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Perks or Pay? What Makes a Job Worth It?

Tom Drake — Mon, 06 Feb 2012 10:00:00 +0000

When times are tough, many people express gratitude just to have a job. However, when you have time to think about your job, and when times are a little less tense, you have a little more leeway in terms of your ability to do the job you want. And, as a result, you can decide what is more important to you: Perks or pay.

Pay vs. Perks

For some workers, money isn’t everything. You might have, in the past, done a job that, no matter how much you were paid, it didn’t seem worth it to do the job. Additionally, there are times when non-salary perks are better than having extra pay. Some of the perks that can really make a company good to work for include:

Inexpensive on-site childcare
Gym membership, or on-site gym or fitness room
Excellent health beneftis
Flexible personal time off (paid or unpaid)
Flexible work hours
Coupons and promotions
Food and snacks available
Pleasant work environment
Ability to telecommute at least a couple days a week

A company might offer any number of perks in addition to regular pay. In some cases, the perks offered by one employer might outweigh better offers of payment from another potential employer.

There are some instances in which an employee might even be willing to forgo some payment for flexibility in a schedule, or for extra days of unpaid leave. Perks like good food in the cafeteria and on-site childcare might also be desirable. There are a number of reasons that you might be willing to accept a little less pay — especially if it benefits your life in some other way.

Money Isn’t Everything

While it’s true that money is necessary to buy the necessities — and some of the comforts — of life, it isn’t everything. You might value more time with your family, or you might want better benefits. The flexibility to choose certain hours, or telecommute on some days, can be worth more than extra money. Indeed, there are those who won’t work overtime, even though it means more pay, because they would rather spend the time in other pursuits.

Consider your situation, and whether or not you might be happier with better perks. There are companies that offer good work environments, as well as opportunities for you to gain recognition for your hard work, without paying huge salaries. You can earn enough money for your needs, and some of your wants, and enjoy the perks that come with your job. In many cases, that can mean an improved quality of life.

Earning a lot of money can provide you with luxuries. However, if you spend a lot of time working, and you don’t have time to do what you enjoy, it affects your quality of life. Additionally, you might not be happy with your job. If you don’t enjoy where you work, what you do and your co-workers, it becomes tedious to go to work. If you can choose a job with perks that increase your quality of life, pay may not be as important. Consider your options, and evaluate your priorities and preferences. Decide what works for you, and whether a job with more perks might be right for you.

Perks or Pay? What Makes a Job Worth It? originally appeared on Canadian Finance Blog on February 6, 2012.

Is College In A Bubble?

Nelson Smith — Thu, 12 Jan 2012 10:00:55 +0000

This is the third and final instalment of our Thursday bubble series. The first part looked at Canadian housing, while the second looked at gold. This one is a little more, shall we say, contrarian in nature.

These days, I don’t know anyone who will discourage a young person from going to college. (Except me. Plug alert!) Haven’t you heard the studies? You know, the ones that say that college graduates make more than their lesser educated brethren? Or the ones that argue the difference can be as much as a million dollars over a lifetime? If you’re not going off to get some sort of higher education, you’re missing out.

I won’t discourage anyone from attending post secondary if they want to. Higher education is a noble goal, and often one that will directly result in higher wages, since we live in an increasingly specialized world. Often, companies won’t even look at a prospective employee if that person doesn’t have the relevant university degree. A college degree is becoming the minimum barrier to entry in a lot of fields.

Keep in mind though, there are alternatives, especially for those poor students out there. Trade school generally takes a fraction of the time a full university degree does. You can start at the bottom rung of a big company with the assurance that you’ll eventually move up the ladder. You can even take a few years off to hone your ability to study. The possibilities are endless.

But we’re not here to talk about the pros and cons about getting a degree. We’re here to talk about the crippling debt levels.

Massive Debt

The percentage of high school graduates who go on to take college courses is at a record high. And, partially as a result of all this demand, debt has also reached record highs. It’s not uncommon for 22 year old kids to finish their university programs with $30,000 to $50,000 in debt, and that’s just from (comparatively) cheap Canadian schools. Students from ultra-expensive private schools often graduate with 6 figures in debt.

And then, we have the for-profit schools in the United States. (Also in Canada. But there’s not nearly as many of them.) These money making institutions often push strictly online courses, since housing students in virtual classrooms is considerably cheaper than real ones. These schools allow you to study at your own pace, a great solution for someone who wants to work and get a degree at the same time.

There’s just a couple problems. Firstly, they’re expensive. To counter that, students do what they’ve done for decades – take out loans. These schools make it easy, often holding the student’s hand throughout the whole loan application process and encouraging them to take out as much as they can. Hey, it’s good business to make sure your customer doesn’t run out of money halfway through purchasing your product.

There’s just one problem. Dropout rates at these types of colleges are huge. There are many reasons for this. It’s tough to work and go to school at the same time. If you’ve ever seen the ads promoting these schools, they’re often directed at people who don’t have a whole lot of education to begin with, or people who have been out of school for years. These people aren’t typically the best students. These people often end up with nothing more than a shattered dream and high student loans.

College debt is getting to the point where people can’t afford to take on the level of debt required to get the education.

Worthless Degrees

And then we have people who are taking on all this debt to get a degree that has very little potential to be leveraged into anything more than pouring coffee. Usually these degrees are in the arts, but there are exceptions. Or, so many people are getting into a field that they’re creating an oversupply of workers, kind of like the tech industry circa about 2003.

Which brings me to an interesting theory. As economic conditions worsen, young people can’t find jobs. So instead of joining the workforce, they go to school. Some will enrol in an undergrad program, while others will continue their education and take their masters. At some point, all these people will enter the workforce. And, since education is an investment of time as well as money, often these graduates will enter a decent job market. But, the job market improves for everyone, not just college graduates.

With college participation rates sitting at record highs, is this the peak for education? Or, will society continue to specialize to the point where everyone has to get some sort of degree? The comment section is all yours.

Is College In A Bubble? originally appeared on Canadian Finance Blog on January 12, 2012.

Should You Work For A Small Business Or Large Corporation?

Nelson Smith — Thu, 08 Dec 2011 10:00:50 +0000

Like everyone reading, I’ve had a few jobs in my life. When I was a wee teenager, I worked at the local Dairy Queen, where I attempted to eat my weight in Blizzards on a weekly basis. From there I went to work at a supermarket, followed that up with a brief (unsuccessful) forage into being a mortgage broker, before ending up as a sales rep with a snack food company, where I’m currently employed. I’ve worked for a few dozen different supervisors, along with spending some time supervising people. I’ve worked independently and as part of a team. I’ve started as an entry level employee and risen up the ranks. A lot of you have also probably experienced similar career paths as mine.

Without naming the company specifically, (hey, Tom might get sued… for some reason) let me tell you about the supermarket I worked for. It’s a small chain, entirely based in one province. The founder of the store has since passed on the day to day operations to his kids. It’s the kind of company where, even after being gone for a few years, I could still get most any member of management to return my phone call. Even though this chain has grown into a respectable operation, it is still ran like a locally owned family business in a lot of ways. I enjoyed working for them. Without a doubt, that was the hardest job I’ve quit.

Meanwhile, let’s compare that to the large corporation I work for these days. (Remember, no names. So no begging in the comment section) Whenever I want to talk to anyone besides my direct supervisor, I’m asked for my employee number. I’ve literally only met about 15 people who work for the company. Often, getting even the simplest tasks accomplished means talking to at least 2 different people. There seems like there are more middle managers that employees. Those of you who experience this on a daily basis, raise you hand.

I hope you really did raise you hand. That would delight me.

So, which is better? Working for a small business, or a large corporation? Let’s look at the positives and negatives of each.

Working For A Small Business

I’ve noticed that, just about always, small businesses are more efficient than their larger counterparts. This is a necessity for small business, since often they only exist because they serve some small niche large business can’t be bothered with. As the business increases in size, so does waste, since inefficiencies tend to go hand in hand with growth.

As an employee, this can be both good and bad. You can get the satisfaction you’re building something real, along with the camaraderie that comes from working on a small team. You actually know the owner of the company, and can go into his office whenever you want. There’s no dealing with a seemingly endless line of middle management. Having the boss’s ear can also mean your ideas will actually be implemented, providing they, you know, don’t suck.

Meanwhile, as a negative, it’s just about universal that a small business owner is more demanding on their staff than a manager is in a large company. Your productivity will actually make an impact on the bottom line of a small business. Depending on your personality, this can either be a great motivational tool or a constant source of resentment.

Working For A Faceless Corporation

Let’s face it: a middle manager in a large corporation doesn’t care about your performance nearly as much as the owner of a small business. Even if part of your manager’s pay is a bonus based on performance, your individual performance usually doesn’t have a very big impact on that bonus. The result is, at least most of the time, a boss that’s a little easier to work for. It’s a whole lot easier to care when you have actual money invested in your own company.

Another perk of working for a large corporation, at least depending on your perspective, is the ability to just blend into the crowd. You can easily just do enough to justify your existence, without having to bust your hump too hard. Middle management will most likely be too busy doing some sort of pointless paperwork to even notice anyway.

This brings us to the main negative part about working for a large company, something I touched on earlier. Which is, the amount of red tape that’s needed to do stuff. It takes about 8 weeks for my company to reimburse expenses. Hiring someone often takes weeks as well, including interviews with about 3 different middle management types. Even trivial things have to be approved by someone in the right department, who is usually swamped because she’s too busy approving trivial things. It’s like a perpetual motion machine of uselessness.

Which Should You Work For?

This is kind of a big moment. We’re about to decide the rest of your working life here. Can we get a drum roll?

You should work for… the government.

Think about it. There’s job security. They have terrific employee benefits, including the best pension plan you’re going to get outside of being the president of Zimbabwe. If you go into something like medicine or teaching, there’s always going to be demand. Whenever the government lays people off, they usually do so by attrition, meaning they just simply don’t replace people who quit or retire. The unions are strong, meaning there are plenty of sick and personal days.

Or, you could be an entrepreneur. Those people seem to like it.

Should You Work For A Small Business Or Large Corporation? originally appeared on Canadian Finance Blog on December 8, 2011.

3 Ways to Get a Raise

Alan Schram — Wed, 02 Nov 2011 09:00:04 +0000

There’s a lot to be said about frugality. The more you can do with the money you have, the richer you will feel. A lot of frugality is easy to do, feels rewarding, and gives you great benefits. But frugality can only take you so far. Eventually, there is just not enough hard cash to go around. Maybe the needs of your family have changed, or maybe you’re just sick of pinching every single penny. Sometimes, you just need to make more money.

The easiest way to make more money is to simply work more. Get more shifts at work, do some overtime, or get a second job. This way is easy because you’re simply exchanging more of your time for some more money. However, this is not always advisable. Working more means you’ll be more tired, more worn out, and have less time with loved ones. What’s the point of making more money if you are unable to enjoy it? So while getting a raise at your current job is definitely harder, it is far superior. It’s better to get more money for the same amount of work. So here are three techniques you can try to use to get a raise.

Make Your Boss Look Good

Bosses are just like you. They want to do well at their job, and the less they have to do in order to get good results, the better. So if you do the leg work for them, they may just be willing to remember you when it comes time for salary reviews. For example, at my last job there was some a project that needed to be done, and no one was doing it. It wasn’t my responsibility, it was the responsibility of the pay group above me. However, the task needed to be done and it wasn’t getting done. So one day when I approached my boss and asked him why it wasn’t being done, he simply said that no one wanted to do it, and so it kept getting pushed off. I instantly volunteered to do it for him, and he agreed. This way, he gets the credit for getting the project done, and I get to look good for my boss. In response, he ended up giving me a performance bonus at the end of the month.

Ask

About 6 months before your next performance review, request some time with your supervisor. At that meeting, ask what you need to do in order to get a raise in 6 months. Set two or three goals with your supervisor, and get them in writing. Then, meet or exceed those expectations. These can be any goals, from improving sales by 10%, or bringing in 3 new clients each month, or simply arriving on time for work each day for those 6 months. These goals will completely depend on your role and job. When it comes time for your performance review, bring the written agreement you had, as well as documentation that you met or exceeded each of those goals.

Compare Salaries

Do you want to get a raise because you feel you are underpaid? Perhaps you are. Start looking for a new job doing the same role you currently do. See what type of salary they are offering. Is it significantly more than you are getting paid? Document this information, and wait for the right moment to ask your employer for a raise. Shortly after they’ve praised your work, for example. Simply state that you enjoy working the company, and that you’d like to continue to bring value to the company, but that there are plenty of companies that are offering better compensation for the same work. Ask that your employer attempt to match the salary. If you do this, however, make sure you are willing to actually leave the company to work for a different employer should they decide not to give you a raise.

When was the last time you were able to get a raise?

3 Ways to Get a Raise originally appeared on Canadian Finance Blog on November 2, 2011.

To Tattoo or Not Tattoo? That Is… A Question

Nelson Smith — Thu, 27 Oct 2011 09:00:59 +0000

I should probably admit, right from the get go, I have a certain amount of bias when it comes to writing this post. I don’t have any tattoos or piercings, don’t want any, and can’t see the desire to ever do so. I think that, with only a few exceptions, that both generally look pretty silly. Having a picture drawn on your body or a piece of metal sticking through something isn’t natural, and I like natural looking. Now that tattoos and piercings have become mainstream, I find the irony of expressing one’s individuality by doing the same thing everyone else is quite amusing.

But, as much as I don’t care for tattoos, I have to admit that the people who get them are just like the rest of us. Heck, chances are that most of you reading this have some sort of body art. I would never break up with a girl who had a tattoo, or talk down to someone else just because they had body art, or anything like that. All sorts of people are deciding to get tats, they’re not just for bikers and sailors anymore.

Still, should you get inked? You might want to slow down a little before you get that full sleeve tattoo you’ve been dreaming of ever since you saw that guy on TV with one. Here’s why.

Baby Boomers Still Don’t Like Them

At one of my former jobs, the company had a very strict policy when it came to tattoos and piercings. It was, quite simply, they couldn’t be visible. If you had forearm tattoos, you’d be required to wear a long sleeve shirt underneath your short sleeve uniform top. If you had a nose piercing, it would have to be removed for the duration of your shift. I didn’t know of anyone who ever got fired because of this policy, but many people were given warnings about it.

I never did ask management what the thought process was behind the policy, but I think I know what the thought process was. In a business that serves all sorts of people, they didn’t want to take the chance of offending anybody. And although body art has become quite mainstream, there are still older members of the population that have held on to the stereotype that only nogoodniks get tattoos. These people probably spend a lot of their time yelling at teenagers to get off their lawn.

Stereotypes Still Exist

I know a salesman that is basically covered in tattoos. If you combine that with his big bushy beard, you get an interesting looking guy.

And, as a result, he’s not really taken that seriously. Rather than being the man, he’s just kind of some guy. No amount of arguing can convince me that his body art doesn’t have something to do with it.

Humans have a tendency to scoff at members of society that don’t conform to our idea of normal. Even in a society where body art is normal, we’re still not used to seeing people with a lot of visible tattoos, especially in professional situations. If you don’t fit in, people will ridicule you. They might not do it out loud, but they will do it in their heads. Is that what you want going through a potential boss’s or customer’s head when they meet you?

The Solution

Fortunately for all you tattoo fans, the solution to this problem is quite easy. All you have to do is get your tattoo somewhere where it’ll be covered up with clothes at least most of the time. That way you can maintain an appearance that says all business, and yet be ready to party when the clothes come off. Sounds like a sexy time!

Or, if you’re so passionate about your body altercations, you can just go nuts and not care about the consequences. But, until all the older folks and prudes kick the bucket, you might have to deal with some resistance to your alternative lifestyle. You can argue all you want that someone shouldn’t be judged on their appearance, but that’s not going to make it not happen. Knowing this, why take the chance?

To Tattoo or Not Tattoo? That Is… A Question originally appeared on Canadian Finance Blog on October 27, 2011.

Employee Stock Purchase Plan

Alan Schram — Thu, 20 Oct 2011 09:00:49 +0000

One of my favourite games when I was a kid was Stock Ticker. It was a board game based loosely around the stock market, where you pick what shares you think will go up, pay your “money” for them, and then watch the stock market rise and fall with the roll of the dice. Each time it was your turn, you could choose to buy or sell more stock. Repeat until rich or bankrupt. I loved the combination of strategy and chaos, however, I seem to always make the wrong choice, and end up slowly losing my stock and money until someone else won. Perhaps that is one of the reasons why I’ve never invested in the stock market.

I’ve had the choice to do so for quite some time. My employer offers an employee stock purchase plan. I make paycheque contributions to an account and with that money shares are purchased. In addition, to every dollar that I contribute, my employer matches a percentage. I’ve decided to start investing in the company that I work for, despite the possible risks and limitations. Here’s why.

Risks of a Employee Stock Purchase Plan

When it comes to your financial portfolio, diversity is key. Even if you have decent portfolio diversification, chances are good that the majority of your income comes from one source. If the company were to fail for whatever reason, not only would you be losing your income, but by investing in the company you work for, you could lose your savings as well. Obviously this is not something that anyone plans on, but it definitely could. That’s why it is a bit of a risk. In order to mitigate that risk, consider lessening the amount that you invest into your company. If given the option of an amount, don’t do the maximum.

Another risk would be that while the company might not tank, the stock still could. If you work for any business that has a high level of volatility, think twice before investing in your own company. While certain industries can rise in demand quickly, they can also drop in demand as well. Do some research on the industry, like you would any other stock investment, before you blindly sign over part of your paycheque. So before you enrol in the stock purchase plan, check with the plan to see how hard or easy it is to pull your money back out of the plan. Is it locked in for life? Do you have to pay a penalty to move it around or remove it altogether? Employees are often the first to notice when things start to go amiss. If you think there’s a chance that you could lose it all, pull it out before you do.

Benefits of a Employee Stock Purchase Plan

Regardless of the risks, it can often be a good idea to take advantage of your employee stock purchase plan. The most obvious benefit is that it can be a fantastic return on your investment. Unlike some banks or stocks, your purchase of company stock is often matched at a percentage. It can be anywhere from 20 to 100% match. That’s an almost immediate return that you cannot find elsewhere. It is free, guaranteed money, and often times it would be foolish to not take advantage of it.

Another fantastic benefit is that your company may purchase stock at a discounted rate. Meaning when you do sell your stock, you are getting an even higher rate of return. Or, even if the company’s stock does drop a little, you already purchased it as a discount, so that you haven’t lost anything. You just didn’t gain as much. It’s like a built in fail-safe that can give you peace of mind over investing into the stock market. As a final bonus, should the shares go up in price, when you sell it’s like the icing on top of an already sweet cake.

Does your employer offer a stock purchase plan? Do you take advantage of it? Why or why not?

Employee Stock Purchase Plan originally appeared on Canadian Finance Blog on October 20, 2011.

How To Pick The Best Job

Alan Schram — Wed, 19 Oct 2011 09:00:41 +0000

Ever since we moved to our new home, I’ve been doing some job hunting. The reason that I am looking for a new job is that I want something that pays a little better, and is in a field that I can grow into over the next few years. I’m sick of dead end jobs. So I’ve taken the opportunity that I have had to shop myself around the city and see if I could find something a little bit better. When it comes to changing jobs, however, there are a lot of different factors that I have been considering to ensure that I pick the best job. While I do want to earn more money, it isn’t always about the compensation. Here are some of the factors that I’ve been considering when applying for jobs.

Salary

First and foremost, I have to worry about the wage that I would be earning. I am the primary earning in my family, so I have to ensure that whatever job I take will be able to support my wife and I. I also have to worry about if my wage will be able to support children in a few years from now, so that is definitely a consideration as well. When you’re comparing job’s salaries, also take into consideration whether or not there are raises, and if those will be regular or not.

Commute

Your commute is one of the most undervalued aspects of your job. Not only will a longer commute cost you more money, in terms of gas, vehicle depreciation, and the like, but it will also cost you a lot of time. Probably more than you might realize. A 10 minute difference in commute will add up. It changes a 40 hour work week into a 41.5 hour work week, effectively lowering your hourly rate.

Benefits

Benefits can be a big deciding factor when considering jobs. A job without benefits can be worth significantly less than a job with benefits. Depending on your family and their needs, it can be a 2,000 to 15,000 a year difference. Ask a lot of questions about the benefits before you agree to take a specific job, and ensure that you are not taking a big step backwards.

Type of Work

There are different toils that different jobs can take on your life. If you are doing a hard, physical job, then you might have to consider that there are only so many years that you can do that job. The wear and tear on your body effectively will decrease your life’s enjoyment, so even though you may be making more money doing something difficult and physical, you may not be able to enjoy it. In my case, I am seriously considering doing an easier job at a lesser wage just because my current job is too physical for me to sustain it for too much longer.

Advancement Opportunities

The other major problem that I have had with past employment is that once I’ve entered the company, there has been no where to go. Of course, they never say that right away, but 3 years with a company and not being able to move up nor there even being an opportunity to means that I was misinformed. So again, check carefully whether or not there is something that you can move into once you’re in the company. Even if the wage is low, and the commute is bad, if there is something that you can switch to in 6 or 12 months that is closer and better paying, it may be worth investing that initial year in order to get where you want.

What factors do you consider when job hunting?

No related posts.

How To Pick The Best Job originally appeared on Canadian Finance Blog on October 19, 2011.

Financial Success Comes From Working Harder

Jim Yih — Tue, 18 Oct 2011 09:00:45 +0000

Last week, I wrote about how to become a millionaire by 35 and I featured an interview with Frugal Trader, the man behind the popular blog Million Dollar Journey. He’s a real person on a quest to becoming a millionaire in his 30’s. If you did not read this article, you have to because his thoughts are golden. He did not inherit millions, he is not doing it by winning the lottery or heading to the casino. Instead he is doing it the simple, old fashioned way.

This article was very popular and you will see from the comments, Million Dollar Journey is a very credible and well respected personal finance blog in Canada. As a result, I was a little surprised when I got am email from a reader who said “I don’t want to hear about people who want to do it. Anyone can say they are going to do it. I want to learn from people who have already done it.” Despite the sharp tone of his email, there is some merit in his comment. I thought I would respond to his email through this post.

After being in the financial industry for the past 20 years, I have met a lot of millionaires in my career and being the sponge that I am, I have learned from so many of them. And as a result, I have preached what I have learned but I have also practised what I preach and as a result, I have reached some great financial success myself.

What was the key to my financial success?

Being the father of 4 boys, I think a lot about what to teach them to help them find more financial success in life. One thing I tell my boys all the time is it’s all about working hard and trying your best.

Everything I have in life today came from working hard. It’s very common to hear people preach the merits of working SMARTER and not HARDER. As much as I can appreciate the merits of that message when it comes to time management and productivity, I think we have put too much emphasis on that message and it’s created an excuse to be lazy. I always tell people that building wealth is simple, not easy and if you want to build it faster, you have to work harder at it. I believe in this day and age if you are serious about getting ahead and if you want to get serious about accumulating wealth at any age, you have to work SMARTER and HARDER. That’s what my dad taught me and what I will continue to teach my kids.

You see, I can appreciate Frugal Trader’s practical strategies for financial success:

make more than you spend,
make good use of your cash,
know your financial situation,
set goals and take baby steps.

As much as these are prudent strategies and great advice, I’m willing to bet you knew this information already. Knowledge is one thing but taking it the next step and putting ideas to work is really the key. Implementing ideas is where working smarter and harder comes into play.

The key to success lies in your belief, your commitment, your actions, your effort, your discipline, etc! That’s the stuff that’s hard.

So what’s the main reason people can’t or won’t become millionaires?

I think wealth is achievable for anyone and everyone and while circumstances may play a role in attaining wealth, most people can do it by developing good financial habits. Maybe the problem is they don’t want it bad enough or they are not willing to work hard enough. Maybe they can’t stay disciplined or they are not committed to changing their financial habits. Maybe the problem is that simple.

Any other millionaires want to weigh in and share their thoughts? What does it really take to become a millionaire?

Financial Success Comes From Working Harder originally appeared on Canadian Finance Blog on October 18, 2011.

This Is Why You’re Screwed

Nelson Smith — Thu, 06 Oct 2011 09:00:22 +0000

Okay, it’s not you that’s screwed. After all, you’re reading this blog, and probably many others. And, hopefully you’re implementing the ideas you read about. But most people are screwed. Let me tell you a story to illustrate why.

For those of you who haven’t bothered to read the nice little bio dealie at the bottom of my posts, I’m a salesman for a major snack food company. My job consists of driving a big truck around filled with the snack in question and selling product into both grocery stores and convenience stores.

One of my customers runs a small convenience store. This store isn’t very impressive, but it does a reasonable amount of business. Every single time I show up at this store, the owner is working. Recently I was bugging him about working too much. His response was that he worked every day. His store is open 14 hours a day and between him and his wife, one of them is there all the time. He usually works at least 10 hours a day, each and every day.

He has no hobbies. He goes home, eats, relaxes for an hour or so and then goes to bed. Then he gets up the next day and repeats the process. He lives frugally, in a house that’s been fully paid off for years. Although I don’t know any exact numbers, I suspect his business is pretty profitable. After all, he doesn’t have any employees to pay.

How Hard Are You Working?

This shopkeeper isn’t alone. There are thousands of other people, in all sorts of other industries, who are working just as hard.

Meanwhile, let’s compare my store owner friend to some of the people you or I know. And because people like to hate on teachers, let’s look at some of them as examples. (Relax teachers, I still love you.)

Teachers get over 2 months off, thanks to summer holidays and various breaks. They get every single weekend off, and are generally away from school by 4:30 in the afternoon. I know a few teachers, and guess how many of them of them are working on some sort of sideline business in their spare time? If you guessed less than 1, you’d be very warm.

I’m picking on teachers here, somewhat unfairly. There are all sorts of people who have spare time and fail to do something productive with it. And naturally, they’re filled with all sorts of excuses. They work hard, they deserve time off. They make enough to be comfortable, so why bother doing anything extra? Or, which has to be my favourite argument, they make $25 an hour at their day job, so it would be pointless to work at something else making $15 an hour.

All these are is excuses. It’s time for action.

What Are You Waiting For?

If you’re one of those people who’s just putting in their 40 hours a week, you need a wake up call.

You have one of two options. You can either work your tail off at work, or start a side hustle. And, unless you’re a commissioned salesperson, I’d strongly urge you to put your efforts into a side hustle. In most situations, the only person you’re benefiting by working extra hard at work is the owner. Sure, you could get that promotion, but often more goes into that decision than just work ethic.

You’ll hear a lot of talk about frugality, especially in certain corners of the personal finance blogosphere. I’m not going to argue with frugality, since I’m generally a pretty frugal guy. My 27 inch TV from 10 years ago isn’t drawing a lot of compliments, but it works fine. I spend about $10 a year on alcoholic beverages. I can go on, but you get the point that I’m not anti-frugality.

Well, except for toilet paper. I buy the good toilet paper.

While frugality is a smart strategy, it has its limits. You can only cut so much. Meanwhile, extra income is only limited to the amount of time you’re able to put in. And, as you start to invest that extra income, it’ll compound over time. Compound interest is pretty outstanding.

As they say, the opportunities are endless. I don’t care what your skill set is, you’ve got some skill that people are willing to exchange money for. Every night you spend sitting around and watching TV is a night wasted. And you better get started soon, because there are some people who are working much harder than you. They’ll have the money, and you’ll be wondering what happened. Don’t let that happen to you.

This Is Why You’re Screwed originally appeared on Canadian Finance Blog on October 6, 2011.

All About Employment Insurance (EI)

Alan Schram — Wed, 21 Sep 2011 09:00:33 +0000

Employment Insurance. It is one of those things you really wish you didn’t have to pay into every single paycheque. It’s only a few dollars, really, but it sure adds up over time. I watch my paycheques throughout the year, and it starts off with $20 here, and $20 there. Suddenly, by the end of a year, I realize that I’ve “lost” $600 paying into Employment Insurance, and I really don’t know what EI even is, as I’ve never had to use it. Well because my job transferred to a new location, and because my wife is married to me, she was able to apply for Employment Insurance. Yeah, apparently EI covers more than just losing your job. EI will cover you if you do lose your job, yes, but they will also cover you if you are available for employment but don’t have any. They will also cover you if you are sick and unable to work, they are the ones that pay you for maternity leave and parental leave, and they will even cover you if you have to leave your job to take care of a sick relative. Who knew?

The only problem with Employment Insurance is that they aren’t going to chase you down to make sure that you are taking advantage of their benefits. You have to know their regulations, play by their rules, and jump through their hoops. If you do so, however, you can get yourself covered while you take care of yourself, your relative, or while you are looking for work. As my wife and I have gone through this lately, here’s what you have to do in order to get EI.

Check EI Qualifications

Even if you have lost your job, you have to lose your job in a specific way to qualify for Employment Insurance. Setting your place of employment on fire (purposefully) while emailing your boss how much you hate him will most likely disqualify you. Check this link for more specific details as to who, exactly, can apply for EI. My wife and I had absolutely no idea that she might qualify for EI until one of our friends mentioned it to us. I guess they had known someone else who was able to apply, so asked if we were going to. This, of course, led us to actually look into it and see if it was true – which it was. So we applied!

Apply For Employment Insurance

That’s the second step to getting EI. You actually have to start filling out paperwork. Make sure you apply as soon as you stop working. The quicker you get your application in, the sooner they can process it and get the money flowing into your bank account. You can’t apply until you are done work, but make sure you have everything ready to apply the day you are done. Otherwise you will be stuck in limbo without any cash flow while you wait for papers to show up and get processed. Something strange happened with our application, for example. We were waiting for my wife’s work to send us her Record of Employment so that we could show Services Canada that she was, in fact, done work. We waited three weeks before phoning to see what had happened to it. Apparently they had not processed it yet (has to be delivered within 15 days by law), but would now do it because we had asked. So that put us over three weeks behind schedule in terms of our application. It had been so delayed, in fact, that my wife had to go through the entire application process over again because of the delayed ROE. So make sure that you have all the necessary documents in place ahead of time (see this website), make sure they get delivered to Services Canada so that you can be sure that you get your money as soon as possible!

Report

The one thing that Employment Insurance requires is a report every two weeks. They just want to make sure that you are still unemployed, and that you are still employable and looking for work. In order to complete these reports, my wife has been writing down every single job that she has been applying for. That way she can prove, should the government ask, that she is still looking for work and not just waiting for her EI to run out. These reports will also ask if you have worked during the two week period, received training, or became unavailable for work. Simply fill out the report (it is all online) every two weeks per their request, and then EI will send you your next cheque (direct deposit).

Thankfully, that’s all there is to EI. Like so many other benefits, however, you have to know about it, and you have to pursue them in order to take advantage of them. Even if you think you don’t qualify for EI, but are unemployed, it is worth double chequing to see just in case you are actually eligible for EI. If you are able to apply, be sure to play by their rules to ensure a smooth transition from your job into unemployment, and hopefully back into employment!

Have you ever applied for Employment Insurance? How did it go?

All About Employment Insurance (EI) originally appeared on Canadian Finance Blog on September 21, 2011.