Janet: "I would tell myself to start thinking about your financial future.
Your life changes as you age. In many obvious ways, but also how you are perceived by employers and where you add value. I’m at this juncture. The traditional path is one way and it’s no longer as viable. When I talk to recruiters or executives they say, "Oh you’re so senior… and you made so much money….” It’s both the perception that you have no runway and the fear you’ll ask for too much. And it’s crazy. Really it is crazy. And at this point in my career I don’t just want to be the cog in the wheel at one of these places, but that’s where you make the money.
Frankly, this is the kind of thing people your age don’t get.
Your life changes as you age. In many obvious ways, but also how you are perceived by employers and where you add value. I’m at this juncture. The traditional path is one way and it’s no longer as viable. When I talk to recruiters or executives they say, "Oh you’re so senior… and you made so much money….” It’s both the perception that you have no runway and the fear you’ll ask for too much. And it’s crazy. Really it is crazy. And at this point in my career I don’t just want to be the cog in the wheel at one of these places, but that’s where you make the money.
Frankly, this is the kind of thing people your age don’t get.
This would have been a little bit more useful for people your age than mine. You can think further out and have more structure.
I think it’s about deciding what freedom means to you, and what that implies from a financial perspective. I have respectable assets, I’m going to sit down with my financial planner and figure out how life could be if I just live on what I have. But I should have thought younger about what it's going to take for to be happy and what does that translate to from a financial picture. It’s that combo of marrying your personal goals and passions with the kind of lifestyle you’re going to have.
I’m mentoring another young woman about your age. Graduated Barnard, very smart, very sensitive and capable person. She is working right now at an animal shelter. Because animals are her passion. She’s so smart and talented and she’s making $12/hour. I’d like her to think a little more ahead to what she needs in 10 years."
Kate: "So passion vs. practicality."
Janet: "Right. The other thing I was thinking about was business relationships. I’m a first generation American – my dad was truck driver and my mom was a secretary. I thought you could just work really hard and it propels you forward… and it does to a point. But if I did it again I would focus on cultivating and maintaining relationships. There’s that old adage, “it’s not what you know, it's who you know...” And that’s a little extreme. But still it is relationships that truly propel you forward. Relationships could be really helpful to me now but because I neglected them years ago I can’t tap into them at this point.
Often you don’t even know who could add value later in your life so it’s almost about the discipline of taking the time to maintain many of your relationships.
To give you an interesting example, when I was in business school 30 years ago I got a full fellowship to teach business communications. It paid the freight for me to get the MBA debt free. I was the assistant to the professor. After it ended, I kept that relationship up for the 30 year period or whatever it was. Not once a month, just whenever. And that same teacher is who got me in touch with the part-time professor job I have now. I didn’t keep that relationship up because in 25 years I’d get a job, but it goes to show that stuff comes out of corners that you never guess. On the other hand, I worked for the guy who’s now the CEO of American Express. We worked closely for 2.5 years. In hindsight I wish I would have wrote him a note every six months."
Kate: "So if you don't know who will be important and you don't want to be fake about it, what does that mean in practice?"
Janet: "I know one guy (and I’m not sure I advocate this) who sends out a holiday letter and a summer letter every year. I think it’s a little too form. He’s telling me about his kids and I don’t know him well enough to care about that.
Now’s the time you’re meeting people, interesting people. Choose the ones with whom you form a connection: a true business or emotional relationship. Keep track of when and where they are. Send them an email once a year. That has tremendous value that you can’t see from where you sit right now.
Lastly -- I think the other thing that I didn’t think about is that the period from 28-40, those are your prime years for your professional progression and growth. And I didn’t think about it that way. I mean, there's always exceptions, but if you miss that window… whatever you’re doing at 40 you’re going to have built the foundation for in that period. I'm 53. Anything that I’m going to do at this point is going to be based on what I did in those years."
Kate: "That's almost comforting then! So 22-28 doesn't count! No need to stress."
Janet: "Right. These first few years out of college there’s room to mess around. But by 28… those are going to be the building blocks of where you're going. People are going to judge you over some trajectory and that’s the trajectory. And that I couldn’t have told you at 25."
I think it’s about deciding what freedom means to you, and what that implies from a financial perspective. I have respectable assets, I’m going to sit down with my financial planner and figure out how life could be if I just live on what I have. But I should have thought younger about what it's going to take for to be happy and what does that translate to from a financial picture. It’s that combo of marrying your personal goals and passions with the kind of lifestyle you’re going to have.
I’m mentoring another young woman about your age. Graduated Barnard, very smart, very sensitive and capable person. She is working right now at an animal shelter. Because animals are her passion. She’s so smart and talented and she’s making $12/hour. I’d like her to think a little more ahead to what she needs in 10 years."
Kate: "So passion vs. practicality."
Janet: "Right. The other thing I was thinking about was business relationships. I’m a first generation American – my dad was truck driver and my mom was a secretary. I thought you could just work really hard and it propels you forward… and it does to a point. But if I did it again I would focus on cultivating and maintaining relationships. There’s that old adage, “it’s not what you know, it's who you know...” And that’s a little extreme. But still it is relationships that truly propel you forward. Relationships could be really helpful to me now but because I neglected them years ago I can’t tap into them at this point.
Often you don’t even know who could add value later in your life so it’s almost about the discipline of taking the time to maintain many of your relationships.
To give you an interesting example, when I was in business school 30 years ago I got a full fellowship to teach business communications. It paid the freight for me to get the MBA debt free. I was the assistant to the professor. After it ended, I kept that relationship up for the 30 year period or whatever it was. Not once a month, just whenever. And that same teacher is who got me in touch with the part-time professor job I have now. I didn’t keep that relationship up because in 25 years I’d get a job, but it goes to show that stuff comes out of corners that you never guess. On the other hand, I worked for the guy who’s now the CEO of American Express. We worked closely for 2.5 years. In hindsight I wish I would have wrote him a note every six months."
Kate: "So if you don't know who will be important and you don't want to be fake about it, what does that mean in practice?"
Janet: "I know one guy (and I’m not sure I advocate this) who sends out a holiday letter and a summer letter every year. I think it’s a little too form. He’s telling me about his kids and I don’t know him well enough to care about that.
Now’s the time you’re meeting people, interesting people. Choose the ones with whom you form a connection: a true business or emotional relationship. Keep track of when and where they are. Send them an email once a year. That has tremendous value that you can’t see from where you sit right now.
Lastly -- I think the other thing that I didn’t think about is that the period from 28-40, those are your prime years for your professional progression and growth. And I didn’t think about it that way. I mean, there's always exceptions, but if you miss that window… whatever you’re doing at 40 you’re going to have built the foundation for in that period. I'm 53. Anything that I’m going to do at this point is going to be based on what I did in those years."
Kate: "That's almost comforting then! So 22-28 doesn't count! No need to stress."
Janet: "Right. These first few years out of college there’s room to mess around. But by 28… those are going to be the building blocks of where you're going. People are going to judge you over some trajectory and that’s the trajectory. And that I couldn’t have told you at 25."