4 Things That Elite Millennials Do To Fast Track Their Careers
As a young professional, your most valuable asset is your career. While you can watch endless videos on the benefits of making Roth IRA contributions or owning real estate, at the end of the day if you're making $400,000 instead of
As a young professional, your most valuable asset is your career. While you can watch endless videos on the benefits of making Roth IRA contributions or owning real estate, at the end of the day if you're making $400,000 instead of $70,000 before reaching the age of 40, you will have the opportunity to build real wealth faster.
As the owner of an investment firm, I have had the opportunity to work with a lot of very success Millennials that have either successfully grown a business or have climbed the corporate ladder much faster than their peers. Even though these elite young professionals all have different backgrounds, personalities, and skill sets, I have noticed that there are 4 things that make them similar and I’m going to share them with you today.
They Take Risks Early & Often
Think about the last time you left a job; whether it was to take a job with a different company, start your own business, or take a new position within your current company, you probably spent days or maybe weeks in mental turmoil asking yourself questions like:
“Am I making the right decision?”
“What if I get to this new company and the position is not what they say it’s going to be?”
“Should I risk going out on my own and starting a company?”
We have all been there, and it’s awful. All you can think about is, “What if this does not work out the way I expect?”. What I have noticed with this group of successful millennials is that they are able to recognize the uncertainty in those situations, but still choose to jump forward without ever looking back. They are like cats in the way that no matter where they land down the road, the one thing they feel certain about is that they will land on their feet.
This is not just something that they do once or twice, but rather multiple times throughout their working careers. In general, the young professionals that really surge forward are the ones that take risks early on in their careers. Starting a business or making a big career change when you are 25 with no mortgage and no family to support is typically easier to manage then taking that same risk when you have a mortgage and/or family to support. We have seen young professionals start businesses and in year two or three the business nearly goes under, but they somehow held on, pushed forward, and they turned it into a wildly successful business. There is no perfect age to take these leaps, but it’s just acknowledging that without a lot of advanced planning it becomes much more difficult to take these risks as your personal expenses grow.
Sense Of Purpose
When you talk with this group of successful Millennials, they all have a very strong sense of purposes. Now, sense of purpose does not necessarily mean that they have life all figured out. Many of the professionals in this elite group will jokingly admit that they have no idea what the future holds for them, however, they can tell you at length what they love about their career and their explanation will often sound very different than if you were to ask their coworkers what they love about their job.
Example, we have a client that provides custom software to companies and they have rising star on their team. Looking at this employee’s resume and position within the company you would say “Ok, typical software developer, coder, very techy, etc.” However, this employee has taken it upon himself to post videos to social media everyday as he builds robot armies, provides free strategies for solving problems using custom software, and he has amassed a huge following of tech fans wanting more.
This was not something that his supervisor asked him to do or a task that is at all part of his job description. Nope, he is sincerely passionate about helping companies to solve everyday problems using custom software and he puts it all out there for the world to see. Such a clear sense of purposes that has allowed him to turn something ordinary into something extraordinary. The tip here: figure out what you love and try to incorporate it into your career.
They Say “No”
This is kind of an odd one, but I have noticed this trait to be common among successful younger business owners and executives. They know when to say “No” to an opportunity. For most professionals, the power of “No” comes later on in their careers after they have seen enough opportunities turn into complete train wrecks. Most younger professionals do not have 30 years of battle tested experience in an effort to execute their growth plans, they dine at what I call “the buffet of opportunity”.
When you start a company or lead a team of executives, usually the main goal is to grow the company as fast as possible, so when you are presented with 3 growth ideas, you may decide to chase 2 or all 3 in an effort to grow the company. Sometimes that’s ok, but what I have seen these successful Millennials recognize is that by committing all of their resources toward what they feel is the single best opportunity they are able to either succeed or fail FASTER. A concept that was identified by Elon Musk of Tesla.
I was able to identify this trait through the actions of one of our clients. A young business owner that had a company in the energy sector and the company had been experiencing double digit growth for a number of years. Since they had cash and they were looking for ways to grow the company, instead of just selling their product and then hiring third party contractors for the install, they decided that they could produce additional revenue by handling the installation themselves.
Two years after that decision was made, I was having breakfast with the owner of the company and he said that decision almost bankrupted the company. While they were very good at producing their product, they were horrible at running construction teams and managing the liability associated with the installation process. He said, “I should have just said no and stuck to what we were good at.”
That experience made me aware of the Power of No being used by other young business owners and executives. We have had clients that have said “No” to:
A large new client because it would tie the fate of their company to that client
Joint working relationship with other companies
Providing services related too but not associated with their core business
New investors in the company
Selling the company
All of these decisions are tough decisions to make, but I have noticed that our most successful young professionals are not afraid to look opportunity in the eye and say “not today”.
The L-Factor
An executive from Yahoo named Tim Sanders wrote a book a number of years ago called The Likeability Factor. The main idea of the book is people choose who they like and they tend to buy from them, hire them, and purposefully spend more time with them. It may not be a surprise that many of the successful young professionals that we see growing businesses and sprinting up the corporate ladder have what Tim Sanders calls a high “L-Factor”.
Think of the clients and co-workers that show up at your office door and you know it’s going to be a fun and engaging conversation. Those are the high L-factor people in our lives. It’s been shown that those High L-factor executives tend to survive layoffs time after time because even though their actual position may be getting eliminated, the powers that be sometimes find a place for that person to land for no other reason than they liked them and wanted to keep them with the company.
While I’m sure all of us can think of someone that is in a position of power that has an L-factor of zero, there are far many more business owners and executives that have made it to where they are today because they are likeable.
I feel like I could give you endless examples of instances where I have seen likeability play out in favor of successful young professionals, but I think everyone understands the general idea. The one thing that I will point out though that is also in Tim’s book is that any level, you have the ability to raise your L-Factor. Likeability is a skill like listening, negotiating, or public speaking. It comes very natural to some people, but others have to work at it.
About Michael……...
Hi, I’m Michael Ruger. I’m the managing partner of Greenbush Financial Group and the creator of the nationally recognized Money Smart Board blog . I created the blog because there are a lot of events in life that require important financial decisions. The goal is to help our readers avoid big financial missteps, discover financial solutions that they were not aware of, and to optimize their financial future.
First Time Homebuyer Tips
Buying your first home is one of life’s milestones that everyone should have the opportunity to experience if they choose. Owning a home gives you a feeling of accomplishment and as you make payments a portion is going to your personal net worth rather than a landlord. The process is exciting but one surefire piece of information that I wish I
home buyer tips
Buying your first home is one of life’s milestones that everyone should have the opportunity to experience if they choose. Owning a home gives you a feeling of accomplishment and as you make payments a portion is going to your personal net worth rather than a landlord. The process is exciting but one surefire piece of information that I wish I knew when buying my first home is that you will come across surprises. Whether it be a delay in closing, an issue with financing, or closing costs being higher than expected, it is important to know that you can do all the preparation possible and still be hit in the face with some setbacks.
This article will not only touch on some of the important considerations when buying your first home but will give examples of possible setbacks and how to avoid them.
Know Your Number
The most important piece of information to have when purchasing your home is how much you can spend. The purchase of your home should not be the only goal to consider. All of your other financial objectives such as paying off debt (i.e. college and unsecured) and saving for retirement must be taken into consideration. Also, it is recommended you have an emergency fund in place that would cover at least 4 months of your fixed expenses in case something happens with your job or some other event occurs. Knowing your number does not only include what you can afford today but how much you can afford monthly moving forward. If your monthly cash flow becomes dangerously low or negative with the addition of a mortgage payment (including mortgage/property taxes/homeowners), the house may be too expensive.
NOTE: Just because you are preapproved for a certain amount does not mean you need to spend that amount.
Choose An Agent You Trust
You will be spending a lot of time with your agent so choose them wisely. It should be someone you get along with and someone you can trust will look out for your best interests. If your agent just cares about receiving a commission, they may push you to purchase a home before looking at all of your options or buying a home you can’t afford. Remember, you are the client and therefore should be treated as such.
NOTE: Just because you never physically cut a check to your real estate agent doesn’t mean you aren’t paying them. In a typical transaction the seller will pay the commissions. An agreed upon percentage will come out of the sales proceeds and go to both real estate agents (the buyer’s and the seller’s) and therefore the cost is built into the price you pay.
Use Your Agent As An Asset
Your agent is likely much more knowledgeable about home buying than you so use that knowledge to your benefit. The agent should be able to help you value homes and determine whether the house is fairly priced. Ask them as many questions as possible throughout the entire process.
On The Fence
If you are on the fence whether or not to buy a home then take your time. If you may relocate because of your job or family don’t jump into purchasing a home. It is not worth paying the closing costs and going through the hassle of home buying if you may move in the near future. We typically use the “5 Year Rule” when making the determination. If you don’t see yourself being in the house for at least 5 years you should consider whether or not you will get your money back when you sell.
Compare Lenders
The banking industry is extremely competitive and it is worth shopping around for the best offer when choosing a mortgage provider. If you aren’t comfortable with numbers, don’t be afraid to ask for help. A difference of 0.10% on a 30 year mortgage could be the difference of thousands of dollars wasted on interest.
Don’t Cheap Out On Homeowners
Don’t choose your homeowners policy based on price. Of course price is one of the considerations but it is not the only one. Make sure your policy is the most comprehensive you can comfortably afford as the cost of increased premiums is likely much less than the cost of coming out of pocket for something not covered. Remember, insurance companies, like banks, are in a competitive industry so shop around.
Down Payment
Most lenders require a 20% down payment of the home value to avoid paying additional costs. This means if the value of the home is $200,000, you will have to pay $40,000 out of pocket! Most lenders offer Federal Housing Administration (FHA) loans that allow you to put down as little as 3.5%. If you choose this type of loan you also have to purchase Private Mortgage Insurance (PMI). This will be a cost added to your mortgage payment until the value of your home is adequate enough to remove the PMI. It is important to factor this in as a cost similar to interest because a 5% interest rate could quickly look like 6-7% if you have to pay PMI.
Closing And Other Additional Costs
There are a lot of out of pocket costs to consider when purchasing a home. Examples of these costs are listed below. An important piece of knowing your number is to consider all the costs that may come up during the process.
Loan Origination Fee
Attorney Fees
Property Taxes
Home Owners Insurance
Appraisal Fee
Inspection Fee
Title Insurance
Recording Fee
Government Recording Charges
Credit Report Fee
Flood Determination Fee
How To Help Avoid Certain Complications
Situation: I bought a house at the top of my budget that I thought was move in ready but needs repairs.
Recommendation: Choose an inspector that has a great reputation and knows the location. There may be issues that are common to the area that one inspector may be more likely to identify. Also, bring a contractor or someone of similar background for a walk through. Repairs can be extremely costly and if you purchased a home at the top end of your budget you may not be able to afford certain fixes. It should be known that all issues cannot be foreseen but taking the necessary steps to diminish these situations will not hurt. Don’t purchase a home that will bankrupt you if repairs need to be done.
Situation: I bought a home I can’t fill.
Recommendation: Closing costs and repairs won’t be the only out of pocket expenses. Complete a summary of items you think you may need to buy after the purchase. This may include furniture, appliances, décor, and fixtures. In these situations it is always better to overestimate.
Situation: My lease is up in a month and I would like to purchase a home.
Recommendation: Purchasing a home is something that requires time and planning. The home will likely be the largest purchase you’ve ever made (depending on the college you choose) so it is not something to rush. If you are thinking of moving after your lease is up or when you relocate jobs, start planning as soon as possible. Feeling forced into purchasing something as important as a home will likely lead to regrets.
About Rob……...
Hi, I’m Rob Mangold. I’m the Chief Operating Officer at Greenbush Financial Group and a contributor to the Money Smart Board blog. We created the blog to provide strategies that will help our readers personally , professionally, and financially. Our blog is meant to be a resource. If there are questions that you need answered, pleas feel free to join in on the discussion or contact me directly.
