This week, Problogger.net hosts a group writing project featuring “how to” blog posts from around the globe. Along with Money Under 30’s post Ex-Car Salesman Tells All: How to Beat the Auto Dealerships at Their Own Game, here are some noteworthy contributions to the project relevant to personal finance in your twenties.

Life: Personal, Business, Social says “Yes, Virginia, money can buy happiness”.

Short on cash? You can still make your loved ones happy with Shonnie Lavender’s post on everyday gifts that don’t cost a dime.

Pragmatic Finance talks about how to game the credit card application process to load up on multiple high credit-limit cards.

Mark Choon advises to do what you love and let the money roll in.

My New Choice presents some basic advice on teaching your children how to save.

Creating a monthly budget when you are in your twenties presents unique challenges and requires different priorities than budgeting at any other time in your life. But whether you are living at home for a few years, out on your own for the first time, or eking through graduate school, budgeting is more important in your twenties than at any other time. [...]

After graduation you’ll need some new wheels to get to that all-important first job. But which new car is for you? Money Under 30 picks the top new cars for college graduates and young professionals under 30 based on affordability, reliability, and appeal.

2007 Scion tC
Avg. MSRP: $15,000 (Man.)

If you crave an affordable sports car, look no further than the 2007 Scion tC. Featuring mouth-watering standard equipment like 17-inch alloy wheels, a moonroof, and a super sound system, this coupe is one hot ride for just $15k. The tC also boasts the engineering quality of Scion parent company Toyota, so you know you can count on your tC. Got friends? Owners praise the tC’s spacious rear leg-room. For a small car, the Scion tC carries disappointing 21 mpg city and 31 mpg highway EPA ratings. Fuel economy aside, the tC is a loveable marriage of fun and practicality.

2007 Hyundai Sonata
Avg. MSRP: $18,295 (Auto.)

Need to impress your coworkers? Drivers looking for a larger car won’t beat the 2007 Hyundai Sonata. Redesigned in 2006 and made even better in 2007, the new Sonata is proof that Hyundai is a worthy competitor in the American auto market. The Sonata provides a smooth, quiet, yet peppy ride and boasts a surprisingly spacious cabin. Need more proof? The Sonata raked in initial-quality awards from J. D. Power and boasts Hyundai’s impressive five-year/60,000-mile bumper-to-bumper and ten-year/100,000-mile limited warranties.

2006 Toyota Tacoma
Avg. MSRP: $18,230 (2WD, Auto., Access Cab)

Haul more gear than bodies? For those looking for a pick-up truck there’s no better choice than the Toyota Tacoma. The redesigned 2005 Tacoma won Motor Trend’s 2005 truck of the year award, and the Tacoma continues to be strong. With rock-solid reliability and interior styling far eclipsing American compact pick-up trucks, the Tacoma does well as a daily driver and a work horse. The Tacoma is highly affordable on the lower end, with four-cylinder, rear-wheel drive models all coming in under $20k. Choose these models for the best affordability, fuel economy, and reliability. Six-cylinder and four-wheel drive models will cost substantially more to buy, fuel, and repair.

Money Under 30’s Best New Car

2006 Honda Civic LX Sedan
Avg. MSRP: $17,510 (Auto.)

To current Honda drivers, the Money Under 30 pick for best new car for college graduates comes as no surprise. The 2006 Honda Civic features Honda’s legendary value and reliability and, finally, competitive styling. The Civic may not be the flashiest car you can buy, but its appearance has come a long way from its blander past.

Civics carry higher sticker prices than competing compact cars but cost less to own thanks to fewer repair bills. And with an EPA highway rating of 40 mpg, the Civic’s gas tank is easy on your wallet, too. The LX model offers options that are “just right”, including air conditioning and power windows and locks. Choose a barebones DX model to save cash or splurge on the EX for “luxuries” like alloy wheels and a sunroof.

Now that you have some cars to choose from, read up on some smart car shopping tips or learn how to negotiate with car salesmen like a pro.

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Looking for a used car? Check out these useful resources:

The ultimate used car value reference, the Kelley Blue Book Used Car Guide 2006 contains average private market, trade-in, and dealer prices for fifteen model years.

From the most trusted source of car satisfaction and reliability, the Consumer Reports 2006 Used Car Buying Guide is a comprehensive reference for anybody purchasing a pre-owned car.

For many young workers with Fidelity Investments 401k retirement plans, the automatic and often recommended investment choice is the Fidelity Freedom 2040 Fund, a generic mix of large growth domestic and international stocks pre-packaged for the aggressive, long-term investment strategy of somebody aiming to retire around 2040.

While Fidelity Freedom 2040 is not a bad fund (Morningstar gives it three stars and sees strong governance), the International Discovery Fund, currently available to many Fidelity 401k retirement plan participants, is a stalwart choice that should not be overlooked by investors under 30 as an alternative to Fidelity’s cookie cutter suggestion.

The International Discovery Fund boasts a 17.30% 5-year return and beat its peers by over 3%. With numerous energy holdings and a large stake in successful Japanese automaker Toyota, the fund displays an encouraging balance of opportunity and stability.

Perhaps the only pock mark on the International Discovery Fund is its popularity. With just under $7.5 billion in assets under management, some analysts worry if the fund’s strategy can withstand the volume. Don’t be surprised if the fund closes to new investors like its sister fund, Fidelity Diversified International.

Afraid of getting fired? Unless your employer is in dire straights and on the brink of widespread downsizing, following these dos and don’ts should protect you from getting canned. [...]

Want an interview every time you apply for a job? You need a killer resume. Follow these simple steps to improve your resume today.

Keep it Short

The perfect resume conveys your education, experience as clearly and as quickly as possible. Hiring managers scan hundreds of resumes a day, so the faster they can glean the information they need, the better you will fare. If you have less than ten years of work experience, there is no need for a multi-page resume. Keep entries to two to three sentences.

Keep it Simple

Avoid over-formatting your resume. If applying for jobs online, your resume should be text only and included in the body of an email, not as an attachment. (To those managers reading hundreds of resumes, attachments take 10 seconds too long to open). If you must attach your resume, convert the file into an Adobe .pdf to ensure the formatting remains intact wherever the file is viewed. Adobe has a trial offer where you can create five free .pdfs online.

Sell Yourself

Great resumes don’t just list experience and accomplishments, they sell your abilities to prospective employers. Think of your resume as an advertisement for yourself. Advertisers don’t write dryly, nor should you. Always use expressive verbs and vivid details to describe your work experience. For example, instead of “Worked as office manager for a twenty-partner law firm,” try “Managed daily operations of a twenty-partner law firm”.

Focus on Performance

It’s not enough just to list what job you did, you need to convince prospect employers you did that job well. (But don’t lie, that’s what references are for!) Include snippets describing how you contributed to the success of your former employers. In sales, this could sound be “consistently exceeded quarterly contact and revenue quotas,” or in retail “received ongoing positive feedback from management and customers for creating a welcoming and satisfying shopping experience.”

Proofread, Proofread, Proofread

There is no excuse for an error on your resume. Even if you’re an ideal candidate for a job, a single misspelling could cost you an interview. Don’t rely on spell check. Have somebody else read your resume if you can, and print a hard copy to proof even if you are sending the resume. Our eyes catch mistakes on paper we miss on the screen.

Tell a Story

Your resume is an outline of your life story-at least your professional life. It should read like a story. There should be no gaps. If you took three months off to do some soul-searching, think of the most interesting thing you did for those three months, even if it was for just one day, and create an entry. Add brief entries for non-work achievements like volunteering or completing a marathon. Be as descriptive as possible.

Create Questions

The best resumes are like good novels, they leave the reader needing to know more about you. When describing your work and achievements, be suspenseful. Lead readers to ask questions so that they will have to pick up the phone and get to know you. (Hint: prepare answers to the questions you think your resume will lead managers to ask).

Organization

Contrary to what most think, there is no right or wrong way to organize a resume. Typically, if you are recently out of school and have little work experience, you will list your education first, followed by work experience and miscellaneous entries.

Summary

In a page or less, your resume should convey your professional life story as clearly and concisely as possible, but in a way that conveys your passions, goals, past successes, and in a way that leaves readers curious. Within just a week or two of applying for a handful of jobs, you will know if your resume is a winner. Get a call back on more than one job, your job is done. If not, head back to the drawing board.

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The Elements of Resume Style is the perfect reference for the dedicated resume artist.

Get hundreds of more tricks to the perfect resume with Resume Magic: Trade Secrets of the Professional Resume Writer, 2E

Just like anything worth doing, getting out of debt takes self-discipline. Whether you want to wake up earlier, get in shape, or quit smoking, will power is the key to achieving difficult goals. Unlike those other tough tasks, however, you can actually use technology to overcome poor self-discipline when it comes to getting out of debt. [...]

What is a 401(k)?
A 401(k) retirement plan is, very basically, an investment account funded by direct withdrawals (called “deferrals”) from your paycheck. The largest benefit of a 401(k) is you do not pay any federal taxes on the money you save, or earn in interest, until you make a withdrawal.

While 401(k) retirement plans are sponsored by your employer and managed by a third party (Fidelity Investments, for example), a 401(k) is a self-directed account. You control how much (if any) money you want to contribute to your 401(k) and your employer automatically takes that money out of your paycheck to deposit in your plan. Your employer may match a certain percentage of the money you contribute to the plan, up to a limit, or may make regular contributions based on your salary whether or not you contribute your own earnings.

Why contribute to a 401(k)?
Just 50 years ago, any decent job offered a pension that guaranteed a percentage of your salary (based upon years of service) between your retirement and the day you died. On top of Social Security, which provided a similar benefit to everybody, most hard-workers could look forward to a relatively comfortable retirement without a second thought. Today, this simply isn’t the case.

Pension plans worked when the average retiree lived for just five or ten more years. Fortunately for us, we live a lot longer today. Unfortunately for employers offering pensions (and employees counting on them), those funds have been eaten up by current retirees. Even more frightening, the federal government has acknowledged the same thing will happen to Social Security. To those working today this is a double slap in the face. While existing retirees’ benefits are coming out of our paychecks each month, the likelihood we will receive similar benefits when we retire is dwindling.

With disappearing pension plans and the erosion of Social Security, young workers have two options: work until you die or save for retirement yourself. For most, a 401(k) retirement plan is the best choice. Why?

Benefits of a 401(k) retirement plan
401(k) plans offer a number of benefits that you would not get through just any investment account. They include:

Tax deferred savings – Your 401(k) account is not subject to federal taxes until you make a withdrawal. That means that your investments grow tax-free for decades. The catch? If you withdraw from your account before retirement the IRS will hit you up for its share – up to 28% plus a 10% early withdrawal penalty if you withdraw before 59 1/2. There are limited exceptions for 401(k) hardship withdrawals and 401(k) loans.

Employer matching – Though not mandatory, most employers provide some sort of matching contribution or profit-sharing contribution to your 401(k) plan. When paired with a regular employee contribution, such contributions can effectively increase your salary by several thousand dollars a year.

Large deferral limits – As of 2006 the IRS allows employees to defer up to $15,000 or 100% of earnings, whichever is less, into a 401(k). Participants age 50 and over can also make “catch-up” contributions up to an additional $5,000 in 2006.

401(k) rollovers – Thanks to the 401(k) rollover; a 401(k) retirement plan is highly portable. As it is unlikely you will work for one employer throughout your career, it is possible to “rollover” your 401(k) into a new company’s plan or an Individual Retirement Account (IRA) without incurring any tax penalties.

Start contributing today!
There is no reason not to take advantage of a 401(k) retirement plan if your company offers one. Read more on Money Under 30 to learn why you must start saving early, learn about unvested money, or use a 401(k) calculator to determine how much you need to save.

Buying your first car on your own is both exciting and harrowing. After all, a new car is more than a shiny toy; your first car needs to be a reliable, safe, and affordable.

The Golden Rule of Car Shopping

Before your buy your first car you must learn the golden rule of car shopping: The more you want it, the more it will cost you. Why, exactly? Because the auto industry uses emotion, more than anything else, to sell cars. Think about it. Many recent model Volkswagens have among the worst Consumer Reports reliability ratings, yet continue to be popular cars, especially among young buyers. Why? Because they look cool. But emotion doesn’t just dictate the car models people buy; emotion directly affects how much you pay for your new car.

Car salesmen are trained to do one thing: get you to want a car so badly you will sign for the car’s sticker price before you go home. Think about that. Car salesmen’s jobs are to get your emotions going. They let you drive the car, they tell you how great you look in it, and they make fun of your trade-in. They are trained to keep you waiting for long periods of time so your desire for the new car can grow. And auto showrooms aren’t made of glass to let people see inside. That glass is so you can see all the new cars (and your old one) while you wait! What’s more, the car salesman, typically, does not negotiate the price of the car or handle the details of the financing or registration (managers do). Those in auto sales are compensated by two things: how many cars they can sell (how quickly they can sell you a car), and how much profit they can “hold” on the car (how much above sticker you pay). Therefore, logically, the more time you take and the more research you put into buying a car, the better your deal will get.

How Much Car Can You Afford?

The first step to buying your first car is to determine what car you can afford. You must do this before you set your sights on any particular vehicle. Why? Remember the golden rule. If you start taking test drives or paging through car ads before you have a budget, it will be far to easy to convince yourself you can afford a car later. Most financial planners agree you should not spend more than 20% of your monthly take-home income on transportation. So once you divide your monthly after-tax income by five, you will need to figure out how much you will spend each month on gas, insurance, maintenance, tolls, and parking (all transportation costs). If you sometimes take taxis or public transportation instead of driving, factor those in as well. Once you have subtracted your ancillary transportation expenses from 20% of your monthly income, you have your maximum monthly car payment. Here’s an example for somebody that makes $29,000 a year:

Monthly Income: $1,975
20%: $395
Insurance: ($70)
Gas: ($100)
Maintenance: ($40)
Max Payment: $185

Your monthly payment figure is probably less than you had thought. But that’s good! Believe it or not, somebody with average or better credit can own a reliable car for just $100 a month. Don’t think of your maximum payment as inhibiting what car you can buy, rather freeing up your money to spend on other things.

The Right Car for You

With all of free online automotive research available, it doesn’t make sense to start shopping for your car on the lot. To start try Edmunds.com where you can sort and compare cars by a number of different criteria, get full car descriptions and lists of features, and, if you choose, connect with dealers in your area via e-mail.

Look at both new and used cars in your price range and remember that buying a new car is more costly than buying a used car because of how quickly a new car depreciates. That said, used cars inevitably will cost more in maintenance in the first two to three years. New or used, look for a car that you can see yourself driving for a number of years and can provide safe and reliable transportation. If you are leaning toward a new car, investigate the factory warranty (not extended warranties) and reports on initial problems on the year, make, and model you’re considering. While you’re at it, check out Money Under 30’s best new cars for college graduates. If you decide on two or three different cars but can’t narrow it down from your living room, it’s time for a test drive. But don’t get up so fast. You will need to approach the dealerships carefully.

Buying New

Before you go on a test drive you want to get car dealer quotes from multiple dealers for each car you’re considering. Most car research sites make this easy, giving you the option to select dealerships and click submit just once to get multiple quotes on each car model. Prepare to receive a barrage of phone calls and e-mails relatively quickly. Most dealerships have dedicated Internet salespeople standing by to respond to your quote request. The great thing about shopping for a car online is that research sites show you the exact invoice price (what the dealer pays for the car), and how much above that price people in your area are actually paying this. When you approach a dealership from the Internet rather than the street, the sales staff knows you have extra information and will treat you accordingly. (This means they will only lie to you about 90% of the time). Some dealers will come back simply asking to set up a test drive, others will send you a hard quote. Don’t agree to go for a test drive without a hard quote, and always take printed copies of every quote you received with you to the dealership. Shadier dealers may claim to have made a mistake on a quote that you can’t prove you received. Once you have all your quotes in hand take some time to have fun taking test-drives. If you have done your homework and selected a few reliable, safe, and affordable new cars to choose from you can let your tastes make the final selection. Once you have, go home and sleep on it. Never buy a car on your first trip to the dealership. Statistically you will pay more for your car if you do.

Buying Used

The process is slightly different if you choose to buy a used car. You will need to be slightly more flexible about the car you ultimately buy, but you will also have greater pricing flexibility. Not only can you choose from similar cars with different mileage (and prices), dealers have a much higher profit margin on used cars, meaning there is more room for negotiation. To begin the final selection process for a used car, find between five and ten cars that interest you and meet your price, safety, and reliability requirements. Request quotes online from the dealers and choose three to five to test drive. As with a new car, never buy a car on your first visit to the dealership. Have just one night to think over your potential purchase could save you from getting stuck with a lemon for five years. A final step in buying a used car is running a title history report and/or getting an independent mechanic to inspect the car for you. Any reputable seller will allow you to take the car to a mechanic for a quick check, and you should. If you have a good relationship with your mechanic he will probably do this for free. Otherwise expect to pay between $20 and $50.

Have you chosen the car you want to buy? Congratulations! Before you return to the dealership to make a deal, learn secrets of an ex-car salesman and how to negotiate with car salesmen like a pro!

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The ultimate used car value reference, the Kelley Blue Book Used Car Guide 2006 contains average private market, trade-in, and dealer prices for fifteen model years.

From the most trusted source of car satisfaction and reliability, the Consumer Reports 2006 Used Car Buying Guide is a comprehensive reference for anybody purchasing a pre-owned car.

Whether you work in a cube farm with fellow recent grads or on the top floor among upper management, once you’re at work, the rules of etiquette change. It’s not hard to be on good behavior at the office, but your attention to details that coworkers overlook may be the ticket to a promotion.

Timing is Everything – Punctuality isn’t just good office etiquette, it can make or break your reputation. Upper management may not review everything you do, but you can be sure they notice who is at their desk at 8:30 and who the stragglers are. If you are even a few minutes late, need to take an extended lunch, or are otherwise out of the office for any period of time, let people know where you are. Leave a note on your desk and tell at least your boss. Nobody will judge you for your commitments, but they will if you go AWOL.

Time is Everything Else – In today’s workplace, everybody has too much to do and too little time. Office etiquette rule two? Do not waste your coworkers’ time. If you’re discussing business, leave the small talk for the lunchroom. Speak clearly and concisely at meetings and keep email brief (if an email is more than three sentences, pick up the phone). If you run a meeting, conference call, or webinar, leave at least fifteen minutes beforehand to ensure your equipment is running properly. If you have technical problems or a key contributor can’t attend, cancel. Better to reschedule on meeting than have the same meeting twice.

Workplace Respect – Remember the golden rule from kindergarten? It is no different at the office: treat others as you want to be treated. Respect other people’s space, belongings, and privacy. If your office has cubicles or an open workspace, remember that what’s on or in somebody’s desk or cube is their property. Don’t enter somebody’s cube without permission, and never use somebody’s computer without asking. With workers often hunched in concentration over their keyboards, somebody entering their cube can be startling. Say hello in a moderately loud voice as you approach somebody’s workplace. It’s a polite gesture that will go along way in making that person feel comfortable working with you.

Lunch Lessons – Food is often the source of workplace grudges. People have different eating habits, and some find certain habits, or the aroma of particular foods, vexing. While it’s healthier to change ergonomic positions and not eat hurriedly at your desk, be considerate if you do take a working lunch. Choose foods that are quiet and do not have strong aromas (save the onions, garlic, or fish for later). Avoid potato chips, cereals, and other “crunchy” foods. Finally, clean up after yourself! Don’t leave old yogurts in the refrigerator or a banana peel in the trash where everybody will smell it.

Gossip Sparingly – It can be easy to get caught up in the marathon watercolor gossip sessions about who has quit, who had cosmetic surgery, and who is next in line for vice president, but excessive gossiping can spell trouble. Some gossip may not be bad (studies have shown people trust and like other people who gossip). Still, be careful what you say. Keep gossip lighthearted. You never know who’s listening, or will become the next boss. If true feelings about a coworker are eating at you, confide in a friend outside of work, or confidentially and professionally express your concerns to your manager.

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The New Office Professional’s Handbook from Merriam Webster provides everything a new professional needs to know about fitting in and getting ahead.

Dale Carnegie’s classic How to Win Friends and Influence People is a must-read for anybody entering the office world. Follow his simple rules to interpersonal communications and you will be the most well-liked person in the building.