Just $22 thousand left to go...

If you want to call it a secret, then that’s the big “secret” to paying off debt. Productivity today equals a paycheck tomorrow and a paycheck tomorrow equals a loan payment the following day and a loan payment the following day equals getting out of debt. Period.

No big surprise here, folks. For me, the concept of getting up off my butt and doing something has taken the form of working at a popular online university as an instructor. The secondary income that I earn from this job is a nice boost to my overall monthly cash flow and it has helped to fund a great deal of my student loan payments over the last two years. And I know some idiot is probably out there reading this right now thinking, “Well, you have an advantage because you have that second job and I can’t find any job in the first place!” Bullshit! I work a 40+ hour work week with no less than a minimum of 10 hours commuting each week – and that’s just at my day job. So I don’t want to hear any crap about having any advantages because I found a good second job. If anything, my life is more strenuous than the person who is, let’s be honest, optionally-unemployed because I have several different workplace management structures that I have to perform within.

Since we’re telling secrets, I think the unemployed masses should know that one of the secrets to finding a job is getting over yourself. Sure, you shouldn’t take a job that pays below minimum wage if you’ve earned yourself a doctorate, but at the same time you shouldn’t reject an entry-level job with a modest salary either because you have a bachelor’s degree and you think that makes you worth more on the market. Newsflash: it doesn’t make you worth any more on the market in this economy! All your degree gives you is access to applying for jobs that high school graduates are not able to apply for – that’s it. And that’s not a big advantage in this economy so get over yourselves and take that entry-level job. Didn’t your professors ever teach you to “get in” at a company and then begin to find ways to climb the internal corporate ladder? It can be done, folks. You just have to get up off your butts and do it!

Stick around for more student loan news coming up in the next few weeks. Several milestones are sitting on the horizon including the aforementioned payment where I hit a remaining balance of $21 thousand. Again, this will signify an incredible $100,000 in student loan principal repayment. The next milestone after that is just a thousand bucks away when I hit $20 thousand left outstanding and then smash through that number to get into the teens.

It’s pretty amazing to think that this aggressive repayment plan really took its infancy just under three years ago in December 2009. Time flies, huh?

In May 2006, I graduated from Rutgers University with a Masters Degree and $120,720 in student loan debt. Since I started repaying my student loans in July 2006, I’ve repaid a total of $99 thousand in principal to various lenders including the federal Perkins loan program, the New Jersey Higher Education Student Assistance Authority, and CitiBank. I currently owe $22 thousand in principal to the United States Department of Education’s federal Direct Loans program. This loan is serviced by the Missouri Higher Education Loan Authority. To date, I’ve repaid over $35 thousand in interest to these lenders. Follow my student loan repayment story on JerseySmarts.com.

One of my earliest childhood jobs involved shoveling manure at my uncle’s dairy farm in upstate New York. Things were going well until my uncle explained that no matter how well I performed, I would never be promoted to farmer. Or even cow. I had hit the manure ceiling.

I consider that experience my first economic stimulus package—the unwelcome realization that my current job was a dead end. While my classmates were building snowmen with carrot noses (mostly the girls) and carrot genitalia (mostly the boys), I started to do some serious career planning about how to get out of the fecal relocation profession and into the warm embrace of a loving corporation. I studied hard, and I earned money for college by mowing lawns, shoveling snow, shoveling even more manure, and (my personal favorite) shoveling frozen manure covered with snow. I saved my meager funds, and with the help of my parents, who both took extra jobs, plus a few scholarships, I clawed my way into college.

Years later, my dream came true. I got a job with a large bank, and I never again needed to shovel manure. Corporations use something called PowerPoint instead. Thanks to my farm training, I was so good at designing PowerPoint slides that my coworkers called me “The Natural.” Jaws dropped when I introduced my signature move: the frozen PowerPoint slide with snow on top.

In those days, I was a furious bundle of ambition and determination. The old-timers told me I had a “rocket strapped to my ass.” All I needed to do was get my “ticket punched.” It wasn’t long before I was able to enjoy my second economic stimulus package: bad management.

Though most of my immediate bosses were entirely reasonable and competent, the organization at large was riddled with hamster-brained sociopaths in leadership roles. Surely, I thought, this must be a problem that exists no place else on Earth. Otherwise we’d all be living in caves and holding long meetings on the feasibility of using sticks as stabby things.

One day, a position opened above me, and I was the most obvious candidate to fill it. My boss called me into her office and said she had some bad news. She explained that the media was giving our company a lot of heat because almost all of our managers and executives were white males. Promoting me, she explained, would only make things worse. I asked how long I might need to wait for all of this to blow over. My boss was vague, but she said the timeline involved smoothing out the effects of two centuries of corporate discrimination.

I decided to jump ship and go where my talent and hard work would be rewarded. I took a job at the local phone company and soon discovered, to my horror, that banking was not the only industry in the world managed by hamster-brained sociopaths. Once again, my immediate bosses were quite capable, but interacting with other departments was like being the last human in Zombieville and trying to buy groceries at dusk. Still, it was marginally better than shoveling manure, so I doubled down. I finished my MBA classes at night and distinguished myself as an up-and-comer.

One day my boss called me into his office and explained that the media was giving the phone company a lot of heat because almost all of the managers and executives were white males. So, he explained, promoting me would only make things worse. You might say that was the day that the “Dilbert” comic strip was born, although I had not yet drawn one. Let’s call it a tipping point. From that day on, I considered myself an entrepreneur. All I had to do was figure out what business I was in. The phone company was willing to pay for almost any sort of semi-relevant training or education that I was willing to endure. It was like an accidental school for entrepreneurs. From an economic viewpoint, I was in exactly the right place, with exactly the right amount of career discomfort.

I wasn’t suffering alone. Many of my co-workers already had active side businesses and ambitious expansion plans. The guy in the cubicle behind me was running a concert equipment rental business. Across from me was a guy running a computer tech support business. We had Amway dealers, Mary Kay sales people, inventors, authors and just about any other business you can imagine. That’s not counting all of the business plans in the incubation phase. I think we all understood that working in a cubicle and being managed by Satan’s learning-challenged little brother was not a recipe for happiness.

The way I describe it may sound pessimistic, but consider the alternative. Imagine a parallel universe where employees enjoy going to work. They feel empowered and fulfilled—so much so that they don’t care about the size of their paychecks and never want to leave their jobs. That’s exactly the sort of nightmare scenario that would destroy the economy. The last thing this world needs is a bunch of dopey-happy workers who can’t stop humming and grinning. Our system requires a continuous supply of highly capable people who are so disgruntled with their jobs that they are willing to chew off their own arms to escape their bosses. The economy needs hamster-brained sociopaths in management to drive down the opportunity cost of entrepreneurship. Luckily, we’re blessed with an ample supply.

To put it in plainer terms: The primary purpose of management is to kill any hope that staying in your current job will work out for you. That sort of hope is like gravel in the engine of progress. The economy needs workers who are fed up, desperate and willing to quit their jobs for something better. Remember, only quitters can be winners, because you can’t do something great until first you quit doing something that isn’t.

You see this same dynamic with countries. The United States is a nation founded by people who couldn’t stand the leaders of their old homelands. I’m no geneticist, but I suspect that the “screw it, I’m out of here” attitude can get passed on. We’re probably the most disgruntled, self-loathing, hard-to-satisfy people on Earth. It’s no wonder our GDP is awesome.

Israel is another perfect example. The entire nation is full of people who were displeased with their last situation. And Israel’s economy is one of the most vibrant in the world. If every Israeli became satisfied at once, they couldn’t keep the lights on for a week.

I have always assumed there’s a correlation between imagination and risk-taking. You wouldn’t leave an unpleasant but relatively safe situation unless you could imagine a better outcome. So the people who leave a company first tend to be the visionaries who can best imagine entrepreneurial success. The last wave of people who leave are usually excreted just before the door is chained. They didn’t imagine it would happen so soon. Bad management is how imagination gets wings.
—Scott Adams is the creator of ‘Dilbert.’

I hate copying and pasting the entire article, but I thought it was very good and very well done. Anyway, the last paragraph got me to thinking about leaving my current job. Now, before anyone goes nuts let me be clear – I like my current job, I like the work that I do, I like the fact that my company (which is a nonprofit) helps pick people and communities up when they are down, etc. I also like teaching and I like being able to do that as a side business. Over the last 5 years, I’ve had some ups and downs with the website company, but I generally enjoy working on the websites. So I’m happy when it comes to my incoming-generating professions. However, I don’t like the fact that ten hours out of my day are spent at my day job (an hour to commute to Trenton, eight hours in the office, and then an hour back home if there’s no traffic). Frankly, that’s too much. Sure, I get to work from home on Fridays but it’s not enough.

And that last paragraph got me thinking about how I could remove my day job from my life and ultimately spend my time doing what I want to do. Reaching that level of freedom would take a lot of work. It would take a lot of financial planning and paying off my remaining student loan debt (which I can clearly accomplish as we’re seeing with my existing student loan repayments). Reaching that level of freedom would require me to finish up my commitments to my fraternity’s Foundation and then not run for re-election in 2012, which I’ve already made my decision on (I’m not running for re-election to the Board of Trustees). And to some degree, reaching that level of freedom would require that I continue to spin off some of my third party clients with my website company, which I plan on doing anyway.

And what do you have left? You have a guy with a good financial cushion, no debt, no major outstanding commitments… you have freedom. That’s what I’m going to begin reaching for in the next few years. Granted, it’s a multi-faceted goal that would require more than just leaving my current job. And who says I have to leave my current job in the end? Why not make my current job an offer to reduce my work schedule from 5 days each week to 2 days? There are endless possibilities.

However, after some meager financial projections, we’re talking about reaching a level of freedom that would likely take some 3 – 4 years of planning and pursuit.

I’m game.

If you can’t make out what the chart says via this video, then you can click here for a much clearer, quicker version of the same thing. Those unemployment numbers are pretty damn frightening.

Where is this fabled “change we can believe in?”

Faced with an unemployment rate of 16 percent for 20- to 24-year-olds, a growing number of recent college and grad-school graduates are launching their own companies, according to anecdotal evidence from colleges, universities and entrepreneurship programs around the U.S.

I love it. When certain people can’t find jobs in this job market, they don’t go and run to the government for help nor do they cry poverty and complain about not being able to make ends meet before it is too late. Instead, they open up their own companies and give entrepreneurship a try. Outstanding!

This push toward entrepreneurship among young people is likely to continue as employers plan to hire 7 percent fewer graduates from the class of 2010 than they hired from the class of 2009, which saw a nearly 22 percent drop in hiring from the class before, according to a recent report from National Association of Colleges and Employers.

The job market really is a mess out there. Thankfully, I’m in a job that I believe is pretty secure and I’m holding a position that I believe is essential to my company’s short and long term success. I’m also thankful that I worked diligently in the last few years to receive a great education and to establish additional streams of revenue outside of the paycheck that I receive from my day job. Sure, it means that I work late some nights when the college semester is in session and it means that other times when I’d rather be relaxing (i.e. when I’d rather be lazy), that I have to grade papers or sign in to an online teaching environment, but that’s okay with me.

Much like the people that the article above talks about, I’ve taken a no bullshit stance towards making sure that my future is secure. I hope that 2010 proves to be as good for me as 2009 was in terms of working my plan for financial freedom and professional success! You’ve got to go out there and make things happen!

I do, however, want to share a link that I found while looking around USA Today’s website this morning. A review of the numbers shows that older white males are losing their jobs in this recession, but also that they are unable to find new jobs.

Jobless rates for men and women older than 55 are at their highest level since the Great Depression, government data show. White men over 55 had a record 6.5% unemployment rate in the second quarter, far above the previous post-Depression high of 5.4% in 1983. The jobless rate for older black men was higher — 10.5% — but more than a percentage point below its 1983 peak.

The most remarkable change is in the unemployment rate for black women: 12.2%, far below the historic peak of 20% in 1983. Hispanic unemployment is about 6 percentage points below historic highs, too.

A cursory review of those numbers shows that older white males, as a population, are still doing much better than the rest of the populations out there. However, I notice that they don’t breakout the age ranges for the black women or any additional demographic information for the Hispanic population.

What I like about the article is that it talks in detail about three older white guys who lost their job and details what’s going on in their lives. USA Today is good at writing these types of stories so if you have some time, give it a whirl.

Early voting is a great idea since America has not declared Election Day a national holiday. The fact is that there are many people out there who have employment situations that do not support voting during the time allocated on Election Day. There are others (myself included) who are registered to vote in a town that is an hour and a half away from where I live. So guess who gets to make the drive back to his hometown to vote and then make the drive back to his apartment to wait for the results on Election Day… That’s right!

There are any number of reasons why early election is a good idea. What about the truck driver who lives in Nebraska, but happens to be on an assignment to Maine? That person isn’t voting on Election Day no matter what they do! Sure, they could apply for an absentee ballot, but that’s about as inefficient as you can get (plus, most of the time the absentee ballots aren’t counted for days or weeks after the election).

At the same time, early voting is a horrible idea if you really aren’t firmly behind a candidate. In other words, if you go to the polls on the Saturday before the election just because it fits your schedule, can you be sure that you made the right decision? What if one of the candidates comes out with some ridiculously outlandish statements in the last 48 hours of the campaign? What if one of their major policy positions is diced up and mutilated by their fellow party members (think Obama’s tax plan in the mouths of Joe Biden and Bill Richardson)? In the year 2000, FOX News broke a story about then-Governor George W. Bush and his drunk driving revelations. Many people think that this negative story on Bush in the last few days of the election cost him the popular vote. Who knows?

Then again if you’re voraciously in favor of one candidate over another, then early voting is probably a good option for you. In the end, though, let’s remember that diversifying our voting methods is a good thing for America!

Eminent domain…is the inherent power of the state to seize a citizen’s private property…with due monetary compensation, but without the owner’s consent.

In simpler terms, the process of eminent domain allows the government to take private property so long as they pay you a decent sum for the property. If you dig a little deeper, the property is supposed to taken only to be used for the public good. For example, if you are familiar with Deal Road in Ocean Township, you’ll know that the museum sits towards the end of the road closest to Route 35. You’ll also know that there was some road work performed to widen Deal Road near the entrance and exit areas of the museum. In order to widen the road, the township had to acquire some two or three feet of a homeowner’s lawn. The homeowner cried eminent domain abuse, but no one listened because this is exactly what the law is in place to do!

However, you may have heard the cry of eminent domain abuse in connection with some other developments along the Jersey Shore (or whatever neck of the woods you’re in). In the City of Long Branch, for example, the MTOTSA (Marine Terrace, Ocean Terrace, and Seaview Avenue residents’ association) fought against Long Branch’s designation of their properties as “blighted.” And you know what? They won.

Due to my current and immediately former employment situations, I’ve worked with many organizations that work both for and against the use of eminent domain. The biggest common denominator that I’ve found in every discussion is the lack of understanding of what eminent domain is all about. In fact, I HAVE uncovered many cases of eminent domain abuse…but in the opposite direction – where homeowners have literally extorted development companies who wanted to acquire small parcels of land for developments. It’s gross, really.

Anyway, the people of MTOTSA fought a valiant fight and I’m glad that they won. Their property was NOT blighted and for Long Branch to call it blighted – so it could building another multi-million dollar development on the beachfront – is a bastardization of the eminent domain laws. Some people argue that taking these properties was in the “public’s best interests” because it could generate tax revenues many multiples in excess of what it currently generates. Yet there is no discussion of the increased costs associated with high-density development. The idea is that with higher tax revenues from this one part of town, the rest of the town’s property taxes would be lowered.

One only needs to look at Pier Village (right down the street from the MTOTSA area) to see that you can have all of the tourists in the world coming to your area, but it does not guarantee that the increased revenues will lead to lower taxes. Long Branch’s property taxes went UP this year! And that’s including all of the excess revenue coming from Pier Village. Talk about being sold a bill of goods…

Congratulations to the MTOTSA organization for scoring a well-deserved victory in a very tough fight!