Why This 25 Year Old Should NOT Try To Make Extra Money
By Neal@Wealth Pilgrim on Mar 5, 2010 in Career Development Resources, Video Blog
Has it ever occurred to you that you shouldn’t always try to make extra money?
On Monday, a faithful (young) Wealth Pilgrim reader was lamenting the fact that he was stuck in a job he hated. To make matters worse, he wasn’t even well paid – he reported an inablity to save for his future. This bothered him a great deal.
Many readers had fantastic ideas on how to help our young Jedi…..and I came up with a few ideas of my own. Here’s a 2 minute 20 second video sharing my thoughts.
Am I full of it? Do you agree with my suggestion? And on another note, how do you like the new look? I’m trying to jazz it up a lilttle. Am I “fresh” or just square. You be the judge.
On to other exciting news.
I’ve joined the Financial Samurai Alexa Ranking Challenge. This is a collaborative effort of 50 like-minded bloggers. We’re trying to help each other rise up the Alexa Ranking system. What I love about this group is that the folks involved are all trying to help each other. Kind of reminds you of what goes on in Washington D.C. eh?
In any event, I’m going to include a list of posts written by some of the members of the challenge. Rather than detail each article, I thought I’d give you a few key words and invite you to check out those that interest you most.
Enjoy!
Treat Your Job As If You Won The Lottery!
Do you have what it takes to manage your money?
Marriage and Money – Making it Work
Allowances for less than rich kids
Financial Lessons from Engineering
Why it’s frugal to live in Alaska
Ever Feel Like You Can’t Get Ahead?
Should I refinance my mortgage?
Procrastinators Unite….Tomorrow
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13 Comment(s)
By Monevator on Mar 5, 2010 | Reply
Nah, you’re not full of it – you’re absolutely right. People forget about opportunity cost all the time when talking about start-up businesses or career changes. When you’re young, you’ve very little to lose.
I think I probably got this balance wrong, and started saving a bit to young. On the hand I’m glad to have the money in the bank!
As for the suit, you look sharp – but I wonder if it works with the family/people/warmth image I always think of as being Wealth Pilgrim’s forte? Just a thought.
Neal Frankle Reply:
March 5th, 2010 at 6:24 am
I also got this wrong from a very early age. On balance, it’s fine because I ended up loving what I do….but an investment in “self” always pays off.
Thanks for the feedback on my “James Bond” Pilgrim. I do like to change it up but your point is well taken. Back to sweaters?
.-= Neal Frankle´s last blog ..Why This 25 Year Old Should NOT Try To Make Extra Money =-.
By LeanLifeCoach on Mar 5, 2010 | Reply
There are times, like when launching a business, that require a change of focus and may require not only ceasing savings but even going into debt but I think the objective should always include positioning yourself for savings. We should never forget it.
Also, thanks for the recognition in you list of articles… Go Yakezie!
.-= LeanLifeCoach´s last blog ..Combating the Closing Techniques – The Assumptive Close =-.
By Financial Samurai on Mar 5, 2010 | Reply
Nice glasses Neal, are they new?
I believe you’re right in that trying to save too much when you’re young might be debilitating since 20 year olds usually make less than 40 year olds. Spending a dollar provides more return then than later when you have many more dollars.
It’s easier to save when you’re older and making more money, but of course there is a balance.
I blew A LOT of money in my 20’s…. and if I had saved or invested it, well…. actually who knows, it’s the lost decade right?
Best, Sam
.-= Financial Samurai´s last blog ..Treat Your Job As If You Won The Lottery =-.
Neal@Wealth Pilgrim Reply:
March 5th, 2010 at 6:55 am
Well said Sam. No…the glasses haven’t changed. Thanks.
Financial Samurai Reply:
March 5th, 2010 at 1:55 pm
Hmmm… new Hermes tie?
I wonder if your trackback system works. We’ve got a Yakezie Group going, which you are welcome to join (search yakezie i guess). I would like every post that’s been highlighted here to come visit and help promote. It’s the right thing to do, and is the spirit of the Yakezie.
.-= Financial Samurai´s last blog ..Sometimes Saving Money Is About Principle =-.
Neal@Wealth Pilgrim Reply:
March 6th, 2010 at 1:48 pm
Sammy,
I am part of Yakezie group. Did you get a trackback to my link to you? How do I fix it if it’s not working? I have no idea…
By Paul @ FiscalGeek on Mar 5, 2010 | Reply
I might be the wrong person to ask about the suit as my business attire of choice is a t-shirt and a pair of jeans I think I’ll stick to podcasting. I do like that you used the term “square” like you’re Ward Cleaver trying to keep up with the hip youth. Good stuff as always Neal.
.-= Paul @ FiscalGeek´s last blog ..Quicken Essentials for Mac Review =-.
By Credit Card Chaser on Mar 5, 2010 | Reply
My personal general opinion is that the younger you are then the more you can (and maybe even should) take some risks. I think it’s important to stay risk averse for certain things like finish up school for example because you then always have a safety net to fall back on but other than that if someone wants to start a business or spend all of their money on a trip exploring the world then I say go for it! Agree?
.-= Credit Card Chaser´s last blog ..How to Discuss Your Friend’s Credit Card Debt =-.
Neal@Wealth Pilgrim Reply:
March 5th, 2010 at 3:23 pm
NOarguement from me. My daughter got into UCLA (twice) but wanted to go the Israeli Army –which she did. Now, she’s 22 and just starting college but it was a great move for her.
By Ryan @ Planting Dollars on Mar 5, 2010 | Reply
Long term long term long term… good call.
Thanks for the mention BTW!
.-= Ryan @ Planting Dollars´s last blog ..Waikiki Site – Adding Wordpress and Thesis Theme via FTP to Bluehost =-.
By Ken on Mar 5, 2010 | Reply
Yeah…a 25yr old definitely needs to put some attention to the ‘career’ part of their life. I have 2 brothers who balked on college and career preparation and their salaries reflect that.
.-= Ken´s last blog ..Weekend Roundup =-.
By Indian Thoughts on Mar 5, 2010 | Reply
I agree with you totally and I think ur new is look is nice.
=-.
.-= Indian Thoughts´s last blog ..I am so so confused
By Bucksome Boomer on Mar 6, 2010 | Reply
You are right on with this advice. I gave up a higher paying job with little long-term growth for a lower paying job in a entirely new career field and higher potential income 15 years ago.
It’s paid off as I currently make far more than I would be if I had stayed with the previous career.
.-= Bucksome Boomer´s last blog ..It’s Time to Buy Lottery Tickets: Winning the Census Jackpot =-.
By Financial Samurai on Mar 6, 2010 | Reply
Neal – I got the trackback. I just hope others did who you mentioned, got the track backs as well.
.-= Financial Samurai´s last blog ..Sometimes Saving Money Is About Principle =-.
By Money Funk on Mar 7, 2010 | Reply
I think that young 20s spirit is a flexible and viable age to take on more risks with financial choices. I know I did. Course I might have went the wrong way…
Great huge list of posts. Thank you for including mine.
.-= Money Funk´s last blog ..Introducing Ally Interest Checking =-.
By Justin on Mar 7, 2010 | Reply
This post is about me (and Neal’s new look).
Neal, as long as you don’t do videos in your birthday suit, I think they are great….and if you do want some birthday suit videos, I think that’s a whole separate blog with a totally different audience…
I work in internet marketing currently. I am not an expert by any means, but I am comfortable with what I know. I have been actively doing it now for about 2 years, have a BS in marketing, and I know that with the right continued training, it is something I can be great at.
Right now I am a marketing manager at a power sports dealer. This is the second dealership I have worked at since graduating college, and it is the only paid marketing experience I have outside of consulting and freelance work.
I know that I am not the right person for power sports. I want out of that industry. However, what I do not know is what industry I want to move to. I think I would like to go to hospitality, but I don’t know for sure, and likely won’t until I try it.
I like to think I am a bit of a rare breed. I am very tech savvy, love marketing, love internet marketing, but the rare part is that I also love people, customer service and interaction. I don’t want to be the guy who sits in a cubicle all day, as I feel my talents would be wasted doing that.
I went to school for 5.5 years, graduated with a pretty strong GPA and took WAY more classes then I needed to. I graduated with around 180 units, only need 120 to graduate. My course work was rather diverse so on the educational side I have a very diverse background. However, work experience, not so diverse.
I am very willing to switch jobs, even take a pay cut to do so, however, despite my education, experience, and desire to change jobs, and work in hospitality to move up the chain, I cannot seem to find an “in.”
Maybe I should go back to freelance consulting work? Maybe I should keep doing what I am doing? Maybe I should go after hospitality harder? Maybe I should go back to school?
I don’t know, but I do know that no matter what, I need to stay happy, and right now I am happy to an extent but do not see happiness in the future. That does need to change, and while I don’t know exactly what to do, I do know enough to know that there are a great number of people out there that support me and will help me find my way.
By Mike on Mar 7, 2010 | Reply
Wow! That was a really insightful video and a fresh perspective on young people saving for retirement.
I would argue that your advice isn’t just for young people but for people of all ages. Investing in yourself is the best thing you can do.
.-= Mike´s last blog ..Life Style Inflation: Why Your Savings Is Not Growing as Fast as Your Income =-.