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Penny Millionaire Project - Week 47

Monday, and having just had our first Sainsbury's find last week, we've now made another one. A penny that Maz retrieved from the self-service till after the lady in front of her missed it.

Thursday morning, I tapped my foot for a good half hour waiting for my bus into work. But the bus never came. It became clear that my usual bus had left earlier than it should have (yes you Green Line).

Now, my bus timetable has been 'organised' so that, if you miss the 7.38am bus (say, for example, it leaves at 7.30am on the whim of an impatient driver), you have to wait 1 hour and 47 minutes for the next one.

I decided that, rather than bide my time at my featureless bus stop, without even a plastic seat to offer some scant comfort, I'd walk into town and spend my money and time in Starbucks. At least then I'd be able to seethe in an artfully battered armchair to a soothing nu-jazz soundtrack.

So I went, sipped my way through a soya cappuccino (I'm giving veganism a free, no-obligation trial at the moment), then set off for the bus stop.

The bus came late, of course, and as I queued behind eager tourists to get on, I clocked a 5p in the road. I noticed a couple of people ahead of me in the queue notice it, look away and then back again. I could tell they wanted it. Bad. But I knew in my bones that none of them had what it takes. They were all novices. They stepped past it one by one and, hearts heavy with wasted opportunity, trudged onto the bus.

I got it.

Friday morning I found a penny down the road that leads to our work, and after work, there was a 2p sat on the bar in the pub.

Saturday, I went for a food shop (to Tescos again) and found a penny on the floor by the peaches.

Week Forty-seven

How much found: 9p

Total found so far: £28.12

How it could now be spent: Call of Duty 4 for the Playstation 3.

What can I expect to earn? Are the higher paid jobs worth it?

Working in finance can be very lucrative. As with many professions, you have to work your way up, and should not expect to earn well in your first year or so in the workplace.

Your professional qualification will help. If you get your studying over with before seeking work, this will allow you to command a far higher salary sooner than others who are studying and working. By far the best paying industry is generally banking, however, with some of these jobs come long hours and lots of stress.

It is then up to you as an individual to decide what you want from your career. Personally, I would not want a job that interfered with my evening and weekend time. I am happy to work hard during the day, but want to be able to switch off, especially over weekends. Each individual needs to decide on the impact they want their work to have on their lives.

Some people believe that it is worth taking a high paying job for a while, before settling down into something more balanced. Other people believe that pushing your career allows for early retirement, but just remember, pushing too hard (and ending up with a heart attack!) may mean you aren’t there to enjoy your retirement at all…

Generally it is worth trying to progress your career, and not to stay in a job for more than two years or so ( I don’t mean necessarily change company, but push for an internal move or a new challenge). It is also generally the case that in order to make step changes in your salary, you have to change companies as opposed to expect pay increases.

I would recommend benchmarking yourself by using the GAAPweb salary survey, and see if you are being properly rewarded for your skills.

How much support can you expect when a job advertises study support?

Most companies will offer study support in one or both of two ways. Firstly, support in terms of time off for studies and secondly, financial support in the form of paying for exams.

As far as I am aware, the norm for a company is if they offer to give you time off for exam days as well as pay for the examinations. Generally, my company for instance, will also be flexible with timing of holidays, and not require overtime to be worked, in order to try and accommodate examinations.

The only other thing to look for is what “on the job experience” you will be gaining that will help you in preparing for the exams. I am a firm believer in understanding principles and concepts rather than simply rote learning things from a text book. If aspects of the work that you are carrying out day to day are also examinable, this will vastly help. It also helps with long term retention of the concepts instead of forgetting them straight after the exam.

If you can find a company where you are working in a team with other studiers/people who have recently passed the exams, you may be able to share experiences amongst yourselves.

Penny Millionaire Project - Week 46

Well, I'm happy to report that this week, I've finally had a find in a supermarket other than Tesco! Yep, on Monday good old Sainsbury's pitched in with a penny on the floor as I queued.

Having once seen a breakdown of the typical clientele of all the major UK supermarkets, I did feel a bit more self-conscious scrabbling around for money on the floor in Sainsbury's than I do in Tesco. It'd be no good to let silly concerns like that stop me picking it up though. Pride's a deadly sin after all.

Wednesday, I had gone to check out the new Coffee Republic that's opened near our work. A subtle point from Kirsty when the barista turned away to make our drinks revealed a gleaming penny sat in a basket on the counter.

Got back from lunch and Maz handed over a penny she'd found outside the gym. A profitable lunch hour all round.

Saturday, and, predictably, it was back to Tesco again. A penny in the self-service counter change dispenser.

Later on, my little brother had gone out with my mum, and, like a good little apprentice, apparently insisted on checking all the rejected coins slots of every parking meter they passed. It paid off. He found a 20p in the machine in Windsor College car park. The boy'll go far.

Week Forty-six

How much found: 24p

Total found so far: £28.03

How it could now be spent: a pair of large scissors for ribbon cutting.

Time to cut all ties with your job? Get yourself a new one here.

Will flexible working help us through the credit crunch?

Flexible working hours look set to be a big trend for 2008.

The Trade Union Congress (TUC) yesterday recommended that employers start offering employees the option to be flexible with their hours as a response to the current economic situation.

Recent reports from TUC have shown that last year 175,000 more people were working over 48 hours per week than in 2006. Combine these long hours with increasingly long commutes and you’ve got little chance of the ‘work/life balance’ promised by most employers.

Brendan Barber, the TUC general secretary, encouraged employers to rethink their approach to the economic instability and increase productivity by allowing more effective but flexible working practices rather than simply ‘working existing staff harder and longer.’

And when you consider this information alongside the latest report from Work Wise UK (which found that we spend an average of 5 years of our working lives commuting), the environmental issues of the daily rush hour commute and the ease of communication via the internet/mobiles/blackberries etc flexible working seems like the perfect solution.

Flexible working, when well managed, can benefit both employers and staff. Employers who offer flexible working tend to have better staff retention and more motivated staff. Let’s face it, coming in every day at the same time, to the same desk and going through the same routine isn’t really likely to inspire creativity or even make you especially productive. Even one day out of the office can clear your head and allow you to be more effective in your job. At the very least it’s just nice to work for someone who respects the fact you have other commitments and works to fit around them.

And it’s not just existing employees who are looking for flexible working options. A recent GAAPweb survey carried out on finance and accountancy students and graduates has found 51% of new starters rate flexible hours as one of the most attractive perks an employer can offer. Coming just behind support for a professional qualification and financial perks in popularity it’s clear that employers are going to have to take this trend seriously.

Money and Machismo

Requirements for Accountants with experience in Mergers and Acquisitions arise frequently in the job adverts on GAAPweb.  But what does a career in Mergers and Acquisitions involve, and is the corporate world for you? 

A friend with a successful career in Mergers and Acquisitions has shed some light on the industry for us in an interview. 

1. What did you study?

I studied engineering at university and my first job was in engineering. It doesn’t lead directly into M&A but the problem solving, numeracy and analytical approach fit in well.  I decided to move from engineering to M&A because of the more dynamic and driven environment. M&A attracts some of the smartest people around and I find it stimulating, challenging and fun to work in their company.

2. What does your role in Mergers and Acquisitions involve?

My role involves working on both the buy and sell side on deals. I usually work for Private Equity houses, but we also do some corporate sales/acquisitions.  At a high level, work can be classed as Due-Diligence or Assist. Due Diligence involves giving a formal view on the company being sold. This can be compared to a house survey or HIPS; although paid for by the seller, the duty of care is to the buyer. Vendor or Buyer Assist can be more opinionated and creative and will help the buyer or seller get the best value from the deal.

3. Did any family or friends influence your choice?

A friend of mine who works in Private Equity suggested the industry would suit me and set me up with some initial introductions.

4. What gets you into work everyday?

Generally I enjoy the work as it’s a dynamic and challenging environment – although this often means pretty long hours. Every deal is different – I could be working on a shoe manufacturer one week and water utilities the next. This variety keeps me interested.

5. What are the most exciting things about your job?

Snazzy dinners on top of skyscrapers!  And flying business class to South America was pretty good fun – along with visiting the beaches there!  Also there's a great team buzz when a deal is done or a job completed well.

6. What wouldn’t you miss if you left your current position?

I wouldn't miss the late nights and weekend working, aggressive macho culture, one-up-manship, and self-promotion required to succeed - it's a pretty competitive environment.

7. What will the next step be in career?

Quitting the industry – time for a break!

8. Do you need to be professionally qualified?

The most common entry route is through ACA and accounting however this isn’t essential. There are roles in strategy, operations, integration and corporate finance which might suit those with consultancy or investment banking backgrounds.

9. How would you recommend people looking for a role in Mergers and Acquisitions go about their research and job hunt?

If you are graduate level, the easiest way is to join an accountancy training scheme – those with some industry or consulting experience talk to a headhunter.

How do I get a life/work balance before my exams?

It is certainly easier said than done to say that stressing before exams is actually counter productive. In fact, a little bit of stress is a good thing, it serves to focus the mind and create a sense of urgency around what you are doing.

In studying for financial exams, more than anything else, it is generally important to understand the work, rather than simply learn it by heart.

I am a firm believer that understanding principles and concepts rather than simply wrote learning them from a text book will actually help you more in the future anyway, as you will be able to recall these concepts far more easily.

Finding time to study in the evenings after work can be hard, but I recommend either going to the gym straight from work for an hour, or taking a jog or something to clear your head, and then setting aside an hour or so to concentrate on work.

If you are a morning person, getting up an hour earlier and using that time to study before starting the day can be very productive.

Take time out at work to think through the concepts that you are studying, and make sure you really logically understand them. If not, try to speak to someone at work, they can often explain things simply.

Career Q&A - in response to a comment...

Hi there, I have been working for an American company over the last 3.5 years. During this time I have had two core roles as a General Ledger Accountant promoting to a Financial Controller position for one of its smallest divisions where I was very much hands on, getting involved with Tax, HR, Financial Reporting and managed to squeeze in some management accounting. I have been offered the possibility now to take part in the EMEA Consolidation Team for one of its largest divisions (30 times the size of the previous one in TO). This will be focused on P&L, Forecast and planning but less hands on. On top of that I still have 4 papers from CIMA to finish. I am hesitating if this would be the right move for me. Any advice will help. Many thanks.

I would definitely not turn down the chance of moving up within the company, being part of the Consolidations team will be interesting, and give you exposure to another set of skills. You don't necessarily have to lose touch with the hands on aspect of your previous job, as understanding the underlying business will be a huge plus point for you. Understanding forecasting and planning is very important and will be required throughout your career as an Accountant.

With respect to your studies, I would have thought you will be able to cope with the new role. Just make it clear that you place importance on getting first time passes and that you don't want to work overtime for instance.

Penny Millionaire Project - Week 45

Monday - Maz breezed in with a 5p she'd found on the way to work this morning.

In the afternoon, Simon, who had been off work for a week celebrating a very big birthday, waltzed over and dropped a 20p and a 5p onto my desk. He claims it appeared on his desk during the week. I really don't get how these things happen with such regularity in our office. It's up there with crop circles. But I'm not about to reject good coins for something beyond my comprehension. Sometimes you just need to accept what you don't understand.

Tuesday, Maz walked in grinning and said 'I've got something for you'. Now, she's a foodie, and really likes baking, so my initial thought was 'ooh great, some cake'. But she didn't have cake at all.

She reached over to me with a purple note that looked a bit like Monopoly money. Upon closer inspection it revealed itself to be... 2 Singapore dollars.

She'd been cleaning her new flat, and being a particularly thorough cleaner, came across the note tucked behind some shelves around her fireplace - a bizarre little gift from the previous tenants.

Two Singapore dollars currently works out at about 75p. Excellent work Maz.

Week Forty-five

How much found: £1.05

Total found so far: £27.79

How it could now be spent: a 2-step boat boarding ladder from Marinestore.co.uk, Marine Retailer of the Year 2008.

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The heat is on

We all know how irritating it is to be cold called about office supplies/double glazing etc but most of us know to politely but firmly (or firmly anyway) decline with  something like “I have all the photocopying toner I need” or “no, no, my windows are fine as they are thanks”.

So why are boiler rooms causing such havoc? Surely if a bogus stockbroker called you up to pressure you into buying some “shares” you would hang up?
Sadly this does not seem to be the case.

You see, it sounds to me anyway, that these scam artists are very convincing, and use high pressure sales tactics, hence the name “boiler room”. These sham operations are usually based offshore so as to avoid detection and regulation. They often pretend to be based in this country to sound more legitimate but it’s possible to have a London telephone number and live anywhere in the world. In light of this, the FSA is essentially powerless as it can do little to act upon matters based abroad. That is not to say, however, that they do nothing, nor that they don't take it seriously.

In a typical scenario, a broker will cold call an investor, and ask them if they would be interested in purchasing some shares. After they have the caller hooked they will tell them that they don’t have anything right at the moment but that they will call them back as soon as something comes up. That way the caller feels that the situation is more in their own control and also gives them a sense of anticipation about the opportunity. When the broker calls them back, they are in prime position to sell the worthless shares in companies that either don’t exist or have gone into liquidation. They then, quite literally, take the money and run.

In June 2006 the FSA surveyed people who called it for advice on boiler rooms and discovered that the majority of the victims were experienced investors, usually male, over 50 and losing, on average, £20,000 each.

I’m both completely fascinated and mildly enraged by this..I do feel sorry for the people who fall prey to these conmen but I’m also amazed that it’s possible. The folks who work in boiler rooms are doing something highly illegal but are, more often than not, getting away with it. Clearly the promises they make to investors are too good to be true, so in the end is the whole situation really just a commentary on greed?