Thu 08 Jul 2010 – 14.34
There is a minor scandal brewing over a New York Times article entitled “American Dream Is Elusive for New Generation“. To sum it up: a young man went to college, but is not back with his parents, unemployed. It’s a story that is all too familiar in the 21st century. The new plight of the aspiring middle class. And the whole fucking point of this blog.
The controversy is pretty one-sided: the liberal-leaning commenters, who ordinarily like to share in a bit of middle-class whining, skewered this young man for being spoiled, lazy, complacent, greedy, etc. Oh, did I mentioned he was offered a job with a $40,000/year salary, but turned it down for the pursuit of something better?
I don’t know where to stand on that criticism. Clearly, a job offer is a sure way out of unemployment, and even at that salary, out of your parents’ house. But I absolutely know the terror that can follow when a young person, at the start of his or her career, is “stuck” in a terrible, horrible, no good, very bad job. It’s almost better to be unemployed at home — at least you don’t have a landlord breathing down your throat.
Readers, where do you stand? Are we college graduates spoiled for living at home and taking a less urgent approach to job hunting? Should we all “suck it up” and work menial unskilled jobs? Is there a cosmic injustice for a college-educated man to be delivering pizzas, or is it just a sign of the times? Did you live at home with your parents after graduating? Well, 60%+ of American graduates share that fate, so don’t feel bad.
Read the Article, and share your thoughts.
posted by Scott in careers,education,life,personal finance.
Thu 01 Apr 2010 – 17.41
As most of us have observed, there was a big fucking load of legislation passed that reformed the way we purchase health insurance in the US. One of the not-insignificant provisions allows twentysomethings to under their parents’ coverage up to age 26 — solving a problem that many of us faced upon leaving education but not quite having a fruitful job.
Today, there is a great article from the AP which features several cross-sections of families in such situations. Here are some situations that are all too typical:
The law will help Portland, Ore., mother Jessie Edwards sleep better at night. The nurse practitioner will be able to get both her young adult children covered as dependents on her insurance. Her 23-year-old son is losing his insurance this month, and her 25-year-old daughter has been uninsured for two years.
Young adults in their 20s are the most likely age group to be uninsured, and nearly 30 percent of them lacked insurance in 2008.
Lawson, a Gettysburg College administrator in Pennsylvania, said she is hoping to get her daughter back on her health plan because she is tired of playing “a roulette game.” Her daughter has just a temporary job that doesn’t provide insurance.
Go read the article. Let’s compare war stories. Also, check out The Young Invincibles, a website that gives facts for us, the twentysomethings who are healthy, but broke.
As for me, I was uninsured for a while after leaving my last full-time job, but before purchasing my own [very basic] plan on the open market. If it makes you feel any better, I haven’t had a physical in 4.5 years, and currently don’t even have a GP. So I too am rolling the dice a bit, especially with a marathon under my belt and rugby season in full effect.
But as someone much closer to 30 than 22, and generally healthy, this isn’t the most pressing issue in my life. I’d rather have a job. But don’t even get me started.
posted by Scott in health & fitness,personal finance.
Blog Resources for Twentysomethings
Fri 19 Mar 2010 – 15.07
From the always-lovely Kristen Fischer, author of Ramen Noodles, Rent, and Resumes: an after-college guide to life, comes a quick glut of blogs relating to life as a twentysomething. These are, apparently, from 100 Blogs That Should Be Required Reading In College, from OnlineDegrees.net.
And to make my life easier, here is a straight up copy of her curation of the list.
- 20 Something Finance: Read this blog for posts about the worth of your degree, managing credit and debt, investment tips, and even retirement, so that you can start thinking about how you’ll save after college.
- Grad Money Matters: This blog understands that you’re well-educated but that you might need some extra help when it comes to PF.
- Lindsey Pollak: Lindsey Pollak is a career and workplace expert for Generation Y, and her site features videos, articles and more resources to help you establish yourself in the workforce.
- My Path: This career networking site also features a blog and videos about getting a job, retaining your edge, and more.
- On the Job: This is the blog for Anita Bruzzese’s syndicated column. Recent posts include “How to Move from Temporary Work to a Full-Time Gig” and “5 Ways to Avoid Freaking Out About Networking.”
- The Anti 9-to-5 Guide: If you’re thinking about freelancing or managing your own creative career after college, read this blog from expert Michelle Goodman.
- Newly Corporate: Read Newly Corporate to get an idea of what your first entry-level job may be like.
- College Student Blog: This blog has information about growing careers, planning your job search, and living frugally.
- Sweet Careers: Read this blog for all kinds of tips about job search etiquette, career planning, interviewing, researching successful companies, and more.
- Career Rocketeer: Find practical and conceptual job advice on this blog.
- Entry Level Living: Learn about all kinds of entry-level work, including nonprofit jobs, entry-level jobs in New York City, and more.
- Career Rookie: Get advice for finding and landing jobs and internships here.
- College health guide: This resource on Revolution Health includes mental and sexual health tips and healthy living guides.
- Em & Lo: Sex, Love and Everything in Between: This blog for women has dating advice, sexual health news, funny stories, an advice column, and an ask the guys section.
- Life Optimizer: Find study tips, advice for staying positive and improving your focus here.
- You Already Know This Stuff: Get practical advice for finding success professionally and in your personal life.
- Imagine, Connect, Act: This is the blog for Idealist.org, the international volunteer project network.
- Hack College: Find lost Word documents, be productive during Spring Break and learn fun drinking games on this blog.
- The College Solution Blog: This blog covers a range of topics, from budgeting to college life, to doing better in class.
- My College Guide: Incoming freshmen and college students will find helpful tips for preparing for interviews, remembering your notes, dealing with stress and more.
- Say Campus Life: Recent posts here feature a guide to college majors, tips for spotting a scam school, and career tips.
- College and University Blog: Get higher education news, relationship advice, fitness tips and more.
- College Guide: Washington Monthly’s blog keeps tabs on what’s going on at schools around the country, and new trends in higher ed.
- Campus Grotto: Find money tips, job search information, campus trivia and more.
- ONE Campus Challenge: This blog tracks the competition between universities to see which student body “has the most effective global poverty-fighting campaign.”
- College Candy: Find real-life stories, quizzes, relationship tips, money advice and more from this hilarious — and sometimes raunchy — blog.
- Life Without Pants: Learn effective, productive ways to live life according to your own rules.
- Quarterlives: Head to Quaterlives for entertainment, health, personal development and career news geared towards 20-somethings.
- Gradspot: Turn to Gradspot when you want to learn how to cook, move into a new home, write a resume or start a new workout routine.
- The Lemon Life: The Lemon Life is another post-grad website full of articles and resources about dating, working, and living on your own.
- Think Simple Now: In addition to some personal life stories, this blog has tips for reading faster, improving focus and more.
- The Happiness Project: Read this blog everyday to remind yourself of all the reasons to be calm, confident and happy.
- Graduated Learning: Life after college: Find tips on buying a house, saving money, using social media, and more.
•• via Ramen, Rent, Resumes »
posted by Scott in education,health & fitness,life,personal finance,relationships.
Thu 07 Jan 2010 – 15.52
There is a feeling of rage mixed with exhaustion mixed with disappointment that comes from realising your own job prospects are dim. It’s almost a state of mind, where you view yourself in the third person, weighing events with both rational and emotional views, yet not being able to govern yourself with either faculty.
What can be done when you’re laid off, facing an impossible job market and ruthless competition? How can you come to grips with your own self-worth when the world around you says you are worthless? And how does one pay rent?
Recently, a friend relayed to me these feelings, in not so many words. She had been laid off from a job she didn’t exactly like, but now faces the task of finding something new. Being a middle twentysomething, it is difficult to assert expertise in a given field, but holding a degree (in her case, a Master’s too), you can’t market yourself as a penniless learner.
I, and she, have both found ourselves previously in such terrible job situations that we’d rather have no job at all. In my case, I quit this job in favour of the generally unfavourable lifestyle of a freelancer. In hers, she was laid off as a gesture of professional half-mercy, finally cutting her free from a job that was more trouble than anything else. (although the pay was good). But neither of us are eager to jump back into a job that we know isn’t brilliant. Or rather, we can’t tolerate that level of frustration again at such a critical time in our lives and careers.
Being a working twentysomething is a powerful thing. We are energetic and eager to learn, we don’t have personal baggage (mortgage, kids) so we can move from city to city, we don’t mind the late hours and enjoy making connections with co-workers, we’re plugged into the latest technology and can spew knowledge of all subjects in a manner unlike our parents. We have a lot to give. But in return we do have some requirements — simple requirements — for a fulfilling, or even tolerable, worklife.
We need to be taught. Resourcefulness can only bring us so far, especially when we are new to a field of specific role. We need to find a rhythm, even if that rhythm is a sort of managed chaos that may come from certain professions like journalism, (or blogging). We need to be led, for there is nothing worse than a spiteful boss who is constantly monitoring you, telling you what you’ve done wrong. We wouldn’t mind an industry-appropriate salary and maybe even a day off. And we need to know that there is, in fact, a tomorrow — that every step brings us forward. These requirements are somewhat philosophical, but with these in place the rest is just details.
What do we do now?
Should we just quit our jobs and hide out until the economy gets better? Should we travel or live on a farm? Should we move back with our families and write a book? Should we go back to school? (I would advise against that, though, unless you’re studying to be a nurse or engineer)
In the 4+ years since finishing grad school, I haven’t been able to shake these feelings. I haven’t managed to find the instant answer to finding workplace happiness and the general answer to career happiness. I don’t have iron-clad advice for weary friends and I don’t know how to un-fuck myself from the current situation. The feelings persist.
And yes, the title of this post is inspired by the James Taylor lyrics to “Shed a Little Light”… there is a feeling like the clenching of a fist / there is a hunger in the center of the chest. …
posted by Scott in careers,education,life,personal finance.
Job Prospects in the Recession
Mon 21 Dec 2009 – 9.33
The very excellent BBC Business Daily podcast has tackled the sensitive subject of job-hunting during the recession. While clearly it sucks, there are some subtitles in play. According to the program, workers who are hired during a recession are often hired in lesser roles, for lesser pay, and then have a harder time throughout the length of their careers. A scary sentence indeed.
Yale economist Lisa Kahn remarks on one point with which I strongly disagree: that a graduate degree strongly improves your likelihood of finding a job. While the theory has been sound for generations, the practice observed by peers and colleagues (and by myself) is that the extra degree doesn’t matter for shit. In many cases a graduate degree is viewed simply as another line on a resume — easily skipped.
I write this now from behind the desk of an office where I am consulting. In many ways, I have found a job, but as the podcast reiterates, most of the hires in the last 18 months have been temporary, conditional, freelance, or otherwise non-permanent.
This all comes through the lens of my bourgeois middle-class existence. There are folks out there who literally can’t afford to look for work. The transportation, dry cleaning, printing, etc. are too expensive. And what about those factory and farm workers who are out of work. Unless there’s another factory or farm, their prospects look bleak.
So as I sit here on Madison Ave., dressed in a crisp shirt and tie, I wonder, how has your job-hunt been going? Are you out of the woods yet? I’m getting there.
•• Check out the episode entitled “Your future job prospects? 21 Dec 09″ »
posted by Scott in careers,education,personal finance.
Graduate Student Lives in a Van
Tue 08 Dec 2009 – 15.31
Well, the headline kind of says it all. Today I uncovered the story of a Duke graduate student who, in an effort to save money and avoid debt, lived in his van while he attended classes.
If it weren’t an English major writing, I surely would not have read. Here’s a taste.
The idea of “thrift,” once an American ideal, now seems almost quaint to many college students, particularly those at elite schools. The typical student today is not so frugal. Few know where the money they’re spending is coming from and even fewer know how deep they’re in debt. They’re detached from the source of their money. That’s because there is no source. They’re getting paid by their future selves.
posted by Scott in education,health & fitness,personal finance.
Congress Offers Relief to Student Debtors
Mon 06 Jul 2009 – 20.10
If you’re like me, and the millions of others who are burdened with many thousands of dollars of student debt, then here is a bit of good news: the US government will take action to make loan repayments proportional to earned income, and will forgive loans after 25 years of faithful repayments.
The terms are highlighted in an article from The New York Times dated last week.
… the interest rate on new federal Stafford loans, the most widely used federally guaranteed student loan, will drop to 5.6 percent, from 6 percent. By 2012, the rate will fall to 3.4 percent, under a schedule mandated by Congress.
… The extended payment program, called “income-based repayment,” limits what borrowers have to pay to 15 percent of the difference between their gross income and 150 percent of federal poverty guidelines. After borrowers make payments on loans for 25 years, the balance is forgiven. (The Education Department already offered an “income-contingent” repayment plan, which was similar, but less generous.)
There’s a ton of charts and numbers to comb through, so if you’re interested, definitely check out the Times article, and poke around the links.
This scheme appears to be similar to one that is offered in Britain, where students aren’t obliged to repay loans until they are earning at least £10,000 per year. That isn’t a great sum, about $18,000, but it implies that if you’re properly unemployed, or only working part-time at the local pub, you aren’t going to be burdened with a monthly payment for that expensive education you’re not “using.” Then again, in Britain tuition fees top out around £2500 per year for UK students, so I don’t feel too sorry for them.
Is this finally a chink in the armour of the American college capitalist system? Is the government inching slowly toward the European-style socialism that our population so desperately craves (whether we know it or not)? Will this new plan help prevent education from being the next bubble to burst?
Your thoughts:
posted by Scott in education,personal finance.
Is Higher Education the Next Bubble to Burst?
Wed 01 Jul 2009 – 10.33
It’s almost a taboo to speak of colleges and universities as businesses. The decisions they makes aren’t based on profits, they’re based on academics, right? Well, sort of. Higher education is a business, where the “products” are the graduates, and the effort is to sell those graduates to the world with the goal of getting more raw materials, students. And money. And prestige. It’s tricky.
But in America, as well as other nations, higher education carries with it a massive pricetag; attending is a sure-fire way to start your young adult life in debt. While most parents and economists alike will tell us that it’s an “investment” in our future — one that will increase the earning potential over our lives as a whole — the upfront costs are painful enough to warrant some evaluation. After all, the most basic laws of capitalism show us that if the the price of goods and services gets too high, people will stop buying! This even applies to supposéd critical purchases like gasoline, clothing, food, and now education.
I read recently, for the first time, the notion of higher education as a bubble that will soon burst. An over-inflated industry taking risks on its own future, which is now less-than-certain. The main point here is about the ever-rising costs of tuition and fees, making education unaffordable for all but the super-rich. Here’s a sobering statistic:
According to the National Center for Public Policy and Higher Education, over the past 25 years, average college tuition and fees have risen by 440 percent — more than four times the rate of inflation and almost twice the rate of medical care.
posted by Scott in careers,education,personal finance.
Half of Everything Goes to Rent
Tue 21 Apr 2009 – 20.08
It has long been known that twentysomethings in New York, especially those who are straight out of school and into their first job, will spent half of their wages on rent alone. That’s half to rent, and half to everything else. Turns out this practice is no longer just for the young lot. A new study reveals that a higher percentage than ever, 27%, are crossing that tragic 50% barrier.
That percentage is up 13% since 2002, with 82,159 more NYC residents throwing more than half their income into the ravenous rent hole, as compared to seven years ago.
The numbers are quite troubling, but also a bit stoic. If you’re interested in the figures, Gothamist tells the story, as do a number of other news sources.
When I was looking for my first apartment I learned of a magic formula, relating to rent and income: Your annual income must be 40x your monthly rent burden. So if you make $40,000 per year, you shouldn’t be paying more than $1000/month. Trouble is, $1000 isn’t what it used to be. In fact, that price point almost guarantees you’ll have to live in the outer boroughs and suffer the tragic commute. Even when living with roommates, an apartment in Manhattan will cost each tenant can easily cost $1500 for something that might generally be considered puny and ridiculously small.
The 40x rule comes into play when signing on to a lease, especially through a proper leasing agent. If you do not reach that magical threshold, you’ll have to find a guarantor to back you up on the lease — usually a parent with deep pockets. I’ve heard rumours that some agents require this person to earn 100x the month rent, which is pretty absurd by anyone standards. Hell, my parents don’t make $100,000/year. But the 40x rule kinda makes sense as a guideline; doing the math in reverse reveals that figure to be approximately half of you take-home pay. But this is half of overall pay, leaving an even tinier slice for … everything else!
Considering the rising cost of healthcare, food, fuel, utilities, New Yorkers are getting squeezed even harder. It’s more of a struggle than ever to afford those $14 martinis.
Since moving to Jersey City, my rent has gone down quite a bit, but so has my income. In fact, my income these days comes largely from unemployment, but I’m still not quite up to that 40x mark. Times are tough, my friends.
What percentage are you paying?
posted by Scott in careers,health & fitness,life,personal finance,real estate.
Higher Education Can Be A Financial Disaster
Tue 17 Mar 2009 – 23.27
In what is fast becoming a recurring meme on this blog, we have to take a look, yet again, at the absurd financial implications of paying for a university education in this day in age. This article from Thinking on the Margin focuses on a couple who both attended law school on credit, and it didn’t really work out.
Whether you’re looking at an MBA, JD, or PhD — if you’re pursuing an advanced degree for financial reasons, chances are you’re better off either going part-time or else not at all. Otherwise, you may end-up financially strapping yourself for life.
I can relate. After finishing my MA, I’ve been pretty much unemployed for three years and counting. All the while, my student loans are still present and I still have to pay every month for that “priceless” knowledge and skills. Aside from rent (and I assume a mortgage, if I ever get one), my student loan payments are the largest bill each I have to endure each month.
There is some debatement about whether or not it’s urgent to pay off that debt. Most financial advisors will tell you that your student loans are ‘good’ debt, because you education, generally speaking, is an asset that will appreciate in value. That’s sort of a perverse way to look at it, but it makes sense. Nothing is guaranteed, of course. But the flip-side of that argument is that no matter how ‘good’ a debt is, it’s still a debt. It can affect your ability to get a mortgage, to get small business financing, and as we see from the case above, can be hell on a marriage.
I fear that soon we’ll be disclosing our debts on the third date — would you want to be with someone buried in debt? After all, if you end up married, it’s now your debt too.
Not to mention that whole net worth thing. Mine will be strongly negative for the next twenty years or so (at this rate, probably more than that).
posted by Scott in careers,education,life,personal finance.