Entry-level living: New grads need a new budget

"Entry-level living: New grads need a new budget", July 23 2009

Your first new grad job will be a completely new experience for you: new responsibilities, wardrobe, hours and expectations. You will also be getting your first (or one of your first) series of substantial pay cheques that will help you into the next stage in your life.

Many recent graduates don’t know how to set a proper budget when they start their first job and this can be a problem for a couple of reasons. First, it can contribute to frivolous spending habits later in life, and second, it can prevent you from getting a good jump on saving for the rest of your life. Since you have a fresh start, this is when you should be utilizing your pay to the best of your ability.

To create a budget, make a series of lists:

• list the money you owe from student loans and/or credit card debt
• list your expenses for one month (including rent, clothing, transportation, food, utilities, entertainment and gifts)
• list the income you expect in a month

From these three lists you are going to make your monthly budget.

Don’t forget that a portion of your pay cheque will be deducted for taxes and employment insurance (unemployment), but it’s possible there will also be deductions for health benefits, retirement plan contributions and union dues depending on your employer. Your budget should take those deductions into account and only include your net pay, not your gross pay.

For entry-level employees, a suggested spending guideline based as a percentage of your pay is as follows:

• 30% housing
• 10% utilities
• 10% food (both takeout and restaurant and well as groceries)
• 15% transportation (car loan, and/or public transit passes)
• 10% repaying debt (student loans and credit cards)
• 10% savings
• 5% clothing
• 5% entertainment
• 5% for car insurance and miscellaneous other expenses

These expenses can be variable, however. For example, if you’re living at home and paying nominal rent you don’t need to put all 30% toward housing – you can put more of that toward debt repayment or savings. At the same time, if you’ve recently bought an expensive car you may need to re-configure how much money is in your budget since a large portion will be paying for your new vehicle.

Ideally, you should have some of your budgeted money left over each month, and you should try to save as much of that as you can. This money can either be used for emergency purposes, to start a nest egg for retirement, or for a rainy day, which will put you in the habit for saving for your future.

The key to saving money (although this seems really obvious) is for you to spend less money than you earn, and in order to do so you really need to keep track of what you are spending, when and why.

Once you have consolidated a budget, make sure you are keeping track of it properly. This should be done either via computer program (there are many you can purchase), online budgeting software such as Mint.com, Wesabe or moneyStrands (formerly Expensr), a self-created spreadsheet or in a notebook.

Although you may think you have a mind like a steel trap, you are likely to forget and it also helps you find out exactly how much you are spending – sometimes you won’t realize how often you really buy convenience food unless you are tracking it.

Hopefully if you keep these tactics in mind you will be able to start saving for the more expensive things than come across in adult life – like a house, a car or your retirement fund.

Could a tattoo or piercing cost you your job?

"Could a tattoo or piercing cost you your job?", July 22 2009

Before the 19th century, the only people in Western society who had tattoos were prostitutes and criminals. However, as time went on and the colonial powers spread to other nations, tattoos became slightly more acceptable in popular culture after becoming a part of military culture.

My grandfather got two tattoos in Panama in 1947 while he was enlisted in the Navy. I always thought his were really cool, and at 10 years old I decided I wanted to get a tattoo when I got older. This decision may have been pre-empted in part because an older cousin got her tattoo that year as well. At 19, I got my first tattoo and I want to get more in the future.

Gen Y has grown up with various idols that have tattoos and piercings including musicians, actors, writers and artists. In recent years there has also been an influx of television programs that focus on the lives of tattoo artists and their shops including Inked, Miami Ink, LA Ink and Tattoo Highway.

I have also come to recognize that I am not an anomaly among my friends. I know many Gen Yers that have tattoos; some have only small images while others have large pieces that cover a lot of their body. Regardless of the size of the image, most of these tattoos can be hidden by clothing.

But this got me thinking: if I was to get a much larger tattoo or one in a more visible place, could that possibly cost me a job?

Even though many of the negative stereotypes toward tattoos have become less prevalent, they may still remain depending on your company’s culture. Unless you want to be a rock star, artist or tattooist, you’re probably not able to have tattoos that cover most of your body because you will not be seen as professional. Having large tattoos or having them in visible areas could cost you a job.

Although this can be seen as discriminatory, technically it is not.

Most workplaces have a dress code, which is a standard for what employees should wear to represents the employer’s brand. Some places of work have a ban on visible tattoos, and depending on the industry this can be appropriate.

For example, you wouldn’t want a kindergarten teacher with two nautical-themed sleeves featuring 1940’s pinup girls and skeletons on his forearms. At the same time, there would be less of a concern if the same teacher had a single tattoo of a scorpion on the bicep because it would remain mostly covered.

Body and facial piercings carry the same workplace issues as tattoos. Once again, depending on their placement on the body and the corporate culture of the workplace a piercing may or may not be considered acceptable.

If you are planning to get a new tattoo or piercing and you are already employed, talk to your current employer to find out what the rules are about piercings and tattoos. If you are looking for work, be wary of the fact that if your new tattoo or piercing is clearly visible it could prevent you from being hired by certain employers.

Gen Y thinks tattoos, piercings and corporate culture mesh, do you?

"Gen Y thinks tattoos, piercings and corporate culture mesh, do you?", July 10 2009

Tattoos and piercings are typically a strike against most applicants when they look for work because it goes against the traditional corporate culture. However, many members of Gen Y have tattoos and some have piercings other than in their earlobes. With the work force changing to include more members of this generation, each workplace must have clearly defined rules and guidelines regarding tattoos and piercings. And some of these policies may need to change.

I have a tattoo and would like to get more eventually. I also have a few non-traditional piercings in my ears. I do not want to be a tattoo artist, musician, actor or artist (some of the few areas of work where tattoos and piercings are considered acceptable, or even desired). Like many of my peers, I wonder if a visible tattoo or piercing will affect my ability to obtain a job, and if opinions of tattoos and piercings vary in different industries.

I understand that a tattoo may be inappropriate in some places of work. For example, you may not want to see a kindergarten teacher with tattoos of pinup girls or guns on their arms. You would also not want to be served by a bank teller who had skull and crossbones on his hand and a teardrop tattoo under his eye. Here, the corporate culture dictates that visible tattoos such as these are inappropriate, and if an individual was to get one after being hired there is grounds for dismissal.

Most individuals who are heavily tattooed know their choice of body adornment may close the door to certain possibilities of employment. However, there is a large difference between one or two small tattoos that are hidden or can be covered by clothing and/or jewelery to an entire tattoo sleeve paired with tattoos on the neck.

Many employers have a rule against visible tattoos and this is due in part to stereotypes against tattoos from past decades. If a policy is exists or is developed about tattoos, it should not be judgmental towards tattoos or those who get them. The number of individuals who have tattoo and have them covered during working hours would surprise many employers and would also disprove any negative assumptions about tattoos that exist.

Tattoos and piercings are becoming a more common part of Western culture and, as a result, they’re becoming part of the workplace as well. Corporate culture needs to adapt and change with more members of Gen Y becoming employed and moving up the ranks in every organization.

E-mail etiquette for students and recent grads

"E-mail etiquette for students and recent grads", July 2 2009

An employer's first impression of you often comes through e-mail when you apply for a job at their company and it's not uncommon for students and recent grads to alienate current and future employers with their spelling, grammar and other e-mail behaviour.

While the suggestions below may be obvious to some, when I was working as a co-ordinator in a university department and as a manager of a student service on campus at McMaster University, I received countless e-mails from students and recent graduates that made me cringe. Students and recent grads are used to writing to family and friends, and many don't easily make the switch from personal to professional e-mail etiquette.

Check out my tips for avoiding the most common mistakes:

What's in a name?

Using an e-mail address without some variation of your name in it can come across as unprofessional. If you're adamant about keeping the e-mail address you've had since you were a teen, set up a secondary account to e-mail employers from, such as firstnamelastname@email.com.

Regardless of the content in the e-mail you send, a message from lil_cutie_baby_69@email.com won't be taken seriously by employers.

Spelling and grammar

Good spelling and grammar are imperative to any e-mail. Many e-mail servers and some web browsers, such as Firefox, have a spell check function built in. However, the computer will not be able to discern between alternative spellings (but different meanings) of the same word. For example: there, their and they're; or to, two and too.

It's important to proofread an e-mail before you send it, and if you're not confident about your spelling and grammar skills, get someone else to read over your e-mails before you send them.

What's your point?

For the most part, e-mails should be brief. Give the reader your point as soon as you can, but at the same time remember to include the necessary details. If your e-mail is going to be long, consider apologizing for your wordiness in the first line of your message.

Also, each separate idea in an e-mail should be a separate paragraph. It makes the e-mail easier to read than one large chunk of text and also allows the reader to find important points at a later time.

Don't abbrvt plz

Never use text messaging abbreviations in e-mails. Getting your messages across with a limited number of words can be challenging, but e-mails do not have the same restrictions as texts. Unless you are sending a personal e-mail, you should be avoiding abbreviations, with the exception of words such as FYI, Mr. and Mrs., etc.

Are you tone deaf?

Come across as friendly, respectful and approachable in your e-mails: you don't want to appear demanding or curt. Sometimes this can be remedied by re-arranging your sentences or paragraphs. For instance, instead of "I need a copy of those forms. I hope your week is going well," try "I hope your week is going well. When you have a moment, may I have a copy of those forms?"

You also don't want to seem too casual in professional e-mails, especially to a potential employer. Unless you have already communicated with the person and have a more personal relationship with them, always avoid using emoticons and slang.

The type case of your messages is also important. Don't use all capital letters and, although many of us have gotten into the bad habit of not capitalizing anything thanks to instant messaging, capitalize letters where appropriate, just as you would in a formal letter or essay.

Mind your manners

There are three simple words you should never forget when sending e-mails: "please" and "thank you." Forgetting to use those words makes you look ungrateful and rude.

Kind regards, dear

If you don't know the person you're writing to, you should include their title or, at the very least, use Mr. or Ms. (try to avoid using Miss or Mrs. - never assume a woman is married). Once they respond, follow their direction by addressing them by what they sign their e-mail with.

When concluding the e-mail, use a transitional word or phrase such as Sincerely, With kind regards, or Cheers if you are able to be less formal.

Take your time sending, but be prompt when replying

Take your time when e-mailing a prospective employer; re-read the e-mail at least once before you send it. In terms of response time, reply to e-mails as quickly as you can because making the other party wait several hours or days is quite rude - especially if the e-mail is an urgent one.

Remember, if you make a mistake and do not realize it until after you hit "Send," there's no option to undo or take it back. A poorly-written e-mail reflects on your potential as an employee and it will often result in your e-mail being deleted.

Gen Y Perspective: Why you should offer a wardrobe bonus upon hiring

"Gen-Y Perspective: Why you should offer a wardrobe bonus upon hiring"

Many companies have enough stability to offer new employees a substantial signing bonus. Gen Yers are not the only ones who wish they could get an extra financial incentive for starting at a new company, especially with the state of the current economy. Some people might blow this money on something frivolous, but what they should really be thinking about is their wardrobe.

I know this sounds a bit strange, but hear me out. Most new graduates do not spend the money they make working during the school year or the summer months building up a wardrobe for an office environment – most of them are just trying to scrape by.

Offering a wardrobe bonus is a good incentive when trying to entice recent grads to work for your company, and is something that you should talk about in the discussion period that occurs after the interview. If no one else is going to take care of them in the same way your company will, the new grad is more likely to come work for you. Think of it as an investment not only in your human resources, but also in your company’s brand.

Many so-called “blue collar” industries provide a clothing allowance to their staff when they are first hired, as well as periodically throughout their careers. This is something that the corporate world should try to implement as well, not only when employees are first hired but later on down the road.

I’m not saying new grads shouldn’t buy clothes which can transition into the office, but most do not think about doing so until they actually have a job. So, once the end of the academic year rolls around and these former students are starting work, many of them do not have anything appropriate to wear.

Especially in the summer, new grads often leave the house in jeans, skirts that are a little bit too short, shoes that are meant for the beach, and “nice t-shirts.” After all, it’s what they’ve been wearing for the past four years or so.

Herein lies the problem: students do not buy the items they need for a professional environment during school because it’s not practical to wear to school on a daily basis, and once they start a job they don’t have enough money to pay for appropriate clothing until they receive their first pay cheque. Or, if they buy appropriate attire, it may come at the expense of not paying off their credit card balance or not having food to eat.

This is where a company can help alleviate some of the stress newly-graduated employees have when they first enter the work force. Once the individual has finished their first day on the job, I suggest giving the employee a gift card from a clothing retailer that sells clothing the company feels is appropriate to that workplace.

There is also no way for the employee to use the amount on the gift card for something unrelated to the workplace, as they are bound to that specific store, and stores do not give refunds in cash for purchases put on a gift card. Thus, the company is not giving the employee “free money” to use elsewhere, which can be a concern.

Even if the amount is small (around $100) it can still buy a few key items the employee may not be able to afford at that time. And, not having to spend a great deal of money to start an appropriate work wardrobe is something a new employee will be very grateful for.

Entry-Level Living: Travel Close to Home, Its Patriotic

" Entry-Level Living: Travel Close to Home, Its Patriotic", July 6 2009

You’ve probably heard of the 100 Mile Diet, but what about a 100 Mile Vacation? In trying economic times, being able to go on vacation has become increasingly difficult, especially for those of us who are still in school or who have recently graduated and are just starting in the workforce. To go on a 100 Mile Vacation, plan a vacation no more than 100 miles from your home (or 160.9344 km, since we use the metric system here in Canada).

Cape Breton Highlands, Nova Scotia

Travelling closer to home (in Canada, if not within your own province/territory) has a lot of benefits. As with the 100 Mile Diet, you’ll have a lesser impact on the environment and you’ll spend less money. Also, you’ll never have to worry about changing your money to another currency!

Throughout the year, each province and territory has a slew of large-scale events that occur. To name just a few, Alberta has the Calgary Stampede; Ontario has Caribana, Pride and the Canadian National Exhibition; while Quebec has Carnivale. These events have a lot to do with our national identity and are something everyone should see at least once in their lifetime.

There is a lot to see and do within Canada, and most of us take it for granted. Although our nation is a relatively new one in comparison to our neighbours in the Eastern Hemisphere, there is plenty of history to see and learn about. They say history repeats itself, so why not get a better understanding of our current affairs by learning about Canada’s past?

There are currently 15 UNESCO (United Nations Educational, Scientific and Cultural Organization) heritage sites in Canada, all of which can teach you something about how and why Canada is functioning as it is today.

There is also the large variety of climate and geography within Canada: you can see mountains, deserts, tundra, dense urban areas, lakes, oceans, forests, prairies, etc. In no other country do you see the kind of variance that you do in Canada in terms of landforms and temperature.

Travelling within Canada may also be helpful if you are looking for a job or a post-secondary institution. If you’ve found there is nothing available for you in your home province/territory, maybe it’s time to start looking at employers in other parts of the country and consider relocating. Sometimes getting a fresh start somewhere else can be very beneficial to your future.

Similarly, if you think your education isn’t getting you anywhere, maybe you should see what educational options are available in other parts of the country, as schools in different parts of the country can offer location-specific programs and specialties.

If you’re traveling in Vancouver for example, why not check out the forestry department at UBC or the School for International Studies at Simon Fraser? Sometimes trying something new or visiting a new place is the best way for you to find out what you really want to do with the rest of your life. Why not experience it in Canada?