college grads

Make Sure You Get Paid and 4 Other Great Tips From Famous Commencement Speakers

Emily Guy Birken — Fri, 16 Jun 2017 08:00:09 +0000

Graduation season brings with it a slew of commencement speeches, all of which tend to repeat the same old cliches about bright futures, following one's dreams, and how graduation marks a beginning rather than an end. While great commencement speakers find ways to package these old chestnuts in humorous speeches and elegant words, most of these addresses do not offer graduates any actionable advice.

However, some graduation speakers do have excellent words of wisdom to offer new grads. In particular, the following five famous people offered some important money and career tips that graduates (and anyone else watching their speeches) can take to heart.

Lesson #1: Get paid!

Maria Bamford, University of Minnesota 2017

This spring, comedian Maria Bamford gave one of the most unusual — and helpful — commencement addresses of all time at her alma mater, the University of Minnesota. Bamford used her speech as an opportunity to detail the negotiation process she went through to receive a $10,000 paycheck from the school in exchange for her speech.

The University had originally offered her nothing for the gig, which made her wonder if the school was lowballing her. "Was the University of Minnesota suggesting that I couldn't get paid for the exact job that I paid them to teach me how to do?" she asked the laughing crowd.

Bamford went on to say that she requested $20,000 before being offered the $10,000 she ultimately accepted. Her business adviser (an aluminum salesman and the father of a friend) wanted her to ask to split the difference at $15,000, but since Bamford is "still from Duluth, and still ashamed," she accepted the $10,000 — which only netted her $5,000 after taxes and commissions were removed.

This lesson about the importance of getting paid what you are worth became even more concrete for one member of the graduating class. Bamford ended her address by asking graduates who owed money to Sallie Mae to raise their hands, and then asking if there were specifically any theater majors who owed money to Sallie Mae. One theater major in the front row was invited on stage, where Bamford handed over the $5,000 speaking fee check, already made out to Sallie Mae. She told the graduate that it would have been a larger amount, if Bamford had been a better negotiator.

Doubtless, every graduate in the audience came away from that speech with a much better sense of the importance of asking for what they are worth.

Lesson #2: If you worship money, then you will never have enough

David Foster Wallace, Kenyon College 2005

The writer David Foster Wallace gave this speech over a decade ago, and it has shown up on lists of best commencement addresses ever since. The overall message of the speech, which is entitled This Is Water, is about being aware of the world around you and the ways in which your thoughts shape your reality. However, in one portion of his address, Wallace talks about how we all worship something, and he cautions against worshipping the wrong thing, including money:

"And the compelling reason for maybe choosing some sort of god or spiritual-type thing to worship … is that pretty much anything else you worship will eat you alive. If you worship money and things, if they are where you tap real meaning in life, then you will never have enough, never feel you have enough. It's the truth."

As he acknowledges in the speech itself, Wallace's message is as old as human storytelling. But the language and stories he uses to get his listeners to understand the power we give to the things we worship can help you to reframe the way you think about money and other worldly things.

Lesson #3: If everyone had a safety net, we would all benefit

Mark Zuckerberg, Harvard University 2017

Mark Zuckerberg, the founder of Facebook, famously dropped out of Harvard before attaining his degree, leading to his joke that his commencement speech there was the first thing he finished at the university. But his ability to drop out of Harvard and create the juggernaut that is Facebook is partially due to luck — he knew that he had a stable family who could support him. He told the graduates:

"I know a lot of entrepreneurs, and I don't know a single person who gave up on starting a business because they might not make enough money. But I know lots of people who haven't pursued dreams because they didn't have a cushion to fall back on if they failed.

"We all know we don't succeed just by having a good idea or working hard," he went on to add. "We succeed by being lucky, too. If I had to support my family growing up instead of having time to code, if I didn't know I'd be fine if Facebook didn't work out, I wouldn't be standing here today."

Zuckerberg goes on to make the somewhat radical suggestion that people like him should pay for a universal basic income in order to make it possible for proto-entrepreneurs to try and fail without fear of losing everything. This idea may sound strange, but it could allow for huge innovations that could change the world.

Lesson #4: Be brave and just go for it

Reshma Saujani, Harvard Graduate School of Education 2017

Reshma Saujani is the founder of Girls Who Code, an organization that works to teach girls computer programming in an effort to increase the number of women working in computer science. Saujani gave a commencement speech the day before Mark Zuckerberg, and she pointed out that more of the world's current revolutionaries look like him, rather than her:

"I don't mean any shade to Zuckerberg … But America is a big, beautiful, diverse country … [yet white men have] occupied a platform that the rest of us haven't had access to."

Saujani goes on to state that our society trains boys to be brave, and girls to be perfect, which means girls are kicking butt and taking names in the classroom, but less likely to be revolutionaries in the real world. So we need more women to focus on being brave rather than being perfect.

This is excellent advice for anyone who fears failure, no matter their gender or skin color. Saujani has reminded graduates that waiting for the perfect moment or trying to be perfect is the enemy of innovation. Just going for it, like Zuckerberg did and many white guys have done before him, is something that all people should embrace.

Lesson #5: Prepare for failure when you take risks

Atul Gawande, Williams College 2012

Writer and surgeon Atul Gawande took on the common-but-meaningless graduation cliché about embracing risks in his 2014 commencement address to Williams College. While it is all well and good to recognize that risks are necessary to reach your goals, it can be difficult to know how to mitigate the damage if the risk doesn't turn out in your favor.

To help grads understand what we can do to protect ourselves from risk, Gawande explained how surgeons are able to protect their patients from unanticipated complications on the operating table:

"Scientists have given a new name to the deaths that occur in surgery after something goes wrong — whether it is an infection or some bizarre twist of the stomach. They call them a 'Failure to Rescue.' More than anything, this is what distinguished the great from the mediocre. They didn't fail less. They rescued more."

Gawande went on to explain that there are three pitfalls to avoid when things go wrong: the wrong plan, an inadequate plan, and no plan at all. The secret to taking risks without losing your shirt (or your patient) is to make sure you recognize that failure is a possibility, and be prepared for it. Otherwise, you fail to rescue yourself, which compounds the failure.

Ultimately, recognizing the possibility of failure and preparing for it will make it less likely that you will fail.

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The New Grad's Guide to Debt Management

Mikey Rox — Wed, 14 Jun 2017 08:31:16 +0000

According to Student Loan Hero, the average 2016 graduate left college with $37,172 in student loan debt. The class of 2017 will graduate owing roughly the same amount, if not more.

For many young adults, a student loan is the only option for obtaining a degree. The problem, however, is that it takes years to pay off these balances. Some graduates also have difficulty juggling student debt with their other expenses.

Luckily, student loan debt doesn't have to cripple a new grad's finances. Here are a few strategies to help graduates manage their debt and stay on track.

1. Get organized and prepared for that first bill

Student loan repayment typically begins six to nine months after graduating college. You'll likely receive information regarding your first payment in advance. If you haven't received this information yet, it doesn't hurt to contact your student loan lender to ask about your due date and minimum payment. Having this information early helps you prepare your budget ahead of time.

To stay organized and avoid late payments, set up automatic reminders a few days before your student loan payments are due. If you have multiple lenders, look into consolidating all your loans into a single loan. This way, you don't have to juggle multiple payments and due dates. If consolidation isn't an option, contact your lenders to see if you're allowed to change your due dates. It might be easier to manage student debt when due dates are within a few days of each other. (See also: What's the Difference Between Student Loan Refinancing and Consolidation?)

2. Sign up for autopay to stay on schedule

Signing up for autopay is one way to avoid missing a due date on your student loans, which can trigger a late fee or a negative mark on your credit report. With autopay, your student loan lender automatically drafts monthly payments from your checking or savings account on a specific day of the month. As a bonus, your lender may reduce your interest rate when you agree to automated payments. This results in paying less interest over the life of the loan.

Of course, the key to making this a successful solution is ensuring that there's always enough money in your checking account to cover the deductions — something you'll really need to stay on top of.

3. Request forbearance if you need more time

If you're scheduled to begin repaying your student loan, but you don't have enough income, don't ignore the bills. Student loan lenders — especially federal lenders — are flexible and offer assistance to students requiring financial help.

One provision is forbearance, which allows you to temporarily suspend student loan payments for a certain number of months. For example, request a one-month forbearance if you have a temporary hardship, or request a one-year forbearance if you experience longer financial troubles. Keep in mind that interest continues to accrue with forbearance, which can put you deeper in the hole. Only use this option as a last resort.

Deferment, on the other hand, is an income-based hardship provision. This option works the same as forbearance in that it suspends monthly payments without penalty. With a deferment, however, the federal government pays the interest that accrues during this period. (See also: 4 Things You Need to Know About Deferring Student Loans)

4. Deduct student loan interest

Student loan interest is a deductible expense, so remember to include this item when filing your income taxes. This is critical in cutting your tax liability, especially when you're already on a tight budget. Since it's an "above-the-line deduction," you don't have to itemize your tax return to take advantage of this write-off. You're allowed to write off up to $2,500 of student loan interest paid annually. This will reduce how much you owe in federal and state taxes. (See also: 4 Ways Student Loans Impact Your Taxes)

5. Hold off on other types of financing

After finishing college, you're likely ready to get your "adult" life started. This might include buying a new car and furnishing an apartment. But since you're fresh out of school with student loan debt, try to hold off on other types of financing — at least for now.

The more debt you acquire, the harder it might be to juggle student loan and other credit payments. If you can avoid a car loan and unnecessary credit card debt, the money you would have spent on these expenses can go toward paying down student loan debt.

6. Live at home

The financial decisions you make as a young adult can affect your life later on. Although your friends might move into their own apartments, buy new cars, and spend most of their money on fun stuff, consider the benefits of living at home after graduation. By doing so, there's an opportunity to put a major dent in your debt. I did it for two years immediately following college, and I wasn't even a little bit embarrassed about it; I've paid off two student loans as a result.

Whether you have credit card debt or student loan debt, minimizing your expenses now and prioritizing debt elimination sets the foundation for a strong financial future. Not only should you pay off debt, you should use this time to build a solid emergency fund. It'll be easier to save money and get ahead financially when you commit to living as cheaply as possible. (See also: 8 Surprising Ways to Pay Off Your Student Loans)

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

11 Ways College Grads Can Get Ahead in the Job Hunt

Mikey Rox — Mon, 24 Apr 2017 08:30:13 +0000

It's a dog-eat-dog post-college world out there for new grads. It was when I graduated in 2003, and I hear the same grumblings today from next-gens looking for work.

While I can't promise that any of my advice will get you hired, I can ensure that it'll at least help you get your professional endeavors off on the right foot. As such, consider these ways to get ahead in the job hunt.

1. Explore entrepreneurship while you're still in school

Entrepreneurship isn't for everyone, but I do recommend it to everyone. I started my first business while I was still in college, which eventually evolved into a successful media business. That has, in turn, provided me with the financial and recreational freedom to pursue other interests and revenue streams.

More than that, though, trying to become your own boss at a young(ish) age, even if you don't quite know what you're doing yet, will never be considered a failure. At the very least, you'll gain skills than can help you in future prospects, learn how to interact with customers, and make connections networking with other professionals. This will give you a major edge over your contemporaries.

2. Volunteer to enhance work ethic and build references

Volunteering, especially right after college, looks great on a resume because it lets an employer know that you're committed to a cause. It's not just about listing the noble charities to which you've given your time, but rather how you turned these opportunities into in-the-field, ethic-building ventures. The experience will undoubtedly help you make contacts and build references who will sing your praises when called upon. Of course, seeing the world, meeting and helping people, and gaining a sense of purpose and self are pretty cool, too.

3. Pursue internships to gain industry experience

I held two internships at a time in college because I knew I wanted to work in media, specifically journalism. Unfortunately for me, I fell in love with a college that didn't offer a journalism major, and that meant I had to make up the difference — big time.

One of my internships was writing news for an ABC-affiliated AM news-radio station, while the other was writing about music for a local magazine. Each of these internships provided me with vastly different skills, but they both prepared me for applying to my first paid writing positions. I went into those jobs better prepared, perhaps, than other candidates.

Alexis Chateau, founder and managing partner of her own eponymous public relations firm, credits internship for her success. In addition to the internship, she suggests taking on spec assignments for free to show potential employers what you've got.

"College students should take on pro-bono work, to build their portfolio, if they work in an area that requires it," she says. "An impressive portfolio can open up almost any door in business."

I can personally vouch for this tactic. When I started my journalism career, I wrote many articles for free just to get published. When I had enough clips that showed that I was a capable and cognizant writer, editors responded in kind by hiring me for work.

4. Connect with prospective companies online

If there are particular companies at which you're interested in working, follow them online so you can get a better idea of what they're all about. When you go into an interview with something smart and relevant to say about the company, you won't go unnoticed by the interviewer.

"These days, smart companies are using their social media to have a dialogue with the public, and this dialogue is a great way for people to figure out a company's core values, their mission, and the language they use in order to connect with them, and present yourself as an ideal candidate," explains Carlota Zimmerman, a New York-based career coach and success strategist.

Zimmerman suggests also liking the company's Facebook page, as someone through the grapevine may notice and reach out. It may not be that easy, but any potential connection is a valuable connection.

5. Clean up your social media

This is the digital age, when everyone and their mother has a social media presence. Chances are, if you're fresh out of college, you've got a few things floating around your Facebook or Instagram account that may not paint the prettiest picture of you to an employer. And believe me, your prospective employers will be looking.

Before you even send out your resume, do a deep clean of all of your social media accounts. Scrub embarrassing posts, delete or untag yourself from unflattering photos, and double check your privacy settings. Then, view your profile publicly to see what information is still accessible. A tedious process? Yes, but so is unemployment. (See also: 7 Easy Ways to Clean Up Your Image on Social Media)

6. Tap into your personal network for professional tips

Nearly every single adult you know is a professional with years of experience in their field. Some of them have had the same jobs forever, and some of them have changed careers frequently. No matter the case, these folks can be helpful not only in the advice they can provide, but they may also be able to point you in the right direction of employment.

Kristine Thorndyke, who landed a full-time gig in Los Angeles before she graduated, offers advice on how to apply this principle within your own college community.

"Join a club or school committee based around a particular skill or interest you intend on pursuing in the future," she says. "For example, if you are a business major, see if there are any groups or committees that meet up or, oftentimes, a designated business fraternity. These kinds of groups usually have access to professionals in the field you intend on pursuing and can help coordinate meet and greets with these professionals or alumni."

7. Take advantage of your school's career services resources

When I was looking for a job in Manhattan, I was willing to take all the help I could get. Enter Career Services at my alma mater. These centers provides free resources that not only help students write proper resumes, but also facilitate conversations between alumni and new grads based on field of interest, skill level, and more. My own Career Services connected me with the right people so I could start putting out feelers and getting a handle on what my options were.

"Reach out to alumni from your school and ask them out for a coffee to 'pick their brain,'" Thorndyke suggests. "Oftentimes, this alumni has connections or ties to companies that are hiring and will be impressed that you were driven enough to meet and learn more about the kind of work they do and their insight and/or suggestions for you."

8. Practice how to give a good interview from start to finish

Interviewing for a job is an art form. There are a million things that go into giving a great one, from how you dress to your follow-up thank-yous. As with everything else, of course, practice makes perfect — and you have ample time to hone your skills since, ya know, you're currently unemployed. (See also: How to Answer 23 of the Most Common Interview Questions)

Thorndyke advises, "Interview with a professional career counselor. It's the best way to figure out how to most effectively convey your thoughts and accomplishments before the big interview. Oftentimes, it's difficult to get any honest feedback from HR or interviewers about notes on your qualifications or interviewing ability from a gig you were declined an offer from."

An interview counselor can point out where you need to improve before the rejections become a trend.

9. Learn how to write a resume that will get you noticed

First, let's start with the number one thing you shouldn't do with your resume: Do not send the same one to every job prospect, regardless of industry or field. Your resume should be specifically tailored to the job you're seeking. If that means changing it 57 times a week to make sure it's relevant to each prospect, that's what you need to do. Secondly, it needs to stand out. There are lots of ways you can do that, but the highest on the list is providing details about past accomplishments opposed to generic lines like, "Provided marketing assistance to the director of sales." (See also: 10 Resume Mistakes That Will Hurt Your Job Search)

You know what HR people do when they read resumes full of bland descriptors? They slam dunk it into the circular file and move on to the next one.

10. Put your GPA on your resume

Maybe I've been out of college for too long, but I don't remember including my GPA on my resume — or anybody ever suggesting I do so. But Chris Kolmar, co-founder of Zappia.com, makes a good point about adopting the practice, at least for the first couple years after graduation.

His logic?

"Any good hiring manager will ask for it because it's a decent predictor of success right of out college," he says.

Not gospel, but it certainly won't hurt.

11. Start your job hunt months before graduation

Looking for a job well before you graduate doesn't always work, but getting a head start never hurts.

"I secured a job in public relations three days before graduation because of this," explains Alyssa Pallotti, an account supervisor at Montner Tech PR in Connecticut. "I began applying, participating in phone interviews, and meeting potential employers in person as early as the beginning of my final semester. This allowed me to tweak my resume, cover letters, and interview style based on feedback from those companies. Therefore, my overall presentation and nerves were refined by the time I was actually eligible to take on a position."

Yes, job hunting takes work — and that can be an overwhelming prospect when you're still dealing with school — but don't put this off. It could potentially save you months of job-hunt headaches.

This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Most Common Tax Mistakes Made by College Grads

Damian Davila — Tue, 12 Apr 2016 09:00:13 +0000

Attention grads: While you may be done with college, you aren't off the hook from major assignments. One of those major assignments is filing your tax return, and this is one assignment deadline that you don't want to miss.

This year, Monday April 18th is the deadline to file your federal taxes. (Residents of Maine and Massachusetts get an extra day!) With time running out, it’s important to file your return correctly the first time around. Be on the lookout for the five most common tax mistakes made by college grads.

1. Not Claiming Education Credits

According to a 2014 study from H&R Block, only two-thirds of Americans eligible for tax breaks for students actually claim them! Within those tax breaks, the American Opportunity Credit and the Lifetime Learning Credit stand out because they can reduce your tax bill by up to $2,500 and $2,000, respectively.

Unlike other tax deductions, the American Opportunity Credit can still get you a refund even when you don't owe any federal income tax. If the American Opportunity Tax Credit brings the amount you owe to zero, you can have 40% of the remaining amount of the credit (up to $1,000) refunded to you.

While the American Opportunity Tax Credit requires you to not have finished the first four years of higher education at the beginning of the tax year, the Lifetime Learning Credit doesn't require students to be working toward a degree. You're eligible to claim this credit as long as you're taking at least one class.

Bonus: If you're taking a sabbatical from your recent graduation and are eligible to be claimed as a dependent by your parents, they can claim these credits in their own return.

File Form 8863 with your federal return to claim the American Opportunity and Lifetime Learning Credits.

2. Not Filing Taxes When Abroad

Talking about sabbaticals, you still need to check with Uncle Sam every year during tax season even when you're abroad. Your worldwide income is subject to U.S. income tax, no matter where you live.

The good news is that when you expect to get a refund or not to owe any federal taxes, you can take advantage of the automatic two-month extension to file your return. However, if you believe that you will owe federal taxes, then file by the regular deadline (April 15 most years) to avoid paying applicable interest charges or penalties.

3. Forgetting About Moving Expenses

Chances are that your first job after graduation will require you to move. No matter whether you move away from your college dorm, parent's home, or own rental, double check how far away your new job location is from your old residence. If the distance is at least 50 miles, then the IRS allows you itemize several moving expenses, including:

Transportation and storage of household goods and personal effects within any period of 30 days in a rows after date of move;
Insurance for those household goods and personal effects before delivered to your new home;
Out-of-pocket expenses for gas and oil or mileage at 23 cents a mile, in case you drive for the move; and
Parking fees and tolls.

Use Form 3903 to figure out whether or not you can deduct your moving expenses and what is your allowable moving expense deduction.

4. Withholding Too Much in Taxes

Whether you graduate in the spring, summer, or fall, you would expect to be employed fewer than 245 days (about eight months) during the current calendar year. In that case, you can ask your employer to use the part-year withholding method so that less tax is withheld from each of your paychecks.

IRS Publication 505 states that you must ask your employer in writing to use this method. In your letter, make sure to include these three items:

Date of your last day of work for any prior employer during the current calendar year;
Statement that you don't expect to be employed more than 245 days during the current calendar year; and
Statement that you're using the calendar year as your tax year.

If your employer approves your request, the HR department will use the regular percentage method tables from Publication 15 with adjustments for your part-year employment. This is the best way to maximize those first-year checks. Remember that you don't earn interest on refunds!

5. Miscalculating Student Loan Interest

Mom and Dad are always willing to lend you a helping hand and may have footed your student loan payments until you landed your first post-graduation job. In that case, and as long as you're not claimed as a dependent by your parents, you can deduct up to $2,500 of interest paid on qualifying student loans by them from your income subject to tax every year. Just make sure to let your parents know that they won't be able to deduct those interest payments from their own return.

Even when you're making student loan payments yourself, you can still deduct up to $2,500 of the interest payments. To be eligible to claim this deduction in 2016, your modified adjusted gross income (MAGI) must be less than $80,000 if single, head of household, or qualifying widow(er), or $160,000 if married filing a joint return.

To figure out your student loan interest deduction, check Form 1098-E from the institution that receives interest payments made on your behalf or paid by you. Your interest deduction is gradually reduced when your MAGI is between $65,000 and $80,000 ($130,000 and $160,000 if you file a joint return).

Let's imagine that you paid $2,600 on interest for a qualified student loan throughout 2015. Assuming you file your return as single, here's how much you could deduct based on your 2015's MAGI:

MAGI is $50,000: You can deduct the full $2,500.
MAGI is $70,000: You need to phase out your student loan interest deduction using rules from IRS Publication 970: $2,500 x ($70,00-$65,000)/$15,000 = $833.33. Your eligible student loan interest deduction would be $2,500 - $833.33 = $1,666.67.
MAGI is $85,000: You can't deduct any student loan interest payments.

Have you made any of these tax mistakes?

This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Best Money Tips: Best Gifts for College Grads

Ashley Jacobs — Fri, 27 Apr 2012 10:00:11 +0000

Welcome to Wise Bread's Best Money Tips Roundup! Today we found some awesome articles on the best gifts for college grads, budget-friendly room revamps, and financial rules that work and don't work.