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This year I had an unexpected and pleasant surprise at work.  I was awarded stock options for 700 shares pricing in March.  The options vest 33.3% per year over the next three years.

It is exciting to be awarded options.  This ties my compensation to the company’s performance over the next three years.  From the company perspective, it is better to have employee compensation tied to company performance, as employees may work harder to ensure the company is successful.

Here is how employee stock options work, using my situation as an example:

• First, I am notified that I will receive options.  I was given the number of shares and the pricing date for the options.
• On the pricing date in March, my options are given a fixed value per share.  This is tied to the market price on that date.  The price is called a strike price.
• Every year for the next three years, a portion of those options become vested, or available for use.
• If the market value of my company stock is higher than the strike price on any date past the vesting date, I have the option to buy shares of the company stock at the strike price.  If the price is higher than the strike price, I can sell immediately for the market price and keep the profit.  If it is below the strike price, the option is “out of the money” and I will not exercise the option.

As you can see, the mechanics of options depend on the market price compared to the strike price.  No one would ever exercise options “out of the money,” because they would have to pay for the stock at a price higher than the market price.

While employee options have similar mechanics to buying and selling options on the market, there are many differences.  Do not use this as a guide to buy and sell options.

Today is the first day of my new position.  I have been at my company for about two years, and in that time I was promoted from Financial Analyst to Senior Accountant.  I was an accountant from November through this past week.  Now, I am a Senior Treasury Analyst.

As you might have picked up through my writings, I am a finance guy, not an accountant.  I was excited to be promoted, but I have found that treasury is where I want to be for the long run.

I am on the 43rd floor of my building now, instead of the 6th.  I don’t have a view, but if I stand up and look over the wall the next guy has a great view!  This is one step closer to my corner office.

My new job is in the lease management and operations group at my company.  We buy lots of big and expensive stuff where I work, and my job is to ensure that the financing goes through and works properly.  I will be negotiating terms and rates with vendors and will spend time working with our procurement group to make the purchases.

I am pretty excited.  I can’t lie about that.  If anything big happens here, I will let you know.

This is a re-visit to my old Intro To Investing post from October, 2008.  If you like this post, be sure to read the old one that inspired it.

Imagine the life of Mr. Buffet.  He lives like money is not really a concern, which it isn’t.  He is frugal.  He relaxes.  He is happy.

Who am I describing?  Who is the proverbial Mr. Buffet?  It is two Mr. Buffets actually.  Those are Warren and Jimmy.

Warren Buffet is the closest thing I have to a modern day hero.  Buffet is smart and calculated and made a lot of money over the years.  He is the world’s best investor.  Warren Buffet took his “value investing” education to turn an investment in an old textile company called Berkshire Hathaway into one of the most famous holding companies in the world.  With an insurance powerhouse and investment arm under its control, Berkshire Hathaway has produced consistent investor return for half a century.

When you picture paradise, you probably imagine clean beaches, tropical weather, and cold drinks.  Chances are, Jimmy Buffet is there waiting for you.  I imagine Jimmy’s life as the ultimate in relaxation.  While sipping away in Margaritaville and enjoying the Cheeseburger in Paradise (hold the cheese on mine), Jimmy Buffet is the American symbol for relaxing.  His ‘parrotheads’ often travel south, as inspired by his song “Changes in Lattitudes, Changes in Attitudes.”

So, while these icons appear to share little more than a last name, they represent something more to me.  I have to remember to be serious and dedicated in my professional life, but I have to remember to head south every once in a while, or just relax regularly.  Finding the balance between the Buffet’s is the key to my dream.

I hope to be able to combine those lifestyles more as time goes on.  I want to remove the tether of my office and be able to work wherever I want and whenever I want.  I hope to have the financial security to tell any boss how I really feel at any given time and not worry about the consequences.  (I like my boss today, in case you were wondering)

I dream of a freedom from financial worry and a freedom to pickup and go.  I want to enjoy paradise, and the ride to get there.  That is my dream.

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Employment numbers are proving to be as shaky as the economy.  In some places and sectors, employment numbers are starting to level out, or at least not fall so quickly.  In other places, the numbers are still looking bleak.

In the US, total employment has been down for 18 consecutive months.  The most recent numbers indicated that 467,000 jobs were lost in June.  That is not encouraging, though the number of jobs lost has been decreasing almost every month since December, 2008.  The number of mass layoffs has also been on the decline since the beginning of 2009.

All of this talk about how bad the economy is can be really depressing, so it is a good idea to think about the positives.  Many of us still have jobs.  If you are out of work, this might be a good opportunity to continue with that college degree you always wanted.

If you are unemployed, this might be the time to turn your hobby into an income source.  It might be a good chance to give that entrepreneurial idea a go, though don’t throw your entire savings into it.  If you are out of work, but an expert in a highly skilled field, you might be able to find contract work as a consultant.  You might be able to self teach web design or graphic arts and find freelance projects.  If you enjoy writing, you can start a blog for income or do freelance writing gigs.

The point of this is to remind you all that, even if it feels like it, this is not the end of the world.  The economy always turns around.  You are smart and will recover.  Be resourceful.  Enjoy the vacation.

Some things to remember when you are unemployed, though, that could get you into trouble later on:

• Do not, under any circumstances, take money out of your retirement accounts to fund your current needs.  You will have to pay severe taxes and penalties on the funds you withdrawal.
• Enjoy the vacation from work, but do not live like you are on vacation if you can’t afford it.  Make sure your savings stretch as far as possible until you find a new income source.
• Don’t freak out.  Everything will be okay in the end.

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While I regularly discuss what we should do with our money as we earn it and stockpile it, many people around the world are being laid off and losing their income source. The unemployment rate in the United States rose to 8.1% in February, with 651,000 jobs lost. In Australia, unemployment was up to 5.2% in February. The unemployment rate in Great Britain rose to 6.4% in the last quarter of 2008.

While the rates of unemployment vary around the world, one thing is certain, things are getting worse. There is a trend of rising unemployment, and that is at the root of many economic troubles.

As unemployment rises, the job market is becoming much more competitive. Thousands of people are trolling sites like Monster and Career Builder. Hundreds of applicants are jumping on each reported job opening. This is making education and experience more important then ever. Overqualified candidates are taking whatever job they can get just to get by.

The biggest worries about unemployment fall to lenders. When people run out of cash, as often happens to unemployed Americans, the first thing to stop paying is the credit card. As balances increase and payments decrease, the banks are threatened with large losses.

What can you do to stay competitive? If you already have a job, keep it. I know people get irritated with their job or think they can do better. This happened to me at one point. I waited it out until I had something secured. A low paying job as a waiter is better than no job.

If you do not have a college degree, there is no better time than the present to get to work on classes. A better education can help you edge out the competition. Local state colleges usually offer affordable, evening classes for working adults.

Plan ahead! Millions of people are living paycheck to paycheck. How long could you realistically support yourself and any dependents if you lost your job today? Chart out your monthly expenses. Could you make it a month? Three? Six? A year? Most people can’t make it to the second month without more income. You are not most people, build an emergency fund for the “just in case” situation.

If you are already out of the job and running low on funds, don’t stop paying bills. Call the company and discuss your options. Many banks are offering extensions and loan alterations to avoid losses and help you through your tough time. Giving up will result in collections and bad credit. No one wants to deal with either of those.

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I work at a big company. If you live on the West side of the Mississippi River, you probably know it. My company has well over 30,000 employees. In a company so big, there are some big benefits. There are also drawbacks.

The biggest benefits are career opportunities and, well, benefits. I work in finance, and there are dozens of opportunities to move up a year. I am not pushing for a promotion until I graduate (next June) with my MBA, but I have many opportunities when I am ready.

Insurance, 401(k) matching, and related benefits are also great. At a big company, I have two choices for reasonably prices health insurance, great dental and eye insurance, reasonable life insurance, and the standard 3% 401(k) match and a discounted stock purchase plan. These are worth a lot, as without them I would be paying much more for insurance that is not as good.

Working at a small company also has its perks. At a small company you are treated as a vital part of the team. Most small companies can’t operate with one less employee, so layoffs are not likely. The health and retirements plans are not usually as good, but it is made up in independence and flexibility in what you do.

The drawbacks of working at a big company are very real. You are replaceable. You do not know your bosses. You are an employee ID number. In a small company, however, there may not be as many opportunities to rise through the ranks and benefits might be lacking.

What are your experiences with jobs at big and small companies? Which do you prefer? Please tell in the comments.

Summer is just around the corner, and many people do not have a job. Sad huh? If you are a discouraged worker, you might be able to find a fun summer job to keep you going. Its just like high school.

MainStreet, a site by TheStreet.com (of Jim Cramer fame), has a great article on fun jobs for the laid off. I suggest getting a new “real job”, but this will work as a temporary gap filler. New college grads might consider these too if they are still in the midst of the job search.

Included in the list are jobs like dog walker. Someone might be willing to pay you a fair fee to take their pet around the block every day. My personal addition to the list is cashier or waiter/waitress. Retail and restaurants are always hiring. I spent two months as a waiter. I promise, the job is not “below you” unless money is below you. I made great tips in my time as a server.

Check out Fun Summer Jobs at MainStreet.