Young Professional’s Guide to Financial Success #1

The Young Professional's Guide to Financial Success

from CVW Financial, LLC

"A Just Get to the Point Newsletter"

To the Reader: This first new letter may strike some as obvious, but trust me, it was eye opening talking to the specialists that I spoke with. I'll get into more finance topics in later issues, but this just seems too important.

So here we go:

The first step in growing your wealth is to step back and say, what is my biggest asset?

Think about that for a minute. What is your biggest asset right now?

If you're like a lot of people, you're going to immediately think about your car, your house, your parents' house, even. Maybe an expensive watch or a family heirloom. Or you will think, "I don't have any assets worth anything yet!"

But while all of those answers have some validity, they are all wrong. Very wrong!

While it may seem counterintuitive, your biggest asset is you and your ability to work and grow your wealth for many years! The absolute foundation of your net worth and your wealth will be what you do during your working life. While it is true that you could luck out with an investment in a brand new stock or a crypto-whatever, your wealth is most likely to come from working and saving over a long time. It's not an answer that appeals to you if a big lottery ticket-type windfall is what you're hoping for, but it's the truth. 

So today's post is dedicated to reminding you about how to maintain and grow your biggest asset, that is, your working life. I've spoken with several employers and HR people and this is a non-exhaustive list of key things I've learned.

1. Punctuality is Key

This one should be obvious, but showing up on time is not just a good habit, it's a reflection of your professionalism. Remember, being fashionably late is a social etiquette myth that needs to die. It's a myth because when someone invites you to be somewhere and gives you a time to do it, they actually meant that that's when they wanted you there. If they wanted you later, they would have asked you to come later.

This is even more so in the workplace. Unless told to arrive within a window of time, assume you are supposed to be there AT THAT TIME OR A LITTLE EARLIER. Just because your friends don't care as long as you text (actually, they do care), doesn't mean your employer is ok with it.

2. Appreciate Criticism

No one wants to be criticized, and the manner in which you are criticized can often dictate how you react. But, no matter your boss's/manager's style of communication, their criticism is an opportunity for you to learn. If you knew everything, you'd be the boss, so accept what they have to say with something along the lines of, "Thank you, I'll learn from this".

When asked about this, a manager recently went on a tirade along the lines of, "I actually have people crying sometimes! Like, how am I supposed to do my job, if I can't even tell them when things aren't right?!? And some of these people are in their thirties!"

An HR manager said, "Learn to give and receive feedback- it's not always easy but you'll have to do it your whole career." I actually added the emphasis at the end because that's a key thing to understand. 

3. Don't Avoid Difficult Situations

This one is tough. Very few people out there enjoy conflict. But it happens. In fact, its potential is ALWAYS there, so the best way to avoid it is to deal with what comes up right away. When people don't speak up, things fester. I told a friend once, if you stewed anymore, we'll need to rename you Stewart. He was always upset about some injustice done against him. Better to just deal with it and move on because when you stew, the bad situation just builds in your head and all sense of proportion gets lost.

And on the other side of this, one HR person told me people need to realize, simply, "It's not all about you." This is gold. Every injustice against you may not actually be so. People also have their own lives going on inside their heads and their comment/criticism may not have been intended as such.

4. Make Your Boss's Life Easy

I heard from employers that the pandemic set their young workers back so much because they were never in the office getting properly trained and mentored. Stand out as one who knows how and when to ask the right questions, with confidence and independence.

Your boss does not want to have to explain every last detail of a task they've assigned you. But this requires you to internalize #2. You have to be prepared, and not afraid, of getting things wrong! It can be a difficult balance: ask questions, but be independent and figure out your  way to solve a problem.

5. Be Curious

There's a saying that goes something like, "success favors the prepared mind." And it's true. Stay ahead of the game by doing your research and anticipating challenges. You don't know what's around the corner, but overpreparing doesn't exist. The more you know about a subject, the easier it will be to deal with even the smallest issues.

A banking manager told me that he is always impressed when an employee is intellectually curious. These are the people who don't need everything explained to them because they're looking for new knowledge. And they ask good questions. Not questions like, "how do you do this?"; but questions like, "how does that work?".

Importantly, though, don't pretend you know something when you don't!

6. Act Appropriately

It's been said that ethics is what you do when you think nobody's watching. Well, how about turning that on its head and just act as though you're always being watched (even if you're working from home). It's important to maintain professionalism in your communication, behavior, and work ethic. You never know who might be observing!

7. Don't Burn Bridges 

I cannot stress this one enough. At some point in life, it becomes almost spooky how interwoven your world becomes with those around you. Whether it's actually running into the same people or noticing how you are constantly meeting people who know someone you know, it becomes obvious that past behavior can come back to haunt you...especially bad behavior. Trust me, the bad things stick out WAY more than you'd like to think they do.

This includes your coworkers (even the ones you think can't pull their weight), it includes what you say on social media (even when you think it's private), and it definitely includes how you deal with your bosses. ESPECIALLY when you don't agree with them.

I hope these tips help. Many people will find at least one of these ridiculous but trust me on this: your professionalism will help you boost your net worth exponentially more than a good investment will. It's not as fun as trying to "win" or "beat the market", but it's the absolute foundation of your wealth.

Thank you for reading this! I look forward to sharing more about wealth-building and investing.

Wishing you a prosperous career,

Tim

And of course, the fine print:

CVW Financial, LLC is a registered investment adviser.  Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies.  Investments involve risk and, unless otherwise stated, are not guaranteed.  Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.