Finishing studies and start working is crossing a milestone and beginning of the phase of independence. We own our savings and we are free to spend in the way we want. Once we are independent then cycle of earnings and spending starts. Our education teaches us how to get a job with high salary but still we are missing many lesson which can make the best utilization of income. Normally we should avoid following myths:
Expertise and more detailed knowledge is the only way to grow in the career: Expertise in the work area matters a lot but that alone cannot leads to success. Along with area expertise, improving the way we think about work and personal issues, making human network, writing skills, presentation skills are the basics which helps to grow the leader within us. Many self-help book and online tutorials are there which may help to lead success.
Higher degrees are must for the better career: Doing master degree on top of the present qualification is great to have. It helps a lot to get preferred and selected for the few jobs. With the help of open cyber world, instead of leaving job and go for higher studies, your area of interest can be followed with the selected ebooks, audio video lectures, tutorials and forums. For example someone working in technical role but wants to gain management knowledge then same can achieved by continuous follow of the particular area of interest.
For example: someone wants to make career in the world economics then he/she can go through various subjects taught in the management and by further studying and stay updated with the Economics world he/she can be a think tank and analyst of area and show his research to the world by writing ebooks or putting his work on blog sites.
There is lot of time and we can start thinking about the savings after few years: If you think that there is lot of time left for retirement and you can do it later on then it’s a great mistake. This is a form of procrastination and by ignoring the saving you have more space for spending then it is difficult to come out from that habit. If you got early habit to set aside the small but regular money then by the time you can increase as your income grows. People who ignored this then they mostly regret later on. As per studies, the 25% percent salary of your first ten year of the career can cover your whole retired life.
Salary is small so savings will not make any affect, so I’ll start the saving after I get a job with high salary: Some people say that I save so less amount that will not make any different so start saving later on. If you have this logic, then compare the value of 100 USD at present time and 30 years back, there is inflation of around 230% (please note that USD is one of the most traded and strongest currency) Or By considering the Gold as bench mark then the inflation is 400%. So even saved money is going to become big with time if invested properly. As per the studies, if someone saves 25% from the first 10 years of his salary then it’s sufficient to cover the expenses of his retired life.
We will always have passion to get ready in the morning, travel to the office and work continuously like we are doing today: The energy you have at the time of starting the job or fist few years then it’s not necessary that you are going to have same passion and energy for the same area where you have started. With time and different stages of life someday interest may become less in the particular work and want to start your own work. So better to develop portable skills.
Business situations of the industry I’m working is strong so no need to think about any other work area or to know about other industries at all:
It’s very normal myth that if I have n number of years of experience in particular field then I should not see the other field or there is no need to take interest in other area, industry or even switching to other departments will not be good for the career. This is one of the lethal most myths as we have joined the job we are part of the business world then knowledge of industries growth, shrinkage or trends knowledge is necessary to keep you up with the trends. With the knowledge and updated you can plan you next career move or take some courses which help you to keep up with the requirement of the business. Like a major impact on telecom industry was its adaptation of packet platform. Telecom and networking used to be different fields but now due to adaptation of packet platform by telecom, Training, course or certification on IP is required for Telecom professionals.
We have to get employed and working as employee in different organizations till retirement as most from our older generations did the same: There is drastic change in the work and business ecosystems. As the industry grown and internet technologies have crossed all the barriers then we are living in the flood of changes and opportunities. There are many business plans which can be run in the parallel to work and services can be purchased online to help the business. We do not need to leave the job and borrow from bank to some business. Part time professionals can be hired to do specific jobs. Business can be operated by keeping full time job and once there is stable setup then day job may not needed and you can do full time business.
More job changes mean better growth: Believe in the myth that always looking for the job which pays little higher will be solution for their problem but still there is neither peace nor there is exit from this cycle. If reason to switch jobs is only financial then this is thirst is never going to end. The best way is to create and area of interest to come out from the monotonic routine of the day job. It does not mean hold the company till they kick you but not to spend 24x7 worrying and searching for the new job.
House purchased on mortgage will bring peace of mind: There is no other comfort to have our own house without any fear of notice to vacate. There are few of my friends who left the house with easy and cheap rent and went for new house which required high EMI every month and everyday travelling from the far distance. Always we should choose the options which make the life easier and simpler. Loan must be taken as facility not as mandatory need. You can turn you money as a liability by converting it to down payment and giving expensive interest to Bank. Same cash money can be converted to Asset by earning interest from.
Liability and Assets: Most of us do not have clear understanding of Liability and Assets. Liability is something for which you are liable to pay. You are bound to pay for you liabilities. Like any damage to your car, Home repair, your own cash may create a liability when you pay a down payment and start paying EMI with interest. Asset gives you income directly or indirectly for example: the car you rented to some company or individual, apartment you rented out, your cash can be made asset by earning income or interest. We should work to minimize our liabilities and increase the assets. Also we should try to stay away from un-necessary buying and filling our living space with cheap and useless things.
No comments:
Post a Comment