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Personal Finance From a Biblical Perspective

How to Choose A Career Path

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When considering a career path, one can feel overwhelmed by the various choices. In order to help you narrow down your choices, some well-meaning friend will tell you, “do what you love”, while another will say, “choose a career that will pay a lot of money”. Who is right in this case? How can you determine what path to take?

I was reading an article titled, “Doing What You Love Versus Doing What Pays” that looks at common advice on the subject. In reading the comments to that article, it seemed as though most of the readers would advise someone to choose a career path based on the potential income. Others still stuck with the “do what you love” advice that many hold to.

Career Path
Career Path

But is it really that simple? Let’s take a look at a few of the pros and cons to both of these views, and also see if there isn’t some other choice that we can make.

A Career Path that you don’t love but pays well:

Pros:

  • You will make a good amount of money
  • You will more than likely avoid the stress that comes from having a lower income (of course this ultimately depends on your financial discipline)
  • The added income may give you the financial freedom that you need to pursue what you love, as a hobby – or at least to not focus on the income it generates
  • You may be able to retire faster and then do what you love full-time

Career Path
photo credit: HikingArtist.com

Cons:

  • If you dislike a particular field, it may be harder to gain enough of an expertise in order to be highly compensated (for instance, those who hate math will not make top notch engineers)
  • You may be required to give up quality time with family and friends in order to accomplish your salary goal
  • Some people with higher incomes find it harder to exercise financial discipline than those with lower ones
  • Many high paying careers paths are also considered to be the most stressful
  • This stress will impact your relationship with family and friends over the long run

A Career Path that you love, regardless of the pay:

Pros:

  • Your love of that field will make you a great student, and so you may excel to the point where you are a top earner in that sector
  • You will have a sense of fulfillment and happiness from your work
  • The lower salary may force you to develop financial discipline
  • You may have lower levels of work-related stress

Career Path

photo credit: icadrews

Cons:

  • Lower salary – you may have to live a much simpler life
  • May take you longer to retire – this may not be a big issue for you if you absolutely love your job
  • If you lose your job, it may be harder to find a new one – although there are a few low paying jobs that are in demand

A couple of things to note. First, this is by no means an exhaustive list. Actually, I am counting on your comments below to help fill in the missing pieces. Second, you will notice that many of these points use uncertain terms like “may”, or “many”; this is due to the fact that many of these will not be true in EVERY case.

My take on choosing a Career Path is this:

I think that the answer to this question is different for everyone and is a matter of prospective. My initial reaction to this question was, “If you can get paid a ‘decent’ living wage for doing what you love, go for it! We wouldn’t have teachers, social workers, or pastors if people didn’t follow this line of thinking.” I also said to myself, “Money isn’t everything, and if you have to be miserable for 10 hours/day just to make a few extra dollars, it probably isn’t worth it.”

Do what you love, and if the pay isn’t great, lower your standard of living to match your pay. You can’t determine your standard of living apart from your income. In other words, LIVE WITHIN (or actually below) YOUR MEANS! This is true no matter what your income turns out to be.

However, for many there is little to no career opportunity in what they “love“. In that case, find a balance. Do something you like, and if it doesn’t pay enough to maintain your desired standard of living, try to make a few bucks from what you love. Like others have said, don’t choke the life out of what you love by focusing on money, but maybe you can be a consultant in that area or start a blog giving advice about it.

Ultimately, we should be content with whatever financial/work situation in which we find ourselves. In the words of the Apostle Paul:

Not that I speak from want, for I have learned to be content in whatever circumstances I am. I know how to get along with humble means, and I also know how to live in prosperity; in any and every circumstance I have learned the secret of being filled and going hungry, both of having abundance and suffering need. I can do all things through Him who strengthens me. ~ Philippians 4:11-13

We see from this passage that our situation should not be able to determine our satisfaction or contentment in this life – especially if we are slaves to Christ!

Personally, I happened to “like” a field that is in good demand (Economics & Finance). However, my true love is Theology, and that may be something that is in my future.

What about you? What choice did you make? Any regrets? How would you advise someone in choosing a career path? Would you tell them to look for money, happiness, or both?

To help you in your choice, Payscale.com has released it’s list of “Best Undergrad College Degrees By Salary”:

Degrees Degrees
Methodology
Annual pay for Bachelors graduates without higher degrees. Typical starting graduates have 2 years of experience; mid-career have 15 years. See full methodology for more.

Not an engineer or an economist? Here is the full list: http://www.payscale.com/best-colleges/degrees.asp

Be sure to leave your comments below.

 

photo credit: jeremy.wilburn

Choosing A Career That Will Be In Demand In The Future

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The labor market is always in process of evolving, and professions popular today may become forgotten in some ten or fifteen years.

Each period of time has particular tendencies dictated by the economic and social situation in that society. That must be thought of when you choose your career, as your future occupation will be the main source for providing your and your family’s life.

If your vocation happens to lose its demand in several years you’ll have to face serious difficulties in re-qualification and searching for a new job.

Speaking about current situation in the labor market it’s worth mentioning that in modern society two main tendencies are being developed. They are computer technology and trading as a global way of communication.

In the age of information technology and technique it is not surprising that professions connected with engineering and information systems are the most in demand, and will be as long as the trends of modern society continue in this manner.

Today there is hardly a person who would do without any kind of modern technology, and therefore, those who choose a career which focuses on creating, developing, integrating, or even repairing this technology will have an easier time finding work.

Sales jobs have also gained the highest popularity in the USA and all over the world, and the sphere of trading business involves more and more people to provide commodity/service money circulation.

The good news for unemployed job seekers is that unlike the jobs in the technology sector mentioned above, professions of this particular field don’t often require special training and considerable work experience.

There are many vacancies for those who are looking for temporary or additional employment (for extra cash) as well as some serious occupation with stable and considerable income. Trading jobs are the best way to start your working experience and the shortest way to earn money.

But there is one difficulty you must remember about when choose sales profession as your main money source. It requires one to possess great flexibility and mobility in order to be successful.

You must be ready for unexpected and deal with the consequences of your decisions as there are always risks involved. A sales occupation is often unpredictable and unstable, so you must be prepared for hard times, but in the long run, you may find great success.

Are You Making All The Money You Can On Your Job?

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These days, promotions are almost impossibly to get, and the standard raise is something on the order of 2%. That makes it very difficult to increase your salary on your job. But even if you can’t, many companies offer various plans to provide additional compensation. Do you know what those are at your company, and are you taking advantage of them if you do?

The compensation on these programs often result in much more than just additional income. Here are some examples…

Performance Bonuses

Many employees are given to a day-in, day-out routine, and find it difficult to rise above the typical performance to achieve greater results. But if your employer is offering you a bonus to do so, this is something you should seriously look into.

On many jobs, performance bonuses are a regular and substantial portion of the employees overall compensation. But it does require that you adopt a more competitive nature, and try to go above and beyond typical production in your department.

Find out if there is a performance bonus plan available where you work, and if so, what the parameters are. Realistically assess your ability to achieve the desired results, and any necessary changes in your performance that will be necessary. And if you think that you can make it happen, go for it and don’t look back.

There’s a bonus on a performance bonus: the employees who regularly qualify for performance bonuses are also often the people who are most frequently promoted.

Making Money Job

Suggestion Box Ideas

Some employers are actively searching for new ideas on how to run and improve the business. Some even solicit ideas from employees – and why not, company staff are in a better position to know what will work in what won’t than anyone else.

If your company has a suggestion box, make it a point to submit ideas on a regular basis. Many employers offer a bonus of some sort for ideas that are accepted. And once again, if you are a consistent source of new and workable ideas, it could improve your chances of an eventual promotion.

Employee Referral Bonuses

Many companies strongly prefer hiring employees who come in with a solid referral from someone who already works at the company. The bonuses on the successful hire of a new employee can be substantial, often well in excess of $1,000.

If your company has an employee referral bonus program in place, plan to take full advantage of it. Familiarize yourself with what positions they’re looking to fill, and then do some scouting and networking to determine who you know who could be a good fit for the jobs. By doing this on a regular basis, you can add thousands of dollars to your income each year. That’s a lot of additional money to make just from doing some research and making a telephone call or two.

Tuition Reimbursement

You may not think of this as a form of extra income, but that’s exactly what it is. If your employer is willing to at least partially pay for additional education, use it for all it’s worth.

Though it may not represent an immediate form of compensation in your next paycheck, it can help you acquire the skills that you need in order to advance in your job. And ironically, even if you can’t rise up in your current employer, you may be setting the stage for a better position with another company further down the road, based on your improved skills and education.

Customer Referral Programs

Many companies offer a customer referral program, even if it isn’t widely known. That’s a program in which you are compensated for providing new business to the company. If your employer has such a program, you should be taking full advantage of it.

There are at least four good reasons for doing this:

  1. A steady number of customer referrals can result in a steady source of new income for you
  2. As a source of new business for your employer, your position with the company becomes more secure
  3. By demonstrating an ability to get new business in the door, you will raise your value to your employer, and increase the chance of a promotion
  4. By bringing more business to your employer, you’re improving the company’s financial position, making it more likely they’ll stay in business and keep you on the payroll

Most of the bonus programs we’ve discussed up to this point are the type that apply mainly to large employers. But a customer referral program is something that even very small employers can and will offer. All businesses, after all, have a vested interest in encouraging new business, and a customer referral plan can be implemented even if it doesn’t already exist.

There is a saying, raises become effective when you do. Though your company may be stingy when it comes to giving financial raises, you can make it happen by becoming more effective in your work, and qualifying for the various bonus programs that your employer may offer.

Do you ever take advantage of these programs at work?

The Dark Side of Being Your Own Boss

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Being your own boss is probably something most people think about at one time or another. It may even be a natural human desire. If you have a job, you see things that happen at work and imagine how much better it would be if you were the boss. But as exciting as that thought may be, there’s the dark side of being your own boss.

What is that dark side?

Fully Embracing The Concept Of “Chief Cook And Bottle Washer”

When you work for someone else, the workload is typically distributed among several people. Each person has a specialty, but there are usually extra hands available to pitch in when the workload gets a little heavy. And sometimes new employees or even temporary workers can be brought in to help out.

But when you work for yourself, it’s all up to you. This is especially true when you’re first starting out in business. Though the responsibilities seem endless, there simply isn’t enough income to justify hiring others to help carry the load.

As your own boss, you are responsible for everything that happens in your business – from the most minute details right up to the heaviest tasks. You have to generate your product or service, market your business, maintain customer contact and support, fill orders, and handle all of the back office responsibilities that go with self-employment.

Stress Starting Business

If this type of arrangement doesn’t set well with you, you have two choices:

  1. Find someone to partner with in your business so that the workload is shared – without having to pay a salary, or
  2. Learn to love and appreciate being an employee – though it may be tough, at least your responsibilities aren’t unlimited.

An Unlimited Schedule

Speaking of unlimited, one thing you learn early in the self-employment process is that your schedule seems to have no end! That’s not an exaggeration either. If working 40 or 50 hours per week on your job is tough,  imagine working 10 or 12 hours a day, six or seven days per week. That kind of schedule is entirely possible when it comes to being self-employed.

One of the ways the self-employed manage to get all of the work done – without paying someone else to do it for them – is by working an incredible number of hours to complete all work that needs to be done. For example, you might spend the regular workday – Monday through Friday, 9 to 5 – doing the basic functions to keep your business afloat. This can include product production, marketing, dealing with vendors, and making sales calls.

Since you’re so busy during the day, and on weekdays, you might do all the administrative tasks in the evenings or on weekends. Sometimes you may even find yourself doing more substantial work nights and weekends as well, like making sales calls or designing marketing material.

When you’re your own boss, your schedule essentially has no time limit. You work as long as you need to in order to complete the work that needs to be done.

Cash Flow Insecurity

When you work for someone else, you get comfortable with the idea of having a fixed amount of income arriving at predictable intervals. You may be paid weekly, semi-weekly, bi-monthly, or monthly. There may even be predictable bonuses along the way.

But when you’re your own boss, there is no income except what you generate. That means that cash flow is a constant issue. There may be times when plenty of money is coming in, but others when it’s hard to come by. Many businesses are seasonal, and have to make their money when they’re in season to provide for themselves when they’re not.

It’s a juggling act, and you have to be able to create multiple income streams – as well as a decent sized cash cushion – in an attempt to even out your cash flow.

Paying Your Own Income Taxes

This is an issue that most people never think about when becoming self-employed – until it’s time to file their first income tax return. When you work for someone else and you’re on a salary, your employer withholds income taxes for you. Most times you probably get a refund when you file your return.

But not so when you’re self-employed. The only way that your income taxes are withheld is if you make regular income tax estimates. And that has to include a sufficient amount of money to cover federal income taxes, Social Security and Medicare taxes (15.3% of your net income), and state income taxes. There’s nothing automatic about it – you need a rough idea as to how much money you expect to make, and then make estimates accordingly.

No Benefits

With the possible exception of cash flow issues, a lack of benefits is probably the biggest concern for the self-employed. When you work for a company, especially a large one, they will not only provide you with subsidized health insurance, life insurance, disability, and various fringe benefits, but they will often also provide you with the means to save for your retirement.

When you’re self-employed, none of those benefits are available unless you find a way to provide them for yourself. That will mean maintaining a private health insurance policy – which is never easy to get – as well as establishing and funding your own retirement plan.

Ultimately, you can do all these things when you’re self-employed. But it does take extra time, effort, and money to make them happen.

With All The Negatives, Why Would Anyone Want To Be His Or Her Own Boss?

I know what you’re thinking – why would anyone become self-employed facing all those obstacles? The reality is that not everyone can. Unless you are prepared to deal with the issues above and more, you’re probably better off letting someone else be the boss, then sit back, relax and not have to worry about all of this.

But some people are fully prepared to deal with it all, and there are compelling reasons for becoming self-employed that make working with all these obstacles well worth the effort:

  • The potential for unlimited income
  • Not having a boss to answer to
  • A chance to have creative control over your career
  • A more flexible schedule (despite the need to work longer hours)
  • Having more control over your income
  • Having a business to pass on to your children
  • The ability to live in a place where there might not be many jobs – thanks to the internet, many businesses today are completely portable

You have to balance it out. Some people are willing pay the price to gain the benefits of self-employment. But if you aren’t, that’s okay too. Stay where you are, and learn to love your job! Not everyone can or should deal with the many commitments self-employment requires.

photo credit: freedigitalphotos.net

Do you ever think about becoming your own boss? Have you given serious consideration to some of these obstacles?

Why You SHOULD Follow Your Heart’s Desire

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People often equate following your heart’s desire with movies, TV programs, and even romance novels. But there may be more important reasons why we have such a desire at all.

The purpose of this article isn’t to discuss desires in a general sense – like getting rich, famous or important. We’re going to focus on your life’s work. Maybe this is just my take, but I think that most people are working in fields and jobs that they have no serious interest in. And I think there are specific reasons why this is usually the case.

Most people choose a career early in life. They often do it based on external factors – peer pressure, parental pressure, or going into fields where “the money is good”. But none of those reasons will make for a satisfying career. That’s where following your heart’s desire becomes so important. Determining what that desire is, is much more important than most of us realize.

Follow Your Heart or Money

Separating Serious Desires From Frivolous Wants

We all have multiple desires in life, even as it relates to careers. We may decide we want to work for a specific employer, attain a certain rank in the organization, or work with certain people. But none of that really identifies the true desire as to why you want to do a certain kind of work.

The career that you have should be one that fits your personality, your talents, and your goals in life. So much of satisfaction in life is tied to your satisfaction with the work that you do. This should be an overriding objective – to determine the desire for your career, and then following it.

Your Heart’s Desire May Be Divinely Inspired

While we may think that our desires aren’t important – or that they’re even frivolous – there’s a very real possibility that they have been divinely inspired.

God has created each of us as unique human beings. Though we may share certain characteristics with certain groups of people, and with all of humanity in general, none of us are a carbon copy of anyone else. If God has created us to be unique, is it far-fetched to believe that He also put our desires in us?

Think about it – if we all wanted to be lawyers, engineers, or doctors – how could the world even function? The world also needs factory workers, secretaries, farmers, sailors – and yes, even singers, actors, and artists. All work together to create and maintain civilization as we know it.

Can something so important be beyond God’s provision? It’s highly doubtful. For this reason alone, most of us should give more time and attention – as well as action – to our hearts desire for our life’s work.

Getting Out Of Situations Where You’re “Dying On The Vine”

There’s another important reason to identify and follow your desire for your life’s work. If you work outside of your true element, you run the risk of burning out in the work you are doing. If you do that, it’s very easy to become jaded and cynical. Those are not qualities befitting a Christian – we’re to be the people of hope and faith.

Being in the wrong line of work can cause all of that happen. We can only spend so much time in life being in the wrong place before there will be the consequences. And by continuing to do work that we don’t like or aren’t particularly good at, we deny the world the benefit of work that we could do with passion and serious talent.

Finding That Niche Where You Can Thrive

Working in a niche where you’re not thriving is bad enough. But now add to the equation the fact that at the same time you’re not working in a niche where you can thrive. That’s not a life well lived.

One of the biggest reasons that people give for not following their hearts desire is the need to make money. It’s ironic then that you actually have the potential to make even more money by following your heart’s desire. By doing work that you are meant to do – working at what you are good at – there is a great likelihood that you’ll make even more money than you will by marking time in career you don’t feel strongly about.

[Learn how to know if now is the right time to make a career change.]

When it comes to a career, following your heart’s desire can be deceptive where money is concerned. Often the road to making better money is much longer and more crooked than the one into a more conventional position that you go into for money, benefits, and security. But if you just look beyond the moment – to that time in the future where you’ll be established in your desired career – you may be able see things differently.

Designing The Life You Were Meant To Lead

So much of your success or failure in life is determined by the work that you do. If you are operating outside of your natural career element, life can often be a struggle. Work is what we do most days of our lives; if you’re not particularly happy with it, then every day can be an exercise in drudgery. In addition, if you are just marking time in a career, your only respite will be retirement. That’s an awfully long time to wait for a lot of people.

But if the work you’re doing is actually your hearts desire, then every day has the possibility to be deeply satisfying. If you like what you do – and it may even be fairly effortless for that reason – then you’ll have more time, and less stress, to free you up to do whatever else it is you want to do with your life.

In this way, following the desire of your heart for your work can actually enable you to design the life you are meant to lead.

Let’s take the example of a person who follows his heart’s desire, but doesn’t make as much money as he could if as say, an engineer. But the lower income, lower stress, and better workflow allows him to spend more time pursuing another passion – working at a significant ministry in his church, or for a charity helping the less fortunate.

This is where we get back to the concept of divine design on our desires. For this person, it could very well be that God gave him a desire to do a certain type of work that would complement faith-based or charitable work.

We can never know where God is leading us in our lives – or what turns that will take. But maybe that’s why He gives us certain desires, to act as an internal compass. And maybe that’s why we should follow them.

Are you doing a certain type of work, but have a strong desire to be doing something else? What keeps you from following your desire?

photo credit: freedigitalphotos.net

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