The mortgage interest deduction

Well folks, tax time is upon us once more. A topic that I know is near and dear to a lot of young professionals is buying their first home so I wanted to take the time to share a little info on the Mortgage Interest Deduction. This is cross-posted with permission from our good friends at QuadCitiesHome.org. I hope this helps some of you get your finances in order in time for tax season!

How the mortgage interest deduction works

Say your household income in a given year is $50,000. This would put you in the 25% tax bracket. That means that for every additional dollar you earn you will pay 25 cents to the federal government. Luckily this also means that for every dollar you can lower your tax income you will pay 25 cents less in taxes. This is where the mortgage interest deduction comes in.
Assume you paid $10,000 in interest on your home this year. The government has essentially said that they will pretend you never earned that money for tax purposes. At the 25% rate this means you would pay $2,500 less taxes that you otherwise would have. Not too shabby.

Effective meetings for young professionals

Young-professional-meetingsWelcome back to CasualWednesday! Today I’m going to talk a little about how young professionals can be effective when meeting with colleagues. Odds are you’ve already had to collaborate with others to accomplish tasks and complete projects. Odds are also good that you will be doing a lot more of this throughout your career. It’s important, and it’s worth doing well. Here’s how…

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The young professional’s job description

What is your primary job description as a young professional? Lawyer? Engineer? Accountant? Office lackey? I don’t care what your business card says, as a young professional you all have the same primary job description:

Your job is to make your bosses job easier.

It’s that simple. When your boss doesn’t have time to complete a task herself she will ask you to do it. The task is not important, it could be presenting to the board or just making copies. The important thing is to remember that your official job title will not cover every task you’ll be asked to complete. Complaining that something isn’t in your job description won’t make it go away, it will just make you look lazy and seem as though you aren’t a team player.

A common complaint about young professionals today is that they have a sense of entitlement and aren’t willing to ‘pay their dues’ as their bosses have done before them. Young professionals are often perceived (rightly or wrongly) as being stuck up and above certain tasks.

I can totally sympathize that it’s a waste of your 0.25 years of experience to ask you to spend a day putting together sales binders, but you need to look at this from your boss’s perspective. She’s wants to see how well you handle these menial tasks before assigning you more important work. If you slack off on ‘busy work’ then why would she have any reason to believe you would give your all for slightly more interesting work.

In summary, you’re not hired to do four or five specific tasks each week. You were hired to help your company grow and succeed. Sometimes this will require you taking on new and challenging projects and sometimes this will mean you suck it up and stuff envelopes for six hours straight. Either way, always give your best effort and you will be rewarded with more interesting projects in the future.