Last week, the internet was in a furor over an open letter of a 26 year old who worked at Yelp
The letter writer, Talia Jane, is a college graduate working at an entry-level position and wrote about being hungry and living on minimum wage in San Francisco. She was subsequently fired. You can read the details of her letter here.
The instantaneous reaction was not surprising and the replies were downright polarizing. This post, my own letter to Talia Jane, is not another judgemental or apologist piece. Rather, this is my point of view, as a business owner and mentor to my own millenial employees. I sincerely hope that Talia gets to read this.
Dear Talia Jane,
I’m sure that after what happened last weekend, you must be inundated with lots of letters, comments, posts, tweets, and messages. I hope that you don’t mind me writing another letter to you. I am hoping that you may get to read this at one point. I am not here to write a condescending piece aimed at judging you. I am instead writing you a letter to say that I understand you.
You see Talia, I am a business owner, and 90% of my employees are millenials like you. I disagree with those who say that the millenial generation is full of whiny, lazy, and entitled individuals. On the contrary, my millenials are some of the most hardworking and selfless people I have ever met. They are accepting and loyal. They are honest to a fault.
And this is probably why you are branded the entitled generation. I believe entitlement is something that is universal. All generations have their own share of “entitleds.” You millenials, however, wear your hearts on your sleeves. Social media makes it easy to share. Just a click of a button and your views, your heartaches, your triumphs, your complaints, your failures are on the internet space, for everyone to see, to praise, to empathize with, to judge.
Your generation is brave, brave enough to take risks and adventures. Brave enough to make decisions that even adults of my generation were afraid to take. However, in many cases, like many young adults, you take these risks with high-spirited sprightliness and a tad too much naivete.
Which is where is I think you need the most advice on.
Before making a decision, make a plan. When making a financial decision, make a budget. I say this to you and to all other young individuals taking that first leap into adulthood. Make this your irrevocable first step in anything you do. It seems simple, but this is one of the most missed out steps in anyone’s life. Sometimes, many times in fact, it makes the difference. It is what can make you a winner, and it is what can make you a failure.
Before accepting a job for example, make a simple spreadsheet like this:
| Monthly Cash Flow | ||
| Salary from Job A (after Tax) | $1,500.00 | |
| Expenses | % to Income | |
| Rent | $1,200.00 | 80.00% |
| Electricity | $70.00 | 4.67% |
| Heat | $70.00 | 4.67% |
| Internet | $60.00 | 4.00% |
| Cable | $50.00 | 3.33% |
| Cellphone | $50.00 | 3.33% |
| Grocery | $100.00 | 6.67% |
| Dine Out | $100.00 | 6.67% |
| Gas or Commuting | $200.00 | 13.33% |
| Loan Payments (if any) | ||
| Credit Card Payments | $300.00 | 20.00% |
| Total Expenses | $2,200.00 | 146.67% |
| Disposable Income (Income less Expenses) | -$700.00 | |
| Current Savings | $10,000.00 | |
| Burn Rate in months | 10.53 |
List your projected income from your job – the job that you are about to accept – and then list all possible expenses you will have for the month. Your income less your expenses will show you how much disposable income you will have to spend or save. Always look at your burn rate, which is how many months you will burn through your savings if you have any. This will give you a timeline of how much you can spend before you go broke. If you anticipate a negative disposable income, make a plan on how to augment this situation by looking at the variables that can be changed For example, you can increase your income by taking on a salary from another job. You can also keep applying for a different job, one that pays higher. You can cut back on rent by looking for other options or finding a roommate or roommates to split the cost with. You can also lower expenses on dining out, grocery, or cable/internet. I know that living in a city like San Francisco is tough especially with a wage like yours, but it is the current reality. Until such time that legislation changes this situation, it is better to have a plan to work with this reality.
I’m sure that when you made the decision to move to San Francisco you were full of hope. I am definite that you have the smarts, the college pedigree, and the drive to eventually get a higher paying job in media. However, having a plan in place, or a backup plan in the event your move to media does not pan out is absolutely necessary – and in my opinion, should be non-negotiable. A simple spreadsheet like my sample above is a hard look at your finances and will give you a starting point on how to better your situation.
Looking back at my own life, my biggest financial missteps were caused by decisions that were made on a whim or have not given thought to at all, and my biggest successes were the ones that were carefully planned. Of course there will be moments when you just get lucky but I always consider those as flukes.
I do not want this to become a 2000 or 3000 word page letter as my intended message is simple. The best advocate for yourself is always yourself. Don’t rely on your employer, your family or anyone else to make things better for you. Do not lose the positivity and the hope, but take the reins and steer your life where you want it to head.
So Talia, keep being brave, but this time, be brave with a plan.