Work?

I was looking through an old file of articles the other day and found one from Money Magazine. It was written in September 2014 and asked readers a variety of questions.

The first was "How do you feel about your job?"

• 42% said, "My job is okay."
• 22% were retired or unemployed
• 20% said, "I can't stand it."
• 16% said, "It's my dream gig."

Some thoughts:

• Of the people with jobs, the vast majority said their jobs were simply "okay." Basically they mean, "I don't like it that much, but I need the money so I stick with it."
• Only 1/5 said they couldn't stand it. I thought it would be much higher.
• I'm not sure what to think about the "dream gig" people. Is that a high or a low number?

The next question was about asking for a raise. The results:

• 56% had never asked for a raise
• Of those who asked, 66% got a raise

My guess is that the people who asked, deserved a raise, thus the high success rate.

The 56% probably knew they really didn't deserve one, so they didn't ask.

Finally, they asked people if they were earning their desired salary. 65% said they weren't.

So...what are these people doing about the situation? Are they trying to grow their careers or simply sitting back and taking poor pay? This would be very interesting to know.

That's my take. What do you think of these findings?

Nine Resume Killers

Business Insider lists nine resume killers as follows:

• Hobbies -- No one cares and they are a waste of time and space.
• Objective -- It's obvious what your objective it - to get the job you're applying for.
• Personal pronouns (I, me, my) -- It's understood the resume is about you.
• Irrelevant experience -- Just adds clutter.
• Images -- Tacky and distracting.
• Professional contact information -- Do not use your current office number or email.
• Buzzwords -- Turn-off for hiring managers.
• Present tense for a past job -- Only use this for current job.
• Unnecessary words -- Wastes valuable space.

Here's my take on these:

• Hobbies -- For the most part, I agree. No one wants to see "video games" listed when you're applying for a business position. However, if your hobbies help in some way, I'd include them. For instance, if you're applying for a marketing job at a video game maker, the fact that you're rated in the top 100 in the world on their main game is a selling point.
• Objective -- I hate objectives and completely ignore them as a hiring manger. As such they are simply space wasters -- and it's usually prime space they waste (at the top).
• Personal pronouns (I, me, my) -- Of course. This is resume writing 101 and when someone uses personal pronouns it screams "amateur!"
• Irrelevant experience -- I would summarize it if it's needed to otherwise cover work gaps.
• Images -- Unless 1) you're a creative of some type (like a graphic designer) or 2) in an industry where it is expected (newscaster, model).
• Professional contact information -- Don't we all have our own private cell numbers and email addresses by now?
• Buzzwords -- Again, it screams "amateur!"
• Present tense for a past job -- Do you know how to write or not? Doing this says "no".
• Unnecessary words -- You need to be short and sweet.

A good list overall. What do you think of it?

There's a Huge Difference Between Average Salary Increases and Top Increases

Here's a piece from Kiplinger's where they ask a compensation expert what 2017 looks like for pay.

They begin by asking what kind of a raise people can expect in 2017. Her response:

Companies are forecasting 3% increases, similar to years past. But how that budget is spent may vary by person. Employees with the highest possible rating could see increases in the range of 4.5% to 5%, while low performers get an increase between 0.7% and 1%. Bonuses for salaried employees are projected to be 11.6% of pay, on average, with rewards for special projects or onetime achievements set at 5.6%, on average.

I've been saying for years that there's a HUGE difference between earning the average increase and a top-level increase. The difference between 3% raises and 4.5% to 5% raises over the course of a career adds up to an additional several million dollars over the course of a working lifetime. That's why I always stress that people need to grow their careers. It's a key step in becoming wealthy.

Next they ask her what workers can do to improve their standing. In other words, how can they get those top raises? Her response:

A lot of companies are making the process more about feedback than about performance rankings. That means there's a real opportunity to sit down with a manager and make sure there's a mutual understanding: What’s really expected of me, how will I be measured, and how will that impact my pay? The pace of work changes quickly, so ask how your goals are changing. Employees can also ask about more-individual approaches to work: Can I work from home or work alternative hours? A lot of times these programs are not communicated as well as they could be. They might not put dollars into your pocket, but they make life easier.

The key is to develop a systematic way to both over-perform and have your boss know that you over-performed. If you can do this, top raises will be more of a way of life for you and your income will take off, helping you make millions more over your career's lifespan.

Another Vote for Attractiveness

Last year Money Magazine ran a feature article called Help! I Want a Career Makeover.

Some of it had a few career tips here and there, but much of the piece was doing a real makeover -- changing hair, make-up, what a person wore, etc. to make them more appealing at their job.

In other words, Money was recognizing that making yourself more attractive is a key part of growing your career. Of course it is.

I've covered this topic several times in the past. Some highlights:

• Make More Money by Being Attractive
• Is Your Image at Work Killing Your Career?
• Using Your Looks for Career Success
• How to Make Up for Being Ugly

As I said in those posts, you don't have to be the next Brad Pitt or Jennifer Aniston to get ahead. But you do need to take care of the basics that make people more attractive: proper hygiene, dress nicely, groom yourself properly, no crazy hair-dos, piercings, and tattoos, etc.

It's stuff that should come fairly naturally but unfortunately doesn't for many people.

So consider this a public service reminder to check what you do to maximize your attractiveness. Your career (and your wallet) will thank you.

Top Five Signs You Should Leave Your Job

LinkedIn lists the top five signs you should leave your job as follows:

1) You Hate Going to Work
2) You Don't Respect Your Boss or They Don't Respect You
3) You Find Yourself Searching for Jobs Constantly
4) You are Envious When Others Leave
5) You Experience Issues Away from Work

Ha! I've had all of these signs appear throughout my career. Sometimes much worse than others.

My take on these:

1. I have only had a few jobs where I really liked going to work and that was only for periods of time -- not my entire stay at a place. That said, I've only had a few times when I really HATED the job as well.

2. This has happened to me several times, unfortunately. I get a boss who just doesn't get it. It's usually after I've been at a company for some time and a new guy comes in. It hardly ever works out.

3. This was common early on but the second half of my career was pretty stable. I liked what I was doing for the most part and thus never really looked for a job until I had to.

4. I'm not really the envious type. I am happy for those who leave as it means they've found something better.

5. If you can't sleep, can't eat, etc. because of work, then work is out of control. Period. Been there, done that. Glad it's in my past.

So yes, I've experienced most of these. And they sure were signs that I at least needed to reconsider my employment at a given place.

How about you? Have you experienced any of these five?

The Benefits of Writing

Here's an interesting post on the benefits of journaling. The part I want to highlight is as follows:

One effective way researchers have found to reinforce learning is through reflective writing. It turns out that regular journaling can be used to train our attention and strengthen neural pathways. As neurologist and teacher Judy Willis explains:

The practice of writing can enhance the brain’s intake, processing, retaining, and retrieving of information… it promotes the brain’s attentive focus…boosts long-term memory, illuminates patterns, gives the brain time for reflection, and when well-guided, is a source of conceptual development and stimulus of the brain’s highest cognition.

Reflective writing has also been shown to improve decision making and critical thinking in a number of medical professions, including physical therapy and nursing. For practitioners, journals proved to be invaluable tools for examining past experiences, evaluating their own actions, and drawing insights for encountering future challenges.

I have a few thoughts on this:

• I have certainly found that writing helps me crystalize my thinking. Much of the personal value of this blog to me has been gained by writing posts. It's helped me decide what I REALLY believe, learn more about available alternatives, and, ultimately, take action. It's probably been worth an extra half million dollars to my net worth.
• Journaling is recommended in The Miracle Morning: The Not-So-Obvious Secret Guaranteed to Transform Your Life (Before 8AM), a book I LOVE, likely for the reasons noted above.
• The more you write, the better writer you become. And being great at writing has several advantages. For instance, it's a skill that employers will pay you more for. Or you could use it to develop a nice side income (as a freelance writer). Or maybe you even write a book!
• Writing is hard. I had to include this to be honest. Writing is not easy, especially if you want to do it well. The nice thing about writing in a journal is that it makes writing a lot easier. You don't need to worry about spelling, grammar, or trying to make the writing sound pretty or even make sense. You just write for yourself!

So, those are my thoughts. What's your take on journaling?

How to Practice Interviews

Fast Company lists seven steps you need for your next interview. They suggest you practice your interviews in advance and even video tape them. The details:

There’s no better way to practice an interview than actually doing an interview, so get a friend or family member to help you. Provide them with the details you dug up on the company, the job description for your position, your resume, and cover letter. Take the list of tough interview questions from here and provide them to your helper. (Also take a bottle of wine to thank the person—and maybe another if you actually get the job.)

Caroselli recommends you film your mock interview, if possible. (If video isn’t a possibility, record the audio.) "Study your body language to see if it reveals confidence, poise, and enthusiasm," she says.

You should also review your performance with your interviewer. Did they think you had good answers? Did you sound or act nervous? Did you seem arrogant? Get their feedback, and adapt as needed.

While I agree 100% with preparing for an interview in advance, I don't think you need to take it so far as to video tape yourself. You can if you want to, but it seems a bit over the top to me.

I think you'll be fine with:

• Identifying the most likely interview questions
• Writing out answers to them (be sure they include examples of accomplishments)
• Practicing those answers (out loud)
• Re-writing/editing responses to make them better
• Rehearsing them over and over until you have them down pat

If you wonder what the most common interview questions are and how to answer them, see these posts:

• How to Answer Six Common Interview Questions
• How to Answer Tricky Interview Questions

How to Prepare Interview Answers

Fast company lists seven steps you need for your next interview. Here's what they say about preparing your interview answers:

Remember, your goal in the job interview is to show how you can make a positive impact on the company. Your interview answers should reiterate your unique selling points, Bumgarner says.

To practice, review some likely interview questions and make notes about the strengths you can highlight.

"For every answer, you should be able to say, ‘For example,’ and tell a story about a time when you demonstrated the things you are saying you are good at," Bumgarner says. "Never answer in generalities." Specific, real-world examples are what will get you hired.

A few thoughts:

1. Yes, there are steps you can take to ace your interview. If you take those steps, you should do well.

2. You need to develop unique selling points that are important to the employer and the job you'll hold. If your points are worthless for the position, there's no need to highlight them. Find something you can do that the employer needs.

3. Practice, practice, practice. An interview is a test where you know most of the questions in advance. Use that to your advantage.

4. Accomplishments are key as I noted in A Simple Recipe for Job Interview Success. If you don't have any (or don't use them) you probably won't get the job.

Some Good Career Advice from College Career Counselors

US News lists five things college career counselors wish students knew as follows:

1. The career center exists.
2. Counselors know you are new at this.
3. Professional skills take practice to develop.
4. Students must take responsibility for their professional development.
5. Excellent networking can make the greatest difference in jumping ahead professionally after college.

IMO, this is some decent advice, especially #3-5. Here are my thoughts on each:

1. The career process begins with why you pick a particular college. Hopefully it's because that college has proven itself to place graduates in the field you are studying. If not, then you are off to a bad start from the get-go.

2. Not much to say about this. Kind of a throwaway tip to me.

3. Yes! Practice makes perfect! Where it makes the most impact is during interviews, so develop a plan to practice and you will ace your interviews.

4. Of course. Again, this begins at the start. Picking a college is the first step in your 40-50-year career.

5. Networking is a skill that will help out of college and throughout an entire career. It's one of the seven steps anyone needs to take to grow their career.

One extra piece of advice: I'd suggest high school students check out the career centers at colleges they are considering and take into account each center's abilities/successes as part of their college selection decision.

Why Do We Hate Our Jobs?

Here's an interesting quote from Forbes:

Data from Wakefield Research for MOO reveals that about 75% of Americans working a traditional 9-5 job are unhappy or unfulfilled in that role — that’s a bit of a blow to our collective happiness, particularly when you realize that a full 90% of people believe a rewarding and fulfilling job is a major factor in overall happiness. Researchers have uncovered deep ties between job satisfaction and feelings of motivation, empowerment and engagement.

Ok, so 3 out of 4 are unhappy or unfulfilled. That's a rough way to spend 40 years of your life.

Is the issue that we just hate working? Is it really that bad that so many dislike work? Or maybe our expectations are much higher than reality and that's why we're unhappy?

I saw a post on Facebook recently that said:

The key to happiness is low expectations.

Lower.

Nope, even lower.

There you go.

:)

Seriously, what's the issue?

My career was 28 years long if you don't count school (I consider school part of my career, but that's another post). Out of all those years I may have had five (at most) where I was unhappy or unfulfilled. I don't know what I would have done if 3/4 of those years were bad! How could I have stood it?

And if people are so unhappy, why don't they do something about it? Move companies. Take a new job. Change careers.

I really don't have any answers but perhaps some of you do. This seems out of control.

Thoughts?

The Value of Education

Fox Business shares some data that highlights the value of education. The highlights:

Based on the assumption of a 40-year work history (from age 25 to 64) and using 2011 dollars for its example, the Census Bureau finds that full-time workers' lifetime earnings capacity soars as their education level rises. Non-high school graduates with a ninth through 12th grade education level and high school graduates in its example bring home $936,000 and $1.1 million in earnings over their lifetimes. Individuals with at least some college experience netted an average of $1.6 million, while those with an associate's degree brought home $1.8 million over their lifetime.

The data showed that people graduating with a four-year bachelor's degree earned an average of $2.4 million over their lifetime in 2011 dollars, with people attaining a master's degree bringing home $2.8 million. More specialized degrees, such as a doctoral or professional degree (for example, law or engineering), led to lifetime earnings of $3.5 million and $4.2 million, respectively.

To summarize, average lifetime earnings are:

• Non-high school graduates: $936k
• High school graduates: $1.1 million
• Some college: $1.6 million
• Associate's degree: $1.8 million
• Bachelor's degree: $2.4 million
• Master's degree: $3.5 million
• Doctoral degree: $3.5 million
• Professional degree: $4.2 million

Several thoughts on this info:

• There's an on-going debate about whether or not education is worth it because of 1) cost/debt incurred and 2) the time it takes to earn a degree takes away from the number of years you earn an income. I think this data shows that educations is generally worth it (by generating more lifetime income) even given these two factors.
• Using data from ages 25 to 64 seems to limit the value of some degrees. Many (most?) people have their Bachelor's degree by age 22 or 23 and many (most?) work way past 64. So it seems like the value of some degrees are understated. Even those with no degree could begin working at 18 or younger and work well past 64, making the non-high school graduates and high school graduates numbers higher too.
• You can maximize the financial value of any degree by 1) cutting college costs (and time) in getting the degree and 2) working at your career so you make more than average. The above incomes are the average figures, but who says you have to be average? Even being just a bit above average will earn you a tremendous amount more over the course of a working career.
• I'm not sure if an MBA counts as a Master's degree or a professional degree. Getting my MBA was certainly one of the smartest money moves I've ever made. I "only" worked 28 years and made well more than $4.2 million. That said, all that income wasn't from my career -- a decent amount was from investments (which my career enabled) and from a few side businesses.

Overall, this data seems to clearly show the value of an education, especially one done right (the lowest costs possible and the highest earnings possible). Anyone think differently or like to support what's above?

Do Not Lie on a Job Application

Two stories, same result.

Before I retired, we were hiring for a senior management position in our marketing department. After several months looking for the person with the right skills and fit, we had a candidate we liked. He was at the final phases of the interview process. All he had to do was pass a background check and we would have extended him an offer.

Well the background check came back with something. He had been convicted of a minor felony. He had said he had no convictions in his past. To make a long story short, we ended up not hiring him. We didn't pass on him because of the conviction (it was long ago and not that big of a deal), but because he lied to us.

When we told him we weren't hiring him and why, he admitted that he had lied, apologized, and said he understood completely.

More recently my son took a job at our local grocery store. A week after he started, another new hire was let go. The reason: his background check had come back and revealed something he lied about. I don't know if it was the incident itself or the fact that he lied about it (or both!) that got him fired, but I'm sure that lying did not help. (BTW I'm not sure why they hired him and did the background check afterwards.)

Moral of the story: do not lie on your job application.

In fact, do not lie in any part of the job application process. Not on your resume, not in an interview, not ever. It's just not worth it. If you're ever found out (and odds are good you will be), you will likely be toast.

I would go farther and say not to lie at all in anything you do, but I'll leave that advice for your mom to give. :)

The Importance of Accomplishments on Your Resume

It doesn't happen very often, but once in a while a mainstream media article gets personal finance right.

Here's a case in point: this piece from US News that lists the three most important things to include on your resume:

In particular they hit a home run IMO with #2. Here it is:

Numbers. Anyone can add a goal that they accomplished to their resume. But to really reveal impact and show the value you could potentially bring to an organization, you need to quantify your achievements. This simply means including data and metrics whenever possible on your resume. For example, if you spearheaded a project, don't just list the project – describe the impact of the project using numbers. Did you oversee a team of eight people? Did it result in 100 additional sales? Did it increase your department's profits by 50 percent? If you have impressive numbers that can help hiring managers better understand how your successes impacted organizations where you've worked, add them to your resume. If possible, try not to use general terms like "tripled" or "decreased spending" unless you can back them up with solid figures. If there are confidentiality issues with including numbers in your resume, consider adding an overall range to avoid specifics yet still show employers the rough numerical impact you made.

Great, great advice.

I've posted on this same thing in the past. If you're interested in reading more, check out my thoughts on How to Write a Winning Resume.

A resume without accomplishments is useless in many cases.

A resume without quantified accomplishments is not nearly as good as one with them.

And the accomplishments need to be substantial/impressive.

For instance:

• Not great: "Grew sales 1%"
• Great: "Developed and implemented plan that grew sales 12.4%"

Now what if you don't have any accomplishments? You need to get some. Develop a plan for how you can put some points on the board over the next six months and then re-write your resume with those accomplishments added.

Of course a great resume does just one thing (mainly): it gets you an interview.

From there, you need to ace the interview if you want a job offer.

I'll talk more about both of these in future posts. Stay tuned.

Reminder: Don't Quit Your Job Until You Have a New One

I recently ran into a LinkedIn post titled "That's It, I Quit!" -- What's Your Exit Plan? where a worker says (in part):

I am going out of my mind at my job. I hate my job so much that I'm afraid I'm going to walk out the door one day in frustration. I have almost done that already on two occasions but I stuck it out. I can't afford to live on no salary and if I walk out I won't get unemployment compensation.

The author then gives the worker a ton of advice on what to do next. Know what's not on the list? Quit.

That's because quitting a job, even one you hate, before you have another one is a really, really bad idea. Why? Because your career is your most valuable financial asset and if you mess it up, it could cost you millions.

I talked about this issue a few years ago in Another Reason Not to Quit Your Job Before You Have Another One.

I did offer some advice of my own on what to do if you had a job you hated. In What I'd Do with a High-Paying, Unrewarding Job. I listed the following steps on how I have handled this sort of issue:

1. I started looking for opportunities immediately.
2. I toughed out the current job.
3. I kept succeeding.
4. I took my time.

I've had two instances where I had a job I really hated and wanted out of there ASAP. But both of those times I took the steps above and waited TWO YEARS each time before I finally found something I liked.

The key is to find a new job you'd move to even if you didn't hate your current job. Once you do that, you know you're going to a better place and it's time to jump ship.

Anyone out there caught in a job they hate? What are you doing about it?

Why People Quit Their Jobs

Money Magazine lists the main reasons people quit their jobs as follows (with the percentage of people who gave this reason):

• Because they didn’t have room to grow (45%)
• Poor leadership (41%)
• Wanting better work culture (36%)
• Wanting more challenging work (36%)
• Wanted better pay (34%)
• Wanted better recognition at work (32%)

I've left jobs for all of these reasons throughout the course of my career but "poor leadership" is probably the reason I moved on most. No matter how great the company is, the people are, the mission is, and all the rest, if the leadership stinks then work life is a disaster.

I'm not sure leaving for better pay was ever the main reason I moved companies, but it was always part of the equation. I never wanted to go backwards and did want to gain a good amount with every move, something I was able to do most of the time.

How about you? Have you ever left a job for any of the reasons noted above?

How Much Notice Should You Give Your Employer?

Here's a piece from Kiplinger where a reader shares the story of a co-worker who left without much notice. The piece then gets to the heart of the issue: how much notice should be given to an employer when an employee resigns?

A summary of their answer:

[The worker who left] owed all of you (probably not legally, but ethically) at least two weeks’ notice, and ideally more. In most cases, a new employer will understand, and even respect, a new hire’s desire to do right by her current colleagues. And a more thoughtful resignation might have improved her odds of getting a good reference from your boss if she ever needed one.

Here's my take on this one:

• I think two weeks' notice is standard and what everyone should try to give. It's still too short for the employer, but it is standard and a generally accepted principle. If you want a good reference for later on (or at least to leave on good terms -- and you DO want this), you should give two weeks.
• That said, employers don't often give employees two weeks' notice/severance when they let them go, so why should employees do this?
• At my last job we had a guy that left with three days' notice. Ugh. It put us in a bad spot but his new employer wanted him asap. And what could we really do about it? He did offer to work nights and weekends (for free!) to make up for the lurch he was leaving us in.

I'm sure many of you have thoughts on this issue, so let me have it. How much notice do you think an employer should receive when an employee resigns?

How to Earn an Extra $1.4 Million in Two Steps

Ok, so you probably doubt that I can deliver on my headline. Well doubt no longer. Consider the two steps needed to earn $1.4 million more over your career than those who don't do these things:

1. Get a college degree.
2. Negotiate a higher starting salary.

Let's take these one at a time. Here are some recent findings on the value of a college degree:

A new report from the San Francisco Fed crunched some numbers. The takeaways?

College graduates—those with a four-year degree—earned about 61% more ($20,050) annually than those without a four-year degree in 2011. The premium has averaged around $20,000 for decades.

If we conservatively assume that the annual premium stays around $28,650, which is the premium 20 years after high school graduation for graduates in the 1990s–2000s, and accrues until the Social Security normal retirement age of 67, the college graduate would have made about $830,800 more than the high school graduate.

I'll add some comments on this in a minute. For now, let's skip to the value of negotiating a higher starting salary:

According to the study, which will soon be published in the Journal of Organizational Behavior, the compounding effect of successful salary negotiation can be significant. Assuming an average annual pay increase of five percent, an employee whose starting annual salary was $55,000 rather than $50,000 would earn an additional $600,000+ over the course of a 40-year career.

This latter study even tells how to negotiate:

Five negotiation strategies were examined in the study: Accommodating, Avoiding, Collaborating, Competing and Compromising. Individuals who negotiated by using the Collaborating and Competing strategies—utilizing open discussion of issues and perspectives—showed the best results. In contrast, those who used the Avoiding, Accommodating and Compromising approaches were less successful in negotiating larger salaries. 

Now let's do some math. $830,800 for going to college plus $600,000 for negotiating a higher starting salary equals $1,430,800! See, and you doubted me!!!! :)

Ok, so I'm writing this a bit tongue-in-cheek. There are a gazillion "yeah but what about this" issues. The college you go to, how much you pay, what you major in, and on and on.

And these are valid issues that can impact the value of each of the suggestions.

But it's also true that if you do certain things, you will earn more money over the course of your working career. And two of those things (on average) are getting a college degree and negotiating a starting salary.

Maybe not $1.4 million worth, but certainly a substantial amount, right?

What's your take on the issue?

The Power of Working Your Career

On a recent post, one reader left the following comment:

As an aside, in reference to your comment on the link you posted, I want to thank you for the emphasis on working to raise your salary level. It was largely your writings on the subject that have led me to ask for raises, negotiate my salary upfront, and just generally actively work to grow my career. I'm currently in the process of negotiating a promotion that should result in both a significant salary increase and a significant title change.

These are all things I probably would not have been as aggressive at if I had not read and believed your posts (and I was skeptical at first if the high percentages that you put in there, like 6 or 8% average annual raises, were really possible for any sustained amount of time). I like to think I probably would have figured this out on my own at some point, but at the time I first found your site a few years ago, I hadn't been at my first job overly long, and was just figuring that 3% or 4% raises were going to be the norm for my life.

You helped give me a different perspective, and because of that, I am richer both monetarily and in how fulfilling my career is (and I believe the path I'm on should keep me feeling fulfilled for a long time). Thanks again. I hope you and the site stay online for a long time.

I LOVE hearing testimonies from people who apply my thoughts and benefit from doing so!

I contacted this reader and asked him to tell his story to the FMF audience. He just started his career and has a long way to go, but for someone so young, he has some great advice. Given the headstart he's already built and his great attitude, I think he's destined to grow his career (and his income) significantly in the years and decades to come. Here's his story.

I was somewhat hesitant in writing this, simply because I am still very much at the beginning of my career, and I thought people might look at me and say, “What does this young punk know about anything?”  For all I know, they still might, but hopefully there's something useful to somebody that will read this.

I had the somewhat distinct privilege of graduating at the height of the recession back in 2009.  I've read several times that this is bound to have a negative impact on my salary now and for years in the future, if previous generations' experiences in graduating during a recession are any indicator of the future.

Perhaps an even more distinct privilege that I've had is that the recession has never affected my ability to earn income.  Due to my high performance in one of my classes, one of my professors recommended that I consider applying to a certain company.  I sent my professor my resume, didn't hear anything back for a long time, and then found out later that I wasn't far enough along in my studies for them to seriously consider me.  But I checked back several months later in 2008, was told to submit my resume again, and this time I easily got selected for a paid internship with an engineering company.  At the same time, I was tutoring at the university I attended.  The internship paid pretty well, close to the median individual salary if I'd been working full-time, which was pretty exciting for me.  The tutoring didn't pay as well, but I mostly did it because I enjoy trying to help others learn new skills, and it was a good way for me to brush up on my own skills.

In 2009, when I graduated, I got a full-time offer which I felt was extremely good considering the economy at the time – it was around 25% higher than the median household salary, so I considered myself very well off.  I thought about trying to negotiate on it, but I figured that it was already a generous offer and I might be making a mistake if I didn't just accept it.  In retrospect, I probably could have gotten at least a slightly higher offer if I'd tried.

FMF note: I did the exact same thing out of grad school -- took the offer because I thought it was good. I too should have asked for more.

It was shortly after I got my full-time offer, as I got more involved with more projects, that I started to realize that I was a cut above many of my coworkers that had far more years’ experience, and who I'm certain were making far more than I did.  This is also the time that I started getting annoyed that I wasn't making more.  My first annual raise was 4%, which everyone assured me was a good number, and I was satisfied.  My second raise was 5.2%; however, it was higher only because I got a promotion.  Despite the fact that my annual review was considerably more positive than the previous year, and I felt much more useful and much more valuable to the company, my merit increase portion of that raise actually dropped 20%, which was frustrating.  My next raise was again around 4%, despite much better reviews again.

Around this time was when I started reading several personal finance blogs, most notably FMF and I Will Teach You To Be Rich.  Both blogs placed a high emphasis on growing your income.  Both seemed to think that it was possible to quickly and consistently get high salary increases.  I remember reading one of FMF's articles about the different salary levels you'd attain after 20 or so years of working, assuming certain starting salaries and certain annual raise percentages.   I think he had a few different levels of average raises, something like 2%, 4%, 6%, and 8%.  When I thought about my raises, and the articles that I'd been reading showing that you were lucky if you were getting any raises at all, I wasn't really sure that it was reasonable trying for anything over 4% or so.  After all, I was working for a good company, I was a very high performer, and my raises were going down or staying flat even while I was becoming an ever bigger asset for my company.

FMF note: I moved this article noted above to Wealth Lion, but hope to re-work it and bring it back to FMF soon.

I started sharing concerns about my salary with my management.  They agreed that they'd like to pay me more, but they didn't appear to be able to really be able to do a whole lot about it.  I assumed that it would get taken care of by getting larger annual raises, but I started realizing eventually that annual raises were ALWAYS going to be capped at a certain amount, because we were a large corporation and there was a lot of effort put into smoothing things out so that no one was getting too big or too small of a raise.  If I got more, then someone else was getting less, and there wasn't any way that I was going to get the type of raises I felt I deserved.

After reading a number of different articles on salary negotiation, showing that you're deserving of a raise, how to ask for a raise, etc., I realized I had made a mistake by simply telling my management that I felt like I should be earning more.  I had good managers that I trusted, and that liked me, but they didn't have the power to just go and give me a big raise simply because I was starting to feel undervalued.  I figured that sometime over the couple years that I raised my concerns with them on occasion, that there would be some change, but there never was.  Eventually, at a time when I figured that my stock in the company was a high as it had ever been, when everything was going right for me, I told my manager that I would be formally requesting a salary increase.  I put together a presentation detailing how I was delivering value far above my pay level, and made a formal request for a significant salary increase.  

This was relatively nerve-wracking for me.  I KNEW that I had a good case, that I was providing a lot of value to the company, that I was a top performer, but it was still intimidating going to my management and trying to put a dollar amount to how much more I felt that I was worth.  I had to really psych myself up in order to finally make the plunge, but I'm glad that I did.

My department's management quickly approved the increase, but it was eventually denied by HR, which decided that I was actually making about as much as I could make anywhere else in the region.  That was obviously not the outcome I was expecting or hoping for, and that was the beginning of the end for me with that company.  I updated my resume, being careful to frame my working experience in the context of how I delivered value above and beyond the norm expected for my position.  Where possible, I put how much time/money I'd saved, how I'd improved the company's culture, how I'd taken initiative to improve our processes.  I assume that I did a good job with the resume, considering that I applied to five companies, none of which knew me from Adam, and four of them responded with interest.  I interviewed with two, and eventually got two very good offers, both of which were higher than the amount I would have earned had my company given me the raise that I originally requested.  I gave my company the opportunity to counteroffer, which they eventually did, though it was not as high as either of the two other companies.  It was very gratifying knowing that whatever choice I decided on, within a couple weeks I would be making a lot more than I was before.

When trying to decide on a company, I decided that this time I was going to negotiate upfront.  While on the phone with their hiring director, I noted that I was expecting an offer from another company any hour, that I had already told the other company the offer amount that I already had so I was expecting them to at least match it, and I wanted to see if they could make me a better offer.  She responded immediately that they could go as high as $2000/year higher than the original offer.  The offer that I got from the second company roughly matched the offer that I had from the first company, but I had already pretty much decided on the first company.  I tried one more time with the first company to try and get a better deal, which I wasn't able to, and I eventually agreed with them on their best offer.  I'm still somewhat amazed that I got an extra $2000/year for simply asking for a better offer.  

FMF note: $2,000 extra for a 2-minute ask. That's a pretty good hourly wage!

I came out of that process believing that I negotiated as well as I could in that circumstance.  I might have been able to get a better offer from the second company, and it was actually probably a better deal monetarily due to the better benefits they offered, but I felt that the first company would be a better fit for me.  Money isn't everything, after all.

FMF note: I too have accepted less money (though more than I was currently making) to work for one company over another. He's right that money isn't everything.

A little under a year after taking that job (my current job), after a few members of my team had departed for better offers, I felt that I could probably get a better offer somewhere else.  Since I enjoy my job, I went to my manager and told him that I figured I could go elsewhere and get a better offer, that I would prefer to stay with our company, but there's only so long that I can pass up potentially better opportunities, particularly when I had already passed up one concrete offer that would have been financially better for me.  He assured me that they were going to do what they could to keep me there.  I mentioned my experiences with my previous company and that I wasn't going to wait a couple years for things to get better this time, which he agreed was reasonable. 

After a few meetings with him, we came up with a plan to get me into a different position that would come with the type of pay raise and other financial incentives that I've been seeking, and a new role/title, potentially with more responsibility (perhaps some type of managerial position).  We're still in the process of figuring out what exactly the new position will be, and it will naturally depend on the company's needs and how we're doing, so I don't know exactly what's in store, but we have agreed on a deadline a few months away where we'll either have things all worked out and I'll have a new position with new salary, or I'll be looking for a new job.  At this time, I have no reason to believe that things won't work out, and the potential payoff is great enough that I'm willing to chance it.

It's really a powerful change to go from feeling underpaid and undervalued, to feeling like you're in control of your career and it's going how you want it to go.  Good luck to everyone else in growing your careers and maximizing your job satisfaction and earning power!

Some final thoughts:

• I've always been open with management about my professional concerns, desires, and ideas that might improve the company.  When I started my job search at my previous job, I let my management know.  I've promised my manager at my current job that if I start looking for a new job, I'll let them know.  I've read that this is not a wise thing to do, but I've been fortunate to have good managers, I'm a top performer, and I didn't/don't fear retaliation.  I believe that good companies should feel obligated to try and meet the needs of their employees, particularly their top performers, but those employees should probably also feel obligated to let their employers know there's a problem and give them a chance to fix it.  The squeaky wheel gets the grease, and if you don't speak up, there's a good chance that you're not going to get what you want.
• I regret not having made a formal request for a raise sooner.  It's easy for management to tell you how your annual raise is dependent on how the company's doing, how everyone else in your group is doing, etc., and that's why your raise wasn't higher than it was.  When you come to them and say, “I'm happy here, but I don't feel that my salary is commensurate with my performance, and that's why I'm asking for a __% raise (or a promotion),” the ball is then in their court and you're giving them the information to pass up to their bosses as to why you deserve more.  You're either going to end up getting what you asked for, or you're going to find out that your company doesn't value you the way you feel you deserve to be valued.  Assuming that you've done your research and you can tell that what you asked for is reasonable, it's probably time for you to start searching for a company that will value you more.
• Don't be afraid to negotiate.  Assuming you're not asking for ridiculous things, the worst they're going to say is no, and you might be surprised by what they'll say yes to.
• If you look at my full-time salary, my pay has increased ~6.5% compounded annually since I first went full-time (hopefully that number will be going up soon when I get my new position in a few months).  If you include my part-time pay level from my internship (assuming that I had worked full time), I've averaged ~16% average annual salary increases.
• If you're looking to change jobs, do some work on your resume.  There's no need to go overboard, but particularly if you don't have a network built up yet, you should probably consider a good resume as a minimum requirement for getting noticed.  Hiring managers want to know what you've accomplished, how you're going to save them time/money/effort, not that you can do the same things that everyone else in your position has done.  Of course, this presupposes that you have accomplished something that you're able to quantify.

If you want to accomplish something or get noticed at your current job, I would suggest the following:

• Look around and see if there's anything obviously wrong with your company.  If you feel that you didn't get enough training when you were hired, think about the things you wish you would have known as a new hire, then put together a training plan and present it to your management.  If there's a bottleneck in some process (or if you don't really have any processes), try to think of a way to overcome that bottleneck.  I've been surprised multiple times by the positive attention that I've garnered simply by doing something obvious that the company hadn't tried before, or by putting out some suggestions that others had probably thought of but not tried to implement.
• Don't be afraid to make a suggestion that's outside of your realm of responsibility.  I think too many people take the approach that, “That's so-and-so's responsibility, not mine, so who am I to tell others how to do their jobs?”  This has to be done delicately, of course, but a good way to show you're deserving of more responsibility is to show that you're actively looking for ways to improve not only yourself, but the entire company.
• Figure out what your boss needs and then try to meet those needs.  They might be obvious, or you might just try going to your boss and saying something to the effect of, “I noticed you've been pretty stressed about _________; is there anything I can do to lighten the load?"

Eight Opening Lines to Network Like a Pro

We've talked about the fact that your career is your most important financial asset. If you really want to grow it (and your income), and you should, networking is a key skill you'll need to develop. But mixing it up with others can be awkward, especially for those of us who aren't great at small talk.

Luckily, I stumbled upon some help. Fox Business lists eight opening lines to network like a pro. Here they are with my comments on each:

“I just tried a slider from the buffet table, and I think I’m going to grab another. Care to join me?”

I hate that this one is first because it sounds cheesy to me. I don't like/use it personally.

“I was just on LinkedIn and saw that we went to the same college.” Or … “I saw on LinkedIn that you also worked with so-and-so!”

Love, love, love this one! Finding something in common (church, running, books, schools, etc.) with someone else goes a looooong way to establishing a good (and easy) connection.

“How long have you been a member of this organization?”

Not bad. I also use "how long have you worked there?" and so forth once I find out a bit more about them.

“I read your book!” Or … “I was really impressed by the speech you gave at an event last year.”

As you might imagine, people love this one. I've used it a time or two and have had it used on me too. It works.

“What do you love about your job?”

This sounds like an interview question to me. Skip.

“I’ve worked here for several months, but I’ve never been to the penthouse floor before. Great views!”

This is the sort of small talk that kills me.

“Are you from [insert locale]?”

Any sort of question about the person, where they work, where they live, etc. is good in my book. People love to talk about themselves.

“Did you see all the wacky stuff they’re giving away at the sponsor tables?”

And he responds, "I'm a sponsor and resent you calling my stuff wacky." Skip.

Personally, I think if you just like people and are curious about them, you'll do fine. Ask all sorts of questions about them (not too personal) and once you hit on a common connection, and then go with it. This generally works with all but the least cooperative partners.

How about you? What do you think of these suggestions? Do you have any of your own?

Likability Key to Job Success

Here's a piece from the Wall Street Journal about likability being key to career success. Their thoughts:

"Likability" is becoming a bigger factor for success at work as social networks and videoconferencing grow. The impact goes beyond a high-school popularity contest. The ability to come across as likable is shaping how people are sized up and treated by bosses and co-workers.

Likable people are more apt to be hired, get help at work, get useful information from others and have mistakes forgiven. A study of 133 managers last year by researchers at the University of Massachusetts found that if an auditor is likable and gives a well-organized argument, managers tend to comply with his suggestions, even if they disagree and the auditor lacks supporting evidence.

Much of the rest of the article focuses on being likable on video (in the age of growing videoconferencing), which is not the focus of this post, but it's still pretty interesting stuff.

I've written about this issue previously as follows:

• The Power of Likability Demonstrated Again
• Six Ways to Make the Most of Your Career
• Does a Pleasant Attitude/Personality Help You Succeed?

Being likable is a HUGE factor in whether or not your career will thrive. And anything that can make your career thrive can potentially earn you a boatload of money over your working career.

So, the question is, how can a person become (more) likable? Google that question and you'll find a gazillion articles with all sorts of tips, but my simple advice is as follows:

Treat people like you want to be treated.

If you do this, you'll be likable and your career will benefit as a result. Trust me. ;)

The Importance of a Thank You Note

There's a newsletter that gets passed around our office that recently quoted the following:

According to a CareerBuilder survey, 58% of employers said it's important to send a "thank you" after an interview; 24% said it's very important.

We've discussed this issue a lot in the past. Here are some highlights:

• Another Plug for the Thank-You Note 
• Do You Send a Thank You Note After a Job Interview?
• And Yet Another Recommendation for the Lowly Thank-You Note
• Thank You and Follow-up
• An HR Professional Recommends Thank You Notes

Here are a few thoughts from me in case you've missed them throughout the years:

• I'm a believer in thank you notes. I used them in my most recent job search (to get my current job), so I actually put my own advice into action.
• I use them primarily because I think sending them is the right thing to do. Someone took time to talk with me about a job opportunity. Doesn't that warrant a simple 10 minutes to write a note?
• And if you're opposed to writing a note because it's the "right" thing to do, how about this reason: it can separate you from the pack of other candidates. And when you get down to the interview process, anything and everything you can do that separates you (in a positive way) from the group is a very good thing.
• I personally go old school and send a hand-written note via snail mail. But I'm personally ok if people use email. However, a paper note is classier and carries more weight IMO.
• I also send hand-written notes (as well as email) for many simple things that some people might ignore. But my personal opinion is that you can never say "thanks" enough, even for simple kindnesses.

Those are my thoughts. What's your take on the issue?

Are You in Your Dream Job?

A reader wrote the following comment to Money magazine in its April issue:

One of the facts and figures packed into your March issue stood out: the Money Poll item that 14% of people are in their dream career. So 43 out of 50 commuters are going somewhere other than where they would like. Wow. If these people only knew that when you like your job, it isn't really work at all.

I have a few thoughts on this one:

• I certainly like my job. I've been here eight months now and am so glad I made the move.
• I don't think it's my "dream career." My dream career would be where I made $10 million a year sitting on a beach in Hawaii. Or maybe playing quarterback for the Denver Broncos (though I hear they have a good one). Or playing video games from my yacht sailing around the world. Honestly, I'm surprised that 14% said they were in their "dream career." Either these people dream very low or they only polled Fortune 500 executives.
• If they had asked how many people "liked" their jobs (which the commenter mentions in his last sentence), I think the response would have been much higher.
• I'm not sure it's true that "when you like your job, it isn't really work at all" is true. I think it's true that liking your job makes life better. I think you can certainly like your job more often than you don't like it. And you can even like it to the point where you'd say you enjoy it. But saying it really isn't like work at all? That seems a bit far-fetched. Then again, maybe I'm just too literal.

So I'm going to do my own (unofficial) survey. Let me know in the comments if you love, like, or hate your job and what you think about the quote above.

It should be an interesting discussion. :)

Six Figure Interviews 15

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself.

My wife and I are both 33 and we have two kids (6 and 2). We live in northern New Jersey and have been in the New York metro area our entire lives.

What do you do for a living?

I'm a software engineer, and have been for all of my professional life. My wife has been staying at home to raise our kids but will likely go back to work in advertising once the younger one is in school.

How much do you earn annually?

It fluctuates widely year to year. Over 2009-2012 my W2 has read $153k, $221k, $325k, and $514k in successive years. 2012 was a large year due to selling stock options, however 2013 is on track for about $476k. The successive annual growth is from early RSU grants vesting and continuing to earn new stock.

How does this amount break down (salary, bonuses, etc.)?

The breakdown for 2013 is $200k in base pay, $60k in bonus, and the rest is the vesting of RSUs.

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

My company matches 50% of whatever I put into my pre-tax 401(k), so I always get an extra $8,750 from them. We don't have stock options, just RSUs which are given out as sign-on incentive and are often given out to high performers with a five year vesting period, as a set of golden handcuffs.

How long have you been working?

I started working right out of college in 2002.

How long have you earned at least six figures?

In 2005 I had my first $100k+ year doing some independent consulting and my wife was making $40k. Since then our family income has always been over $100k (despite me personally dropping to $80k in 2006 for one year).

What have been the key steps you have taken that have allowed you to earn this level of income?

Well, working as a software engineer doesn't hurt. After getting my B.S. in Computer Science I continued on for my M.S. while working my first job, which was paid 100% by my employer at the time. I've only worked at three companies over twelve years. The first transition was a major upgrade in salary but a downgrade in benefits (they didn't even have a 401(k) plan, never mind matching), while the second transition was a salary/bonus bump with significantly better benefits.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

My primary focus has been honing my expertise in my field. At my first two companies I focused on learning as much as I could about software engineering until I felt I couldn't learn anymore from those I worked with so I decided to move on. Where I am now I'm constantly being challenged but also finding opportunities to teach and lead.

What are you doing now to keep your income growing?

I've always felt that performing well at work would get me where I wanted to go. I've reached a reasonably senior position in my company and staying on the top of my game at work should continue to pay dividends.

What are your future career plans?

Short term: continue doing what I'm doing.

Medium term: continue doing what I'm doing, but possibly start managing a team of engineers.

Long term: I've set a net worth number in my head for when "enough is enough" in this industry. It's not that I particularly dislike what I do, but I'm expecting (or maybe hoping) that I'll be able to reach this goal before I'm 40. After I have that socked away in retirement and taxable accounts I plan on using the 4% withdrawal rule (likely less) to use as supplemental income for the family while my wife and I explore other work and life experiences.

Have you been able to turn your income into a decent net worth?

Over the last four years our net cash flow has been increasing, the trailing 12-month average has been up between $200-250k over the last year or so. When I checked last month we just crossed over to $1,028,113.

Why or why not?

Primarily having a very high income along with not spending a lot of it. We don't take lavish vacations or drive fancy cars (we have a somewhat beat-up 2005 car and a newer minivan, both purchased < $30k). In September of last year we'd paid off our mortgage which took a lot of our cash flow for a few years.

What advice do you have for people wanting to grow their incomes?

First, find something you enjoy doing otherwise it's going to burn you out. I probably could have taken a job earlier in my career in finance, but I don't think I would have done well, and the hours would have drained me. Make sure you're always being challenged at your job, either a W2 job or independent gigs. Each challenge brings experiences and learnings that you can add to your tool belt to make you more valuable to your current or future employer.

Six Figure Interviews 14

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

I am 43 years old, happily married and have 5 children (elementary to college). My wife has been a stay at home mom since our first child was 18 months old. We live in the Intermountain West.
 
What do you do for a living?

I’m a financial controller for a $100 million dollar division at a software company.
 
How much do you earn annually?

$170,000

How does this amount break down (salary, bonuses, etc.)?

My current Salary & Bonus is approximately $150,000. I have also developed a side income of $20,000 per year. The side business is quite flexible with minimal time requirements.
 
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc.)?

I receive a small amount of 401K match (2% of my salary/bonus)
 
How long have you been working?

I have been working for 18 years.
 
How long have you earned at least six figures?

Nine years
 
What have been the key steps you have taken that have allowed you to earn this level of income?

My income level is a result of three key steps. The first is receiving my Master’s Degree in Accounting. I was completely focused in college and graduated with my Master’s Degree in 3 ½ years without any debt. I chose a degree which would provide a solid income potential without exorbitant tuition expenses. I paid my way through school and had three major incentives to earn a high GPA.

1) The better grades I earned, the more likely I was to continue receiving scholarships. Being married and earning $7 an hour part time required to receive as much tuition assistance as possible.

2) The Master’s program was very competitive and I knew I had to do well in my undergraduate program to get in. Over 95% of MAcc graduates received a job offer from the “Big Four” Public Accounting firms before they graduated.

3) The city I wanted to work in was very competitive.

The second step was landing a job at a “Big Four” accounting firm and working hard for five years. My salary wasn’t extremely high ($30K to start) and I had a few offers after a couple of years that were for much more money but I decided I wanted to have at least five year’s experience at a public accounting firm. Be careful early in your career to make short term decisions. I might have given up $10K in salary for three years, but the extra experience I gained has given me close to $50K per year in salary for the last 10 years.

The experience at the public accounting firm paid off and I received 10-20% annual raises. I waited for not only a higher paying opportunity to come along (50% raise), but also for a job position I would enjoy.

The third step in growing my income was constantly improving processes and recommending changes bringing value to my current company. Although I may get teased at times for being a “bean counter”, I know company leaders value real dollar savings over hypothetical suggestions. Being a trusted financial advisor brought many opportunities to be promoted from within my company.
 
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc.).
 
Definitely option A – Doing well within my current company and being promoted.

What are you doing now to keep your income growing?

My income from my current position has minimal growth. I’m now at a point where I would need to move and/or travel extensively to be promoted further. I’m very comfortable with my current earnings and the work life balance it affords me and my family.  

Over the last several years I have developed a side income which generates approximately $20,000 per year. I’m able to spend a minimal amount of time in this business and the time I need to spend is very flexible (i.e. when I have spare time). I also view this business as a hobby.

The business required having cash up front and knowledge of an inefficient market. I think there are many opportunities to earn a descent side income in hobbies where have expertise. Someone may make $100 on a transaction with you and instead of complaining and whining, figure out how you can earn even more money than they do!
 
What are your future career plans?

I enjoy coming to work each day and plan to continue working into my 60s. Once my kids are through high school in the next 10 years I will probably be more willing to take a position that would require more traveling. Currently I’m pretty content in my current role. I’m able to work out 3-4 times per week during lunch at our company on-site gym. I’m also able to coach several of my children’s sports teams in the evenings which I really enjoy.

If the stock market does extremely well over the next 10-15 years, I could see myself becoming a high school teacher to wind down my career.
 
Have you been able to turn your income into a decent net worth?

I believe we have a decent net worth. Our current net worth is $750,000 with $330,000 in 401K and Roth accounts, $80,000 in cash, and $340,000 value of our home less mortgage.  
 
Why or why not?

Up until we were 40, we saved approximately 10% of our income into retirement accounts per year. During that same time we allocated a larger share of our income towards our home (down payment, finishing basement, yard, etc.).

Over the last three years we have saved around 20% per year in retirement. We have allocated a majority of the income from the side business towards retirement savings. With increased savings coupled with a strong market, we have seen substantial increases to our retirement accounts.

We also pay an additional $7K per year in principal payments. We have a low 3% rate on our home but still plan to pay our mortgage off early.

Our original goal was to be Millionaire’s before we turned 50, have $3 million in net worth before 60, and $4 million before retirement. We now feel those goals are reachable sooner and plan to have at least $5 million before we retire.

Obviously our net worth would be higher if we had fewer children and my wife worked outside the home. Our children provide us with so much joy and fulfillment that the alternative is something we never would have considered in the first place. Also, having my wife be a stay at home mom with a larger family makes sense in many areas
 
What advice do you have for people wanting to grow their incomes?

Study and work hard in school. Remember first impressions at your job are critical. First impressions may take a year to make. Every time you get a new boss, you need to once again focus on making a great impression.

Last but not Least – BALANCE your life! Don’t fly through your career that you neglect your Spouse, Family, and Health. One of my bosses making close to $400K per year had to retire at 60 due to controllable health issues. He passed away two years later. Another boss making close to $500K per year has dealt with stress and depression challenges. I know of too many people focusing primarily on their careers and are now divorced. Obviously money isn’t the driver behind marriage decisions, but divorces can derail financial goals in a hurry.

Six Figure Interviews 13

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)
 
Age 39, married over 16 years, 3 kids (age 9, 6, and 3).  Live in suburban Seattle.
 
What do you do for a living?
 
The official title is "Group Finance Manager", essentially I am mid-level finance manager at a very large software company.  I am in a small but rapidly growing and highly strategic group, so I do report directly to the CFO of my organization.
 
How much do you earn annually?
 
Around $180,000 per year, can be a bit higher or lower depending on variable compensation components (bonus and stock award) which are based annually on performance.
 
How does this amount break down (salary, bonuses, etc.)?
 
$138,000 base salary, bonus can pay up to another 30%, and I have a stock unit "target" of $21,000 per year.  Bonus and stock are based on performance.  Stock grants vest over five years.  So, after five or more years with the company, you do have five stock grants vesting at a time.
 
Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?
 
Very rich medical benefits.  The company used to have zero deductible, zero co-pay for almost all services, with also no employee contribution.  The company recently moved to a HSA plan with a very low out-of-pocket max and really small co-pays (to avoid paying the ObamaCare "Cadillac tax").  Still a really good medical plan, just not as good as it was. 

The company also provides plenty of other extras, for example, they pay for my gym membership at a world class gym near our corporate campus.  401k match is 50% up to a 6% contribution.  There is also an extensive set of other benefits too lengthy to describe.
 
How long have you been working?
 
Depends on how you define "working".  My first job at the age of 12 was delivering newspapers (that was 1986, 27 years ago).  I made about $100 per month.  Through college, I worked various jobs on campus and also had a job delivering pizzas to help pay the bills (that was 1992 through 1996).  My first job out of college was at the local Boys & Girls Club in my hometown (1996).  Eventually, I did take a couple of years out of the work force to get my MBA full-time.  But since college, I've been working 15 years.
 
How long have you earned at least six figures?
 
Since 2006.  So each of the past 7 years.
 
My job delivering newspapers netted me about $100 per month, which was a lot of money for a 12-year-old.  By the time I was 16, I had about $4,000 in the bank, of course, I was not savvy with money and I blew that pretty quickly leading up to and into my college years. 

My first job out of college as a youth coordinator at the Boys & Girls Club paid me $5 per hour, above minimum wage of $4.25 at the time.  I took a job shortly thereafter as a bank teller making $7 per hour, which I thought was a lot of money at the time.  Of course, as a teller I saw others' paychecks all the time, and soon realized in the real world paying my own bills for the first time that it wasn't much money.  I moved up in the bank to become a new account rep and a loan processor, and was making about $8.50 after two years, but realized I had topped out in that business unless I had more education, so I went back to school for my MBA. 

My first job post-MBA paid $70,000 with an $8,000 signing bonus.  That was the first time in my life that I felt like I made a "man's paycheck".  Two job hops later, I signed on with my current employer for $105,000 to start (plus a $20,000 signing bonus).
 
What have been the key steps you have taken that have allowed you to earn this level of income?
 
The MBA education I received and connections I made there were certainly important.  But more than that, it's really about always wanting to end the day a little bit better, a little bit wiser, a little bit more effective than you started the day.  If you want to advance in your career and grow your income, you need to always be asking yourself if you are doing this.  And if you are not, you need to have a conversation with your manager, business partner, HR rep, or whoever has the power to change that.  And if that doesn't yield results, then you need to move on to something else.
 
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).
 
I've actually done a, b, and c at one time or another.  Going back for my MBA was an example of c.  Since my MBA, I have switched companies twice, so I have also employed b.  And I was promoted once with my second company, and twice with my current company, so I've also done a.  You never know what life is going to throw at you, and you never know what situation your employer or your organization within your employer will be in.  You always have to be willing to do a, b, or c, depending on the circumstance.
 
What are you doing now to keep your income growing?
 
Mainly growing in place.  My career is my primary source of income, and I am the only earner in my family.  So growing my career is a key focus of my life.
 
What are your future career plans?
 
I am on the successor list for my boss's current role as division CFO.  That is plan A.  I have only been in my current role for a little over a year, so I am really trying to grow in this role before I work too much on what plan B is, but I definitely do want to have one.
 
Have you been able to turn your income into a decent net worth?
 
My net worth is approximately $650,000.  Not as high as I would like it to be.
 
Why or why not?
 
The things that have held me back a bit are the debt that I incurred to get my MBA (although it was well worth it), plus the fact that I bought my current house in a high-cost of living area in 2006, very near the peak of the housing bubble.  The house cost $489,000.  You wouldn't know it if you looked at the house - it's a utilitarian 1800 sq ft, 3 bed, 2 bath split level built in 1975, although the location is fantastic. At the bottom, it probably was worth $350,000.  It's probably back to about $450,000 now. 

I bought it with an 80/10/10, with the second mortgage being at 8.50% interest.  A year ago, I paid that one off, and not long after that I refinanced my first (which was 5.875%) at 3.75% for 30 years.  Net/net, my housing cost decreased from roughly $3,000 per month to $2,000 per month - or about $2,200 per month if I want to pay the house off at the same end date as the original mortgage. 

I would also say that I stayed at my first post-MBA job too long with a stagnant company and stagnant income.  I was being paid below market for my education and skill level but didn't realize it.
 
What advice do you have for people wanting to grow their incomes?
 
Find work that you have a passion for.  You don't have to "love" what you do, but I feel it is important to have some passion in your work.  In the long-term, there is a correlation between being passionate about your work and performing well at it, and there is also a correlation between performing well and being recognized (and paid more) for it.  If you're just going through the motions, your employer or your customers or anyone else around you will know it. 

In the short-term, get a little better every day.  If you're not a little better at the end of the day than at the start of the day most days, go somewhere else. 

Avoid lifestyle inflation as much as possible, invest money automatically over time (pay yourself first).

Don't be afraid to take risks, but know the difference between a risk and a gamble.

Six Figure Interviews 12

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

Both I and my husband are ~40, we have 2 kids of preschool age, we live in a high cost of living state on the East Coast. My husband is a stay-at-home dad.
 
What do you do for a living?
 
I work for a big consulting company, not as a consultant but as an expert in a particular field. For a few years I was as a consultant but then moved to my current type of job for lifestyle reasons. I work with both consultants and clients to provide them with solutions and advice in my area of expertise.

How much do you earn annually?
 
It varies every year but generally ~$250k

How does this amount break down (salary, bonuses, etc.)?

Base salary is around $190K, the rest is a performance bonus, which in recent years has been around $40-80K, and in some years there are other adjustments. I also get ~$20K as employer contribution to 401k. We also have a very good health insurance, I don’t know what would be the cash equivalent of it, but is worth a lot to our family.
 
How long have you been working?
 
I immigrated to the US ~13 years ago. Before that I worked for 5 years in my home country as bank department manager with relatively high salary in local terms (perhaps top 20% or so if there were stats), but in absolute terms not even remotely comparable to US levels. I got my MBA from an Ivy school here and started with my current company. So I’ve worked for about 16 years, but only the most recent 11 would count here

How long have you earned at least six figures?
 
10-11 years, I started in my current company at around $100K

What have been the key steps you have taken that have allowed you to earn this level of income?

I took a risk moving to the USA for my MBA. I already had a comfortable and well-paying job in banking, by moving here I took on a six figure debt and started work in a completely different field. The debt would have been higher actually, but I had a small scholarship, I worked as teaching assistant, tutor and admissions reviewer, I also landed a very good summer job. I could have opted to do my MBA in a third-tier school and pay my way through teaching jobs, but I believed and still believe that only an Ivy degree, combined with some luck, can help an immigrant land a job at that salary level. Friends who attended lower tier schools got mid-level management jobs at best and some who had to search during recessions ended up moving back to Europe. It also helped that I used my time at school to earn a couple of majors that would be most relevant to the job transition I wanted, and that I was among the top students in my class.

A few years ago I took a different type of risk, one which didn’t increase my salary, but got me the lifestyle I wanted to have at that point. Consulting life is very demanding both in terms of hours worked (a 60-70 hours week is an easy one), and also in terms of constant travel and stress. Moving to an expert position effectively cut off most of the growth potential in my compensation. However, what I lost in salary growth, I gained in flexibility – I often work from home, travel maybe once a month and frankly also enjoy my work more, as it turned out I am better suited to it than to my previous work, it plays to my strengths. I have been rated in one of the two top performance categories every year since I took on the new job.
 
Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

Combination of a) and c). I have never liked job jumping.

What are you doing now to keep your income growing?
 
I am advancing in my chosen field, already had one promotion and will try to get another one within a year or two, which will put me as high as I can go within my type of job in my company. What it takes is a combination of deepening my skills and expertise in the field, focusing on particular areas within it (specialization is key), as well as constantly innovating our services in the field and developing new products. I try to make a plan in the beginning of each year what would be the 2-3 big projects I would focus on, so that I have clear priorities and also a good report out of results at the end of the year.

I am not pursuing almost any side income opportunities. I have no time for this and I don’t intend to start my own business since I like my work. My husband has a few hobbies which could turn into something if he decided to try when kids reach school age. However, for the moment his being in home gives the family significant flexibility which is worth more to us than the additional income would be.

We do the cash back credit card rewards but with focus on simplicity. We have Chase Amazon as default for Amazon purchases at 3%. Amex Blue Cash Preferred for all groceries at 6% and gas at 3% and Priceline at 2% for all other purchases. These 3 match our spending patterns and are easy to remember, we get about $2k a year. Adding anything else would be too much complexity for a small incremental reward

What are your future career plans?
 
I could see myself staying with the same company until retirement, another 15 years or so. The work is diverse, the job benefits are great, and the lifestyle works for me. Once I reach the top of the ladder in my current job, I may at some point decide to try something else, the company is relatively open to lateral moves.

Have you been able to turn your income into a decent net worth?

Maybe it would be helpful to see it as a progression:

• ~10 years ago our net worth was negative $150K - from the student loans and credit cards before I started work
• ~5 years ago our net worth was about $100K – student loan mostly paid off, but we had recently bought a house and added a mortgage
• Now our net worth is about $750K – out of which ~$150K is in house equity, ~$500K in retirement and college accounts (mostly retirement) and ~$100K is liquid in taxable accounts and cash. I am thinking about paying off the mortgage in a year or two despite its low 2.75% rate, just to clean the last debt out.

Why or why not?
 
We could have accumulated more, but we prefer to avoid extremes in both saving and spending. We bought a moderate size fixer upper house well within our means, and we fixed it ourselves over a few years. We don’t have expensive tastes in cars, clothing or accessories, we rarely dine out. On the other side we like to take vacations in different countries, my husband has one expensive hobby and the kids go to a pricey private preschool. Since we are on a good path to retirement we would rather spend on things that matter to us instead of saving more to retire early.

What advice do you have for people wanting to grow their incomes?

I would offer one common sense advice about guiding your career, something that people often neglect to do, blinded by short-term considerations. Do a bit of strategy planning of your career early on to make sure you end up where you want to be. Once you have been working some years in a field, you should be able to say:

• What are your strengths and weaknesses. Think of broad categories – technical expertise, people management, project management, processing/routine work, selling, numbers and analytics, etc, etc – whatever is relevant in your field. What are the things you are especially good at, what are the things you struggle to do, are there any that you may or may not do well, but you dislike?
• What are the potential career paths in your field, what is at the end of each road and do you like it (compensation, working hours, travel, locations, etc)? Each path will have requirements, which may or may not match with your strengths and preferences.  You may not know enough about some careers – here is where some good old-fashioned research and/or informational networking with people in your field will help to understand your options.

Based on this try to figure out where you are headed, how far you are likely to get and what are the best paths for you. Even if you can’t get very accurate this will give you a sense of what to expect, how to prioritize opportunities, and if a job offer comes along, you will know how it helps you or not in the long term.  You can also decide what to learn, what to specialize in, and how to network based on that “map”.

Six Figure Interviews 11

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

Single, no kids, late thirties, high-COL metro area.

What do you do for a living?

I'm a lawyer at a large corporate law firm.

How much do you earn annually?

It varies based on bonuses.  Last year I earned roughly $350,000 due to a special retention bonus; this year, it will probably be more like $310-$320,000.

How does this amount break down (salary, bonuses, etc.)?

About 4/5 salary, 1/5 bonus (usually).

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

There is no formal 401(k) match, but the firm has made fixed contributions in the past.

How long have you been working?

In this career, about seven years.

How long have you earned at least six figures?

4 out of the 7 years.  The non-six figure years were actually in the middle, when I worked in a different sector for (much) less money.

What have been the key steps you have taken that have allowed you to earn this level of income?

I switched careers.  Before that, I had never made more than about $30,000.  I went to a top law school, where I did well.  The starting salary in my area for attorneys at the highest-level corporate firms was $160,000 when I graduated.  I was brilliant enough to have managed to graduate before the bottom fell out of the legal market.  Since then, it's been a question of working 60 hour weeks (sometimes more), being reasonably responsible, and showing halfway decent judgment.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

Well, my initial choice of career would probably have never taken me past six figures (or the future equivalent), so I'd have to say all (c).

What are you doing now to keep your income growing?

Associates receive yearly raises, assuming acceptable performance.  The big discontinuity is coming up for me--eventually you top out if you don't make partner, and my control over that is very limited.

What are your future career plans?

I'm looking for more satisfying work in my field.  I won't pretend I don't like this level of income, but it is, truly, more than I need, and I value my time more.  Yet I'm ambitious enough that I still need my job to be challenging, so I can't just go anywhere.  It's going to be tricky.

Have you been able to turn your income into a decent net worth?

Net worth is about $200,000.  Decent?  On what scale?  Where I live, it wouldn't merit a second glance.  Where I grew up, I'd be a high-roller.

Why or why not?

I graduated with student debt larger than my entire first year's salary (law school is stupidly expensive).  I've paid that off, so I have no debt at all, but obviously I traded the possibility of investing that money for a better return for the security of debt repayment.

It's very expensive to live in my city.  I've tried not to give in to the madness, but I haven't run an austerity program here, either.  I'm also in the worst taxpayer's position of all, i.e., that of a high earner whose income is almost all salary, so I see only about half of my salary in each paycheck, and the AMT does a number on me every year.  I do aggressively exploit every opportunity to spend pre-tax dollars (maximum FSA, transit benefit, 401(k) contribution).

Right now I'm saving about 35-40% of my net salary.  I didn't start saving for retirement before I graduated from law school, as most adult years before then I didn't clear $20,000 in income.  My assets are all in Vanguard index funds (or the closest I could come with my current firm's limited 401(k) offerings) or cash.  I started saving near the top of the pre-crash market, so obviously I took some losses there.  But I didn't take out any funds, and my holdings have rebounded with the market.  And at least I haven't frittered away a lot of cash under the delusion that I can beat the market.

What advice do you have for people wanting to grow their incomes?

DON'T GO TO LAW SCHOOL, unless (1) you don't have to pay for it or (2) you get into one of the top ten schools and are prepared to commit to doing well.  Yes, it worked for me, but the world has changed drastically in just the past few years.  The market out there for young lawyers is brutal, and if you have a significant debt load, there's a serious chance it will end up crushing you.

It's easy to fall into the day-to-day routine, especially if you're working long hours.  You need to always be thinking about, and trying to position yourself for, the next step.  (This is a real challenge for me.)  You should only be loyal to people or institutions who are loyal to you.  Working extra hard is good if there's a reasonable chance that it will lead to positive attention, but don't invest yourself in a job that's just exploiting you.

Finally--and I expect to catch some heat for this one--keep in mind that your life circumstances to date may well limit how far you can go.  I'm much better off than my parents, but I have had ridiculously good luck to go along with my hard work.  Statistics don't lie: social mobility in the U.S. has been steadily decreasing.  So, while additional money is always a good thing and often quite necessary, don't pin your self-worth to your income.  In the end, it's not what you're going to remember as you look back on your life.  And don't become desperate to make a big jump in wealth.  The world is swarming with people and institutions who will be happy to hustle you while pretending to help.

The Long and Short of Commuting

Here's a piece from the WSJ that gives the secrets of the happiest commuters. I found the following to be the most interesting paragraph:

How to create the perfect commute? Track down a few happy travelers, and they'll tell you it's not just about length. People can enjoy commutes as long as 45 minutes, studies show—and men are less frustrated by long commutes than women. But a happy commute is predictable. It is productive—often enlivened by mobile devices and satellite radio. And it offers clear rewards for the hassle. A person who commutes an hour each way has to make 40% more money to be as satisfied with life as a person who lives near the office, according to research co-authored by Alois Stutzer, an economics professor at the University of Basel in Switzerland.

I'll comment on this in a minute, but for now here are a few more tidbits from the piece that I wanted to share:

• While the average commute has remained unchanged at 25.5 minutes in recent years, those traveling more than an hour each way rose to 11.1 million in 2012, up 300,000 from 2011.
• Women tend to be unhappier about long commutes than men, even after controlling for any improvement in income, job satisfaction or housing quality—perhaps because women tend to shoulder more housework at home, says a 2011 study in the Journal of Health Economics.
• While a growing number of people bike to work, it is small. More than 75% of commuters travel alone by car, Census data show.
• In big cities, car commuters waste 52 hours a year stuck in traffic.

Lots of thoughts/comments on this one, so here goes:

• I HATE long commutes. I've never had a really horrendous commute (the longest was 30 minutes), but 20 minutes one way is my maximum.
• As such, we wanted to buy our new house in Oklahoma so that it's 15 to 20 minutes away from the office. We could have been in a "nicer" area that was half an hour away, but sometimes traffic backs up that way and the drive is an hour or more. Besides, do the math. An extra 10 minutes each way every day is an extra 5,000 minutes (or over 83 hours) a year in commute time. That's time I could be doing something else (like being with my family). Not to mention the extra costs associated with a longer commute.
• That said, I don't mind a decent commute because it's my "reading" time. I ALWAYS listen to an audiobook or podcast while in the car. I can make travel time productive time and consume far more content this way than if I literally had to read it all.
• I drive since my commute doesn't really have a public transit option. I've taken public transit before and it's ranged from hideous (the bus in Pittsburgh) to very easy (the Metro in D.C.), so whether it's a good option or not depends a lot on the city.
• I had a friend that lived in New Jersey and had to get up at 5 am every day so he could leave home by 5:30 am to get into work in NYC by 7:30 am. He then left at 6:30 pm (he said if he had left earlier, he'd just sit in traffic) and was home at 8:30 pm. Imagine what his quality of life was.
• This statement was very compelling to me: "A person who commutes an hour each way has to make 40% more money to be as satisfied with life as a person who lives near the office." Wow.

Those are my commuting thoughts. What do you have to add?

Six Figure Interviews 8

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

I am 29 years old, my wife is 32, and we live in the Washington DC metro area.  We recently just had a baby a few months ago, so we are getting back into the swing of things after maternity leave, and everything that comes with being first time parents.  I would say it is not uncommon for people in this area to earn more than $100,000, considering all the lawyers/lobbyists/politicians/executives in the DC area.  These higher salaries are offset by the higher cost of real estate, which is common in the larger cities.  I have a Bachelor of Science with a focus in IT, and and MBA with a focus in IT.

What do you do for a living?

I work in the IT field and my wife works in the Hospitality industry.

How much do you earn annually?

My current salary is $128,000 (not including any bonuses or additional comp/benefits).  I like to use these "base" salary numbers for any type of budgeting or planning, and not to include bonuses as they are not guaranteed (but I have consistently earned them in the past several years).

How does this amount break down (salary, bonuses, etc.)?

In addition to the base salary ($128k), I have been averaging a performance bonus that is paid every December of around $9,500-$10,500 for the past 3 years.  This is highly dependent on the health and success of the firm where I work, but it is not uncommon for high performers to get this consistently, assuming the company is healthy.

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

I have the following additional benefits that I receive from my current employer (outside of salary and bonus);

• Long Term Disability: 80% of my salary (my cost = $0)
• Basic Life Insurance: 1x my salary (my cost = $0)
• Pre-tax transportation: I have the option to designate money that will be allocated pretax for transportation needs.  This could be for public transit (Metro) or parking.  If I were to use this benefit, I would save about $28 for each $100 due to the pretax classification.
• 401k Matching: The firm matches 0.25% of every 1% I contribute, up to 4% -- this means if I contribute at least 4%, they will put in 1% of my salary. This is deposited into my 401k account with each paycheck, and is immediately vested at 100%.
• 401k Profit Sharing:  I also receive a one-time deposit into the 401k every December 31 which is equal to 6.5% of my salary, regardless of what I contribute to 401k that year.  This benefit started after being with the firm for 2 years.  This contribution is immediately vested at 100%.

The 401k matching/profit sharing adds together to total a combined match of 7.5%, assuming I put in a minimum of 4%.  With my current income levels, I'm able to contribute the max to the 401k ($17,500 for 2013) without much strain in our normal monthly spending.

Total 401k contributions (mine + firm) for 2013 will be approximately $27,100

How long have you been working?

I have been working at some capacity since I was about 16.  I didn't start full time work until 2005 and I was 21 and a junior in college.  I was offered a full time job before I graduated with my undergrad degree, which made me extend my time in undergrad from a planned 4 years into 5 years, and to take courses at night to complete the requirements.  At the time, I gambled that the extra full time work experience was worth delaying graduation by one year.  This paid off immensely as some of my friends had difficulty finding full time work after they had graduated.  I was able to "lock in" the full time position early.  I've heard it mentioned before, and it's worth repeating, if you are in college don't wait until late senior year or graduation to start looking for a job!  Putting in the leg work early does pay dividends.

How long have you earned at least six figures?

I have been earning six figures since I was 26 (so going on the 4th consecutive year of six figures)

Here is the breakdown of my yearly earnings since I started working full time at age 21 in 2005:

• 2005 - $38,000 (was working at a company that is over 100 miles away from the DC Metro area "Company 1")
• 2006 - $49,000 (Company 1)
• 2007 - $80,000 (moved to the DC Metro area, "Company 2")
• 2008 - $85,000 (Company 2)
• 2009 - $90,000 (Company 2)
• 2010 - $110,000 (Company 3 in DC Metro area)
• 2011 - $116,000 (Company 3)
• 2012 - $120,000 (Company 3)
• 2013 - $128,000 (Company 3)

The jump to six figures did not come until I switched to "Company 3" in 2010.  The largest jumps in salary so far have been when switching jobs between companies, and also switching locations to a larger metro area with more opportunities.

What have been the key steps you have taken that have allowed you to earn this level of income?

As cliche as it sounds, you have to enjoy (to some degree) what you do for a living.  The reason I mention this is that, for the most part, advancing your income requires you to be a top performer.  In order to be a top performer, you have to put in work outside of the normal 9-5.  I think this is especially true in IT, as technology changes so rapidly, keeping abreast of the new tech and changes and what is trending will stretch past your day-to-day schedule.  So you have to be willing to at least follow industry trends and keep up with how your industry is progressing.  I don't think you can keep a sane life if you don't at least enjoy what you do for a living when you are spending the most hours per day doing it.

You can also separate yourself from the pack if you are able to turn your tasks into things that either (a) generate more income for the company, and/or (b) reduce costs.  Even more important than figuring out how to do this, and executing it, is quantifying it to management so they are aware how you are contributing to the bottom line.

I also think having the willingness and curiosity to always be learning.  If you are not learning something new, then you are stagnant.  Top performers are never stagnant.  This is very evident in IT, as it is constantly changing, so I am constantly learning.  I sometimes feel it is just a treadmill of learning that never ends; I realized this early in my career and I'm at peace know that my industry requires constant learning and training to keep alive.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

I have always been in the IT field since I started working, so I don't have any exposure to completely changing my career path and the impact that would have on my salary.

I have done item "B" and jumped from one company to another for a bump in salary and responsibility.  My jump from Company 2 to Company 3 was a pay increase of +22% along with a company size that was about 3x larger.

I think there are advantages to both a smaller company and a larger company.  The smaller company allows you to get noticed faster if you are a top performer, and can lend itself to moving up the ladder faster, but the smaller companies do not always have the deep pockets that large multinational companies have.  Larger companies seem to pay better, but it is more difficult to move up the ladder due to the many layers of management.  I guess it all depends what your end goal is; a nice title or a nice paycheck.  You can have both if you are willing to work for it.

I am working on item "A" at my current firm -- I've been branded as the "go to" guy by our CIO, and interact with them frequently.  I'm currently working on my future career path with the help of my boss, carving out a new position that I can grow into.  I'd like to stay with my current company for the foreseeable future, as I feel like I'm starting to gain some momentum.

Someone gave me a good piece of advice that answers the question "should I move on to a different company/job?" -- stay with your current company/job as long as there is something to learn and you haven't 'topped out'.  I used this piece of advice when moving from Company 2 to Company 3, as I felt I was topping out at the firm, and did not foresee anything to challenge me to learn in the immediate future.  In my current position with Company 3, I feel that I am around the 80% top out mark so I have a little bit more work to do until I reach the 100% mark and either need to get new responsibilities (promotion) or a new company.

What are you doing now to keep your income growing?

I think there a few things that I am doing that can be repeatable by most people.  The first is working on my "hard" skills.  Within IT, there are certifications from all the major vendors - Microsoft, Cisco, etc.  Those are a somewhat cut and dry way to separate yourself from others, to build your resume, and to assist with the yearly review question of "what have you done to improve yourself in the past year?"

A second thing is working on my "soft" skills.  Being able to communicate with upper level executives is a skill that needs to be practiced.  I'm making a conscious effort now to try and stay on their "radar" by getting my name out there by volunteering for projects, providing input when I feel it's valuable, and generally stretching out of my comfort zone.

I believe these things will contribute to being a top performer at my day job, which in turn would hopefully increase my income.

I have also started dabbling into the world of dividend investing, to work as a second stream of income.  This has been going fairly well so far, as I'm able to invest excess cash flow monthly to keep growing the stream.  In 2011, my portfolio was kicking off an average dividend of $8/month.  In 2012 this grew to $30/month, and in 2013 it is averaging $75/month.  I feel I can keep at it for several more years and allow this dividend income to supplement my day job income, possibly allowing me to reduce my hours or responsibilities (and pay) if I wanted to go that route.  I don't foresee that desire in the near future (10 years) but I'd like to have that option if the desire arises.

What are your future career plans?

At this point in time I would foresee myself staying in the IT industry.  I am currently nearing the top of the curve on the engineering side, so I believe my next logical step would be getting into management of some sort.  My career path thus far hasn't directly used the skills from my MBA degree, so it would be fun to try and leverage them in a new position while still keeping my hands in the IT side.

As I mentioned before, I would like to stay at my current company assuming that I am still challenged there and don't top out.  I feel that if everything stays constant, I will possibly top out in the next 12-18 months, at which point I would start to actively look at alternative positions.

Have you been able to turn your income into a decent net worth?

I'd like to say 'yes' to this question, as I think our net worth has growth pretty well in the past few years.  I started to keep track of a detailed monthly cash flow and net worth 2006.  Here is the overlay from my salaries outlined above with my net worth ending on Dec 31 of that year;

• 2006 - $49,000 (Net worth: $20,500)
• 2007 - $80,000 (Net worth: $56,500)
• 2008 - $85,000 (Net worth: $72,000)
• 2009 - $90,000 (Net worth: $124,600)
• 2010 - $110,000 (Net worth: $169,600)
• 2011 - $116,000 (Net worth: $206,000)
• 2012 - $120,000 (Net worth: $365,000)
• 2013 - $128,000 (Net worth as of Sept 30: $440,000)

I do include our house equity and car equity in the net worth calculations.

2012 was a big year for the net worth jump due to a few factors -- my wife and I got married, so we combined financial accounts and started including that in the net worth.  We also purchased a house, which appraised for higher than our purchase price so that invisible equity was included in the net worth as well -- since the purchase I have not adjusted the book value of our house, even though sites like Zillow and others have shown it increasing.

Why or why not?

I think a major factor in the growth of my net worth is the fact that I was able to go to college [undergrad and grad] without having to take on student loans.  I would highly advise anyone in college, or going to college soon to do everything in their power to avoid student loans -- go after every scholarship, work as much as you can to supplement the needed income and minimize the amount of loans you take out any way possible.  I have numerous friends [lawyers, doctors, etc] that earn an extremely high income, but their monthly student loan payments are more than my mortgage.

I think it has been important to invest money in the market each and every month, regardless of the ups and downs.  This has been habit forming for me, and I still contribute monthly to this day, regardless of what the overall market is doing.  This has helped my net worth accelerate in the past couple of years when the market has rebounded.

Another important contributing factor is our level of spending.  We are able to keep our spending in control and have a pretty decent "gap" between net income and expenses.  We average around $9,500 net income per month (after taxes, medical insurance, 401k, etc) and we spend on average around $5,500 per month.  This gives us around $4,000 per month to save/invest, which greatly enhances the growth of our net worth.

What advice do you have for people wanting to grow their incomes?

I think it may be as simple (or difficult) as you want to make these steps;

1) Find a field of work (or industry) that makes you excited to be a part of

2) Work to become a top performer in your current company - this could likely mean putting in more hours than the standard 40hrs/week

3) If you "top out" at your current company (see comments earlier), look to switch to another company to gain more exposure to the industry.  This will give you a trail of experience that you can bring along and hopefully jumpstart your "top performer" status at the new company

4) Get comfortable interacting with upper level management -- these are the people that ultimately decide your pay/bonuses/promotions/career paths

I check FMF frequently, so feel free to post questions and I'll do my best to answer them!

Six Figure Interviews 7

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

32 married 3 kids, 11, 7, 3 living in florida

What do you do for a living?

Systems Engineer

How much do you earn annually?

$101,250 salary

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

Profit sharing 2% annually, 6% 401k match, plus all the standard benefits

How long have you been working?

Ten years plus 2 years as an intern while in school and some time at my parents business before that doing a bit of EVERYTHING.

How long have you earned at least six figures?

1 year

What have been the key steps you have taken that have allowed you to earn this level of income?

1. Education. Hustle to get an education where you learn desirable (ie marketable) skills. Starving artists are called that for a reason. There are no excuses here. I was pregnant my junior year and had an infant my senior year of college. If I can work, have a baby and go to engineering school full time, anyone can get their degree. That said I spent two years not watching TV and not going out with friends.

2. Work hard, be willing to read the details and learn as much as you can. Anticipate the needs of your project, team members, project lead/boss and deliver what they need on time and on budget. Communicate at the right level of detail and in a way that your leadership can understand.

3. Take advantage of employer paid advanced degrees and get one! I got a masters degree that I didn't pay a dime for.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

1. Do not stay working for the same employer for your whole career. Every 5-7 years you ought to move on to a new company to both broaden your knowledge and experience and keep your salary at market rate by giving yourself an opportunity to negotiate your pay. The last time I changed jobs I increased my total compensation immediately by 20% and entered a program where evaluations and merit raises were given every six months for three years, adding another substantial boost over my peers. (So far this window seems to allow enough time to get an internal promotion before changing jobs, which you can also sometimes negotiate, I negotiated the pay for my first promotion as well)

2. Network and build relationships to get job assignments that you want to build your skills and experience and also to build a group of mentors you can go to for advice. The last several assignments I had were because I had lunch with the right person. I have met wonderful brilliant people because I asked them to have lunch with me and tell me about their leadership role on a project and their insight into various things.

What are you doing now to keep your income growing?

Perform, seek out projects that grow desired skills, and work in desired roles.  Right now, I'm looking around at opportunities at other local companies.

What are your future career plans?

I'm exploring the idea of working as a contract engineer and potentially growing my own small company of engineering talent. I have a couple of very talented friends who are interested in doing this with me on the side until we could grow the business enough for us to work at it full time.  This is an age discriminating profession and there are lots of over 50 engineers who worked at the same place for thirty years only to get laid off and find their job prospects extremely lean.   In my specific engineering discipline think its important to grow an expertise set at several different companies to give you a way to be marketable in your later years.

Have you been able to turn your income into a decent net worth?

Our net worth is near a half million.  My husband is also a six figure engineer.

Why or why not?

We have no debt but the house and have been consistently able to save by living below our means.  Additionally we have been able to give away a significant amount of our income to charity.  That kind of thing helps you to be content and thankful for what you have.

Not having a heavy debt burden allows you to be able to take risks in your career and to whether life storms like a layoff without losing everything that you worked so hard to save.

What advice do you have for people wanting to grow their incomes?

1. Don't be afraid to ask for what you want. The answer may be no, and then you are right back where you are now.  But the answer could be yes, and then you get what you want.

2. Read. Reading gives you different perspectives on things and makes you a more interesting person to talk to.  Additionally I have learned a lot of business concepts and appropriate vocabulary from reading.  It helps a lot to be able to talk to a higher up company leader about leadership topics they are interested in using the right vocabulary.  It helps a lot to be able to talk to HR using their language of "total compensation" - all of this I got from books.

Six Figure Interviews 6

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

Male Age 30. Single (long term girlfriend of 2 years), no kids, live in the Bay Area, California. Spent all my life in the South.

What do you do for a living?

I'm a Project Manager for a large tech company.

What is your educational background/field of study?

I have an undergraduate degree in Accounting and Finance and a Master's in Accounting from a large state school. I started in Big 4 accounting and moved on from there.
 
How much do you earn annually?

Salary is 110k
~ 5k bonuses
~4k stock options per quarter

My company provides many perks (401k maximum match, cheap healthcare, free food) that make my compensation much more.
 
How long have you been working?

Since August of 2007
 
How long have you earned at least six figures?

Since March of 2012
 
What have been the key steps you have taken that have allowed you to earn this level of income?

The most important thing I can stress and do stress to everyone is to spend as much time as possible honing your interview techniques and learning to negotiate salary. Every time I am looking for a new job I read articles on Free Money Finance, I Will Teach You To Be Rich, and other blogs to get help refreshing my resume, preparing for my interview and negotiating salary/benefits. I don't understand why people will spend 40 hours a week for 3 years to get a promotion/salary increase and not spend 4-6 hours preparing for an interview and getting a 20% or more increase in salary immediately. If you are very bad at this (you know you are) then you need to take a class/hire a coach. It will be the best money you ever spend on your career.

As an example. My first job out of big 4 I was making ~56k in salary. My initial offer, from a job I didn't take, was 58k. Using simple negotiation techniques I read for free online I got a final offer of 70k plus a commitment of a full year bonus package (I was starting in September). That is a 25%+ increase by just talking. What is an easier way to make 14k+?

Second I saw the jobs that people were getting out of big 4 and looked for opportunities that were above average for my experience or offered a lot of experience. Your second job out of school is your most important. I made it known on my resume and initial interviews with recruiters that I was interested in small business and entrepreneurship. This landed me a role as a controller of a company that was asking for 5-7 years experience ( I had 3). Through this job I learned a considerable amount and was actually recruited to work in the Bay Area as I was one of the youngest controllers in the country. At least coming out of Big 4 I feel that you should be looking for a job for 3-6 months. Don't wait until you get burned out and leave without doing a thorough search. There are tons of mediocre jobs available, in my field, at any time. The exceptional jobs take some time to search out. Send your resume to as many headhunters as possible when you are ready to move on. You know it's time to leave when a company starts focusing on attendance and looking busy over development and your personal growth. Ramit Sethi has some great suggestions for how to deal with recruiters during your search.

What are you doing now to keep your income growing?

Doing well at work. There is an expectation of work product and you should meet or exceed those standards. Most important is to invest in the people you work with and help folks any way you can. In my view, don't make enemies with anyone and don't criticize anyone unless it is in private and you are responsible for their performance; be thankful for the time spent by others helping you and give them credit and encouragement. At the end of the day you want their endorsement. These were tough lessons for me to learn as an introvert. At the end of the day a business is filled with people. If your boss likes you, then you will get promoted. If they don't, then your work product matters very little. This goes back to interviewing, if you do not get a long with your boss/don't like them them DO NOT TAKE THE JOB. No matter how good the salary is. Talk with potential coworkers and get a feeling for the role, why the previous person left (good if they got promoted, bad if it's the 4th person in the role in 4 years), and what it takes to be successful there. I personally don't like places that value work hours over work product and that come off as stuffy/regimented.

My current role has taught me a lot about tact and compromise. Don't take negative constructive feedback personally and have lunch/meet with the folks who give it to you. A lot of the time they want to invest in your future. Learn holistically your role and the role of others around you. If someone asks a question you don't know the answer to then go and find the answer for them. Become a person that people go to when they want things to get done. Don't hoard information. Give as much as you can and help others accomplish their goals.

Always be open to other opportunities. You never know where your next one will come from. Listen to everyone and keep open lines of communication open with recruiters. Don't burn bridges. Moving on is part of business. Be respectful of the company you are leaving and convey why you are leaving. When I told my Big 4 firm the offer I was given they basically pushed me out the door. In the words of the partner I had the highest exit salary he had seen. And I was not an exceptional auditor/performer, I just studied interview techniques and learned the job market. If you aren't getting a 15-20% increase or other considerable benefits then it's not worth leaving. The right opportunity will feel right. NEVER EVER EVER ACCEPT A COUNTEROFFER. I have never done this, but only read and hear horror stories of people who have.

Compounding works for salary as well. FMF has some great posts on this. Never leave money on the table. Understand that a company upon selecting you has dismissed all but 1 or all candidates. They now have you and don't want to lose you. Get as much money as you can (through respectful negotiating) and then NEVER complain about your salary or pay once work starts. Be a professional. Know what you should be paid and then upon accepting your salary; accept it. I don't understand why most people do the opposite.
 
What are your future career plans?

I am enjoying my role here. Long term I plan on growing my base salary and benefits and then negotiating this into a very good job back in the south. Not sure which city as I want to keep an open mind. I plan on investing in real estate rentals in the next 24 months.
 
Have you been able to turn your income into a decent net worth?

Net worth is about 175k. If that is decent or not is relative.

Why or why not?

I feel I have saved a fair amount. Always max out your 401k to the company match. I track my money in quicken and try not to have idle cash sitting around. I track my expenses and my savings over time and leave it at an amount I feel comfortable with. Being a good saver is not related to how much you make. I have met people that make twice what I do with no savings and people who make much less than me with more. The key to being a good saver is being conscious of what you will spend your money on and what you will not. For me personally, my motto is to spend money on experiences with people I care about. Therefore I splurge on vacations, dinners, social activities and cut costs with material objects. You may be the opposite just commit to a plan and stick with it.
 
What advice do you have for people wanting to grow their incomes?

Focus on the big wins. If you have not spent a considerable amount of time learning how to market yourself in interviews you are doing yourself a disservice.

Six Figure Interviews 5

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

51, married, three kids, a western suburb of Chicago.

What do you do for a living?

I'm currently Director of Engineering for a manufacturing company.

How much do you earn annually?

Salary is $178k, plus a company car. I also have a nice bonus opportunity and annual stock options. Last ear that all added up to a little under $300k.

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

Employer 401k match is 5%.

How long have you been working?

29 years.

How long have you earned at least six figures?

Since about 2003.

What have been the key steps you have taken that have allowed you to earn this level of income?

Being a reader and learner. Looking for opportunities to differentiate myself. I've found my "soft" skills (leadership, communication, strategic thinking, etc.) to be more important than my engineering skills, especially the more I've moved up in the company. Being proactive, not reactive. Learning how to ask good questions. Not being scared to convey my value to the company when seeking new responsibilities or promotions.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

Though I've worked for six different companies, my most effective strategy has been to provide value within my current company.

What are you doing now to keep your income growing?

Regular discussions with my boss (the President of the company) about my future, and what I need to improve in to be ready for the next level of leadership. Being willing to jump in to help in areas of the company that are outside my normal field of expertise.

What are your future career plans?

I'd like to be President of a company one day, but I don't have to get there to be happy.

Have you been able to turn your income into a decent net worth?

Not as much as I should have! I got "smart" about money later than I wish I had! That said, we're maxing out our 401k, and feel pretty good about retirement (but not early retirement).

Why or why not?

We should have maxed out our 401k a lot sooner than we did. We also should have put more aside for college.

What advice do you have for people wanting to grow their incomes?

Follow the "key steps" listed above. Maybe the most important thing - realize that YOU are in charge of your career, not your company.

Six Figure Interviews 4

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

I am 32 years old, married and have 2 kids with one on the way.  We live in the northwest of Chicago in an upper middle class suburb (median income of $84,180)

What do you do for a living?

I have spent my entire career in software development and currently serve as a software development manager.  My wife is a high school teacher.

How much do you earn annually?

I can earn up to $123K and my wife earns another $80k.

How does this amount break down (salary, bonuses, etc.)?

I have a base salary of $112K with a potential 10% bonus tied to company and personal goals.

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

 My company matches 50% of the first 6%.  My wife receives no match in her 403b.  Her union negotiated contact provides great costs for good health care so that is multi-thousand dollar benefit.

How long have you been working?

I hit 10 years in May of 2013.  My wife has been working for 7 years.

How long have you earned at least six figures?

Right around 3 years.

What have been the key steps you have taken that have allowed you to earn this level of income? (Please provide as much detail as possible).

The most important part to doing it so quickly has been picking a career that has a high salary ceiling.  Not to say it can’t be done but this would be a very different story if I was a social worker or something more liberal artsy.  After picking your career, you need to find an employer that you can excel at.  My first job was just a job.  There was no desire or feeling of ownership in what I was doing.  That mindset would never allow me to excel and deliver the results needed to get big percentage salary gains.  I waited until I had 3 years of experience (a magic number in software development) and looked for a new opportunity.  It was at this job that my salary growth took off.  This environment was more collaborative.  This allowed me to voice my opinions and ideas which raised my profile.   I slowly became someone my peers and colleagues could depend on and would come to with their problems.  This gave me a leg up when there was an opportunity to be a manager.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

Making the jump from my first job to my second provided a 50% increase in pay.  This was a combination of my first employer paying below market and my second employer paying well.  The 6 years at my second job provided just shy of 100% salary growth.  This is due to 8-10% raises my first couple years coupled with the 20% or so bump I received when I became manager.

What are you doing now to keep your income growing?

My current employer is a Fortune 500 company and I am now in the realm of 3% raises for eternity.  If I really outperform, I could possibly get 3.5-4%.  I’m fairly confident the 8% raise is out of the question at this company.

What are your future career plans?

I am the point in my career where I am looking for something to create and call my own.  I have dabbled in the app store and currently have an app for sale.  I think it has generated $200 in 2 years.  Good thing it was more for learning and growing my skills than for earning potential.  I always have ideas for bigger, grander apps but it’s hard to spend 8 hours programming every day and then another 2-3 after the kids go to bed.  I will eventually figure this part of it out but for now, I’m good with the rather stress-free role I am in now (at least for a year)

Have you been able to turn your income into a decent net worth?

As of September 21, 2013, my net worth (including primary residence) sat at $461,962.70.  Considering I was <$60k 5 years ago, this is really good.  My goal is to be at $1mil by the end of 2021 (40 years old).  If my contribution expectations are met, I only need modest market gains to get there.

Why or why not?

To go along with excellent salary growth, I had a spectacular 5 year run in the stock market.  On top of that, I had a few large one time payments from my 2nd employer for various reasons.  These totaled over $100K in extra earnings.  

A quick tangent but my belief is that people early in their career should concentrate on their contribution rate and not so much on their total net worth.  This is especially important early on.  Remember, the first million is harder than the second.  The fastest way to get to the first million is to contribute more.

What advice do you have for people wanting to grow their incomes?

First, set realistic expectations for your salary ceiling.  Research what median salaries for your profession in your area are.  Once you’ve come to terms with that, then you can start working towards it.  As a manager, there are two main characteristics I’m looking for in a stand out employee.

1) Ask for tasks that will challenge you.  No one who just “does their job” ever received an outsized raise.  You need to show that you are worth more.  You don’t want to be the “solid” employee.  Solid employees don’t get fired but they don’t stand out.  If you are afraid of failing, ask for help.  A good manager and company will provide you with the support to stretch beyond your comfort zone.  If you are in a place that doesn’t allow for failure, find a new place to work.

2) It’s a little cliché but “invest in yourself”.  In my scenario, I learned how to program for the iPhone and iPad.  This was a personal choice and something I leveraged in my career.  I feel employers should pay for training but wanting training is different than learning and providing something useful to the business.

3) I know I said 2 characteristics but I thought of one more while finishing this up. Retain what you learn ON THE JOB.  So many people will work through a problem, learn all about the issue and then not be able to help at all if a similar problem arises.  Become a “go to” person.

Six Figure Interviews 3

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself (age, marital status, kids, where you live, etc.)

My wife and I are in our late 20s, we have one daughter (hope to have more children) and we live in the American south. My wife has a Masters degree in professional counseling, and I have an Associate's (2 year) degree in Computer Networking, which I don't use, interestingly enough.

What do you do for a living?

I'm a web developer. I build web applications that help people create websites and publish online.

How much do you earn annually?

Somewhere between $100K - $120K per year.

How does this amount break down (salary, bonuses, etc.)?

I make about $90K from my full time position, and somewhere between $10K-$15K per year doing freelance work. My wife makes about $12K per year doing part time work.

How long have you been working?

I've had a job since I was 14, but I imagine you're talking about my professional career. I've been working full time since I was 19, after I was able to learn enough in college to start applying it as an employee.

How long did it take you to earn six figures (from the time you began your career)?

About 6 years. My first 6 figure year was 2010, the year I turned 25. Which is odd, because in 2009, I remember distinctly my adjusted gross income for that year ... barely over $30K. I've since looked at previous years' returns, and $30K was actually a pretty good year.

Strangely enough, 2009 was shaping up to be a decent year, but I ended up losing my job in August. My wife was still in school at the time, working an unpaid internship. Our friends offered to let us move in with them until we got back on our feet (we had similar offers from our parents, but that would have meant moving out of state). I tried my hand at starting a business, which didn't work out.

Eventually, I accepted an offer from a friend of mine who had been wanting me to work for him for a while. We negotiated, and he made me an offer I couldn't refuse. I still work there today.

What have been the key steps you have taken that have allowed you to earn this level of income?

The best thing you can do for your career is make connections. Friends go a long way in a career. The key is to start making friends long before you need them. I work on the internet, so making those connections was a bit easier than in traditional business. Even still, there's a good chance you can figure out how to make connections with people who know people.

Always be expanding your skills. I'm 100% self-taught in my field. No formal education in it. If you do HVAC, learn electrical when you have little bits of time here and there. If you're a carpenter, why not learn general contracting?

Always ask for more responsibility, and don't expect it to pay off immediately. One of the biggest mistakes people make is getting impatient. More skills and more responsibility mean more opportunities. Eventually, it will be worth the effort.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

I changed fields early on. But mainly because I got fired from where I was, and was already doing web development on the side by that point. I have, in fact, been fired (or "let go") 3 times in my career. Each time I found a better, higher paying position. This makes me terribly paranoid about losing my job, which I think makes me a more thoughtful and effective employee.

I'm pretty loyal, too, which probably isn't the best strategy. If I was more concerned with money, I might change more often. But I like where I work, and the people I work with. And perhaps I like the stability of being somewhere long term.

I've done well with raises with them, too. So I really can't complain. But I did have to ask for them, which is not easy. I'm not a Type A personality at all. I don't like to toot my own horn, so asking for more money is tough. But if you're putting the work in, and you know you're worth it, asking for a raise is essential. Trust me, most companies aren't going to pay you more voluntarily.

What are you doing now to keep your income growing?

At the moment, not much. I put in a lot of work the last few years getting to where I am, and I'm a little tired. So, I'm not doing a whole lot to move up. But that will change soon. Basically, produce more output in less time (becoming more efficient), being more vocal about my accomplishments (laying the groundwork for the money conversation), and asking for more responsibility.

As a freelancer, I've raised my rates so I can work fewer hours. I've also worked on systems so I can finish projects faster. This way, I only take the clients I want, and by working more efficiently and charging per project instead of per hour, I end up with a higher effective hourly income.

What are your future career plans?

I want to keep doing what I do as long as I possibly can. I'm not sure there will always be a market for the particular niche I work in, though, so I'll either have to adapt, or change careers. We save a lot of money, so hopefully that will provide me with some opportunity if I eventually have to change careers.

Have you been able to turn your income into a decent net worth?

Yes. My wife and I have paid off nearly $80K in debt (student loans, credit cards, taxes) since we got married. We're now debt free except for our house, and this lets us put a lot of money away. We currently save or give away over half our net income every month. We live what most people would call a "frugal" lifestyle.

We currently have a net worth of around $100K, with about half of that being liquid (after tax investments, savings accounts, etc.). We actually had a negative net worth before 2010, so being debt free is definitely one of the quickest ways of accumulating wealth.

What advice do you have for people wanting to grow their incomes?

Understand that income is about value. You are the asset, and useful assets are worth more money. Businesses don't exist to provide you with a job or health insurance ... your employer wants to make money. Businesses have to spend money to make money, so be the best money your employer spends every month.

But even valuable assets go unsold if no one knows about them. You have to make friends. You don't have to be a Type A to do this. It's probably the most important thing I ever did for my career. No, it absolutely is.

Six Figure Interviews 2

Here's the latest in my series of six figure interviews, discussions with everyday people who are making at least $100,000 a year. If you'd like to contribute to this series, drop me an email.

Today's interview is with one of my millionaire interviewees, a man who earned $320k last year from his career, and was actually done a few months ago (even before I announced the series). As such, this won't be as complete of an "interview" as what I hope the rest of the series will be, but it should get us off to a decent start.

For this one, I asked the interviewee to send me his thoughts/tips on how he's grown his career, and here's what he said:

It started very early, back in my college days. I did more than try to be a student getting a degree, I tried to take on meaningful jobs that could expand my skill base and make me more attractive to employers, while of course making money to pay for my schooling and life.

I went to a large public university. As soon as I was eligible, the summer after my first year, I became a Resident Assistant (RA). Strongly recommend this job. You have to deal with all sorts of diversity of folks. It helped me with my housing and some food. During one semester I did an internship at company to get real world experience, this really put me in high gear in school since I learned how easy we had it in school since it was just a few hours of class/studying a week. I started to get more focused on my career.  I was an RA every semester I was in school until I was able to become a Hall Director (over an entire dormitory, not just a floor as with the RA role), this was a year before becoming a grad student which is the typical requirement.  Again, the skills learned were very marketable. Having a staff and responsibility over 500+ students, etc... In parallel I got an assistantship at my university as part of my Master's degree. This helped give approx 14K annually and paid for 9 credits of grad school, a big deal for me back them. Lastly I took with a company that managed all the campus telephone company. This was hourly and I was the manager, so I was able to set flexible hours and my experience in the school helped make this possible.

Oh, I got two master's in parallel while doing all the above.  This is not to brag, it is to make a point, by the time I got into the interview process with companies, I was a very serious candidate and had a lot to talk about, not just the "clubs", "Fraternity activities", etc. that I was a member of. 

Once I finally got into my company, still same company over 12 years.  I just committed myself.  First in and last out.  Not just to show my face though or be in the water cooler, I took every training opportunity they offered, I looked for exposure to new skills and learning. I really learned the basics from the ground up. It was a meaningful commitment to build a strong foundation in this company. The field and the company culture were my coursework for the next 18 months. This translated into multiple promotional opportunities.

I was given a few opportunities that made all the difference in the world. First they asked me to go to one country for a few years and live, which I did, then years later I got another opportunity to be an expat in another country.  For the first opportunity, I was not the best qualified for it, but I was hungry and willing to do it. So many folks refused the opportunity, they stayed behind and many of them were demoted since times in the US were tough, especially in our field, while I was promoted many times, since I was able to get more exposure and opportunity in growing environment.

I always focus on (1) having the right boss. I would not take a job just for promotion or title, I focus on Boss. I have seen good guys get derailed by bad leadership and support.  (2) Driving results, especially results in the eyes of the right boss.  I believe my success has come from being able to understand the results required and being passionate about consistently delivering them regardless of the obstacles.  Don't overcommit and under deliver.  Properly commit and make it happen, beating when able...

Years later, I am still working very hard, but I believe the foundation I build during my early years set the basis for much of the core of knowledge I am using years later and the perception folks have of me... It was a great investment of time and energy.

By the way, I am not naive or big headed, I FULLY believe that LUCK played a big toll.  Since my company happens to have done well over my career, had I ended up in another company I may have not had the opportunity to grow my career as well.

One final thing that jumps out that I should add, I was never shy. I would give results, but I would also share, when appropriate what results I was looking for when needed. I built good relationships with my bosses, since I invested time to be associated with the "right bosses", so over my career I have made it clear why I should be getting an incentive or promotion, even if they did not ask first, just to ensure they were not forgetting... I always did this linked to high performance/ result times. Good to link the two, here are great results, just got you bonus boss and helped company really kick butt here, don't forget me on bonus time or that next step we talked about before... something like that...

Six Figure Interviews 1

Here's the latest in my series of six figure interviews, discussions with everyday people who have grown their incomes to at least $100,000 annually.

My questions are in bold italics and their responses follow in black.

Let's get started...

Tell us a bit about yourself.

I am 35 (spouse 41), with no children, and we live in a high COL state in New England.

What do you do for a living?

I work in the insurance industry as a statistician/business analyst/predictive modeler.  This is a slight shift from my previous position as more of a reporting analyst/SQL programmer/database developer, which also paid well.  The data management skills are very compatible with the stats skillset.  It helps to be able to pull your own data without having to rely on others.  I am an individual contributor with no direct reports.

How much do you earn annually?

I earn about $125k annually, not including stock bonuses.

How does this amount break down (salary, bonuses, etc.)?

About $105k is base salary, with another $20k average as cash bonus (this is only because I have consistently been ranked as a high performer - employees with a lower performance ranking get lower bonuses or no bonus at all), and sometimes extra stock on top of that as a long-term incentive bonus.  The stock vests on a 5 year schedule (50% in year 3, 25% in year 4, 25% in year 5).  My stock will start vesting in 2014, and the first chunk will be worth about $15k (assuming the market doesn't crash).

Do you receive any additional compensation/benefits from your employer (401k match, stock options, etc)?

I get a 401k match of 4.5% on my first 6% of contributions.  I also get tuition reimbursement from my employer (up to 8k/year for grad school), which I took advantage of to get a master's degree in statistics.  This was not fun, but since I finished school I have received a raise from my company since statisticians are hard to recruit and retain (low supply/high demand field), and analytics is a trendy area to be in right now.

How long have you been working?

I finished undergrad and started working at the age of 22, but then I took a break from a dead-end job in my mid-twenties to go to grad school full time (for my first master's degree, in a non-lucrative field).  I accidentally got into my current career while working as a graduate assistant when I volunteered to learn database development (MS Access).  So I would say I've been working about 11 years now, but all of the years in my twenties were low-earning years.

How long have you earned at least six figures?

Just for the past 2-3 years.

I didn't start earning six figures until my early thirties.  Until my thirties, my income stagnated as I worked for non-profits, universities, and smaller companies. I experienced one pay freeze after another in a generally bad economy post 9-11.  In my current field, it took me about 5 years to get up to this level, but that doesn't count the years prior to that when I was floundering career-wise with no focus.

What have been the key steps you have taken that have allowed you to earn this level of income?

When I graduated with my first master's degree, I was at a fork in the road where I had two very different career paths ahead of me, and I chose the more lucrative field.  I was getting better job offers and more consistent employment related to database development, so I took advantage of those offers.  If I had any down time on my job, I used it to read tech manuals, get certifications, take classes, and generally develop skills that would make me more marketable. I also left a job at a smaller company during the middle of the recession in exchange for a job with a $20k salary increase at a Fortune 500 company (I negotiated them up $5k from their original offer). 

Around this time I also decided to start paying attention to my finances and began reading personal finance blogs like FMF which emphasized growing your career.  I applied some of this advice and focused on consistently being rated as a high-performing employee, and was rewarded with healthy salary increases and bonuses each year.  I began being recruited by other companies and would network with recruiters so I could keep track of what I was worth on the market.  When I found I was still being paid below market, I looked around for other offers and nearly accepted a position with another company, but because I was a high performer and my company wanted to keep me around, they agreed that I was being underpaid and gave me a mid-year salary adjustment. 

I decided I had found the career that I wanted to stick with and that I wanted my education to align more closely with that career, so I went to grad school again (this time part time and paid for by my employer).  I picked a complementary field in a slightly different area (statistics) because I could see that the company was starting to make a big investment in its analytics department and sensed that there was opportunity for me there.  This decision to go through graduate school again was difficult, but it has already paid off.

Which of the following career advancing strategies did you employ (if any) and which were most effective: a. Doing well within your current company and being promoted. b. Jumping around from company to company always seeking a higher salary & responsibility. c. Entirely changing your career path from a lower earning field to a higher earning field (going back to school, etc).

I would say I have done a combination of each at one time or another.  I did entirely change my career path first, and then I did some job hopping before I settled on my current company.  I've been at this company for almost 5 years now (in two different roles), but although I have received substantial salary increases, awards, and recognition for performance, I have not yet been promoted.  I have had some offers to interview for management positions on various teams, but I don't think I've found the right opportunity yet.  I may need to look at external opportunities soon if I want to move to the next level.  Staying with the same company has its advantages, though -- if I stay, I will have stock vesting over the next 6 years, for example.

What are you doing now to keep your income growing?

I am continuing to set professional development goals each year.  These include attending and presenting at one or two conferences each year in my field.  I find that this helps me keep learning, impresses my employer, allows me to grow my network, and it doesn't hurt to practice my public speaking skills.  I just finished grad school, so I will have to figure out what to do next to upgrade my skills.  I usually brainstorm every year and come up with a list - some ideas on my current list are to learn Python or to study for some of the actuarial exams. I also recently started a blog related to my career field which serves as an online resume; this had been one of the items on my list for some time.

What are your future career plans?

The next logical step would be to try to get a promotion.  I'm not sure if I want a position with direct reports, but it is still possible to move up another level as an individual contributor.

Have you been able to turn your income into a decent net worth (what is your net worth)?

I feel like I am about 6 years behind on this, but as with anything else, once you actually have a plan and are paying attention, you can start making good progress in a relatively short amount of time.  We have no debt other than the mortgage and a combined net worth of about $620k, to which I have contributed about $220k (starting from a negative net worth when I first started tracking it back in 2010).  We started out with student loans and car loans, which we have paid off.  Now that we are finally moving in the right direction, we are trying to save at least 50% of our income to catch up to where we should be.  We have a target of $1MM in net worth within the next 2-3 years, which I feel is attainable if we can stay on our current path.

What advice do you have for people wanting to grow their incomes?

Follow the advice on this blog.

Negotiate your salary. Know what you are worth on the market and apply that knowledge. 

Change jobs if necessary, and career paths.  Try to get into a field where you are in demand -- this makes such a huge difference. It is amazing to me that most of my income growth took place starting in 2008 and continued throughout the recession.  In fact, my income tripled during the recession; this would never have happened if I hadn't changed career paths and jobs.
 
Invest in yourself.  Have clear professional development goals (and income targets).  You don't have to do everything on your list, but try to make some progress toward these goals every year and continually re-evaluate them.

Your Career is Your Most Valuable Financial Asset

For the vast majority of Americans, their careers are their most valuable financial asset. Don't believe me? Consider the following:

• If you earn an average of $25,000 over the course of a 45-year career that equates to $1,125,000.
• If you earn an average of $50,000 over the course of a 45-year career that equates to $2,250,000.
• If you earn an average of $75,000 over the course of a 45-year career that equates to $3,375,000.
• If you earn an average of $100,000 over the course of a 45-year career that equates to $4,500,000.

Unless you have very low earnings, your career is a multi-million dollar asset.

Also consider that your career:

• Pays all your living expenses. Without it, you couldn't survive.
• Is the source of all of your investments -- retirement, college for your kids, and so on.
• Helps you acquire other big assets like your home and cars.
• Is the source of everything you have financially -- the source of your wealth.

In the light of these thoughts, do you have any financial asset that's worth more than your career? Not unless you inherited a fortune or business or have saved over decades (which was enabled by your career). For the vast majority of us, our careers are our largest financial assets.

That's the good news. The even better news is that you can take steps to significantly increase the value of your career. And believe me, even small increases on big numbers like these can add up!

If you don't believe me, just look at how real-life millionaires have used their careers to become wealthy.

Stay tuned...

Update: After I posted this, I wanted to add one more comment since I was just working on something this weekend. If you're wondering how to grow your income, you'll LOVE my six figure interviews series. It provides stories from real people who have taken steps to dramatically grow their incomes. The first post in the series will be up in a couple weeks.

Six Figure Interviews

After announcing the retiree interviews, I'm going to keep the ball rolling and launch yet another real-life finance interview series.

This one will be caller "Six Figure Interviews". It will feature readers who have grown their careers (and we all know what I think about this subject) to the point where they are earning at least $100,000 a year. We'll discover how they got to where they did, what they learned, what advice they have for us, and so forth. I think it will be really interesting. (BTW, if you have specific questions you'd like me to ask them, leave your thoughts in the comments below.)

If you make at least six figures, I'd love to hear from you. As with the other series I run, I will keep you completely anonymous, so there's no worries there. This is a great opportunity for you to impart your wisdom to the rest of us, and we'd certainly appreciate hearing your story. Please drop me a note.

Thank You and Follow-up

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. It's the last one I will be running in this series.

Many people forget the post-interview work that needs to be done during a job search. They assume the interview happens, they either get the job or don't get it, and it's over. But in many cases, the interview is not the end and specific and strategic follow-up can make the difference in getting hired. This excerpt covers the post-interview actions we need to consider to maximize our chances of getting a job offer.

The weakest part of the job search process is the deplorable state of follow-up. It’s so much more than thank you notes, but those aren’t even being sent. Job seekers, thank you and follow-up communications are not optional; they are required.

Here are the benefits of great follow-up, all of which can put you ahead of another candidate:

1. Shows persistence.
2. Allows you to expand, reinforce, or clarify something discussed in the interview.
3. Good manners are always valued.
4. Prevents them from forgetting about you.
5. Reinforces that you want the job.

Here are the downsides of NOT following up:

• A portion of hiring managers will dismiss an applicant who does not send a post-interview thank you note, saying it indicates poor follow-through and a lack of interest in the position.
• Other candidates will follow up, so you lost an opportunity to compete for that job.

If you mastered Chapter 17, then your follow-up began in the interview when you asked, “What is the next step?” or, “When do you plan to make a decision?” With that knowledge, you can time your follow-up post-interview.

Solution

World-class follow-up looks like:

• Sending a note within 24-48 hours while it’s still fresh in your mind—and the company’s.
• Addressing a note to each individual person you met with.
• Spelling everyone’s name correctly, including the company’s.

Sample flow of a thank you note:

• Start by thanking them for the opportunity to meet and acknowledge that they took time out of their day to do so.
• Next, note why you think you’d be a good fit for the role. No more than 3 reasons. Bullet points are optimal as well. This is an opportunity to elaborate on why you are a great fit, in writing, beyond your initial cover letter and interview.
• In close, hit 3 points: 1.) Express your interest; 2.) Commit to following up with them again within a specified timeframe; and 3.) Thank them, again, for their time and consideration.

Sample ideas of follow-up after the thank you note:

• Begin with a pleasantry, followed by a sentence explaining where you left off during your last communication. “You had indicated to me that you’d be making your final decision during the week of <date >, and I just wanted to follow up to see where you are in that decision.”
• Include something of value in your follow-up instead of being perceived as nagging. Perhaps you just completed some training, closed a big deal, or finished a major project. If you are volunteering or taking outside courses while unemployed, talk about that.
• Close with the next follow-up you will initiate. Don’t ask them to call you back. Instead, let them know that “I’ll follow up again within a few days, but in case you need to reach me, here is the best contact number: xxx-xxx-xxxx.”

Tricks

1 Always appear gracious, positive, patient, and interested. Speak in a very respectful manner if you’re leaving a voicemail message, acknowledging that “I know you are very busy, but I wanted to follow up on the email I sent you and that I’m still very interested in the position.”

2 When following up with an email, always attach the prior email you are referring to. If there was an attachment to the prior email, reattach it, as appropriate.

3 Match the communication medium the interviewer has been using, i.e. returning emails with emails, phone calls with phone calls.

Mistakes

Mistake #1: Scathing follow up emails from job seekers who think they’re out of the running.

Mistake #2: Rudeness or impatience. If the hiring manager gave you a specific date or timeframe, give them some room. Hiring processes take time and you don’t want to seem overly anxious.

Mistake #3: One-line emails: “Can you call me back?”

Mistake #4: Group thank you notes—implies a little laziness and is not personal.

Mistake #5: In a personal thank you note, your copy and paste didn’t work so it was addressed “Dear Sally” and at the end it said “Thank you, again, Bob.”

Mistake #6: Misspellings, grammar, punctuation errors. This is another writing sample for the employer!

Mistake #7: Gimmicks. Do not send flowers, a gift, nothing.

Mistake #8: Do not have a friend “swing by” the hiring manager’s office and ask, “How is Bob doing for your position hiring. Isn’t he great?”

Excuses

Excuse #1: “I knocked the interview out of the park, so no need to send anything since I’ll get the job.” Well, aside from being too confident (cocky), which could have hurt you in the interview, there is no excuse for not being polite. And what if you were good in the interview, but not great, and the next candidate did send a compelling note?

Excuse #2: “I don’t have their email address.” Lesson learned. Ask for all email addresses while you are interviewing. However, if you forgot, contact the recruiter, HR manager, or anybody who might be able to give it to you. Simply say, “I would like to send them a thank you note,” so your intention is clear.

Excuse #3: “Thank you notes seem so phony. I’m not the thank you note type.” First, they should be sincere. Sheer appreciation for their time and for considering you as a candidate should be reason enough to take 5 minutes to review your notes from that meeting and craft a thank you note. Second, if you are not the “thank you note type,” then learn to be one now!

Excuse #4: “They told me I will not be the final choice for the position, so no need to thank them.” Wrong. You want to add your interviewers to your network and you may want to contact them again. In addition, what if that company has another position that opens up? Take the high road and always, always send a thank you note and stay in touch after that. In your thank you note, you may say, “If another position opens up within your organization, I am interested in being considered.”

Homework Assignment

#1: Write a template thank you note and follow-up note based on the above guidance and by collecting many samples available online. Save them in your well-organized file for this job search effort (see Chapter 5).

#2: Review your samples with at least one person and get their feedback.

#3: In your Cut the Crap (CTC) Job Tracker from Chapter 5, be sure you note every time you need to send a thank you note and place that reminder in your Outlook Calendar or other calendar technology.

Winning Interviews

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next couple weeks.

Once you get an interview, it's time to sell, sell, sell. Here are some thoughts on how to do that and separate yourself from the pack.

In Chapter 9, I coached you how to “pre-prepare” for every interview, even before you apply to your first job opportunity. Now, I want to help you WIN the job as a result of a job-specific interview. So we have fast-forwarded through time. You are prepared, you have been applying using brand new techniques, and you earned an interview. Congratulations! Regardless if the interview medium is phone, web video, or face to face, an interview requires an intense focus on how you sound, how you look, how you behave, non-verbal gestures, and so much more.

Learning how to interview reminds me of learning how to swing a golf club. There are so many things to learn and practice, ranging from my grip to the way I take the club back, pivot, swing, and follow through. Any slight error in one step can cause that little 1.7-inch-diameter white ball to go anywhere but straight. Interviewing is the same.

There are thousands of websites and guidance on “how to interview for a job.” Instead of repeating all of that here, my goal is to highlight how to be THE BEST in today’s new era of job search. The hiring and recruiting process has changed since the last time you interviewed, and my goal is to help you increase your odds of winning the job as a result of your great interview. A “good” interview is no longer good enough.

4 Principles of Job Interviews. Once you embrace these, you are on your way to success.

1. The Interviewer has an agenda. Know their agenda. During the interview process, there are three main questions that need to be answered to help the HR person, hiring manager, or interviewer determine if you’re the right fit for the job:

• Can this person do the job?
• Will he/she do the job?
• Will he/she fit in with the company culture?

2. The interview is all about THEM, the company, the hiring manager, the interviewer. News flash: It’s not about YOU sharing all you can about YOU. Everything you say and do must be relevant and meaningful to THEM. Be very careful.

3. The interview is your performance of a lifetime. You are being watched with every step you take, every move you make, including how you look. Think about it. From a company perspective, this is your BEST day. You have your best outfit on, you have been able to prepare with research, you can say amazing things about yourself and even brag a little. Once the company hires you, it’s potentially downhill from your best day. The point is that if you can’t be a great listener or communicator on this day, OR if you make huge errors such as bad-mouthing a prior boss, then you probably won’t win this job.

Don’t be fooled by venue, either. In this new era of job search, you may be meeting in a Starbucks café or on a web conference. Or the meeting might be called an “informational” or information-gathering meeting, which is an interview in disguise. Alternatively, the meeting might be with a friend of a friend who might have the job you are looking for. Safest bet: If there is a job in the midst, put that interview guard UP (avoiding mistakes) and keep it UP.

4. You can’t over-prepare for an interview. In my 30+ years of hiring, interviewing, and recruiting for other teams and coaching, I have NEVER heard a hiring manager say, “Wow, that candidate was too prepared for my interview,” or, “No way, she was too organized and had answers to every question I asked.” So I’m going to assume you have read Chapter 9 prior to reading on with this chapter. I won’t be repeating that guidance here.

Solution

Bring the Right Stuff: Save this as a checklist before every interview. I guarantee that the day you don’t check your checklist, you will forget something important.

• Portfolio or pad holder with plenty of paper and two pens
• Multiple copies of your résumé
• A copy of the job description with any notes on it that you want to ask about
• Multiple copies of your complete CTC Candidate Packet with your cover letter, CTC JD Profile, and résumé, all stapled together (Chapter 15)
• Multiple copies of your list of references (although this is rarely requested during an interview)
• Work samples (if relevant). This should never be proprietary information, so check with your prior employer.
• Breath mints (before you enter the building and in between interviews)
• Small bottle of water, protein bar, or snack
• Briefcase to hold all of the above. For ladies, it can be a larger purse. Avoid walking in with your arms full, unable to shake hands, or looking disorganized.

What not to bring to an interview:

• Cellphone
• Music player
• Gum
• Cigarettes
• Candy
• Soda or coffee
• Laptop or tablet, not even to take notes with, unless it is requested

Look and Sound the Part:

Interview Attire. Dressing formally and appropriately sends a signal to the interviewer that you cared enough to want to make a good first impression. Inversely, not being dressed appropriately will hurt you.

Job search is all about first impressions. You want your appearance to convey a confident, respectful, professional, and prepared job seeker. Remember, you are “on stage”... and this interview day is your BEST day. Obviously, you want the interviewer to concentrate on your skills, qualifications, and fit with their job description specifications.

However, if you look disheveled or too casual, you may be remembered for the wrong reasons. Interviewers know that what you wear is not your normal day-to-day attire, and it may not even be the everyday style of their office.

Be sure you understand the product or service of the company. Applying for a position with a law firm requires a different “attitude” in dressing than for an internet company or manufacturing facility. However, during my 30 years as a hiring manager and candidate, I have never heard an interviewer complain that “they came in dressed too nicely.”

The following are 13 mistakes that may derail your ability to make a professional first impression and may undermine your ability to WIN that job.

For Men:

Men’s Suits

• Mistake #1: Wearing a suit with bold colors, large prints, stripes, plaids, or funky patterns. Correction: Wear a jacket in a dark, solid color, such as navy or charcoal/gray.
• Mistake #2: Wearing a suit jacket with pants that don’t match. Correction: If you wear a two-piece suit, be sure it matches or wear a blazer and slacks—no jeans!
• Mistake #3: Wearing a suit made of an exotic fabric, such as suede, leather, or velvet. Correction: Wear a jacket of neutral fibers (depending on the season), like wool, a wool blend, cotton, or linen.
• Mistake #4: Wearing a garment that doesn’t fit. Correction: Anything too large or too small is a dead giveaway that it is not yours! Invest in ONE “interview” outfit; it’s worth it!

Men’s Socks and Footwear:

• Mistake #5: Wearing no socks, short socks, or socks with large prints, patterns, or bright colors. Correction: Wear socks mid-calf-length so no skin is visible when you sit down. Generally, your socks should match the bottom of your slacks.
• Mistake #6: Wearing dress boots, athletic shoes, deck shoes, crocs, sandals, or flip flops. Correction: Wear leather shoes with or without laces; dressy loafers are okay for a casual facility— shinier materials, such as patent leather, are too dressy.
• Mistake #7: Wearing a short-sleeve shirt, collarless shirt, ill-fitting shirt, rolled up sleeves, or wrinkled shirt. Correction: Wear a well-pressed, long-sleeve, button-down-the-front shirt with a collar. The shirt should fit your neck perfectly (if it is too tight, it will look strained, and if neckline is too large, your tie will drag the collar shirt down). Here’s the trick: Hang your shirt in or around a steamy shower for about 5 minutes to get the wrinkles out.
• Mistake #8: Wearing bold shirts in flashy colors or prints. Correction: Choose a solid or conservatively striped shirt.

Men’s Ties:

• Mistake #9: Wearing a flashy tie, a tie with religious, political, or sports symbols, or with cartoon characters. Correction: Wear a tie with neat repeating patterns or a traditionally striped tie. When in doubt, be on the conservative side.

Men’s Jewelry:

• Mistake #10: Wearing excessive amounts of jewelry or body jewelry (ear, eyebrow, nose rings, etc.). Correction: Limit yourself to a watch and one ring per hand.

For Women: While many of the mistakes and appropriate recommendations above apply to women as well, there are a couple of additional points for women:

• Suit: Wear a pant suit or a knee-length skirt suit.
• Hosiery: When wearing a skirt suit, wear neutral or flesh-tone stockings. In spite of the no-hosiery trend, this interview needs to be your BEST day, so err on the formal side.
• Shoes: Wear a low-heel shoe versus flats or four-or-more-inch high heels. No sandals, tennis shoes, or flip flops. Depending on the season, boots are okay too.
• Necklines: Too low a neckline can give the interviewer the wrong impression. Button up your blouses. Do not show any undergarment shoulder straps.
• Hemlines: Wear a suit that reaches the middle of the knee or 1-2 inches below the knee. When legs are crossed, the interviewer may be given the wrong impression.
• Perfumes: Do not wear any. Some interviewers may be allergic and you don’t want to leave an impression of your perfume in their office all day. Additionally, aromas are very subjective; the interviewer may just not like your scent...ever.

All Genders: Briefcase/Portfolio/Pen:

• Mistake #11: Not having anything with you to take notes with. Not having copies of your résumé. Correction: Bring in a portfolio or briefcase with a clean pad and pens (have backup!), multiple copies of your résumé, notes you have taken to prepare for the interview, including questions you will ask them, and a copy of the job description. Toss in a bottle of water and a nutritional bar in case you are waiting or are given a short break.

All Genders: Cellphone:

• Mistake #12: Talking or texting on your way into the interview area—or worse yet, taking a call during the interview. Your cellphone should be off once you are on the premises. Correction: Turn off your cellphone as soon as you step out of your vehicle or transportation. Trick: Put a big yellow sticky note on your portfolio to remember.

All Genders: Hats or Sunglasses:

• Mistake #13: Wearing a hat or sunglasses in the building for your meeting. Correction: Do not wear a hat and remove sunglasses immediately upon entering the building. (No sunglasses up on top of your head—remove them completely.)

These recommendations are for the traditional, conservative industries. If you are pursuing a position in the creative or artistic field, you may need to adjust these recommendations. However, always err on the conservative side of the industry unless you feel you simply could not be happy working in a somewhat conservative environment.

Remember, this is your BEST day and you want to be remembered for your “total package,” including the presentation of your skills and capabilities. Yes, dressing for success is important. As Shakespeare said, “All the world is a stage and we are merely players.” The interview is your “stage.”

• Be clean, odor-free. If you come to an interview smelling of cigarette smoke or bad breath, you will already have one strike against you. Too much perfume or not enough deodorant are common mistakes.
• Grooming is important, as well, so invest in a haircut and manicure (men and women!). Shine those shoes while you’re at it.
• Handshake. Your handshake should be firm—not sticky or wimpy. To avoid sweaty palms, visit the restroom, wash your hands, and then run them under cool water prior to the interview. Dry your hands well, as nobody wants to shake a wet hand, even if it’s water. Keep your palms open rather than clenched in a fist and keep a tissue you in your pocket to (surreptitiously) wipe them.
• Sound professional: Be polite and keep an even tone to your speech. Don’t be too loud or too quiet. Remember your manners and thank the interviewer for taking the time to meet with you. Don’t use slang. Speak clearly and confidently. Be humble as well.

Non-Verbal Success: The evaluation of your non-verbal communication will start as soon as you walk into the company’s lobby and continue until the interview is finished. If your non-verbal communication skills aren’t up to par, it won’t matter how well you answer the questions.

• Be happy: Hiring managers want to hire happy people. Only say positive things, even if you have a less-thanpositive experience in the past. Keep your emotions to yourself and do not show anger or frown. Smile!
• Be present: Sit up, give a solid handshake, and make eye contact. Leaning back in your seat with your legs crossed at the knee sends a message you are too relaxed for an interview setting.
• Be energetic: Lean forward a little towards the interviewer so you appear interested and engaged. However, keep your feet on the floor and your lower back against the back of the chair so you don’t look like you are lunging forward.
• Listen Attentively. When you sit down, put your portfolio on their desk to take notes, yet don’t take up too much of their space. Open up to a blank page with a pen ready. Don’t interrupt. Ever. Let them finish their full thought then pause another few seconds. Don’t jump on their last word with your message.
• Be calm: Yeah, right. You’re as nervous as a cat in a room filled with rocking chairs and you need to relax? Try. Breathe. Smile. Not sure what to do with your hands? Hold a pen and your notepad or rest an arm on the chair or on your lap so you look comfortable. Don’t let your arms fly around the room when you’re making a point. Light hand gestures are good.

Know the Job:

• Most candidates do not study the job description. The hiring manager took time to describe, as best as possible, what the job description (JD) is. While it will never answer all questions you have and some JDs are better written than others, it is the best tool you have to be successful in an interview. Peel it apart, line by line, and research what the terms mean if you don’t know.
• Develop a Job Description Profile for each opportunity. Compare your skills and background to the job description. See Chapter 15 for the template on how to do this well, called the “Cut the Crap (CTC) JD Profile.”

Know Yourself:

• Beyond standard strengths and weaknesses, are you well-versed and have written notes about YOU? Do you know the day-to-day duties where you are very skilled and skills you need to develop?
• Do you know why you want this particular position? What are you interested in this particular industry? Why are you interested in this company?
• What have other managers or peers said about your work style, leadership style, or management style in the past? Have you reviewed prior reviews or feedback tools? Have you taken any work style assessments such as the Myers-Briggs Type Indicator?

Ask for the Job at the End: Managers want to hire people who really want the position. Most candidates don’t say that. Say it in writing and at the interview. “Joanne, I want to share how passionate I am for this position and there are three main reasons: It’s fast-paced, I have experience with these partners in the past, and I can learn so much from you and others.”

Another good close is, “What is the next step?” or, “When do you plan to make a decision?”

Finally, ask them for their email address so you can follow up with a thank you note.

Tricks

1 See the tricks in Chapter 9. (The previous FMF post on Interview Preparation -- In Advance)

2 Day before the interview: Prepare for the interview logistics. Lay out your clothing, set your alarm clock, be sure you know where you are going, check your car for gas, make copies of documents, organize your portfolio and briefcase or purse, etc.

3 Day before the interview: Prepare for the interview questions. Even if you have been to interviews in the past month, re-read your 3 bullet points per interview question. Review the questions you will be asking them as well.

4 Night before the interview: Go back to the company’s website and read their latest announcements, press releases, speeches, and people changes.

5 “The Law of 3s:” For every question, both during your preparation AND during your interview, state no more than 3 things then stop talking. A full stop, not just a pause for breath. If the interviewer wants more, she will ask. If the silence becomes too awkward, you can ask, “Would you like more information?”

6 You will have a pen and paper open on the table during a face-to-face interview. In the far right or left margin, you can have some short clues to some key interview questions and answers that you are nervous about remembering.

7 When a question is asked, feel free to write some words about the question down so you can peek at it and stay on track.

8 Pause after the question is asked and think. Feel free to scribble 3 words down that will be your 3 points.

9 Smile and breathe. Feel free to take a sip of water.

10 Humility is treasured. Find an opportunity to say, “I have not developed that skill, but I’m very eager to learn,” or, “It’s a new skill for me, so I consider myself a novice and I’m excited to get to the advanced level.” Another great way to show humility is to ask them a question back, either instead of answering or right after you answer. Let’s say they ask you if know the NMFP Organization. “No, I have not learned that industry term or I don’t know that organization. Can you tell me about it?”

11 Phone interviews: Wear a nice top in case the interviewer wants to do a video interview using Skype or some other technology.

Resume Tips and Tricks

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next couple weeks.

Lots of good tips and thoughts in this installment. I don't agree with all of it (like the over-emphasis on the cover letter), but generally think this is good advice.

Never ever, ever, ever, ever apply with just a résumé, unless you have to. A standalone résumé doesn’t help the hiring manager and doesn’t help you. It is an important backup document and a basic requirement for job applications. You must have an excellent one with accurate information, too. But a résumé alone is not going to get you a job. It used to. Now, with hundreds of applicants per position, screening being outsourced or automated, and email overload, you need to change your game for today’s new era.

This chapter will summarize what an excellent résumé needs to have, and the next chapter will share a BRAND NEW WAY of applying to jobs.

First, there are three main scenarios where a résumé is used for job search.

1 Networking with résumés: Jonathan received an email from Matthew, a friend. Matthew said, “I’m attaching the résumé of a wonderfully talented woman who just moved to Seattle and is looking for work. I thought you might have thoughts.” Jonathan wrote back, “I’m sorry, Matthew. I would like to help but I cannot with just a résumé. It doesn’t tell me what she wants to do, what types of companies she wants to work for, what research she has done, etc. A cover letter explaining all of that is needed to engage, thank you.” Jonathan was spot on with this response. Job seekers, it is your job to “help me help you.” If you want friends, family, your network, LinkedIn connections, or career counselors to help you, then give them what they need. A résumé simply lists facts of what you have done and what you have accomplished in the past. The reader is not responsible for translating that into your next ideal job definition or where you would be a good fit. Even if you are sending your résumé to Uncle Bob and asking him to forward to an executive in his company, you should give Uncle Bob a cover letter, explaining what you are looking for, when you are available to start, why you are an accomplished worker, and how they can contact you.

To be perfectly clear: Do NOT send résumés to people asking “Where would I fit within <Microsoft> or <GE>?” Stop. You are abdicating your responsibility for your career to them! Even if you are not actively job searching and just doing research, you need to assess your next career move. If you just don’t know, go back to Chapter 3 and set a goal.

Social media sites, such as LinkedIn, are an electronic form of networking. Therefore, your LinkedIn Background Summary in your profile is the section that behaves like a cover letter. Naturally, for those of you job searching while employed, this is tricky, but there are many online articles about how to job search secretly while employed.

2 Applying to specific jobs with résumés: Some companies and websites require you to only retype the facts from your résumé. They replicate the fields or draw keywords from your submittal. Other websites state very clearly that you may only attach one document. Option A: If they say that one document must only be a résumé, then you need to do that. Option B: If they do not specify, but only allow one FILE, then see the next chapter about a NEW application called the “Cut the Crap (CTC) Candidate Packet.” That should be your one file.

3 Posting on job boards: In this scenario, the only recourse you have is to post your résumé. For this reason, the résumé needs to be excellent. Let’s get right into the definition of “résumé excellence.”

Solution: An Excellent Résumé

Excellence can be defined by 3 major principles:

1. Search-ability: Key word search is optimized so you are found

2. Easy to read: Well-formatted for both online and print

3. Quantitative: Numeric proof of your brilliance

1 Résumé Excellence #1—Search-ability: You, the applicant, could be the best person for the job, but if your résumé is not found in a search, the probability that you will even considered is quite low. A searchable résumé is key so you can be found in various technology engines such as:

a. Job board résumé databases

b. Employer applicant tracking systems

c. Employer email systems

d. Social media (LinkedIn, Facebook, Twitter, etc.)

e. Web search engines

What are “keywords?” They are the words used for searching and finding appropriate candidates. In today’s new job search era, recruiters, screeners, employers, and others are fluent in the symbols and tricks for searching for candidates using keyword searches.

For example, if an employer is filling a Marketing Communications position, the keywords are the words associated with the requirements of the job:

• Skills (communications, writing, advertising, presentation, collaboration, teamwork, project management, etc.)
• Tools (Microsoft Office—Word, Excel, PowerPoint, Publisher)
• Education (MBA, BA, BS, AA, AS, high school, etc.)
• Location (State, city, even if willing to relocate)

Where should your keywords be? Everywhere.

• Filename of your résumé or profile (for those that are emailed)
• Title of your résumé or profile (for those in systems that use entry titles, like LinkedIn and craigslist)
• Body of your résumé or profile
• Body of your LinkedIn profile
• Twitter bio
• Facebook page

How can I make my keywords more powerful?

A. Customize the keywords on your résumé if you have more than one kind of job goal: Your keywords can be customized for the position being sought. If you are looking for more than one kind of job (more than one target job title), the résumé used for each job should be directly related to the keywords appropriate for that job.

B. Add more nouns: Nouns? But we were all taught to use “power verbs,” such as “developed, collaborated, designed, and led.” But the “what” that you performed, the action, is just as important. In the following examples, the bold nouns are the keywords that relate to the action indicated by the verbs:

• Led global cross-functional teams for plan review and sign-off.
• Designed and executed online marketing campaigns and events.
• Managed advertising agencies, $1M+ budgets, and cost analysis.
• Functioned in lead project management role.
• Oversaw editorial calendar, content distribution, and competitive analysis

There are many good articles about keywords for résumés online, so please spend more time in mastering this critical NEW job search criteria. The simplest way to learn what the best keywords are for your job target is to read job descriptions! Example: Seeking experienced Accounts Receivables Manager to oversee accounts, manage billing and collections, train accounting and clerical staff, develop status reports for management, and prepare monthly balance sheets. BA degree or AA degree with minimum of 2 years’ experience required. Your résumé should have these keywords.

2 Résumé Excellence #2—Easy to Read:

The content of your résumé is by far the most important factor. But design is important, too, for a couple of reasons:

• Your résumé must be easy to read, and good design makes that possible. Design calls attention to key sections of your résumé, such as work experience and education.
• A well-designed résumé reflects positively on your skills. Sloppy or careless design may give a negative impression, even if you’re well-qualified.

There are several techniques you can use to create a highly readable and attractive résumé. The table below lists some of the most important.

• White space - Lots of white space makes text easier to read. Text that’s too dense may discourage time-pressed readers from reading further.
• Bullets - Bulleted text allows you to break down complex information into readable chunks and also highlight key points.
• Easy-to-scan headings - Your reader should be able to quickly locate key areas on your résumé, such as education, without extensive searching.
• Limited number of fonts - Use no more than two fonts styles—one for headings and the other for body text. More than that is distracting.
• Selective use of bold - Use bold carefully and consistently. For example, if you bold the name of one company you’ve worked for, do it in all cases.
• No underlining (except links) - Reserve underlined text for web links. If you need to emphasize something, use bold.
• Consistent spacing - Use the same amount of space before and after headings, between bullets, etc. This gives your résumé a uniform look.

There are thousands of great examples on the web. Add this to your job search schedule as an area to spend time on. For those of you really stuck, invest in a résumé writing service.

Creating a plain-text résumé

Although most companies will be able to handle your résumé in Word or PDF format, you may need to have a plain-text résumé that’s been stripped of formatting. To create one, follow these steps:

• Copy your résumé into a plain text editor like Notepad, which should be available as an accessory on your computer. Most of the formatting should be gone.
• Change any remaining bullets to asterisks, and space once after the asterisk.
• For your main section headings, such as Work Experience, change to all caps so the headings stand out.
• Add spacing between sections as necessary for readability.

3 Résumé Excellence #3—Quantitative

Hiring managers, recruiters, and HR managers are so tired of “world-class marketing person” or “exceeded targets in…” or “best in class performance.” You need to prove your results right in your résumé. Job candidates tell me they will wait until the interview to share them or say, “My successes cannot be quantified.” Cut the Crap, Get a Job!

Not many job types, such as sales, can claim “exceeded budget by 12% or $3 million dollars” or “ran a team with a quota of $800,000.” However, there are a number of other qualitative results that you can display proudly on your résumé.

You could have been 1 selected out of 500 to represent your team at a meeting. You delivered a major project on time and under budget by X%. You won some awards or have been promoted in a certain amount of months, X, well above the company average of Y. Do this: Think about your soft skills (the ability to meet deadlines, work in a team or independently, communicate complex ideas, placate customers). Relate an occasion where those skills made a difference to your company. Many of you have been assigned to a critical project, included in client or executive meetings, recommended for special training, or asked to make a presentation.

Here is a final example to help you out:

Before: Maintained accounts receivables and accounts payables.

After: Managed over 2,500 accounts receivables and accounts payables, working directly with the Chief Financial Officer.

In summary, when you rewrite your résumé to compete in today’s era of job search, look for opportunities to quantify, without sharing confidential information, of course. Think of power verbs, (like reduced, saved, made, grew, etc.) and combine them with metrics, such as time (number of months, days, or years, dollars, growth percentages, comparison to market averages, comparisons to company or peer averages.)

Tricks

1 If you are a Jimmy, don’t put James on your résumé or cover letter. When recruiters, screeners, or hiring managers want to call you, they want to address you and get to know you by the name you want to be called. This saves embarrassment later, too. Same goes for your business card, email signature, and everything. The old days of “James” being used when, in fact, you want to be called “Jimmy” are over.

2 You can have a few versions of résumés, based on 1) more than one job goal (e.g. marketing versus sales) or 2) multiple cities you are targeting. However, do not alter your résumé per job. A hiring manager can spot when you are simply plugging in their company name or their job title in your objective at the top.

3 In the date column, put the month and the year so the reader can tell how long you have been with a company. Example: 2011-2012 can be as little as 2 months (December to January) or as long as 24 months.

Mistakes

Mistake #1: The Acronym Abyss. Follow the main rule of acronyms: For the first use, always write it out, then put the acronym in parenthesis following. If you are communicating that you were an SE for five years, then you need to write out “Systems Engineer (SE)” for the reader. Best is to avoid industry-specific or company-specific acronyms.

Mistake #2: Use of the present tense in all jobs on the résumé.

Mistake #3: Writing the résumé or cover letter in the third person.

Mistake #4: Grammar and spelling mistakes—red and green squiggles throughout.

Mistake #5: Use of tiny, tiny fonts (10 pt. or less) so as to cram as much information into the résumé as possible.

Mistake #6: Photos on résumés.

Mistake #7: Using a résumé that is password protected (without sending the password).

Mistake #8: Using a table format and keeping all of the lines for rows and columns.

Mistake #9: Having no contact information on the résumé or including a phone number that is no longer valid.

Mistake #10: Education written so vaguely that it is unclear if you secured a degree.

Mistake #11: Going back too far in your experience. I recommend 15 years maximum, then a high level summary of the prior work.

Mistake #12: Submitting the wrong format. If the employer or recruiter has stipulated that your résumé or form has to be submitted in a certain format, make sure that you adhere to that. Don’t send it as a PDF if they have specifically requested a Microsoft Word document.

Mistake #13: File name of your résumé is “Résumé”. Or “432987.pdf.” Correct that to “JohnSmith_Position 14254_Boeing” or “JohnSmithRésumé.”

Email Etiquette

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next few weeks.

Email is probably one of the most abused forms of communications in the workplace today. For that reason, we all need to be VERY careful when we use email as part of a job search effort. This chapter gives some good practices we should consider and apply.

Email is unequivocally the number one technology you must be brilliant at throughout your job search process. It is the main vehicle by which you will network, apply, follow up, send thanks, and negotiate your offer. What does that mean for you? It can only mean one of two things: You are already fluent with formal email communication techniques and this is good news OR you need to learn new skills in order to land the job of your dreams. Most candidates are in category number two, and their job-search related emails today are hurting their odds of winning a job.

Because younger candidates are accustomed to online and cellphone messaging, their abbreviated language is natural and they are unaware it is perceived as disrespectful.

Solution

First, put yourself in the shoes of the email recipient. This should be easy because you have received emails that range from excellent to those you can’t wait to delete. For job search scenarios, your recipients are extremely busy, paging through hundreds of emails per day, and have multiple priorities aside from hiring this one position. Even worse, they feel huge pressure to hire the best candidate, as the cost of a bad hire is very high. So they have little to no tolerance for poorly written emails.

Second, pretend you are standing in front of them or in front of a hiring committee reading your email. Additionally, visualize that each of them has your email in front of them in printed version. So you should aspire to come across clear, confident, knowledgeable, and capable of filling their position.

Finally, your emails are a reflection of how your emails will be IF you are hired for that job. Therefore, if you have typos, are too casual, or have grammatical errors, their only assumption is that your work-related emails will have the same characteristics. Naturally, this works in your advantage if your emails are perfect. Candidates, they need to be perfect. Every time.

Requirements for job search related emails (any email, not just cover letters!):

Write to a Specific Person. When emailing companies or a recruiter or networker for a job, you should send your email to a specific person rather than the “info” or “HR” address. You’ll get a lot more responses this way. If you have a person’s name but not their email address, direct the “info@” email to your person in the subject and salutation (Dear Mr. Smith) with the hopes that the company recipient will forward it to him. Job seekers may be able to locate the right person online. Search Bing or LinkedIn. Even an attempt is better than the lousy “Dear Sir” or “Dear Madam.”

Make the Subject Line Work for You. The best subject lines are “Applicant for Job #######, Sarah Jones” or “Sarah Jones Credentials for Job Posting #####” or “Marketing Manager at GE, <Position Code> - Sarah Jones.”

Blank subject lines or generic ones like “Job Applicant” can go into spam or be the victim of the dreaded delete button. Real examples of poor ones I have received are “interested in your job” and “Hire Me!”

Salutations must be Formal. The salutation should be Dear Ms./Mr. Johnson. If you don’t have a name, then use “Dear Hiring Manager.”

Formal Business Letter Structure: If you are a novice at writing business letters, then go to Microsoft.com and type “business letter template.” There is a structured format. Your email body should essentially be a cover letter explaining who you are and why you would be good for the position. It is okay to have the cover letter in the body of the email as well as attached.

Complete Email Signature is Very Important: The signature block in your email can be automatically set in your Outlook options under “Mail.” Most candidates just sign “Bill” or “Bill Smith.” But, job seekers, the outcome you want with your email is for the reader to forward it to other people within their company, right? So put your email address in the signature, since it will be lost once your email is forwarded. Add your phone, your address, and your LinkedIn profile link, if you have one.

Send from a PC: Mobile devices will be used more and more in the job search process over the next 5 years. However, today, do NOT send a job search communication of any type via your mobile phone. It gives the perception that you are conducting your job search from a car, walking down the street, or in between something else more important. Hiring managers don’t want to see “Sent from my Windows Phone,” “sent from my iPhone,” etc. Most importantly, your signature bar is usually missing.

Tricks

1. “The Law of 3s:” Like phone etiquette, try to say no more than 3 things in an email, then close the email with your next step commitment. This will not only prevent you from rambling, but it will be helpful for the recipient to digest your main points.

2. Send your email to yourself first: There is no better way to wear the shoes of your recipient than to send the draft to you first. Open it, read it out loud to catch mistakes, and print it to see how it looks as a printed document. I guarantee you will find things to edit.

3. Count the number of times you use “I” versus “You.” Remember, this job search is not about you. This communication, regardless if it is an application, a network, or a follow-up, is all about them and how you believe you can be the best candidate and employee for them.

4. Write in Microsoft Word then copy to email: Write your business letter in Microsoft Word then copy and paste that letter into your email body. This accomplishes two things: one, you have a saved copy of your letter in your documents folder and, two, it will look nicer.

5. Proofread, proofread, and proofread again: Check for proper spelling, grammar, punctuation, capitalization, and typing errors. All recruiters and hiring managers continue to be amazed at the amount of typos, missing commas, and run-on sentences. How should you proofread?

• Read the email to yourself out loud.
• Send it to a friend or family member.
• Read it backwards.
• Correct all red, blue, and green squiggles that Microsoft generates for you.

6. When following up, attach the old message(s): So often, when I receive a follow-up to a job inquiry, I get a fresh email from the candidate. “Ms. Manciagli, I sent you my résumé two weeks ago and I am writing to follow up.” Always make it easy for the recipient to engage! Send your follow-up as a forward of the prior email. AND reattach any attachments, such as your cover letter and résumé.

7. Bullet points are king: Very few people like to pour through long, wordy emails. In the main body of your email, use bullet points to send your key points. The opening and closing sentences should be full sentences, but the core can be bullet points.

Mistakes

Mistake #1: Using spam blockers. Spam blockers are special systems (usually a program or a filter) that prevent spam from entering your email inbox. It typically requires people to fill out a form and ask for your permission before your email will go through. Disable it now! If recruiters, networkers, or employers want to reach you, do not make them work to get to you. Put up with a little spam during your job search, then you can enable a spam blocker once you are employed.

Mistake #2: Happy faces. Never, ever, ever, ever put a happy face or other symbol in a job search email.

Mistake #3: Stop all cute, trite, informal, colloquial, or otherwise “silly” phrases. No more, “Hiya, let’s chitchat, awesome, cool, thnx, take care, let’s grab coffee, pick your brain,” etc. Write as if you were talking to a senior executive sitting across from you in a business suit. Avoid exclamation points as well.

Mistake #4: Email address of “[email protected]” or “[email protected].” You can create a new, free email account for your job search on Live.com or elsewhere, and I recommend using your first and last name or something professional.

Mistake #5: Fonts are all over the place. From the opening through the signature block, assure the font style and size is all the same. It is okay to bold or underline a few keywords, but clean the document up!

Mistake #6: Assuming that some communications don’t need to be so formal since they are “only going to the HR person” or “this is just a follow-up to a recruiter’s screener so it doesn’t need to be so fancy.” Everything you write and will write can be used against you.

Mistake #7: Contractions. “I’m” should be “I am,” and “you’re” should be “you are.” You got the point.

Mistake #8: Acronym Abyss. Follow the main rule of acronyms: For the first use, always write out the words then put the acronym in parenthesis following. If you are communicating that you were an SE for 5 years, then you need to write out “Systems Engineer (SE)” for the reader. Best is to avoid industry-specific or company-specific acronyms.

Mistake #9: Forgetting the attachments. The new Microsoft Office 2013 and Office 365 have a new feature in Outlook, at “attachment reminder” with a prompt that says, “You may have forgotten to attach a file.” It has saved me numerous times. Just slow down; review your email prior to pushing “send.”

Phone Etiquette

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next few weeks.

I like this chapter because there's relatively little advice out there about phone interviews. I thought this could serve as a reference for all those wondering how to make the most of the phone-related portions of a job search.

Phone calls are increasingly used by hiring companies as vehicles to recruit, screen, and interview. As the cost of travel increases, the pressure for companies to be more efficient and effective during their hiring process also increases. What does that mean for you? You need to be prepared to be as amazing on the phone as you are in a face-to-face meeting.

Phone etiquette: Once you are an employee of a company and attending conference calls or web conferences, you will periodically hear babies crying and dogs barking in the background of somebody’s home phone. Or a remote attendee forgets to mute and they scream at their children while the entire call is laughing. That’s okay once you are hired. We all make phone mistakes.

However, that’s not you right now. You are selling yourself as the BEST product for the hiring company to buy, regardless if the individual on the other end is a recruiter, HR person, assistant, or the hiring manager.

Solution

First, put yourself in the shoes of the caller. They are extremely busy, probably calling multiple candidates in the span of a couple of hours, days, or weeks, and they are responsible for concluding that call with an assessment about you. They probably have some specific questions in front of them, are taking notes, and are only thinking about one thing: Is this the best candidate for the position we are discussing?

Second, pretend you are in front of them and this needs to be your best moment. There are a number of key characteristics in common between phone interviews and face-to-face interviews:

• You want to understand them clearly and you want to be heard clearly.
• You want to answer their questions concisely.
• You want to be prepared in advance of the call.
• There is a limited timeframe to cover a lot of information.

There are some real advantages of a phone meeting AND some real disadvantages:

Advantages of Phone Meetings:

1. You get to cheat! YES, you can and should have multiple sheets of paper in front of you (don’t try to navigate on a PC while talking). Minimally, have:

• your résumé
• the job description (with any notes or questions you have)
• page prints of some key webpages for the company (About, Divisions, People, Values)
• top Interview questions and your 3 bullet-point answers per question
• top questions you want to ask them
• Paper and pen to write down the questions they are asking and to take notes of their comments, insights, and answers. You will need these for the thank you note you will write immediately following!

Spread all of the above out and mark each one clearly so you can find it in the moment.

2. As a result of “cheating,” you should be able to have great answers and express your interest in the position.

Disadvantages of Phone Meetings:

1. You will have a tendency to ramble. No, you will ramble. You are nervous, you want to sell them on so many points, and you have no clues on how you are doing. See the first TRICK below.

2. It’s harder to understand the question. There are a variety of reasons this can occur: English as a second language for one or both of you, the interviewer talks quickly, OR the question was just unclear. See the second TRICK below.

3. You can’t read their non-verbal body language. You don’t know if they are smiling or rolling their eyes. They can’t see your hand motions or eye contact. See the third TRICK below.

4. Time will run out and you may not have said all you wanted to share. See the fourth TRICK below.

Tricks

1 “The Law of 3s:” Say no more than 3 things and stop talking. Repeat: Say no more than 3 things and SHUT UP. This will not only prevent you from rambling, but it gives time for the interviewer to write and think. Learn how to pause. Take a breath. If the interviewer wants more, he or she will ask. If you are concerned it was too brief (if you just said 3 words), then you can ask, “Would you like me to elaborate on any of the points?”

2 Ask for Clarification: If you did not understand the question, then ask them to repeat it. This is not a sign of weakness and it’s important that you answer the right question. Just try not to do this on every question. Two ways to ask: “Can you repeat the question please?” or “Can you expand on the question so I am clear on what you are looking for?”

3 Stand Up and Smile! : Even if you can’t see them and they can’t see you (unless it is a web conference), stand up when on the phone. Your voice will project better and you will sound more confident. If you have a headset, use your hands, too. Nobody is seeing you, but if it helps you to be in a presentation mode, then do it. I do! Did you know that smiles come through the phone? Yes, when you make a statement like, “Ms. Miller, I believe I am the best candidate for your position because I’m _____, ____ and ____,” there is a different tonal inflection if you have a smile versus without. They will hear a more up-beat, positive candidate if you are smiling.

4 Have the Last Word: Time will run out. Toward the end, most interviewers may ask if you have any questions. Naturally, you will have some excellent questions pre-prepared based
on your research. However, that should not be the end. If the interviewer then says, “Well, Mr. Jones, thank you very much for your time and we will be in touch,” then you want to interject. “Ms. Miller, thank you very much for your time. I would like to reinforce that I am passionate about this position and believe I have the skills to be successful in this role. Do you believe I will go to the next step in the hiring process?”

1. You have shared your high interest in this role. Remember, hiring managers want to hire candidates who really want their position.

2. You have “gone for the close,” a sales term that means you asked for their business. In this case, you asked if you could continue this hiring process.

5 Block Prep and Travel Time: Block 30 minutes before the phone interview and 30 minutes after the phone interview in your calendar. A common excuse I hear for being 5 minutes late for a phone interview is, “Sorry, I was on another call.” Well, then you should not have accepted one of the times since they were back to back.

6 Script Your Outbound Calls: The nice part about the phone is that they can’t see you reading from your “script.” So write your script. Regardless of whether the person picks up the phone or if you get their voicemail, you will be clear, concise, and action-oriented. Now, write out the email that will follow this phone call so that the minute you hang up from the phone, you can push “send” or make minor changes based on the results of the phone conversation.

7 Leave Great Voicemails: It will be rare that you get the person on the phone, so look at voicemail as a great opportunity. Some rules:

• Introduction: Make one. Don’t assume they recognize your voice. “Hello, this is Jane Miller…”
• Clarity: Pick up your handset, avoid ear buds, and don’t be driving in a car or calling from airports or noisy areas.
• Pace: Speak slowly and articulate more than you would in normal conversation.
• Engaging First Sentences: “Hello, this is Jane Miller. Doug, you and I met at an industry event six months ago and I’m calling to ask for your help. I’d like to apply for the marketing manager position at your company and am requesting your help in navigating my way to the hiring manager.”
• Brevity: This voicemail is not replacing an email you will follow up with. It is an introduction to an email you will send. Do not assume the listener is writing anything down, either. They could be listening while in their car or at the airport.
• Call to Action and Close: Close every voicemail with the next step that YOU’RE going to take. I have received so many calls that end with, “Dana, please call me back at xxx-xxx-xxxx so we can discuss.” Or, worse: “Let’s discuss.” I call those “plops.” You just plopped the follow-through on the middle of the virtual table, and nothing will happen as a result. Here are some recommendations:

• Doug, I will send you a follow-up email today with this request and my credentials attached. It will be in a format ready for you to forward to the hiring manager.
• Doug, if you would like to reach me by phone, my number is <slowly> XXX-XXX-XXXX. Again, it’s Jane Miller at XXX-XXX-XXXX.
• Thank you very much, in advance, Doug.

If an Administrative Assistant answers, ask them to put you into their boss’s voicemail instead of having them take a message.

8 Have Professional Phone Behavior: Change your voicemail message to say “Hello, this is James Smith and I’m sorry I missed your call. Please leave a message and phone number and I will respond as soon as possible.” Check your voicemails often and play them in their entirety prior to calling the person back.

When answering your phone “live,” unless you are sure you know the call is not a job search-related call, always answer, “Hello, this is James.” They will appreciate your professionalism.

9 Be Ready for Video: Have interview-appropriate attire on above the waist. See Chapter 17 on interview attire. Even though the phone call arranger says “phone meeting,” more and more of them are becoming video phone calls. If they use Skype, that is an indicator that it will be video. However, even if you are sent a link to a conference call, that, too, may end up on video. Better to be over-prepared and ready to be seen.

Mistakes

Mistake #1: Being late. Yes, it happens all the time, even for a phone interview. “Sorry, there was traffic, my last call went long,” or some other excuse.

Mistake #2: Missing the call entirely because of time-zone confusion. It is your job to clarify the time zone in advance. Figure that out.

Mistake #3: Your phone goes dead, headset dies, PC battery dies on a web conference, etc.

Mistake #4: Dogs barking, babies crying, airport announcements, TV on in the background, etc.

Network for Jobs

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next several weeks.

I've written a lot about networking and have even detailed my personal networking plan. As they say, the time to develop a network is BEFORE you need it, so let this piece serve as a reminder of the importance of networking.

Elizabeth worked with Brad over 10 years ago and they have not kept in contact. Until last week. Brad is recently unemployed and contacted Elizabeth via Facebook with the following message:

Hey, Elizabeth, how are ya? I was just let go from my company and would like to pick your brain about job opportunities out there. Let’s do coffee. What time works for you? Regards, Brad

Pamela and Sharon, both job seekers, went to an evening networking event hosted by the local Chamber of Commerce. The event started at 6:00 p.m., but they got there at about 7:00 p.m. Together, they got a drink, found an empty table to stand at, and talked about “life.” Sharon met one interesting person in the drink line and Pamela bumped into an ex-peer from a prior company as she was getting her coat to leave. On the way home, they both agreed it was a terrible waste of their time and they would have much more luck applying to jobs online at home.

Charles is 52 years old, new to Chicago, and doesn’t know anybody. But he loves the city and is seeking a role as an architect. He’s spending all day either on his computer or calling the largest architecture firms in Chicago, trying to reach a senior person who will talk to him. After six months, he is frustrated and insecure about his ability to get a job. His money is running out.

Ryan, fresh out of MBA School, is blasting his LinkedIn contacts with: “I am looking for a job. It will be great if you can advise me on my job research. Regards, Ryan.”

All of the above have one thing in common. They have not learned how to network for career success. They don’t appreciate the need for preparation, professionalism, and a process. I have been told I am maniacal in my networking process, but I am also labeled the “queen of networking.” So here is the Cut the Crap solution for networking for a job:

Solution

#1: Have a Networking Plan

Your mission: to identify people who can help you learn, help point you to resources, or introduce you to someone else. As a result of your work in Chapter 3, Setting a Goal, you now have a clear bulls eye for your job search. This plan will focus your networking efforts on the right people or events based on your goal.

Steps for building a great Networking Plan:

A. List People You Know. Look at your Outlook Contacts, your stacks of business cards, recent email communications, and put them in the following categories:

• Current and Past Peers
• Current and Past Managers or Mentors
• Peers or Friends in Other Organizations
• Contacts from Industry Organizations
• Customers, Partners, and Competitors

B. Now, you want to list New People to Contact. These people should help fill in the gaps of your prior list or those with complementary competencies and experiences. If you don’t
know their specific name, put the title or position type (venture capitalist, industry spokesperson, etc.). Take your Cut the Crap (CTC) Search Profile work from Chapter 3 and be sure to add a blank row for people inside the companies you want to work for. You need to meet people who work in the organization you’re interested in. Meeting them does not mean that they will hand you jobs. Hopefully, they will give you some insight and advice and possibly offer to meet with you.

C. Finally, and since networking is a two-way connection, list what you can offer in return. How can you show appreciation—make introductions to others, give recommendations or feedback, volunteer help, etc.?

D. How to find and connect with your new network

1. Face-to-Face Networking:

People need to get to know you, trust you, like you, and believe that you do what you say you are going to do. It is not always easy, comfortable, or interesting to meet total strangers. You will make some mistakes and feel awkward or silly at times. Dive in. We all do. With practice, you may even get to enjoy it!

• Industry, charity, service associations, and events. Seek out industry events that tie to your career goals and participate in the following:

• Special Interest Groups, or SIGs—committees to accomplish the association’s objectives on a variety of levels
• Annual or quarterly industry awards
• Live monthly or quarterly events
• Dinner meetings and presentations
• Online Community Forums—virtual communities focused on specific topics where members can post and respond to questions, share insights, and communicate and collaborate with other members beyond face-to-face events.

• Volunteer. Local organizations have great community leaders involved on their boards, and there is no better way to meet them and spend time giving back to your community. If you are unemployed and have time to give back, then you can also meet influential mentors simultaneously.
• Create your own mentor group. Bring people together once a month with the goal of helping one another.
• Job search, employment, and job Fairs. Look in your newspaper or online for the local events hosted in your area.
• Business Journals. You can find multiple opportunities by searching in your city’s Business Journal (abcj.com for the Journal in or near your city), local newspaper, or online.

2 Online Networking—Social Media Networking

This form of networking with total strangers is more difficult, takes longer, and the type of advice you receive will be different. But definitely add it to your networking plan. It’s harder for someone to get to know you and there is a lot of “noise” from other job seekers. Use social media strategically and professionally. Just because you are networking online
does not give you permission to use slang, text-speak, have typos, poor grammar, or just a plain old poorly written communication.

Some of my preferred methods are:

• Join Discussions within Groups on LinkedIn that are relevant to your Job Search Goals. There are many groups for job seekers, in general, down to industry-specific job seekers, and so much more. You can join groups of the companies you are targeting. LinkedIn Groups are a great place to do research too, but some top contributors and thought leaders will also stand out. You can contribute to discussions or ask a thoughtful question and get help. If some professionals appear eager to help, it is appropriate to ask if you can have a 15 minute phone conversation with them.
• Assure your LinkedIn profile is at 100%. There are many articles and tutorials about how to maximize LinkedIn, overall, and there are many ways to job search even if you are still with a company. If you are unemployed, make it very clear on your profile that you are searching for your next career move AND “here is what I am searching for.”
• TweetChat helps put your blinders onto the Twitter-sphere while you monitor and chat about one topic. By using hash tags, you can identify specific topics and TweetChat will connect you with people talking about similar things.
• Some of your Facebook contacts are probably good advisors for your job search. Send them a personal note, giving them as much information as possible so they can help you.

#2: Ask for help with a purpose

Get over the guilt, the shyness, and the embarrassment of asking for help in your job search. Change the way you ask for help as well. Once you have a clear purpose, you will use your wellrehearsed “pitch” when at group networking events, meeting strangers, reaching out to friends and family, and in more formal networking meetings.

Be proud of your job search goal you completed in Chapter 3. On the other hand, your embarrassment and guilt comes across as lacking confidence. Diana secured a meeting with Frank for help on her job search, needing help with introduction to some executives. She came to Frank’s office door and didn’t knock or let him know she was there. They lost 5 minutes since Frank just kept working, unaware Diana was on time. Then, Diana’s very first words were, “I’m so sorry, Frank, I know you are very busy and don’t have time to meet with me.” Diana continued with, “I won’t take much of your time and if you can’t help me I understand.”

What is Frank’s first impression? “Hmm…she might be afraid of collaborating in a business environment, she is lacking confidence, and we just lost 5 minutes of our 30 minutes for her apologies.” Harsh, eh? Well, Frank will never tell Diana any of that, and he’ll be cordial. However, he won’t become a raving fan of Diana’s going forward.

Have a clear job search goal and be excited about it! The meeting continued and Frank asked, “So, Diana, what are you looking for?” (Frank is implying, “How can I help?”) Diana responded, “Well, I’m not sure, which is why I’m here.” Not good. Your network is ideally suited to help you reach a goal, not a career counselor. Yes, there are a few who may enjoy this level of discussion, but during my 30+ years in Fortune 500 companies, I learned that most networking is best when the job seeker has narrowed this down herself. There are many resources, both online and in books, to help you assess what types of jobs are right for you. Do your research before you network!

#3: Rehearse and prepare yourself for great networking

In front of a mirror or in your mind, practice what you will do and say from the minute you enter through your closing summary of the meeting—from the strong handshake and eye contact, the first words out of your mouth, all the way to the closing handshake and smile. If Diana had done this, her valuable 30 minutes with Frank would have resulted in an entirely different set of “help.”

Are you prepared to network? Here is a short checklist:

• Pad and pen for note-taking…don’t EVER go to a meeting without it…and use it!
• Copies of your résumé, samples of your work.
• Business cards—yes, even a personal business card with your contact information and social media links.
• A list of your target companies, target positions, target industries, etc.
• The right attire. When in doubt, err on the formal side. No perfume, cologne, cigarette smoke, bad breath, or body odor.
• If via phone, do you have a quiet environment, battery power for your cell, etc.?
• A watch. If you asked for 30 minutes, it’s your duty to watch the clock and end on time.

#4: Follow up immediately with every network contact

This is where bad form gets ugly. Networking or “connecting” is the process of building up two-way relationships for the long term. When a job seeker either doesn’t follow up multiple times or disappears, it’s called “using.”

Rules for following up on networking contacts:

• At the end of every day or beginning of the next day, thank everyone who helped you. If you had a network meeting, thank that person and thank whoever introduced you to them.
• A thank you email should be done within 24 hours OR send a handwritten note. Include some insight about the meeting (from the notes you took!) and have a next step, such as, “I will keep you posted about my progress,” or, “I will ask for more time with you as soon as I have…”
• All people who have helped you want to know how your job search is going. Consider them part of your advisory board or team and keep them updated at least once per month. They will be more inclined to continue helping you.
• When you meet an interesting, relevant, and helpful person during your networking journey, here are some recommendations on how to follow up. NOTE: Use your best judgment so you are not perceived as annoying.

1) Bing or search their name—you can find additional information to help you with reasons to connect.

2) Write a formal email within 48 hours, indicating that you enjoyed meeting them, and suggest a 15-minute phone call or meeting, providing your purpose. If they prefer a face-to-face meeting, you would be happy to come to their office or a convenient location. Always show interest in who they are and what they do.

3) Send a LinkedIn invitation, including a note that you enjoyed meeting at the event where you met.

4) Follow the person on Twitter. This can provide real time data to improve the content of your communication.

5) Enter the information into your Outlook Contacts or other contact management system. In the notes section of the contact, write the date and location you met, as well as any notes of what you discussed.

#5: Mingle at Networking Events

First, set a goal for how many quality people you want to meet at the event. By quality I mean that you identified and had a conversation with individuals who are connected to the space you want to be in, professionally. Are they working in your industry, your field or function, or in one of your target companies? Quality also means that you had a conversation with them, captured their contact information (business card or you wrote it down on the notepad you are carrying), AND you asked them if you could follow up with them after the event.

Second, get to the event ridiculously early. Traffic happens every day, work or family issues crop up, etc. So aim to be in the parking lot 15 minutes before the start time and be one of the first, if not the first, to check in. Talk to the hosts of the event, too. Association staff often know a lot of people in the community, and they can give you advice about other networking events that are coming up.

Third, separate from any friends you know at the event. Simply be honest. “I don’t mean to be rude and would love to talk to you, but I’m here to meet total strangers who can help me win my dream job.”

Fourth, walk up to total strangers. They may be there by themselves, too, or standing among a group of people. Either way, smile, say, “Hello, my name is Harry, what is yours?” There are many good ice-breakers, such as, “What brings you to this event?” or, “What company do you work for?”

Here are some networking “starters” to help you avoid, “How about that rain out there, eh?”

a. “How did you get your current position?”

i What was the key to success?

ii How would you change your search process next time? Why do you think you won the position over multiple candidates?

iii One key piece of advice you have for me is…?

B. “How are you maintaining your network?”

i Do you keep them all organized? How?

ii Are you good at following up and staying in touch with people?

iii What will you change as a result of this conference/ meeting?

C. “Why did you attend this <subject> conference or meeting?”

i Do you have a personal goal you can share with me?

ii Can I share mine with you?

iii How can we help each other reach our goals?

D. “Do you love what you are doing?”

i What do you do?

ii What is the best part about it?

iii How did (or will) you match your passion with your day-to-day job? Any advice for me?

Tricks

1 Get into a rhythm or pattern every time you meet someone new, either face-to-face, via phone, or online.

• Capture their information in a contact.
• Put a date in your calendar (or task for those advanced Microsoft Outlook users!) to follow up with them.
• Put another date in your calendar to follow up with them again.
• Send them a thank you note within 48 hours.
• Send other thank you notes if someone else connected you to this person (or an association event director, letting them know that their event was fruitful for you).

2 Color-code your Outlook contacts by event or type of contact. You may even just have a “green” category labeled “Job Search Network.” Then, when you land in a job, you have
a high-quality database to send out a thank you note to and announce your good news. Most importantly, you get to offer any help back to them at any time.

Mistakes

Mistake #1: Dominating the conversation with your agenda. You are there to listen and learn and make an initial first impression so you can follow up with some key individuals the next day. Naturally, if they ask, “What kind of position are you looking for?” then you have your well-prepared, short version all ready. Say 3 short things then stop talking.

Mistake #2: Don’t ask them to email you. You are the product that you are selling and you need to drive the job search process, even when networking. Take accountability and use phrases like, “May I send you an email proposing some times for us to talk again?”

Mistake #3: Not reading body language. Non-verbal cues are critical for you to observe and understand. If three people are at a networking event, looking like they are in a heated debate, they are. Do not walk up and say, “Hi, I’m Sally.” Additionally, if someone is not engaging with you, then politely say, “It was a pleasure meeting you and enjoy your evening.” Or ask them if you can follow up with them at another time after the event.

Mistake #4: Not moving around to various people at a networking event. Although one person may seem to be the ultimate network “catch” and they are being very helpful right there, try to move around the room during the event as much as possible. Find that fine balance between having a good conversation to open up a new relationship versus actually having that job search conversation right there. Maximize the networking event opportunity.

Mistake #5: Not dressed the part. Some networking events are business attire or business casual. However, since you are the job seeker, you need to be sure you are on the formal side. When in doubt, dress formally. OR call the association or event coordinator and ask them what would be appropriate. First impressions do count, so I prefer you look like a great candidate than be underdressed.

Mistake #6: Bugging or annoying your network contact after meeting them. Use your best judgment by putting yourself in their shoes. At an event, don’t follow someone around or dominate their time. When contacting someone via email or phone, use the “Law of 3s:” If you contact someone 3 times and they do not respond, then you should stop. Wait a few weeks and try one more alternative approach.

Mistake #7: Giving your special network contact’s name out to friends or other job seekers. If you make a connection and that contact is helpful, that is not permission to give their name out to others. Protect your black book. If you want to make an introduction, contact your network and ask for permission. Wait for an answer. If there is no answer, assume “no.”

Interview Preparation -- In Advance

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era I will be running a series of excerpts from this book over the next several weeks.

I am a BIG, BIG, BIG proponent of preparing for an interview in advance. I've written about it several times including An Interview is a Test You Can Study For and How to Stay Relaxed During (And Make the Most of) a Job Interview. If you don't prepare for an interview in advance and instead "wing it" like most people do, you are doing yourself a great disservice.

Sam Anderson was interviewing for the job of his dreams. He researched the company, had a brother-in-law in another division of the company who could be a reference, and was confident in his sales skills. When Jane, the interviewer, asked, “If I interviewed other people you have worked with, what would they say are your strengths?” he froze. He began thinking about specific people he worked with and what they might say. Then he thought about a prior manager and what he would say. Pretty soon, he was all over the place with his answer, sharing random strengths that had no connection or story. What happened? Well, the question was just another version of “tell me about your strengths.” The interviewer simply worded it differently. And Sam wasn’t prepared.

How about this interview request: “Tell me about yourself.” Have you rehearsed a short three-sentence version that is compelling to an interviewer?

The state of most candidates’ interview performance is pathetic. It IS a performance and there is no excuse for poor interview answers for 80% of the questions you will be asked. It is remarkable that the most frequently asked questions are available on the web, yet candidates fumble their way through them. Even more remarkable is that candidates who do prepare do so right before the interview. You can do this now, without having any
interviews pending!

This chapter focuses on the interview preparation you do WELL BEFORE applying for jobs. Do this work very well ONCE, then you can review, refine, and rehearse it before an interview later.

You need to shatter all that you believe about interviews and restart. There are no secrets.

Success requires good old-fashioned preparation and practice. And the more nervous you are, the more you need to prepare.

First, let’s bust some myths:

1. The Myth: The interviewer really cares about what I say…the content.

The Truth: Sometimes. With certain questions, such as your strengths and weaknesses, yes, they want to learn. But they are also looking for your ability to articulate ideas, start a thought then stop a thought, and simply observing if your speaking style is clear and articulate.

2. The Myth: I don’t want to sound scripted.

The Truth: You won’t. You will still use tone and inflection to say the words. You will be more
relaxed since you know the content. You will sound self-aware, confident, and thoughtful.

3. The Myth: I should wait to see what they ask then think about it during the interview so I
can tailor my answer to the hiring manager.

The Truth: Complicated and unnecessary. Your skills, experiences, strengths, weaknesses, and more are already fixed. You will still be able to tailor messages to the specific interviewer, but that will be accomplished by adding to the answers you prepare during the interview.

4. The Myth: Interviews are all about the interviewer’s questions, not the questions I ask
them.

The Truth: Often the hiring decision is made based on the questions YOU ask and the discussion that follows those questions. So you need to prepare your questions, as well as the answers, well prior to the interview. Not the night before!

Solution: Create two separate documents well in advance of any interviews

1 Document #1: Your interview answers using the Cut the Crap (CTC) Interview Prep Guide: The Most Commonly Asked Interview Questions

2 Document #2: The questions YOU ask during an interview

Interview Questions and Your Answers

Following “listening,” a huge part of answering interview questions well is to understand why the interviewer is asking this question. Once you put yourself in their shoes and understand their intent, you will be able to provide answers that are truthful yet formulated in such a way that you perform well throughout the hour.

Use the Cut the Crap (CTC) Interview Prep Guide: The Most Commonly Asked Interview Questions

The Questions YOU Ask During an Interview

The questions you ask in an interview can help you OR knock you out of the running.

Joseph had an hour-long interview at 8:00 a.m. with the hiring manager, Susan, for a position he really wanted. He did some research on the company, reread the job description, and brushed up on his top strengths and weaknesses. He was on time and did
well during the interview. Until the last 15 minutes. Susan asked, “Well, Joseph, what questions do you have for me?”

Joseph displayed “crap” in the form of mistakes that sabotaged his odds of winning this job.

Mistake #1: He didn’t have any questions prepared.

Solution #1: Prepare your questions, write them down, and bring the piece of paper in with you to the interview.

Mistake #2: Joseph asked, “What is the starting salary?”

Solution #2: Never ever, ever, ever talk salary, even in ranges. Your mission is to get an offer in hand. Once you do, you can ask questions and possibly negotiate. Not before. Not to the human resources (HR) person, a recruiter, or to any interviewer.

Mistake #3: “Is there a training program or structured on-boarding process?”

Solution #3: Think about the story or perception the interviewer is creating with your questions. Put yourself in their shoes. In this case, they may be thinking, “Wow, he needs handholding and may be too high-maintenance for me. I need someone who knows how to do this.” If a training program is mentioned in the job description or on the company website, then it is appropriate to ask for more insights about the structure, length, etc.

Mistake #4: “What does your division or company do?”

Solution #4: It is still shocking how many job seekers ask this question. With the web, calling people you know, social media, and many other resources, there is no excuse like, “I didn’t have time.” By the way, in the U.S., one of my favorite resources (that I have referred hundreds of job seekers to) is your local city’s Business Journal, both their online resources and receiving their publication. Look up American City Business Journals at acbj.com.

The keys to a great question from you to the interviewer are:

• How can I show a strength through the question?
• How can I convey something to the interviewer that we haven’t already covered but it’s important for him/her to know about me?
• How can I avoid inadvertently showing a softness in a skill they need strength in?
• Is my question relevant to the interview? You are there for a purpose. Your questions should focus on helping you understand the job or the team you will be joining. Examples: Don’t ask, “What are Boeing’s top challenges as a company?” when you are interviewing for an accounting job in a certain department under a hiring manager who is looking for a very specific set of skills. You’re burning up valuable time, you can read those online or in the papers, and the question is not relevant to the job unless you are interviewing for their CEO or CFO position.

What are the best questions to ask in an interview?

There are many, but I’ll share my favorites.

• I’m very self-motivated. How will you measure my success in this position after one full year?
• The first 30 days are very important for me to meet as many team members as possible. How will you recommend I do that?
• What are the top 3 skills or experiences you are looking for that may not be mentioned in the job description?
• Of all of the people who have worked for you, what are the characteristics of those who have stood out as great performers?
• I have to admit I’m a perfectionist in some areas. What are the aspects of this position that absolutely require precision and attention to detail?
• What do you find most creative about what you do…and what aspects would have a creative feeling to them for me? (Replace “creative” with another positive skill of the
• position.)
• Of all of the criteria you have outlined for this position, what are the top 3 in stack rank order?
• The position we are discussing is something I am very excited about. Can you give me feedback on how I am meeting your qualifications and if I will proceed to the next level of
• the hiring process? (This is called “going for the close” or “asking for the order” in sales.)

Tricks

1 LISTEN!!! When nervous, LISTEN harder. Well over 50% of the poor interview answers are because the candidate didn’t listen to the very basic question. This sabotages your entire interview because the hiring manager is going to have concerns that you won’t listen to their instructions on the job.

a. Check yourself to be sure you don’t have your own set of messages you want to blurt out. This will cause you to answer in a way that pushes your information versus what the interviewer asked for.

b. Sometimes the interviewer will repeat the question since you answered a different one. Only let that happen once, as they are giving you a break. LISTEN harder from now on.

c. If you don’t understand the question, ask, “Can you repeat the question and clarify please?”

2 “The Law of 3s”—For every question, both during your preparation AND during your interview, state no more than 3 things then stop. A full stop, not just a pause for breath. If the interviewer wants more, she will ask. If the silence becomes too awkward, you can ask, “Would you like more information?” Smile at the end of every question. Not a huge, silly smile, but grin as if you just hit the right note, crossed a finish line, or got an A on a quiz.

3 You will have a pen and paper open on the table during a face-to-face interview. In the far right or left margin, you can have short clues to some key interview questions and answers that you are nervous about remembering.

4 Scribble some words about the question down so you can peek at it and stay on track.

5 Pause after the question is asked and think. Feel free to scribble 3 words down that will be your 3 points. Then begin.

Social Media's Role in Job Search

The following is an excerpt from the book Cut the Crap, Get a Job! a New Job Search Process for a New Era. I will be running a series of excerpts from this book over the next several weeks.

I found this chapter particularly interesting since it deals with the emerging and growing impact that social media has on job search. As all those looking for jobs try and figure out what works best in social media, I hope this excerpt helps.

True story: As a job search and career expert, I was skeptical about all of these social media tools as recently as four years ago. I separated professional networking from social networking and felt that the social sites were a waste of time. All of that was flawed. So, as a complete convert and now raving fan of social media for job search and career growth, here is a summary.

Job seekers can no longer ignore their online presence. Additionally, there are brand new ways to use Social Media to enhance and accelerate your job search. “Social recruiting” is evolving and improving rapidly, so jump in NOW, because the only way to learn about it is to do it. Manage your expectations, as well. Social media is simply another element of your job search “mix.” Social media connections are not a quick fix, but neither are job boards.

Benefits of Social Media to Job Seekers:

• Be found. Social networking is simply preferred by recruiters and employers as a tool to acquire talent.
• Identify and contact hiring managers.
• Market and sell yourself and put yourself in front of many people.
• Collect great research in preparation for an application or interview.
• Social media enables you to develop a stronger network that can help you with your career as well as your next job search.

Benefits of Social Media to Hiring Managers and Recruiters: How many hiring managers browse social media profiles, and what type of information are they hunting?

A nationwide survey, which was conducted by Harris Interactive for CareerBuilder.com from February 9 to March 2, 2012 included more than 2,000 hiring managers and human resource professionals across industries and company sizes. 37% use social networking sites to research job candidates.

What are hiring managers looking for on social media? Hiring managers are using social media to evaluate candidates’ character and personality outside the confines of the traditional interview process. When asked why they use social networks to conduct background research, hiring managers stated the following:

• 65%—To see if the candidate presents himself/herself
• 51%—To see if the candidate is a good fit for the company culture
• 45%—To learn more about the candidate’s qualifications
• 35%—To see if the candidate is well-rounded
• 12%—To look for reasons not to hire the candidate

Is social media helping or hurting job candidates? A third (34%) of hiring managers who currently research candidates via social media said they have found information that has caused them not to hire a candidate. That content ranges from evidence of inappropriate behavior to information that contradicted their listed qualifications:

• 49%—Candidate posted provocative/inappropriate photos/ info
• 45%—There was info about candidate drinking or using drugs
• 35%—Candidate had poor communication skills
• 33%—Candidate bad-mouthed previous employer
• 28%—Candidate made discriminatory comments related to race, gender, religion, etc.
• 22%—Candidate lied about qualifications

Employers are also looking for information that could potentially give a job seeker an advantage. 3 in 10 hiring managers (29%) said they have found something that caused them to hire a candidate, citing content that showed them the following:

• 58%—Good feel for candidate’s personality
• 55%—Conveyed a professional image
• 54%—Background information supported professional qualifications
• 51%—Well-rounded, showed a wide range of interests
• 49%—Great communication skills
• 44%—Candidate was creative
• 34%—Other people posted great references about the candidate

Where are employers going to research job candidates?

• 65% are going to Facebook
• 63% are going to LinkedIn
• 16% to Twitter
• 17% to “other”

However, research by JobVite.com uncovers that the increase in social media use for recruiting is a direct result of the number of quality candidates seen from social channels. The Jobvite Social Recruiting Survey 2012 was conducted online between May and June 2012. Over 1,000 people across the globe completed the survey in response to an email invitation sent to a registered list of human resources and recruiting professionals.

• 92% of respondents use or plan to use social media for recruiting, an increase of almost ten percent from the 83% using social recruiting in 2010.
• 73% have successfully hired a candidate through social networks, making social recruiting a highly effective source of quality new hires.
• A large majority of recruiters (71%) consider themselves savvy in social recruiting, having a sizeable understanding of what to look for in social profiles.
• 49% of recruiters who implemented social recruiting saw an increase in the quantity of candidates, and 43% noted a surge in the quality of candidates.
• 89% have made a hire through LinkedIn, 26% through Facebook, and 15% through Twitter.
• 86% of recruiters are likely to look at social profiles, and poor spelling and profanity make a bad impression to a majority of recruiters.

The following are the top three most important tools within social media that you need to have completed to compete in today’s new era of job search (and why each is important):

• LinkedIn - Visibility, company job postings, research. If you are not here, you don’t exist for many recruiters and hiring companies.
• Twitter - Research, job leads, learning from others.
• Facebook - Visibility. Recruiters use the friend-finding search feature.

Solution

A. LinkedIn—LinkedIn offers the broadest array of resources to further your career. Whether you are looking for your first job, are considering changing careers, or want to move into a more senior position, LinkedIn can help you achieve it. How?

• Finding companies that hire people like you: Search using your own skills as the keywords and specify your geography.
• Finding work at a specific company: You can become instantly updated when a job opening comes up at one of your target companies. Search within your own network, as well as browsing your contact’s network.
• Develop human resources, recruiting, and hiring manager contacts.
• Advanced search features will save you time and deliver the best information to you.

B. Twitter—Twitter gives you free information about people, organizations, and job listings. You can be an observant follower and still reap many benefits.

• Start to Follow People and Organizations: Following someone on Twitter simply means receiving their posts, which are called “tweets.” Every time the person posts a new message, it appears on your homepage in real time. To start the process, use the search function to find people or organizations you want to follow. Once you find them, click on the “Follow” button and you will begin instantly receiving their updates. The best part about Twitter is that you don’t need to get the person’s permission. Anyone on Twitter can follow any person or organization. As an example, follow me by typing my name in the search bar and clicking “Follow.”
• Follow People and Organizations: Begin by following organizations you are interested in pursuing. Next, follow employees in your target companies. The information you receive will be valuable in helping you research the culture and mission of an organization.
• Job Listings: An easy way to search for openings is to use the hash tag sign, or what some people refer to as the pound sign, which is the # symbol. The hash tag is Twitter’s filing system. For example, if you search #Seattle and #jobs, you will find tweets for openings in Seattle.

C. Facebook—One of the reasons Facebook is important as a job search tool is because every business and brand that knows the power of the web is already there. Recruiters
are also scouring Facebook for candidates.

• Search: When you search for a particular term on Facebook, you can narrow it down to people, pages, groups, links, etc., which gives you wide range of options as to who to network with and reach out to. For instance, if you are looking for jobs related to “architecture,” you can simply search for that term and connect with people in that particular field. You can search for people who are architects, join groups and pages, or simply find links that have the term “architecture” in them. This allows you to connect with like-minded people and build a relationship with them, which can help you find a job later.
• Facebook Pages and Groups: These features allow you to join a group of people with similar interests, provide an opportunity for you to learn more about a company, and connect with recruiters via Facebook. The first rule of job hunting is to let others know that you are available.
• Facebook Applications: There are some really good applications for job hunters on Facebook that allow you to get more out of Facebook and other job search sites. Log in to Facebook, click on “Profile,” type the application name in the search box, then follow the instructions to install. Or, visit the Facebook Application Directory and search using “job search,” “career,” or “jobs” as keywords. You will find BeKnown, BranchOut, CareerBuilder Facebook App, CareerFriend Facebook App, Hire My Friend, and more.
• Facebook Pages: Many organizations use Facebook Pages to promote their brands to potential candidates. Not only do they post open jobs there, but these pages are often maintained by various members of their recruiting organization.

Tricks

1 LinkedIn Tricks

• Apply the principles of Search Engine Optimization (SEO) or keywords.
• Use first-person and your credentials will be more exciting than a résumé.
• Focus on the last 10-15 years.
• Assure “Contact Settings” are working to your advantage.
• Adjust your “Settings/Privacy Controls” so not everybody has to see every time you build a new relationship or connect with a recruiter.
• Set a “LinkedIn time” an hour a week or more. Make connections, research.
• Follow target companies and connect with employees. Click the “Follow” button and, on a weekly basis, monitor their updates. Many companies also have a separate tab that says “Careers” or “Employee Insights,” both of which are very helpful in terms of finding recruitment contacts and hearing more information about hiring at that company. Many even post the actual job listings.
• Begin your involvement with a LinkedIn Group by commenting constructively on a discussion topic. Or start a discussion if you need help.
• Pay attention to LinkedIn Group members. Don’t be shy to click on the profiles of people who contribute. They might turn out to be new connections for you, for info interviews or maybe more.

2 Twitter Tricks

• Tweetdeck.com easily organizes your hash tags and searches into one console that you personalize. This is the website I open up every morning.
• Twellow.com searches people’s bios and URLs on their bios. For example, if you do a search on <your target company>, a company you would love to work for, then you can see how many of their employees are on Twitter.

3 Facebook Tricks

• If you wouldn’t say something in front of a crowd of 300 million in the real world, you should not to do it online either.
• Narrow down as much as possible based on your field of expertise. If you are an architect, you can use the search feature to find pages and groups that are created for architects.
• If unemployed, frequently post status updates relating to your job search to keep it top of mind that you are still looking for a job. Say things like, “I had a great interview this morning... keep your fingers crossed!” or, “I have a networking meeting later today with a company I’m really interested in!”

Why You Aren't Getting a Raise

Fox Business lists the top 10 reasons you (or anyone else) aren't getting a raise as follows:

• You have unrealistic expectations
• You didn’t do your research
• You do only what’s expected of you
• You don't call attention to your accomplishments ... or you act entitled
• You're not staying current
• You’re unable to problem solve, or love to complain
• You don’t pay attention to the details
• You made it a personal matter
• You didn’t ask for one
• You were unfairly penalized for being a woman

What can you do to combat these issues? A few thoughts:

• Manage your career using my 80-20 tips. Taking these five steps will handle 80% of your "I'm not getting a raise" problems.
• You also need to "promote" your accomplishments. I use a weekly email to let my boss know what I'm doing. It's not promotional at all -- just informative.
• Sometimes you have a "jerk boss" and/or a "jerk company" that won't help you get a raise no matter what. In those cases, you don't have a lot of options. You can try to go around your boss, but that hardly ever works out. If you're "stuck" in this situation, it may be time to look for a new job. You can use the same formula I did when I've had high paying, unrewarding jobs.
• If you want another perspective, here's how one reader worked to make the most of her career/raises.

Anyone else have other suggestions to add?

My Initial Impressions of LinkedIn

One of my New Year's financial resolutions was to get set up on LinkedIn. I have been recommending it for quite some time and tell you all how important it was in developing your network -- and yet I wasn't using it myself (which I freely admitted.) So the guilt finally got to me, I took the plunge, and signed up for the service in early January. Let's start with what I did and the results:

• I set up my profile simply by cutting and pasting sections from an old resume. It needed some updating (I haven't needed a resume in almost nine years), but only for my most recent job.
• I then went through my Outlook contact list and invited people I knew very well to connect with me on LinkedIn. Most did, but many others looked like they had set up a profile but were inactive. Anyway, after I was done I had a good start -- about 75 connections or so.
• At this point, LinkedIn started suggesting people I might know and want to connect with (it had earlier as well, but it started getting better at recommending people once I had a good based of connections it could use for background). I invited those I knew fairly well and quickly got up to 175 connections or so.
• At this point, I was connected to pretty much everyone I knew fairly well (that was on LinkedIn). The suggestions from LinkedIn now were people I had run into infrequently or only had "heard of" (didn't know). However, I wanted to expand my network further, so I started selecting some of these people to invite to connect. This was a person by person decision, but basically I invited people who: 1) had impressive backgrounds who I thought it would be an advantage to know, 2) had a large number of previous connections in common with me, or 3) had similar interests/background as me.
• In addition, I started receiving invitations to connect with others. Most of the people I did not know, and I decided whether or not to connect with them based (loosely) on the criteria above.
• When this was all said and done I had just over 300 connections after about a month worth of "work." From here on out I expect I will add contacts at a much slower pace, but I'm happy with the base I've built at this point.

After this process, here are some of my thoughts on the site/service:

• I was amazed at what some of my peers have accomplished. One of the guys I worked with 15 years ago is the president of a $3 billion division of a Fortune 500 company. An ex-roommate (right out of grad school) of mine is the president of a nationally known clothing company. Some of the connections are in companies/jobs that could help out my present employer. I will be exploring these more closely.
• I have already been asked to help someone through LinkedIn. A friend of mine emailed me and asked if I could help his future son-in-law with a job hunt (the SIL wants a job in my city in my field of expertise). I talked to the young man on the phone and sent his resume to a couple friends I know who may be hiring. I also got his resume to the hiring manager (someone who had once worked for me) at a local firm with a posted job opening. He hasn't been hired yet (this just happened a week ago), but he's certainly gotten exposure to jobs he wouldn't have had otherwise.
• I have re-connected with a few people I previously worked with -- most by email but some even in person (we set up lunch through LinkedIn). Got to keep working that network to keep it alive and growing!
• I have been "endorsed" by a few of my connections. This is basically where those in your network can recommend you in a certain area/skill set based on their past interactions with you. I haven't endorsed anyone myself, but I may in the future.
• LinkedIn provides articles on career-related issues to my profile (as well as posts on LinkedIn by my connections), but I don't spend much time reading them. Perhaps I will in the future, but who knows? I also may post some things there, but I'm not sure exactly how it works (and what's the benefit.) I have a lot more to learn!

So that's it for my initial interaction with LinkedIn. For those of you out there who are already "masters" of the site, what am I missing? What do I need to do to make the most of this service?