I Lost My Job and My Unemployment Benefits are Expired...Now What

     I hate to break it to you, but get a job!  Maybe get two jobs.  Employers in your industry are not hiring in your city, does this mean that you're a victim?  Of course not.  Remember, you still have options. 
     You're first option is to get two full-time (no-brainer) jobs.  During college I delivered pizza and earned nearly $20 per hour!  After you consider gas and vehicle depreciation, that still nets $15 per hour.  Many of my shifts were early evening until late night (5 pm until 1am), still allowing me time for class and studying.  This free time could allow you to take a job during the day.  I have a college friend that worked as a waiter outside of school.  He also took home anywhere from $10 to $20 per hour (depending on business).  If you could work 30 hours waiting tables and 40 hours delivering pizza at an average take home wage of $15 per hour, you would make $54,000 per year!
    If you aren't ambitious enough to work two jobs, then you better start looking elsewhere.  There are plenty of available positions to apply, just not in your city.  Maybe it's time to pack your bags and land a job in a new town.  Start looking from home before you make any leaps of faith.  Look for jobs across the U.S. at both Careerbuilder.com and Monster.com.  Before you go to an interview, make sure you get the Ultimate Guide to Job Interview Answers and study up!
    Another option is to start a business.  Many successful businesses were started due to a layoff or firing.  Think about all the skills and talents that you have accumulated over the years working for someone else.  If you can provide a quality service at a competitive price, then you're hired!  Create profiles on Elance.com and Guru.com telling prospective clients about your experience and talent.  Complete a couple of impressive projects and your reputation will bring more business.
    There are many ways to find success after losing a job.  No matter what you decide, do something now!  Don't wait for an opportunity to find you, mainly because it won't.

5 Things You Must Have on Your Resume

1.     Relevant Experience-  This is a must!  Employers want to see that you know what you're doing!  Taking a chance on an applicant with no relevant experience is too risky, especially when there is such a large pool of potential employees on the market.  Experience doesn't just have to be a former job.  It can be from internships, volunteering, or even an involved school/community project.  Be Creative!

2.     Stable Employment History-  Employers don't want job hoppers!  Hiring a new employee is risky because it is expensive to train an employee to become efficient at their job.  High turnover can eat away at a company's bottom line.  Just be careful when you select your next job, because you should stay at least 2-3 years in that position.

3.     Entrepreneurial Experience-  Do you own a small business?  Have you ever owned a small business?  Companies look for candidates that have this kind of experience in every industry.  Why?  Owning a business takes a LOT of hard work and persistence.  Entrepreneurs also have a sense of all the expenses involved in a running a business.  Employers believe that they will be more efficient and cost saving employees.

4.     Education-  Think of education as the foundation to a house.  Education is learning the basics and history of a particular subject to help you increase your knowledge about that subject.  This will pave the way for your career so you don't build a house of cards (and see it collapse). 
        Sure, you can train someone how to give a flu shot.  Could you expect that same person to know how it works or what to do if something goes wrong?  Employers realize that employees with formal training have a more thorough understanding of their industry.

5.     Extra-curricular Activities-  No one wants to hire "plain Jane" that doesn't have a personality or life outside work.  Companies look for employees that won't "burnout".  They want to see that you have other interests besides your job field.  Activities also show a new boss that you "get along with others" and are approachable.  It doesn't matter what you do: bull riding, skydiving, scuba diving, sports, reading, dancing, horticulture, etc.  Make sure you let them know that you are no "plain Jane".


Need More Help?  How to Write a Professional Resume

Make Thousands by Getting a Mortgage

     There are many financial "gurus" out there telling you to buy a house with cash or to pay off your mortgage early.  It sounds like a great idea on the surface, but you could miss out on thousands if you take that advice.  If you can't get an interest rate under 9 percent, ignore what I'm about to say...
    
There are two BIG reasons to use your banker's money for your house:

      1.  Mortgage interest is tax deductible
               example:  A household in the 28% tax bracket with a $200,000 mortgage amortized over 30 years with an interest rate of 5% will save $2,781 in taxes during the first 12 months of the loan.  That same household will save $52,223 in taxes over the life of the loan!

      2.  You can invest your cash instead (and make up to thousands more than your conservative uncle Ed)
              example:  In our $200,000 example above, because you are not tying up all that cash in a house, you can invest the $200,000 into an index fund.  The S&P 500 had average annualized returns of 11.24% over the last 30 years (1980-2009).   

$200,000 invested into an S&P 500 index fund in 1980 and would be valued at $4,679,280 in 2009!  If uncle Ed only knew... 


Make even greater returns:  The Buffett System

Your Guide to Think Like the Rich

1.     Pay Yourself First- The rich invest at least 20% of their pay. Set up automatic paycheck deductions to invest in your retirement.  You are more likely to "stick" to it if you aren't required to write a check every month.  Set up both a pre-tax investment plan such as a 401(k)/403(b)/traditional IRA and an after-tax plan such as a Roth IRA.  By setting up both plans, you are taking advantage of both tax efficient vehicles.

2.     Get the Max-  Most employers will match your retirement contributions up to a certain dollar amount or percentage of your salary.  This is free money and the rich don't turn down free money!  Make sure to contribute enough money to get the maximum amount of free dough.

3.     Avoid High Priced Consumer Items-  I know... new cars, 60 inch flat screen televisions, 20 inch rims for your 1972 El Camino, and owning 5 gaming systems all seem like needs rather than wants.  A little known secret about the rich is that they actually avoid consumer traps like those mentioned above.  Instead, only purchase items that you need and don't go overboard.  A good example is to purchase a 32 inch television instead of a 60 inch set.  The rich are informed shoppers, they use price comparison sites (as was mentioned in 5 Money Saving Tips to Never Pay Full Retail ) and consumer rating groups such as Consumer Reports.
      
4.     Use Leverage-  You will not become rich without it!  Leverage is using resources or tools to magnify results.  We all have the same limitation in common...time.  To my knowledge, no one has more than 24 hours in a day.  The rich are able to focus their time and energy on the things that are important to them.  This could be making money, spending time with their family, traveling, or a hobby.  One example of how to leverage your time is to hire a landscaper (if you don't enjoy yard work of course).  This may sound counter intuitive but if it saved you 4 hours per week, it could free up enough time in your hectic schedule to start an online business.  In this example, you are leveraging your time to build long term wealth by using someone else's labor.  Get the "Manage Your Time Now" course      

        Another Example of Leverage-  If you had $100,000 in cash, you could purchase up to 5 houses valued at $100,000 each with 20% down payments on each ($20,000 x 5 = $100,000).  You would be controlling $500,000 worth of real estate!  If real estate values rise just 10%, you would gain $50,000 in equity  ($500,000 x 10%).  If you didn't use leverage and purchased just one house with cash for the full $100,000, a 10% increase in real estate values would only equate to a $10,000 gain in equity.   

5.     Own a Business-  Being an employee is the toughest and least efficient way to become rich.  A higher percentage of an employee's wages go to tax than a corporation or LLC's income.  This is because corporations and LLC's pay taxes based on net income (income after all expenses).  An employee or even self-employed person pays taxes based on their total income before expenses.  Employees are also limited to their time that they can physically work.  A business owner can use the resources of time and talent of other people (employees and contractors).  This is yet another example of leverage that was covered in number 4.

6.      Persistence is Key-  One of my favorite quotes is by Michael Jordan.  "I've missed more than 9000 shots in my career. I've lost almost 300 games. 26 times, I've been trusted to take the game winning shot and missed. I've failed over and over and over again in my life. And that is why I succeed." 

     Starting a business could be risky, but no risk=no reward.  The rich take calculated risks and stay persistent and focused on their goal(s).  Every failure is a learning opportunity and one step closer to ultimate success.  You shouldn't think "road blocks" to your dreams, instead think "hurdles".  Stay positive, persistent, and jump a little higher.           

Join the Think Rich Club

Should I Buy a New or Used Vehicle?

     The prospect of owning a new car is fun, exciting, and exhilarating.  The glossy wax coating, new rubber tires, shiny chrome trim, and detailed interiors with that new car smell- all tempting us to make the leap.  Think twice!  According to the National Automobile Dealers Association, the average price of a new vehicle sold in the United States during 2009 was $28,400.  Think about it, this number is probably more than half of the national median household income.  For many, a vehicle is the second largest lifetime purchase (house being #1).  Does this make sound financial sense?  To me, it would make more sense to start an income producing vending business with some of this money.   

     $28,400 spread over 5 years (60 months) at an interest rate of just 5% per year (simple interest) is $535.94 per month!!  This doesn't include the monthly depreciation expense that most buyers don't consider (which will cause heavy stress when trying to resell the vehicle). 

     Be financially savvy and purchase a used vehicle, preferably with cash that is around 2 or 3 model years old.  After 2 years, you are avoiding the largest depreciation years.  A vehicle's value after just two years is roughly 60 to 70 percent of its original value.  In our example above, a vehicle purchased at 2 years old would cost roughly $17,040 (saving $11,360).  The savings are even greater when you add finance costs and interest expenses to a new vehicle purchase.

    If you do consider used, make sure to purchase a certified used vehicle.  Most of the large manufacturers offer this program at their authorized dealerships.  You should also research the current market value of the vehicle you want to purchase by going to Kelley Blue Book.  If you have done your homework, a used vehicle will pay you dividends down the road by avoiding those lofty monthly payments.