Career Archives - Lazy Man and Money

Working From Home

April 27, 2016 by Kosmo 1 Comment

For a couple of years, it was known that my employer would be closing my office. Last July, I began working from home full time. What has the experience been like?

Advantages: Financial

Gas / auto – I reduced my daily driving by 46 miles. There are 260 work days in a year. After accounting for vacation days and holidays, that leaves about 230 days. 230 days X 46 miles is a savings 0f 10,580 miles per year. I would get about 32 mpg and the current cost of gas here (Iowa) is about $2.099 per gallon. (10,580/32) * $2.099 = $693.98 in fuel savings.

However, there’s also much less wear and tear on the car. The car is a 2007 Hyundai Elantra with 138,000 miles on the odometer. I’m (hopefully) extending the life of the car a few years by driving it less – allowing me to push back the purchase of a new(er) car by a few years. Lazy Man wrote about the cheapest cars to own a few months back. The very cheapest cars to own cost about 40 cents per mile. 40 cents per mile X 10,580 miles = $4,232. That’s the equivalent of getting a raise of about $7,000 (since the automobile cost savings is a direct cash-in-pocket savings). (Are you wondering if it’s possible for us to get rid of one of the cars and cut that expense entirely? Good idea, but just not feasible with kids and schedules.)

Food – When I worked out of the office, I ate out a lot. I’m often up until 1:00 AM or so (for work) and was getting up at 6 AM. Getting the kids (8 and 5) into the car was enough of a struggle without worrying about packing my own lunch. I didn’t eat at extravagant places, but even at fast food places, it’s not hard to spend $7 on a meal. I’d often end up buying a snack (or two) from the Goodie Box at the office.

When working from home, it’s easy to make a sandwich or some other quick meal that utilizes ingredients in the house. When I began working from home, I also planned to walk around the block during my breaks and eat healthier – ham sandwiches and the occasional salad instead of so much fried food.

Advantages: Non-financial

Sleep – I can sleep until almost 6:30 and still have plenty of time to get ready, corral the kids, drop them off, and get back home in time to start the work day. That’s a net gain of about 25 minutes of sleep per day – for both me and the kids.

No driving – I hate driving. I’m not subject to big traffic jams, but I simply don’t like driving. Cutting the drive time out of the day makes me happier.

Flexibility – I’m always home if a repairman needs to drop by. I’m always there when a package gets delivered. I can throw a load of clothes into the washer every once in a while. I can pick up the kids and have them working on homework by the time my wife gets home. It’s much easier to make it to after-work appointments. It’s been a big win not just for me, but for the family.

Disadvantages: Financial

Utilities – I’ll use more water, gas, and electricity since I’ll be home more. We have a pretty energy efficient home, which keeps heating costs reasonable in the winter. I don’t run the A/C much during the day (I prefer it a little warm), so that’s not a big factor. My two laptops use electricity, but that’s a much smaller impact that you may think – computers actually don’t use much electricity.

Disadvantages: Non-Financial

Social interaction – I live in a neighborhood that’s solidly middle class. Almost every family has both spouses working. It’s a young neighborhood that has only existed for about a decade, so there aren’t many retired people (by my count, there are exactly two). The net effect is that it’s dead quiet during the day, and there’s no face to face contact unless I run to Amoco for a bowl of chili.

This would bother some people, but I’m a bit of a loner, so it’s fine with me. Also, I’m in a lot of conference calls, so I do have a lot of mouth to ear contact. Additionally, I’m often listening to podcasts while I work, so there are plenty of voices in my head. Some of them even intentional.

How is it going?

OK, I’m nine months into the arrangement. How do I like it so far? I absolutely love it.

I’ve driven the Elantra about 3600 miles in those nine months. I’m spending a lot less money on meals and snacks. I defrayed the increase in utilities by taking a few minutes one day to replace about 20 light bulbs with LED bulbs. (We have a lot of bulbs in the house – we have a combined 2700 square feet).

I’m able to get a lot of household tasks done. I can throw in a load of clothes in the morning and fold during lunch time. It’s much easier to get to appointments. I’ve been able to volunteer at school several times. Explaining my job to second graders was a fascinating experiences – I was peppered with questions, very few of which related to the specifics of my job.

Has everything gone perfectly? Not exactly. Remember the plan to eat healthy and walk around the block during my breaks? That lasted about three days. I have a lot of difficulty pulling myself away from work during the day. I’ve found that I strongly prefer something hot for lunch. For $4.50, I can get a bowl of delicious chili and a 44 oz Pepsi from the local Amoco (a country store type of place that sells everything from fried chicken to minnows and power tools). Sometimes I do throw a Hungry Man meal ($2.50) or a Totino’s pizza ($1.25) into the oven. Sometimes I actually do have a ham sandwich or a salad. Last week, I made Stove Top and threw in a can of chicken, a bunch of shredded cheese, and some A-1. Not the healthiest meal in the world, but pretty tasty. Overall, I’m probably eating slightly healthier than I was before.

And I’m famous. The employees at Amoco all know me as the guy who likes the chili.

The Changing Nature of Jobs and How to Stay Relevant

January 23, 2016 by Guest Poster Leave a Comment

According to the Bureau of Labor Statistics between 1978 and 2008, the average American employee aged 18-44 years held 11 different jobs. As the world economy becomes increasingly global, the only certainty in employment is that the nature and structure of the workforce will inevitably continue to change. These changes will bring new opportunities for dynamic careers that provide increased work-life balance and flexibility.

Disappearing Jobs

New automation, production methods and manufacturing technologies will make certain types of jobs redundant. Among these will be manual and routine jobs like retail cashiers, word processing, and any task involving manual handling such as stock and warehouse or factory workers. In a recent example, Ford and Holden motor vehicle manufacturers in Australia notified closures of their domestic manufacturing plants. Impacting thousands of workings the shift in the industry has been quickly realised with the release of the new Ford Mustang, already sold out for 2016.

New Jobs That Didn’t Exist

At the same time, developments in science and technology will transform existing industries, creating new business models and new types of jobs. The shift in the working landscape has changed at a rapid rate in the last ten years, new jobs have been created that previously didn’t exist like social media managers, app developers and even chief listeners.

For example, Paul Minton graduated from college with a math major, but was unable to find a job. He took a 3 month course in computer programming and data analysis, and was able to get a 6-figure salary as a data analyst for a web startup in San Francisco.

Like Minton, up to 70% of students are training for jobs that soon won’t exist. The main drivers for change are automation, globalisation and collaboration. So which industries are going to provide the careers of the future?

How Will Employment Look in the Future?

The World and Employment Social Outlook 2015 (WESO) predict that employment in private sector services, accommodation and restaurants will increase rapidly the next 4 years. Service-based industries can keep costs low while charging premium, including business and administrative services, & real estate. More than ? of jobs worldwide in 2015 are linked to global supply chains for goods and services either consumed or further processed in other countries.

The International Labour Organisation reveal that employment relationships are becoming less secure, only 25% of workers worldwide having stable, full-time employment, 75% are employed in temporary work, informal and own account work, paid family work, and this trend is increasing.

Recent statistics show that the average worker stays in a job for 4.4 years. To position yourself for successful successive careers, you’ll want to match your skills growth to the fastest growing industries.

Technology is creating new ways of working. We are increasingly able to accumulate, store, manage and extract value from data. As technology becomes cheaper, multifunctional and easier to use, observes that workers will become more mobile, working over distance, on more flexible working arrangements, with increased connectedness* – with workers being available at any time. In the EU mobile working styles will give workers more autonomy and flexibility to combine work and family life.

In Australia, Tom Caesar has embraced the changing nature of business by driving his marketing efforts predominantly online. “Combining Marketing and Technology into a single department was an obvious decision as our business grew. When marketing is separated from technology it fails.”

“My IT and marketing staff are a single team, using technology to create multiple points of contact with clients, which is what clients want. Drawing data from the Customer Relationship Management system, we focus our marketing where it’s most effective. We’re having to adapt all the time, a recent example is where we have begun talking to our customers in terms of repayment values, not interest rates because it’s easier and more practical to understand”

This strategy has created exponential growth for the rapidly scaling South Australian loan writer, resulting in a doubling of the number of full-time employees in just 12 months.

Staying Relevant In the Midst of Change

Creating a dynamic career path will mean acquiring the skills relevant for the future of the industry you’ve chosen. This will inevitably mean getting tech savvy in some way. A friend of mine has been a Project Manager for 10 years, and during this time, her role has evolved in efficiency and in delivery time as expectations change with new technology. She’s created and defined her role by developing new skills, whilst moving through several international companies.

Rather than focusing on a particular job description, you’ll be focused on developing a core set of transferable skills that you enjoy. Whilst making sure you’re keeping up with popular technology used for communication and the business of your industry is essential, it may be just as important to focus on broader skills like cross-cultural competency and computational thinking.

One thing that machines will not be able to replicate is the ‘human’ side of being human. I recently watched a TED Talks video in which Harvard Business School psychologist Amy Cuddy observes that the most foremost in a potential employer’s mind on first meeting a prospective candidate is whether that person can be trusted. Focusing on the social skills which will enable others to perceive you as a warm and trustworthy will go further to improve your chances of securing the right career than even the highest grades or technical skills.

LinkedIn now has a ‘skills’ feature so you can research which skills are trending in your industry, and understand what employers are looking for. Remember though, your attitude is the key to getting a good job.

Business is changing so fast that employers often need to hire people before their eventual role within the company is fully outlined. So employers aren’t necessarily looking for someone with the skills and experience you’ll eventually need, they’re looking for someone who has aptitude, enthusiasm, independence and teamwork ability. If you’ve got one outstanding skill that your employer needs, and you’re willing to learn and be flexible, you’re likely to get that new position.

* RAND Corporation’s Report on Global and Societal Trends to 2030 on Employment and the Changing Labour Market

Factors To Consider When Making Money Working Overseas

February 11, 2014 by Guest Poster 2 Comments

The following is an article by Justin Grossbard from 457VisaCompared. I invited him to discuss the financials involved with looking abroad to work and moving overseas. A few years ago I read from a personal finance blogger (I forget who) that you can make a lot of money overseas.

Many of the world’s great entrepreneurs and successful business people are those who not only find opportunity domestically but also abroad. While it’s common for multinational companies to send individuals overseas for temporary posting, another growing trend has been professionals moving to countries on skilled visas such as the UK’s HSMP visa or Australia’s 457 visa. When considering making such a move, it’s important to weight up the key elements which are discussed below.

Ease Of Receiving The Working Visa In The Host Country

Surprisingly worldwide immigration even for skilled individuals is very limited with many countries remaining virtually closed to prospective employees. While a visa such as the HSMP UK will allow an individual to move to the UK and then find a job, other schemes such as the 457 visa in Australia require you to find an eligible job first. Some countries migration scheme’s will also favor prospective workers from one area compared to another, so it’s important to first understand if you can get an actual visa first before researching further.

Ease Of Getting A job In The Country Chosen

A common mistake is individuals who move to a country only to find out that either they can’t find a job or that they are earning relatively less than in their home country. Going to the international labor organization website can be helpful to understand wage levels combined with local job sites. It’s critical to also factor in the cost of living as well naturally. Additionally, the unemployment rate and the demand for jobs in the area you are skilled in must be factored in as most countries will pay no unemployment benefits while you are looking for a job.

Hidden Immigration Costs

It’s critical to understand the true cost of becoming a working visa holder in a host country. An example is health insurance with 457 visa compared highlighting that for a family in Australia has to pay up to $300USD. Migrants also are not necessarily going to receive the same entitlements as locals such as school fees with cost skilled migrants $4,000 per child in Western Australia.

Ability To Gain Permanent Residency

While your move abroad may be purely financial, it’s important to think long-term as:

You may like the location you have moved to and want to live in the are permanently
Your pay may increase over your stay and it may be a financially poor move to relocate back to the country of origin

Working visa’s will vary in length with some allowing extensions while others will allow the visa holder to become a permanent resident. It’s really worth researching these areas as the last thing anyone wants is to move back home only because of a visa requirement. Employers may also be less willing to hire an applicant which can only work in their country for a set period.

Overall, any working professional should keep an eye on opportunity and consider relocating if the opportunity presents itself. Working overseas can be a lucrative one and enjoyable but extensive research should always be done first to ensure its right for you and worthwhile.

Is Being a Full-Time Family CFO the Wave of the Future?

August 20, 2013 by Lazy Man 8 Comments

A long, long time ago in a galaxy very familiar, a man went to work to make money and a woman stayed home to keep the house and raise the children. As equal rights started to creep in we evolved into two-income families. I believe that’s were most people are now. One of my friends has taken what I believe the possible next step for some affluent families… she’s a full-time CFO.

Before I get into those details, I have to share a story about her while I suppress a little laughter. Whenever we’ve caught up after a couple of weeks or a month, she’d ask, “So what have you been doing with all your time?” There’s a general misconception that because I am self-employed, I don’t work and have infinite amounts of time. It was always an uncomfortable question to answer. Have you ever had that weekend day when you’ve been super busy, but really can’t state at the end of the day what you accomplished? It’s like that.

Several months ago, I was catching up with her and she told me that she had been slowly transitioning out of her job for about a year now. I was finally able to turn the tables on the question and put it to her. She responded that she’s managing the family’s money full-time. Hmmm, this sounded very familiar to me. I asked for more details…

She talked about her real estate empire that she started building over the course of last year. (One of the key words in the opening paragraph was “affluent.”) On paper, these properties are worth hundreds of thousands of dollars more than what she paid. I want to stress that the equity gains aren’t realized, but it’s hard to argue that she didn’t do well. For now, she rents them out the properties for income.

She says that she follows the financial markets and re-balances according to that. I know she’s very financially intelligent (perhaps even more so than me if you can imagine such a thing – ha!), so she’s not day trading or anything like that. One thing she mentioned is that none of this would be possible if she was still working full-time at her other job. She wouldn’t have the time to go look at properties, put in bids, secure financing, and the like.

My friend is doing more things, but in her spare time she’s also a soccer mom, shuttling kids here and there. It’s half homemaker and half entrepreneur. Her husband brings in a more traditional income.

I’m seeing a lot of that in myself nowadays, which makes me wonder if it is a trend. I wear a number of CFO hats.

Certified Financial Officer

On one hand, I have an income stream from my online properties, most famously the one you are reading now. Like my friend, I am also looking to expand my real estate empire. In the past 9 months, I was able to refinance our three properties to save us more than a hundred thousand dollars in mortgage payments. It was no small chore given that two of them were HARPs. With a full-time job, I doubt I would have had the patience to spend the hours every week for months to get it done. (After the sub-prime collapse it seems that lenders are overly paranoid now.)

Certified Frugal Officer

I look for ways that we can save money, without putting in a ton of time and effort for a buck. This means taking advantage of the military commissary and deals at the local supermarkets without extreme couponing. It means utilizing services like DogVacay instead of a traditional kennel when we go vacation. One of the things I’ve done is get rewards credit cards for almost every category of items we buy to get an addition 2-5% cash back on everything we buy.

The little things add up.

Certified “Fudge!” Officer

[If this weren’t a family-friendly blog, I would use another name other than “fudge.”]

Most recently, I’ve been on full-time alert for people trying to swindle me out of money. I’ve mentioned that RainSoft scammed me out of $100, and that my tenants won’t get out. The later is means that I might lose a day going to court. The latest issue is the local hospital and our health care plan provider can’t seem to connect on a bill. It seems that both agree that we shouldn’t have to pay it, but nonetheless, it went to collections because the person at the hospital who was supposed to fix the error quit for a new job. It’s a simple clerical error, but it’s a few more hours of work.

Final Thoughts

In a lot of ways being a full-time family CFO simply means keeping an ear to the ground listening for opportunity. When you hear it coming, you get ready to pounce. It also means putting out fires that threaten to take money from you.

After some 800 words, I still don’t think I’m any closer to coming up with an appropriate answer when someone asks, “Are you a full-time blogger?” In my mind that conjures up someone spending eight (or more) hours writing every day. That simply isn’t me. Maybe the next time someone asks me, I tell them that I’m a “family CFO” and watch as their forehead crinkles.

Negotiating Job Perks

August 7, 2013 by Lazy Man 5 Comments

I’m not the best negotiator. I think I know what to do, but the execution just isn’t there. I think I simply lack experience. I can’t remember the last time I actually was in a situation where I had to negotiate something. It was probably the new car I bought at the end of last year. My friend actually took a college-level class on negotiating. Perhaps I should look into that.

When comes to negotiating salary at a job, I’m even worse. I think my success in getting a raise is close to zero percent. I’m always told there’s no budget. I’m probably a fool for believing it, because the budgets are secret. When I fail to get more money, I typically move to negotiating perks. For example, I’ll ask for more vacation time. That also hasn’t been successful as I’ve been told that’s standardized for everyone by HR based on length with the company. If I had a job that had a company car, I’d certainly try to negotiate some fuel cards to go with that. However, I haven’t found a company that gives software engineers company cars.

I’ve also had no luck negotiating when it comes to educational classes. At my first job out of college back in 1998, I wanted to take a night class on client-server architecture which was really popular and relevant to my computer science degree and programming job. Or so I thought. When it came time to approach my boss (who happened to be the very worst boss I’ve had, good to get that out of the way early in my career) for approval she grilled me on how the course was relevant to FoxPro for Dos. FoxPro for Dos was the outdated software that the company used. Like most outdated technologies, there are very few, if any, classes available for it. The end result was that my request was denied.

From what I gather from friends, that situation isn’t the norm. It was just a combination of a terrible boss and a poor company.

I’ve been working from home on my business for so long that I almost forgot that “working from home” would be a negotiable benefit if I was still programming at my previous companies. Even my wife, who is in the military working for the government, gets to work from home. As long as your job has no physical requirements it should be an option at most anywhere… except for Yahoo who took the perk away. While on the topic of Yahoo, they made me quite upset by buying and shutting down the awesome Astrid to-do app. This is why you are losing users, Yahoo. You take something that is awesome and purposely destroy it. (Sorry, I got a little off-track there.)

Finally, there’s the easiest thing to negotiate. It doesn’t cost the company a penny… a swanky job title. Looking through my LinkedIn connections this seems to be extremely pervasive. Or maybe people just take it upon themselves to give themselves a great sounding title there.

Have you successful negotiated any job perks? If so, let me know in the comments. (And please be specific on how you do it, because I’m clearly missing something.) Also, if you know of a free to-do application that allows sharing and assigning of tasks (so my wife and I can stay on the same page), I’d love your feedback. I’ve been trying Wrike, but it is focused on project management which adds unnecessary complexity for what we are trying to do.