life@work

Income Reduced? Three Key Strategies for Managing Your Finances

This is a guest post by Jane Sanders from DebtManagement.net. Check out her site for more information on personal finance topics, like how to improve your credit score.

Managing your finances effectively can be a challenge in today's tough economy. The job market is very competitive and many people feel insecure about their futures. If your salary was reduced or you are currently looking for a new job, you might be living on a much smaller income than you are used to. While this can be an extremely stressful time in your life, there are a few ways you can manage your finances more effectively to get through it.  

Track Your Expenses

When you are on a tight budget, it's always a good idea to write keep track of all your expenditures. Every dollar adds up. Keeping a record of your expenses will make you more aware of wasteful spending. You will learn to think twice about every purchase before making it.

You can carry around a small notebook. You can also make a spreadsheet on your computer. Find what works for you and stick with it. Keeping a detailed record of expenditures will also help you decide what you can save money on. It's a great way to understand how to effectively manage your finances. You can spot items that can be replaced with cheaper alternatives. If possible, cut out some expenses altogether. Every little bit counts.

Stick to Your Budget

You must create a budget and stick to it. Figure out how much money you need for necessities and bills. Give yourself a little room but not too much. If you don't set boundaries for your spending, you risk losing all your savings.

If you are looking for a new job, it's important to be prepared for being out of work for a long time. This might be scary, but you have to face the fact that it might be a while before you have steady income again. After working out a plan, you will feel more secure about the future. This is also important if you currently have a job, but your salary was reduced.

Being prepared for the worst might seem pessimistic but that doesn't mean it will happen. It just means that in case it does, you will have the resources to get through it.

Avoid Credit Cards

Don't use credit cards. Take them out of your wallet and put them away for emergencies. Charging things might be tempting because you don't have to make payments right away. However, this can catch up with you and you might end up in debt sooner than you think.

Managing your finances in today's economy can seem impossible, especially if you are living on a reduced income. Keep track of your finances, create a budget, and don't make unnecessary purchases. You'll be surprised how much you can save by using these quick strategies.

photo by Johnny Vulkan

I'd love to hear: Are you using any of these strategies right now, and how's it working for you? Share in the comments below or on the Wall at the Dream Big Coaching Facebook page!

Career Advice for New Grads

It's that time of year when a new class of college graduates emerges, ready to take on the world, or at least to start paying off their student loans.

That was me 21 years ago. I relocated across the country to Seattle with a liberal arts degree and no clue what kind of job I wanted or could get. My student loan payments would start that November, and I knew I had to find something.

My job search strategy was to find temp work and see where it led. It wasn't so much a strategy as a plan that didn't terrify me as much as other options. Also, it worked for a couple of friends of mine, so it seemed as good a plan as any.

Today's job seekers need to be a lot more sophisticated, prepared and creative than I did in order to find employment. Here are some tips, articles and resources I've collected that are aimed at the 2010 grad:

1. Think internship. These aren't easy to find in this economic climate, but this article from Career Journal has some good tips.

2. Hunt down your passion. But don't think you have to find something today that you'll be happy with for the next five years. These tips and so many more great ones can be found in Karen Burns' article, Dear New Grad: 15 Tips on Choosing a Career

3. Target the entry level jobs. Here's a resource center for new grads, including job boards and resume advice. New Grad Life has many resources, too.

4. Cast a wide net. Kevin Donlin offers this and other wise tips in this article.

5. Be professional. Wondering what this means? Caroline Potter spells it out.

6. Be patient, flexible, and willing to sacrifice in the short-term for gains in the long term. The job market is really tough right now. The good news is that it's up slightly from last year.   

As it happened, I did find a long-term temp job that summer, which led to a job at my temp agency placing people, which led to my first job in HR with a client company. While it was not a glamorous, high-paying path, I got a solid start in the business world and opportunities to prove myself and learn what I could do.

I'd love to know: What's your best tip for today's new college grad?

 

Is the Nonprofit World for You?

Who in the corporate world hasn't dreamed about changing jobs or careers and doing something that "really matters?"

When you're fed up with being a cog in a big corporate wheel, or you just can't seem to care about selling more widgets, the grass looks a whole lot greener over on the nonprofit side of the fence, where they're saving the world and making a difference.

But before you glue those rose-tinted glasses permanently onto your head, take the time to assess what it is you're really wanting and needing in your career and talk to people who are working in nonprofits.

Just as there are companies in the corporate world that are well-run and poorly run, so are there functional and dysfunctional organizations in the nonprofit world. Not all of them are saving the world, and some of them are going bust due to lack of funds and lack of strong leadership.

Anita Bruzzese has a fantastic post out today on this topic that I highly recommend you read.

Also, this interview with Laura Gassner Otting, founder of the Nonprofit Professionals Advisory Group, a search firm that works exclusively with charitable organizations and nonprofit job seekers, is loaded with essential advice.

If you want to see whether transitioning into the nonprofit world is for you, here's where to start:

Ask yourself why

Switching sectors is a major decision. What draws you to nonprofits? Are you merely running from the corporate world? What does the nonprofit sector offer you that the corporate world can't give you? Take some time reflecting on what you really want.

Examine your experience with nonprofits

How do you feel about your experience as a volunteer or board member? Was/is the experience enlightening, frustrating, exciting, discouraging? If you don't have experience, this is the time to sign up. There's no better way to make essential contacts and get a realistic job preview than volunteering.

Look for a compelling mission

People who are happily working in the nonprofit sector care about the mission of the organization they work for. What are you passionate about? What are your strong interests? There are many lists of nonprofit organizations online to help spur your thinking, such as this one at Love to Know and Idealist.org.

Talk to people

When you find organizations whose missions speak to you, research them online and in person through informational interviews. Learn about their challenges and successes. Test your assumptions about what it would be like to work there and how it's run. What kind of jobs exist there? What kinds of personalities and temperaments do well there? Where do they need volunteers? Consider volunteering if you feel inspired by what you hear.

Assess what you can contribute

After you learn about the work that interesting nonprofits do and the kinds of people they employ, look at your key skills and experiences. How could they match up to the needs these organizations have? 

This kind of research is essential before you make the decision to switch employment sectors. You can't make a decision based on stereotypes or your imagination - you want to know the facts.

I'd love to know: How did you transition from the corporate to the nonprofit world?

photo by woodleywonderworks

What Season of Transition Are You In?

A transition is "the process or a period of changing from one state or condition to another".

Transitional times are challenging times. There are highs and lows, factors in and out of our control, and it can take a long time to go through a transition completely. Some would argue that all of us are in some kind of transition most of the time.

It's worth knowing whether you're in a transition and where you are in its cycle. When you understand what you're experiencing, you can develop new perspectives, learn how to be a little kinder to yourself and prepare for what's coming next in your transition.

Some of the most insightful ideas I've read on transition are from Carol McClelland, PhD, author of The Seasons of Change. She uses a metaphor of the seasons as a way to describe our personal transitions.

Fall is about preparing for what's to come. You get news of change, you feel your feelings, you wait and you worry.

Winter has three parts. Early - when you retreat and reflect. You feel tired, and you don't know anything. Solstice - when you catch sparks of hope in the darkness. This is the turning point in the transition journey. Late - when you define your vision. You catch new insights, are open to new insights and see glimmers of spring.

Spring is about bursting with energy. You experience some storms and struggle with reentry.

Summer is about celebrating the harvest. You feel confident, have clarity and feel that life is abundant.

Here's an example of how the seasons metaphor applies to a career situation:

• Summer: Work is easy because you know what you're doing and you like it.
• Fall: Rumors start flying about a reorganization. Within a couple of weeks your work group is disbanded and your job duties are changing. You're worried you'll need to make changes soon.
• Winter: You're confused and obsessed about whether you should stay or go. There's no one left to talk with. Then you realize that you want to find a situation more in line with your interests and values. You start to look at options and get ideas on how to proceed.
• Spring: You make connections, leads come in, and you land a great job. Because you spent time during Winter identifying your talents, you negotiate a package that is right for you. You're excited about the potential of this new job.

One reason I appreciate using a metaphor from the natural world to describe change is that before our world was industrialized human beings had a strong connection with nature and its cycles. (Some of us still do but many of us do not.) There is much wisdom in nature. When we were connected to nature we knew that change takes time and is gradual, that it might come in the form of growth or decay, and that we were not in control of it.

Now many of us feel pressured to master change quickly and live in a state of perpetual growth. We believe we should be able to follow a formula and enjoy instantaneous results. When we realize that despite all of our scientific understanding and all of our technology we are still subject to Earth's laws of nature, we are better equipped to navigate our transitions.

The seasons metaphor also brings reminders of tales of the "hero's journey", when heroes or heroines embark on journeys and return home with new wisdom and strength. According to Joseph Campbell, the hero's journey is undertaken by people of all cultures and across many periods of history.

How can all this help you with your transition? When you know what season you are in, transition-wise, you can know what is normal to expect and what are helpful steps to take (read Carol's book for more detailed information!)

For example, most everyone I coach goes through some kind of winter period while we work together. Winter is not a place our society wants us to spend much time in - to be in eternal spring and summer are the expectations. But there is valuable and essential work to be done during winter! Winter is the key to unlocking the future. However, you can't do that work if you are denying that you are winter or trying to skip ahead too early to spring.

Transitions can be exciting, and they can be difficult. When you're aware of your own transition journey and work with it rather than fight it, you are on your way to creating a successful future.

I'd love to hear: What Season of transition are you in right now?

Changing Careers: Research Before You Dismiss

At some point in our careers, most of us dream about doing something completely different. Those of us who want to do more than dream can quickly feel stymied and frustrated.

Many people I talk to who are thinking about making a significant career change feel alone in this pursuit. It seems to them that everyone else is happy enough toiling away at their current job, or have dismissed ideas of change because, "I can't afford it" or "I'm too old" or "What would I do, anyway?"

If you notice that you keep imagining yourself doing something else, you owe it to yourself to look at that carefully and give it due regard.

This doesn't mean you have to follow every whim. But if you pay attention to the truth in your gut and have the courage to research the possibilities, it could be one of the greatest gifts you can give to yourself.

Why does it take courage to research? Because for a lot of folks, there are large psychological barriers to making a career change. We want to stay in our comfort zone (remember homeostasis from science class?) We are used to a certain income per month. The state of the economy seems like a good reason to hunker down. Certain people count on us to continue to be what we are. Facing risk is just plain scary.

When we quickly dismiss our ideas, we get to stay in our comfort zone. When we research, we may find a way to move forward, and we can feel pretty ambivalent about that.

But when you take your ideas seriously and take the time to research the possibilities - talking to people in the field, talking to companies and organizations and researching professional associations, salaries and job openings online - you can experience some relief from the persistent nagging in your gut that you've been ignoring. (Note: "Research" does not mean merely taking one person's opinion as the Gospel Truth).

Through research, you might discover a way to pursue what you want to do "on the side". You might decide that going back to school for a Master's degree is feasible after all. You might resolve once and for all that acting professionally was a pipe dream, and then be ready to put all your energy into something that is going to work for your life.

Doing the research isn't sexy, but it can lead to all kinds of options.

When I talk to a new client who is tentative about sharing her desire to go from, say real estate agent to kindergarten teacher, I've noticed she likes to hear about what changes other people are making. So here's a partial list of the recent changes that people I know professionally and personally have made:

• From mechanical engineeer to attorney to manager at a start-up specialty beverage company
• From college athletic coach to self-employed personal trainer
• From journalist to law school student
• From full-time instructional designer to contract instructional designer
• From laid off administrative employee to self employed retailer
• From technical writer to TV production
• From hi-tech manager to at-home parent
• From corporate training manager to self-employed consultant and professional speaker
• From working for corporations to working in two-person partnerships in law, management consultancy and architecture
• From full-time high school teacher to part-time curriculum designer
• From biotech marketing to self-employed chef-for-hire
• From community college dean to e-learning consultant and retiree

What's your gut nagging you about? What questions need to be answered so that you can do more of what you want to do?

What are you waiting for?

What to Do When "Plan A" Falls Apart

It's sadly ironic that during a time when record numbers of people are out of work or are fearing for their jobs, the New York Times eliminates Shifting Careers, the wonderful career column and blog by Marci Alboher.

The good news for us readers is that Marci has a personal web site and gives every impression that she'll continue her career as a journalist and writer.

Marci smartly has not placed all of her eggs in one basket. Sure the NYT has been a plum gig, but she's got other clients as well. She has kept up with contacts and is following her own advice regarding what to do when you've been laid off - she's writing thank you notes to people who have helped her in her career over the years.

She's even able to look at what opportunities losing the daily deadline may bring her - in other words, she's devising Plan B.

So many of us are having to deviate from Plan A right now and come up with something else, whether it's a new job, a new marketing plan, a leaner personal spending plan, or the solution to a crisis. What helps when Plan A falls apart?

Turn to your tribe. Don't isolate yourself, as tempting as it may be. Allow others to listen, offer support, and brainstorm solutions with you.

Keep notes. Your mind will become overfull with worries, strategies and options - write them down as they occur to you. You can turn to your notes when you're sitting down to craft Plan B.

Take breaks from planning Plan B. You're writing your key ideas down, so every once in a while your mind can take a break from planning and ruminating. Do something that energizes you. Hang around people who make you laugh and help you keep your mind off your troubles.

Help someone else. It feels good to be useful to others, it combats isolation, we feel more grounded and appreciative. Good stuff.

Acknowledge you'll go through phases. You may be cool and rational one day, and depressed and fearful the next. Ups and downs are normal - expect both.

It's not fun when Plan A falls apart, but we're going to get through it. Plan B may even offer us more than we expect. I'm not going to drag out all the sayings about silver linings and lemonade and windows opening, but you get my drift.

I'd like to hear from you about what worked when you suddenly had to shift gears.

The Seasons of Transition

Sometimes the English language can be so efficient. For instance, one average-length, reasonable-sounding, easy-to-understand word, transition, sums up a process or period of time that can be incredibly complicated and feel terribly unreasonable.

• "I'm in transition."
• "I'm thinking about making a transition."
• "My company has been going through a transition."

These are cocktail party-style summaries you say when you don't want to say, "I absolutely despise my job and I need out" or "I just cannot find a job" or "The constant changes at my company has everyone's morale at an all-time low."

Of course some transitions are fairly straightforward and painless. But others can take weeks, months or even years to experience and create a gamut of emotions.

It's worth knowing whether you're in a transition and where you are in its cycle. When you understand what you're experiencing, you can develop new perspectives, learn how to be a little kinder to yourself and prepare for what's coming next in your transition.

Some of the most insightful ideas I've read on transition are from Carol McClelland, PhD, author of The Seasons of Change. She uses a metaphor of the seasons as a way to describe our personal transitions.

Fall is about preparing for what's to come. You get news of change, you feel your feelings, you wait and you worry.

Winter has three parts. Early - when you retreat and reflect. You feel tired, and you don't know anything. Solstice - when you catch sparks of hope in the darkness. This is the turning point in the transition journey. Late - when you define your vision. You catch new insights, are open to new insights and see glimmers of spring.

Spring is about bursting with energy. You experience some storms and struggle with reentry.

Summer is about celebrating the harvest. You feel confident, have clarity and feel that life is abundant.

Here's an example of how the seasons metaphor applies to a career situation:

• Summer: Work is easy because you know what you're doing and you like it.
• Fall: Rumors start flying about a reorganization. Within a couple of weeks your work group is disbanded and your job duties are changing. You're worried you'll need to make changes soon.
• Winter: You're confused and obsessed about whether you should stay or go. There's no one left to talk with. Then you realize that you want to find a situation more in line with your interests and values. You start to look at options and get ideas on how to proceed.
• Spring: You make connections, leads come in, and you land a great job. Because you spent time during Winter identifying your talents, you negotiate a package that is right for you. You're excited about the potential of this new job.

One reason I appreciate using a metaphor from the natural world to describe change is that before our world was industrialized human beings had a strong connection with nature and its cycles.(Some of us still do but many of us do not.) There is much wisdom in nature. When we were connected to nature we knew that change takes time and is gradual, that it might come in the form of growth or decay, and that we were not in control of it.

Now many of us feel pressured to master change quickly and live in a state of perpetual growth. We believe we should be able to follow a formula and enjoy instantaneous results. When we realize that despite all of our scientific understanding and all of our technology we are still subject to Earth's laws of nature, we are better equipped to navigate our transitions.

The seasons metaphor also brings reminders of tales of the "hero's journey", when heroes or heroines embark on journeys and return home with new wisdom and strength. According to Joseph Campbell, the hero's journey is undertaken by people of all cultures and across many periods of history.

How can all this help you with your transition? When you know what season you are in, transition-wise, you can know what is normal to expect and what are helpful steps to take (read Carol's book for more detailed information!)

For example, most everyone I coach goes through some kind of winter period while we work together. Winter is not a place our society wants us to spend much time in - to be in eternal spring and summer are the expectations. But there is valuable and essential work to be done during winter!Winter is the key to unlocking the future. However, you can't do that work if you are denying that you are winter or trying to skip ahead too early to spring.

Transitions can be exciting, and they can be difficult. When you're aware of your own transition journey and work with it rather than fight it, you are on your way to creating a successful future.

www.dreambigcoaching.com