Capital Adulting

The cost of attending college has increased over 1,200% in the last forty years. It's not uncommon to see students take out six figure debt for a bachelor's degree, which begs the question: Is it worth it?

In today's episode, I mix practical steps to evaluate this type of decision with broader philosophical commentary to help guide you towards the best choice for you. Everyone's situation is different, there's not a one size fits all answer, but hopefully this adds value to you or someone you know.

Covid brought a lot of market turmoil and a new wave of folks jumped into the investing world for the first time. They've employed a mix of strategies, some investing, some trading, some unsure what approach they're taking.

In today's episode, I highlight the differences between investing and trading, the pros and cons of both, and a good starting point for those still on the fence about whether or not to put their money to work.

We've been hearing a lot about inflation lately, so how dangerous is it? In today's episode, we'll walk through what inflation is, the risks it poses, and how to protect yourself.

Inflation = Increased prices, the value of your money decreases

Three signification risks: Time value of money, loss of purchasing power, and risk to key investments

How to protect yourself:

• Control spending and avoid big purchases in hot sectors
• Re-evaluate your investment positions
• Increase compensation where possible

Finding a new job is tough, but it's even harder to get that elusive offer. Here's some advice on how to set yourself apart and be a no brainer hire for your dream job.

1. Network - You always want a warm intro. Find someone in your network who's willing to discuss the job/company and meet with them.
2. Research - Know the role/company/industry in-depth. Being able to demonstrate your detailed knowledge in an interview can set you apart.
3. Application - Keep it clean, professional, and accurate. Four page resumes or typos will sink your hopes before the phone screening.
4. Personal relationships/positive imagery - Always make that personal connection with a hiring manager and reinforce a positive image of you in their minds.
5. Preparation - Be ready for anything in an interview, in particular have specific life examples to lean on that are relevant to the questions asked.
6. Respect people's time - Meet them when they're free, submit a clean application, ask thoughtful questions, and thank them at the end. Never burn bridges!

If you're looking for a job or are thinking about proposing a counteroffer, this episode is for you. Negotiating is both an art and a skill, and getting good at it will unlock a myriad of new opportunities for you.

-Negotiating isn't a bad thing. It's intended to produce a win-win for all parties involved.

-Confidence is key. Always demonstrate your value and what you'll bring to the team, but a lack of confidence will sink your chances at a better offer for you.

-Let the hiring manager name the first numbers. If they do, they set the floor for your compensation. If you go first, you're setting the ceiling and could easily miss out on more.

-Be creative! Ask for more PTO, remote work/flexible hours, better retirement/health benefits, or even better, expedite your review process. Ask for one at six months rather than waiting a year.

-In all cases, negotiate professionally and in good faith. Otherwise, you'll burn bridges that will cost you job opportunities, both now and in the future.

-At the end of the day, it's your decision to accept a job. Own it.

If the stock market purely operated on what a company is worth, it would be the easiest game ever. As usual though, the human element throws a massive wrench into the equation. When evaluating your investments, it's mission critical to recognize the role that emotions play and understand how to play those to your advantage.

Key Issues That Arise

-Everyone becomes fearful, which leads to irrational selling and vice versa, folks get greedy and drive prices up. Oftentimes, neither scenario reflects a material change in a company's actual value.

-Blindly following trends: We see this all the time, probably now more than ever with the rise of Reddit's WallStreetBets. If you don't understand what and why you're investing in something, you will fail

-Getting impatient: It doesn't work to constantly jump in and out of the market while trying to time it up. Play the long game and it will reward you in the end.

There are a myriad of investment opportunities out there, ranging from individual companies to funds will all kinds of strategies. That makes picking out the appropriate investments difficult. Here are some things to consider:

How old are you? What are your financial goals? Do you have a specific strategy (high growth, income, diversification, etc?)

Main Types of Funds

Mutual Funds - Generally actively managed (expensive,) limited liquidity, access to a wide array of companies

Exchange-traded Funds - One of the most common vehicles today, mix of passive and active management, another great way to limit risk

Index Funds - Aim to track a specific index like the S&P 500. Generally these are passively managed (cheaper) and a great starting point for many investors.

Google "investment calculator," plug in a $1,000 investment at 8% growth for 40 years, and see the magic unfold before you. Getting rich isn't just for a select, lucky few, but for everyone who takes advantages of what's around them. It starts by changing your mindset, determining your end goals, and leveraging your time, opportunities, and access into financial freedom.

1. Don't put limits on yourself. You don't need fancy credentials to be successful.
2. Adjust your mindset. This is an inevitability, not a faint possibility.
3. Take on an appropriate amount of risk!
4. Invest as early as possible and do so consistently over the course of your life.

It may take a few decades to get there, but hey, I'd rather be 65 and well off than 65 and broke because I was impatient, but that's just me.

We can always doing better. No matter where we're at in life, there's room for improvement, proactive steps we can take to ensure a better future for ourselves and those we care about.

Which financial category do you fall into?

Surviving: Trying to make ends meet, potentially overcome some poor financial choices

Driving: Somewhat stabilized financially, looking to get the next leg up

Thriving: Achieving your financial goals and living the life you want

I dive into these categories and how to climb up the ladder here on episode 15!

Each day we have a chance to achieve new things, take on new challenges, and learn new things. No matter where you're at in life, there's always an opportunity to seek out things you enjoy, establish a life framework to reach your end goals, and execute on your plans. Don't let the moment slip!

$750 Instagram Giveaway!!

Follow @capitaladulting on Instagram

Comment on the first post and tag a friend

If chosen, you and your friend will each get $50!

For $250, post a screenshot of your favorite Capital Adulting podcast episode to your Instagram story and tag @capitaladulting. One winner will get $250!

*Deadline is 12pm PDT Sunday, March 28th*