The bank bailouts have most Americans in a lather, from the Tea party protesters to denizens of the blogosphere who are tracking every dime going to the fat cats on Wall Street who deep-sixed the entire global economy with their risky bets and big bonuses. A short while ago I wrote that instead of wasting time throwing barbs at the bailout boys, the average Joe would be better served by following their example.

In the article I called Lessons from Wall Street Bankers, I talked about some of the positive attributes that investment bankers have that result in their achieving great wealth. Irrespective of whether they contribute much to society or can even be considered moral, there’s no denying that they are successful. And for people knee-deep in debt and facing bankruptcy or foreclosure, being more of a shark is a small price to pay for rescuing your financial future.

Points 1 through 5 laid the foundation, and here’s the house.

So with no further ado, here is Part II of my my musings on how to make money like a Wall Street player.

6.  Use the Tools. – When you see Wall Street traders at work you no doubt see rooms filled with computer monitors showing charts and graphs and data that the pore over to make their money. These are the hammers and saws of their trade. What are you using to advance your financial goals? Are you keeping paper records or are you taking advantage of your bank’s online account management service?

Sign up for free accounts with websites like BillShrink and Mint.com which can help you keep you financial affairs in order and find you lower rates on credit cards, insurance and more. Leverage apps on your smartphone so that your checking account balance is current and you don’t bounce checks.  And to avoid identify theft make sure that you’re using your crosscut shredder to obliterate that junk mail before it goes into the trash.

7. Bend the Rules. It’s not a stretch to say that working on Wall Street makes makes even the most noble young men and women walk a fuzzy ethical line. Their culture values the ends, not the means. Think about how this would translate to what you do for a living. Is sticking to the letter of the law holding you back from results your management would like? Going rogue every once in a while may not be a bad thing if the alternative is not meeting your goals.

When in doubt, ask for forgiveness, not permission.

8. Forget about Loyalty. Wall Street is a mercenary culture that puts no value on loyalty to one’s employer. In this day and age of record layoffs, neither should you. Keep your resume up to date and your eyes open for better opportunities. As the economy improves, companies will again be looking for star players and will pay accordingly. Your value in the marketplace is whatever the highest bidder is willing to pay and if you’re making less than that at your current job, you’re selling yourself short.

9.  Forget about Losses. Rule number one in investing is never throw good money after bad. Great traders have short memories and no emotional ties to mistakes they’ve made. If they still have a job, then it wasn’t a big deal. Over four trillion dollars in wealth was lost because of the financial crisis, yet the big banks and brokerage houses are back to getting paid like nothing ever happened.

Are you dwelling on too much time spent at a college, on a job or invested in a business that’s not panning out for you? Chalk it up to experience and walk away. Everyone makes mistakes, don’t compound them by sticking around a bad scene.

10. Enjoy Your Success. – Wall Street bankers work hard and play harder. No one says that you have to get knee-deep in cocaine and escorts, but you have to find ways to reward yourself that are deeply satisfying and personal to you. Otherwise, what’s it all for? Even those blessed with otherworldly talent (think Tiger Woods) still have to work very hard to become a top earner in their profession. It won’t be any different for you.

Celebrating milestones and achievements will help drive you to earn more.

—

Have anything to add? Let us know your thoughts in the comments.

One Response to “Lessons from Wall Street Bankers – Part II”