Keeping Up With The Bulls

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Advice for 2023 Grads From a Millennial That Graduated in 2010

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Congratulations, Class of 2023! As a millennial who graduated in 2010 I saw a lot of uncertainty in the job market as we came out of the Great Recession and have advice for graduates based on this experience. While the US is not technically in a recession right now, there is uncertainty in the job market for new grads. This is making it tougher for new grads to get jobs right now. Additionally, while tech companies tend to offer high salaries, many tech companies have been laying off workers over the last 6 months making it harder to get one of these higher paying jobs. According to the National Bureau of Economic Research graduating in a recession leads to large initial earnings losses of about 9% of annual earnings in the initial stage eventually recede but don’t disappear until about ten years after graduation.

Don’t get discouraged by this news. While it’s tough, there are still ways to thrive. I graduated in 2010 and saw a lot of this first hand. We had less paid internship opportunities in college. Entry jobs didn’t begin opening up until much later. We also saw many of our friends who graduate a year or two above us get a job offer and then have it revoked, get laid off after only months of working or struggle to get that first job after graduation. Based on what I saw during the Great Recession and how we all took control of our jobs and our finances in the decade since here is my advice for graduates.

Be Prepared To Share Your Resume and What Jobs You’re Interested In At A Moments Notice

My top career advice for graduates is to always be prepared. Practice your 30 second elevator pitch on your background, what you’re looking for and how you add value. Always have your resume up to date, even if you’re content in your current job.

You know you need to prepare for a job interview, but how prepared are you for a chance encounter? While in person chance encounters are less likely during social distancing, they can still happen through word of mouth. Perhaps one of your parents, a relative, a friend or a neighbor hears of a job and contacts you. Will an opportunity land in your lap? It’s unlikely. But, if you tell people you’re looking for a job and put yourself in situations where you meet new people these types of chance encounters are more likely to happen.

These are the situations you need to be prepared for. If there is an opportunity, they’ll ask for your resume to share. They’ll ask about what types of jobs you’re looking for, so they can think about if they know of any openings.

Do have your resume always up to date. Do be clear with what you’re looking for. Don’t say you’re open to anything. By keeping it too vague it’s hard for someone to help you. That doesn’t mean you need to know exactly what you want. Here are a few ways you can answer it:

  1. Talk about your background – what did you major in? What were you most excited about in your internships and classes?
  2. Location – are you looking for a job locally or are you open to moving for a role? Do you have a preference?
  3. Are you looking for a full time or part time role? Are you open to a role that starts as part time but could lead to something full time?
  4. Speak to your skill set – what areas are you strong in?

See Also: How to Ask for a Job Referral

You May Not Land Your Dream Job… and That’s OK

Competition for jobs at the salary you want is higher right now. So, chances that you’ll land your dream job are slimmer. But, that doesn’t have to be a bad thing! Think back to when you were applying to college. Did you end up at your dream school? Did it all work out in the end?

To put things in perspective, you’re also in your early 20s. Most people do not know exactly what they want to do with their lives at this age. It’s a myth that everyone knows exactly what they want to do when they graduate college. It’s important to be flexible. Take a job and figure out what you enjoy and what you don’t enjoy about that job. Then, continue looking for ways to enjoy that job more, or look for another job you’ll enjoy more.

The job opportunities available now may be wildly different than your major. Your opportunities may even be going back to where you worked part time in high school. That’s ok. No company is going to frown upon the interim job you took during a pandemic.

See Also: Career Advice for Young Professionals

Know What Seems Like Settling May Be The Best Thing That Happens To You

I stumbled into the tech industry at the recommendation of my career center at college. I had no idea what my dream job would be then. We were in middle of the recession so I got an offer and accepted. Turns out it was the best thing that could have happened. The tech industry is an amazing industry to work in. I met countless mentors and sponsors that helped torpedo my career. Now, everyone wants to work in tech! But back then, almost no one I went to school was trying to get a job in tech.

Some of my friends in tech sales that graduated around the same time have shared they joined a tech inside sales program because those were the jobs that were available. Sales reps at several high tech companies say they earn an average of over $142,000 a year. Here they were in the middle of the Great Recession and they ended up getting their foot in the door to one of the best paying jobs that doesn’t require an advanced degree.

Use Your College Career Center To Identify Open Positions and Helpful Contacts

Career Services on campus is a great resource for current students and recent alumni. They have access to tools that can help you identify what careers to pursue. Often, they’ve helped alumni get their jobs and have maintain those relationships. When you’re trying to get an in at a company they may know of an alumni to reach out to. They also have relationships with companies that hire entry level positions. Career Services may even be the most important office on campus according to an opinion piece on Forbes.

Network With Alumni

If you’re looking at jobs at a company my advice for graduates is network with current alumni at the company. That way, you have a connection that you can reach out to for a referral if a job does open up. Don’t expect alumni to reach out to you with any opportunity they hear. It’s likely they are busy. Instead, monitor the open jobs at that company and reach out again when you see one you’re interested in.

First, reach out to alumni you have relationships with asking if they know of opportunities. Remember to be as specific as you can with what you are looking for. Join LinkedIn Alumni groups for your college and also look to join ones on Facebook. Sometimes there are even subgroups for a certain location. Post in these groups and share your story. Many people are happy to help, and may help offer advice even if they don’t know of any job opportunities currently available.

Consider a Paid or Unpaid Internship In The Short Term Instead of a Full Time Job

While you’re looking for a full time role, one path to potentially get a full time offer is to accept an internship. An internship is helpful if you don’t have much experience on your resume and you need a little more experience to start landing interviews. Internships are also helpful if the company isn’t hiring full time right now but may be hiring for full time positions in a couple months.

Add To Your Experience Through Volunteering

Not all experience is from internships and part time jobs. You can also show your experience through your volunteer experience. Use this experience to show how you’ve built leadership experience, reliability and additional skills that are relevant to the jobs you are applying to. Not all volunteering has to be in person or even at a non-profit.

If you see a local business struggling and they don’t have a social media presence offer to help them set it up for free and add that experience to your resume. This also opens up opportunities for future paid work. They may recommend you to their network and you can begin charging for your time.

Be Frugal For The Next Few Years

My top financial advice for graduates is to be frugal for the next few years. It’s not the best economy right now and we don’t know how long it’ll take to recover. So, once you get a job keep conserving as much cash as possible. It’s not like there is a lot to do now anyways with businesses closed and limited travel options available. Plus, if you have a remote job you don’t have to buy more than a few shirts for Zoom calls.

Ways to keep living like a college student include cheap housing and cheap food. Keep living at home or move in with roommates into a starter apartment. If you’re moving out, try to negotiate rent. Vacancies are up right now so you’re more likely to have success negotiating things like a free month of rent. The next biggest expense is transportation. Hold off on buying a car especially if you don’t know where you’ll end up living. Use your current car as long as you can. If you don’t have a car, buy a used car and shop around for deals.

Hang out with friends outside instead of going to a restaurant. Go on a walk, or bring food for a picnic. Drinks and food at restaurants are expensive and with many bars closed there are less cheap drink specials to be found. Eat at home. When you buy groceries, look for coupons and deals. There are also ways to spend less on food by buying cheaper options. For example, buy oats and make oatmeal instead of single serve yogurts. You can find dinner recipes and meal planning tips to save money.

Is frugal living not for you? This doesn’t have to be a permanent lifestyle, but the longer you’re able to live frugally like you lived in college the easier your finances will be. You don’t have to cut back in all areas either, the single most important expense is housing.

See Also: How to Save Money in Your 20s

Start An Emergency Fund Once You Land A Job

Once you land a job, whether it be part time or full time, start an emergency fund. An emergency fund is an amount of money set aside to cover emergencies if they arise. The money should be easily accessible and liquid (such as money held in a checking account or savings account) that you have for when things go wrong. This includes an unexpected health bill, unexpected car repair, if you lose your job and so forth.

At this point, don’t worry about how much money you should have in an emergency fund. Your focus once landing a job is to start an emergency fund, even if it’s only contributing $5-10 a paycheck. If your family gave you some money for graduation put some of that cash in your emergency fund. Get in the habit of consistently contributing a little money with every single paycheck, and automate the savings so you don’t even have to think about it. Once you are more settled, you can start building your emergency fund.

Advice for Graduates Summary

As you step into the world as graduates, here are some pieces of advice to keep in mind. Always have your resume (and LinkedIn) up to date and ready to be shared. Be ok with not landing your dream job, and know that sometimes a different path ends up being better than you could have ever expected. Use LinkedIn to network with alumni. And, while it’s always most important to focus on increasing your income don’t forget to be frugal with your money and start an emergency fund as you begin to get your financial footing.

How To Identify Your Financial Blind Spots

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Everyone has some level of financial blind spots. These areas may be overlooking important information or not having a clear understanding about a topic. To build a strong financial foundation it’s important to identify and address these financial blind spots. This will help you make informed decisions about your finances and reach your financial goals. Below are steps that you can take to see through your financial blind spots and gain a better understanding of your financial situation.

Start Identifying Your Current Financial Blind Spots By Creating a Budget and Tracking Your Expenses

The most important place to start to take control of your financial blind spots is to identify your current financial situation. The easiest place to start is to create a budget and track your expenses. It can help you understand how much money you are making after tax every month and how much you are spending every month.

By creating a budget, you can identify areas where you may be overspending and make adjustments to your spending habits. You can also identify if the income you’re making is too low for the lifestyle you want to live. If you know you don’t have the patience to track every single expense, you can use an app like Mint that will track everything for you once you link your accounts. By taking the time to identify your current financial situation, you can begin to develop an understanding of your financial blind spots and take action to address them.

Make A List of Your Financial Goals and Prioritize Them

The next step is to identify your financial goals. What do you want to achieve in the short, medium, and long-term? Potential goals could be paying off high-interest debt, saving for a downpayment, building an emergency fund, investing for retirement, or saving more money. Once you have your list of goals, prioritize them. It doesn’t mean you can’t work on multiple financial goals at once, but the top focus should be your first goal, and then less money should go toward the second goal. Be realistic about what you can achieve in the short-term with your current income and expenses. Likely, short-term sacrifices will have to be made to achieve future goals.

Comparing Yourself to Others

Comparing yourself to others when it comes to finances can be a potential financial blind spot that many people fall into. It is easy to feel jealousy when you see someone taking luxury vacations, have a nice house or nice car. You may want to live that same lifestyle and start living that lifestyle that you can’t yet afford. However, it is essential to remember that everyone’s financial situation is unique and often not what it appears to be. Comparing yourself to others can be detrimental to your financial well-being and financial goals.

It is always best to focus on your own financial goals, understand the lifestyle you can afford and develop a realistic budget. At the same time, you can work on growing your income so that if your financial goals do include things that others around you have, you can afford them. It is always best to work towards building a secure financial future that is tailored to your individual needs and circumstances, and not what others around you have.

Review Your Investment Portfolio And Make Sure It Aligns With Your Risk Tolerance and Goals

It’s important to review your investment portfolio and ensure it aligns to your risk tolerance and goals. An annual review or review when you have a big life change, like a child being born or nearing retirement, will help with this. Your risk tolerance and investment goals will change over time, and these reviews will help ensure it stays in line with your current needs and objectives. Consider your financial situation, investment experience, your age and your time horizon. For example, if you like taking big risks but are near retirement a more conservative approach may make sense. If you are risk-adverse but have a long time horizon an ETF that tracks the market so you can set it and forget it may make more sense.

Stay Informed About Financial News And Trends And Continue To Educate Yourself About Personal Finance

It’s important to stay informed about financial news and trends. One financial blind spot is not being aware of what’s changing around you and potentially leaving money on the table or increasing risk in your financial plan. For example, recently there have been a lot of layoffs in the technology sector. If you work in the tech sector, you may want to consider putting extra in your emergency fund. Another example is changing tax laws. This year, in 2023, the Roth 401k limit increased to $66,000. Depending on your financial situation, this higher limit could be something you’ll want to take advantage of.

Focusing Too Much on Cutting Expenses and Not Enough on Growing Income

While being frugal is an important aspect of managing your finances, focusing too much on cutting expenses can sometimes be counterproductive. You can only cut your expenses so much, whereas there is no limit on how much money you can make. Increasing your income can have a more significant impact on your financial situation than simply cutting expenses. By increasing your income, you can increase your savings rate, pay off debt more quickly, and reach your financial goals faster.

There are many ways to increase your income. This includes investing in yourself to land a higher paying job, negotiating a raise, starting a side hustle or passive investing. While increasing your income can require more effort than cutting expenses, it will ultimately provide you with greater financial flexibility and stability.

Spending More Than You Make

Spending more than you make is a significant financial blind spot that can lead to debt and hurt your progress toward achieving your financial goals. Over time, the cycle of spending more than you make will put you further and further from achieving financial independence.

To stop the cycle of spending more than you make, it’s crucial to create a budget and rein in your expenses. In the short term, this will likely be painful as you will not be living the lifestyle that you were. You’ll have to stay in more, cut down vacations, significantly reduce your shopping, and potentially even downsize your car or apartment. The sooner you can see through this financial blind spot, the less drastic of measures you’ll have to take.

Buying Things You Don’t Need Because They are On Sale

Buying things you don’t need because they are on sale is a common spending habit. It may seem like a good idea to take advantage of a sale, but if you don’t need it, you’re actually not saving money. To avoid buying things you don’t need, it’s essential you recognize that this is one of your financial blind spots. If you buy clothing because it’s on sale, create a list of clothing and accessories you actually need. If the item isn’t on that list, don’t buy it. Another strategy is to give yourself a waiting period before making any non-essential purchases. This can help you avoid impulse buys and ensure that you’re making informed decisions about your spending.

Another common financial blind spot is buying multiple of something because they were on sale instead of buying one of that thing you really like. For example, buying 3 shirts because they’re on sale for $10 instead of buying the shirt you really like that’s $30. You only needed one, you spent the same amount of money and yet now you have 3 shirts that you like less than the one you wanted. This is a hard cycle to break, and recognizing this financial blind spot may not save you money, but you’ll end up spending money on what you actually enjoy.

Consider Connecting with A Financial Advisor or Professional

Today, there is a lot of information online to help educate yourself about your finances. But, sometimes you need the help of a professional. A financial advisor or planner can provide you with a professional perspective on your finances, helping you make informed decisions and create a personalized financial plan that is tailored to your unique needs and goals.

Behavior experts at Cambridge University found that by age 7 most children understand what it means to earn money and what income is and that money can be exchanged for goods. Your financial blind spots may be deeply rooted in what you were taught about money and how you’ve observed people handle money for decades. If you have an unhealthy relationship with money, a therapist may also be able to help you better understand your overspending, or underspending.

Financial Blind Spots Summary

Seeing through your financial blind spots is critical for achieving your long term financial goals and financial independence. Financial blind spots can be anything from spending habits and poor budgeting to not aligning your investment strategies with your risk tolerance and financial goals. Identifying and addressing your financial blind spots is essential to achieving your long term goals and financial stability. It’s important to evaluate your financial situation at least once a year because things change and it’s important your finances and financial goals align to those changes. By recognizing your financial blind spots, you can improve your financial stability and achieve financial independence.

How to Save Money Traveling to Europe in 2023

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It’s not just you, prices to travel to Europe are astronomically higher than 2019. CNBC found that round trip airfare to Europe right now is 20% higher than this time in 2019. This, in part, may be to surging demand to travel to Europe in 2023. Kayak found that searches for European travel are 77% higher than last year. You can still take that dream trip to Europe this summer with no extra planning – but, it’ll cost you. Or, you can spend more time planning that dream trip to Europe this year and find ways to save money on airfare, hotels and food.

Here are actionable ways to save money traveling to Europe this summer.

Create a Travel Budget

Before you start planning, create a total travel budget for the year. Then, set a budget by trip. With airline trips to Europe and European hotel prices so high, it’ll be a give and take. It is unlikely you’ll be able to get everything you want for the prices you want. Travel prices to Europe in summer 2023 are so high that simple tricks like packing food for the airport won’t make a material difference. As you start planning, it’s more than likely you’ll find you under budgeted for the trips you wanted to take. You’ll either have to increase your budget, or be flexible with your travel. At a certain point, you may have to drop a trip entirely.

Once you have an estimate per trip, build a bottoms up view. How much do you estimate spending on plane tickets to Europe? How many nights in the hotel and how much per night? How much to estimate for the transportation to/from the airports? Food cost per day. Shopping estimates. Activities. If the sum of the bottoms up view doesn’t match the total trip estimate move some money around, or lower the total you’re willing to spend on another trip.

Set Your Travel Priorities

With prices so high, it’s important to set your travel priorities. What trips are most important to you? If going to multiple cities, which city is your top priority? Is the destination or time of year most important? Can you combine any travel to reduce costs? Are you willing to take a connecting flight to save money?

Continue to Use the Basics To Save Money on Travel to Europe

While traveling to Europe this summer takes extra planning to reduce travel costs, it’s important to continue doing the basics to save money on travel. Even though you’ll need to do more than the basics this year, it’s always a good place to start.

Book Hotels Early

Book hotels as early as you can. It’s not necessarily the hotel changing their prices, it’s also that the cheapest rooms tend to book the fastest. Sometimes hotels also have special rates if you book early.

Travel in the Off Season

Hotels, and flights, are cheaper in the off season. Reducing these two expenses will help you stay within your travel budget the most. Traveling to Europe in October instead of August will save you more money than packing food for the airport as an example.

Set Alerts on Google Flights

When you find potential flights you want, set alerts through Google Flights so you get emails about changes in the fare. Truthfully, this hasn’t helped too much for planning trips this summer as most of the alerts are telling me my flight prices have increased.

Use Corporate Personal Travel Codes and Credit Card Travel Sites To Save Money

Do you work for a large corporation? Check out the internal website and see if they offer discount codes for personal travel. Sometimes the prices are the same, but you’ll get better cancellation policies. If you have a Chase card, or an AMEX, Chase Ultimate Rewards and AMEX FHR are two other sites to check out for hotel and flight deals. Sometimes these sites charge more for hotels and flights so pay close attention. Other times, these sites may have similar prices but have benefits that can help save you money like free upgrades if available, spa credit and more.

Sign Up For Credit Cards with Good Sign Up Points Bonuses

Sign up for new credit cards with good points bonuses. This will help you rack up points for travel not yet booked, or future travel.

Plan Ahead and Cut Transportation Costs

All of the other trip transportation costs add up too. Plan ahead to save money on transportation costs. If you Uber to the airport, book the Uber ahead of time to avoid surge pricing. In some places, booking a taxi ahead of time with your hotel is cheaper than getting a taxi at the airport. Learn about the local trains and buses. Many countries in Europe have a robust public transportation system. Using the local trains and buses will easily save several hundred dollars over the course of a week. Sometimes taking the train is faster than taking a taxi!

Plan the European Vacation You Want, Then Start Optimizing For Savings

You’re going to Europe, how exciting! Start planning the trip you want to take. Pick your ideal time of year, ideal location, ideal travel dates. If it’s a particular city in Europe, check out Google Flights and playing around with dates to get flight price estimates. Then, find a few hotels you’d like to stay at – your top choice and a backup. Book refundable rates on the hotels and put reminders in your calendar for when you can cancel until. It’s best to book the hotel ASAP, as long as it’s refundable, even if it’s not your desired price yet because hotels are selling out quickly. Don’t forget to create a list of all of the hotels you book and the dates you need to cancel by.

Forget Loyalty to Your Usual Airline and Hotel Brands

It’s always nice to rack up points and get free breakfast from your hotel status but with prices so high you will most likely be able to save several hundred dollars (possibly a night!) by being open to other hotels.

The same is true for airlines. For example, I usually fly American but some of the flights I’ve been watching are $1,000/ person cheaper on United for economy. This is for a one way ticket! Not to be confused with United being cheap, their airfare prices are still higher than 2019 prices! Even though my preference is American because of my status, it’s not worth $1,000 extra.

Drain Loyalty Point Balances

Usually, I’ll try to save loyalty points to get the best deal. For example, Marriott will give you the 5th night free when you redeem points for 5 nights or more. But, with many companies devaluing points the last few years, plus the high costs of hotels and flights, this year I’ve been booking with points to avoid the cash rates. Especially with brands I don’t use often. If you have points with a hotel chain or airline you rarely use, now is a good time to use those points.

Set Reminders to Check Hotel Prices At Least Once A Month

Hotel prices and availability fluctuate a lot. I was bummed that one hotel I wanted only had suites left for a vacation still months away! And, the suites were over $1,500 a night compared to $300 / night for a regular room. I set reminders to check once a week and sure enough, 2 weeks later one of the cheapest rooms became available.

Don’t forget to check multiple places for hotel prices too. Usually, booking directly with the hotel gives you the cheapest option. But, once you factor in the extra benefits AMEX FHR or Chase Ultimate Rewards may have a better deal.

Change Your Hotel Rates to Non-Refundable As The Trip Gets Closer

Non-refundable hotel rates are cheaper than the rates that allow cancellations. As your trip gets closer, consider changing your hotel room to the “non-refundable rate.” Even though this rate is likely higher than when you originally booked, the current non-refundable rate is still likely lower than the refundable rate you have. This trick ended up saving us almost $1,000 for our summer 2023 Europe vacation.

Remember to Be Flexible With Your Travel Plans

I mean, really be flexible. It’s not just being open to flying in a day earlier or later. Be open to entirely changing the month you’ll travel. Flying TAP Portugal with no status instead of the US airline you have status with. Stop in Istanbul or Iceland overnight to save money on flights by flying Turkish Airlines or Icelandair. Taking a train within Europe or flying Ryan Air to save several hundred dollars on flights. Staying in another part of the city and spending more on cabs or trains.

Book Backup Hotels – But Don’t Forget To Cancel Them

Do you want to be in Plaka in Athens but a hotel 10 minutes taxi away is over $100 cheaper / night? Oia in Santorini but Fira is hundreds of dollars cheaper a night? Book both options – refundable – and mark on your calendar a few days before the cancellation deadline to cancel one of them. That way, as the whole trip comes together and you have a better view of total costs you’ll be able to keep your top choice, or keep the cheaper backup hotel option.

Be Flexible What City You Enter or Exit Europe From

Flights to Europe from the United States are crazy expensive right now, and so far there really don’t seem like great options. Getting 2019 prices doesn’t look very likely, but if you’re flexible on what city you enter Europe in you may be able to save a few hundred dollars or fly for less points.

Use Excel and ChatGPT To Help With Your Planning

One of my priorities was to have a logistically easy trip. I wanted to fly direct, but I also was willing for one way to have an overnight stopover in another city. To narrow down options I told ChatGPT I would like to fly on X date, from X airport in the US to a city that also had direct flights to my ultimate destination. It ended up giving me 5 cities that had direct flights to both my home in the US and also my end destination. While one of the locations didn’t have a direct flight on the right day, the other 4 were correct and this helped save me time.

But, there were still factors to consider. How much was the connecting flight in Europe? How much was the overnight hotel? How much was the flight back to the US – and, using points, how much were the fees for each destination? Once I had the top 4 options I put all these options with points plus cash and travel time and asked ChatGPT to calculate which option was best. It converted the points to dollar value and gave me the top option.

Save Money on Food and Activities in Europe

The biggest opportunities to save money traveling to Europe are to reduce your airfare and hotel costs. But, there are still opportunities to drive down costs elsewhere.

Food prices have increased greatly the last few years too. Don’t feel the need to always eat at sit down restaurants. Many places in Europe have incredible food markets, great local markets and great outdoor spaces. It’s a great experience to have a picnic in a park, eat at an outdoor food market, grab an ice cream cone instead of ordering dessert with dinner. Some hotels also offer really hearty free breakfasts.

With travel demand so high, it’s best to book activities ahead of time before they sell out. Sometimes buying tickets or tours ahead of time online can save you money. To save even more money you can do a larger group tour instead of a smaller group tour. Some places also offer audio tours which are cheaper than paying for a local guide.

How to Save Money Traveling to Europe in 2023 Summary

In summary, traveling to Europe in 2023 is expensive, but there are still ways to reduce costs if you’re willing to be flexible and put in the extra effort. It’s unlikely you’ll get 2019 prices, but with extra planning you can shave off hundreds, if not thousands of dollars off your total trip.