The other day, I was listening to a Planet Money podcast about how the United States is nearing full employment and it got me thinking about how different the world is today compared to the world I graduated into a decade ago.
To set the scene for you, I graduated from college back in 2009, which, if you remember, was right at the very bottom of the financial crisis. Lehman Brothers had collapsed a few months earlier. The unemployment rate was nearing 10% (and would actually hit 10% later in the year). And, like many (maybe most?) new grads, I had no job and no real prospects.
I ended up moving back home and got a job at my local golf course, working about 30 hours per week so that I wouldn’t be eligible for benefits. That one job wasn’t enough for me – about $800 per month – so I grabbed a second job at a currency exchange at the mall where I made $13 an hour. Between those two jobs, I worked about 60 hours per week, making something like $2,000 per month.
My friends did similar things, moving back home and finding very basic jobs that made us heavily underemployed. One of my best friends ended up going back to his old job at a bookstore (which surprisingly, did offer him benefits). Another friend got a job at a bar and also got an unpaid internship with a pretty big company. I only remember one friend that got a “real job” – I think he made something like $40k a year, which to 22-year old me, made me think he was rich.
Graduating into that environment was very different compared to the next group of graduates that entered the workforce just a few years later. These folks graduated into a world on the upswing, one where it was actually possible to get a job and start a real career coming out of school.
You can see this difference in many of the personal finance/financial independence blogs written by the current crop of 20-somethings that graduated from college after the recession came to an end. Many of them started on their path to financial independence almost immediately. That was something that I and many others in the 2009 graduating class couldn’t even imagine. For us, that period during the recession really felt like a sort of purgatory, waiting around for things to get better so. The idea of financial independence – well, that wasn’t even something many of us could even think about.
There’s a lot of data that demonstrates the long-lasting, negative impact of graduating during a recession. Just like with retirement, there’s a sort of sequence of returns risk that comes with graduating and entering the workforce during a recession. Lifetime earnings tend to be lower, with studies showing that recession-era graduates often don’t catch up when it comes to salaries for a decade or more (anecdotally, I know this is true simply by looking around at my own cohorts, even in the legal field). Resumes also tend to look worse, with gaps, underemployment, and employment with companies that simply aren’t as big and prestigious. When I was interviewing for summer associate positions back in 2011, I had to really BS to make my job history sound better than it was – golf course worker and currency exchange kiosk worker didn’t really sound impressive.
All of this would make it seem like nothing good could have come out of graduating during the financial crisis. But like with most things, there’s always a silver lining. And when it comes to the recession, it actually came with some unexpected benefits that I think have helped me on my own path towards financial independence.
Benefits of Graduating During the Financial Crisis
It Taught Me How To Be Scrappy. One of the things that graduating during the financial crisis did was teach me how to be scrappy and get by using whatever means necessary.
I didn’t have a lot of options back then, so I went and got my old job at the golf course. When that wasn’t enough, I jumped on Craigslist and found a second job that fit in well with my schedule – I could work at the golf course in the morning, then head to the currency exchange for the afternoon and evening. I even contemplated trying to snag a third job at the Proactive kiosk that was located right next to my currency exchange kiosk (I swear I could have probably worked both jobs at the same time).
It seems like this background is why I got so into the gig economy and figuring out how to fit things into my schedule and monetize my life. I was figuring out how to fit different sources of income together even before the whole on-demand gig economy thing existed.
A lot of people will give up when things get tough. The recession didn’t give me a lot of choices. I had to be scrappy if I wanted to make any money.
It Taught Me How To Be Humble. Graduating during the financial crisis did something very important that I think serves me well today. It helped me to understand how to be humble.
There’s a lot of value in having a sense of humbleness in your life. When you think about it, a lot of the things we do aren’t really for us – they’re often done for other people. And doing things solely to satisfy other people can sometimes be detrimental, not only to your wallet but to your own happiness as well. We buy things we don’t actually want. We put ourselves in situations that don’t make us happy. Sometimes (maybe often), we choose careers because of this.
Pursuing financial independence means doing things differently, and in a way, it requires some sort of humbleness and ability to say you’re happy with what you have. Because, if you aren’t able to say enough is enough, financial independence simply isn’t possible.
Interestingly enough, this sense of humbleness seems to be backed by data. I found this article from the Harvard Business Review that pointed out that people that graduated during a recession tend to be less likely to develop a “grandiose sense of self” due to having to face setbacks and adversity.
I’m not saying people shouldn’t be confident in themselves or their abilities. It’s just that, on the path to financial independence, I think it helps to have a sense of humbleness. And nothing made me more humble then graduating with no job, no prospects, and living at home, working a job that I could have done in high school.
It Led To Way Less Lifestyle Inflation. This is a bit of a corollary to the humbleness thing mentioned above, but the financial crisis led to way less lifestyle inflation, mainly because I had no money and had no way to inflate my lifestyle.
I was living at home. I had no money to buy fancy things. None of my friends had money or nice things either, so there was no pressure to keep up with others.
Lifestyle inflation is going to happen – that’s just a fact. But the recession made that happen a lot slower compared to what it could have been.
It Made Me Realize The Worst-Case Scenario Isn’t So Bad. There’s a thing a lot of people do whenever they’re trying to do something different. They think about all of the bad things that happen and overreact to them, acting like the worst-case scenario is going to be life-ruining.
The truth is, there are very few things that will ruin your life. I graduated during the worst recession since the Great Depression. I couldn’t get a job. None of my friends could get jobs. We all had to move back home and get retail or food service jobs that basically paid us minimum wage.
And despite this, the world didn’t end for us. It took us longer than we thought it would – but we eventually all got on our feet. When I think about it, even if my wife and I fail in all of the stuff we do, our lives won’t be ruined. We’ll figure things out. There just aren’t too many things that will ruin our lives.
The Financial Crisis Helped Me On My Path Towards Financial Independence
If I could have picked any time to graduate from college, it wouldn’t have been in 2009. Long-term, I’d probably have been better off graduating a few years earlier or a few years later. I’d be willing to wager money that when economists do studies of what year was the worst year to graduate college, 2009 will probably be right up there as one of the worst this century.
And yet, despite how bad it was to graduate during the financial crisis, it did something very important. It gave me qualities that I might not have picked up if I had graduated during a more profitable time in history. Humbleness, scrappiness, an understanding of what a bad economy is really like. These are all things that have helped me on my path to financial independence.
I can’t read the future, but eventually, there’s going to be another class of graduates that enters the job market at the absolute wrong time. It won’t be a great time when that happens – but you’ll probably come out better than you expected. Even in crappy times, there are benefits.
More Recommended Ebike/Scooters
Check out these other ebikes/scooters I've had the chance to do a review for:
- GEN3 Outcross Bike – The GEN3 Outcross is a solid, affordable fat tire ebike that does a good job of doing what I need it to do. It works great for city riding, giving me a smooth ride in all conditions. It’s works really well as a winter ebike since the fat tires give it good traction over snow and ice. Check out my GEN3 Outcross Review.
- Himiway Escape Bike – The Himiway Escape is an interesting bike for anyone looking for a moped-style ebike. If you’re a gig economy worker, the Himiway Escape is particularly interesting and it’s possible to think of it as an investment, especially if you can opt to do deliveries with the Himiway versus using a car. It’s not cheap, but you can definitely make your money back when you compare the mileage you’ll put on your car versus using an ebike. Check out my Himiway Escape Bike Review.
- Espin Sport Bike – The Espin Sport is a good ebike for someone who is looking for an ebike that feels and rides more like a regular bike. There are many ebikes that are really only bikes in name. In reality, they’re basically electric mopeds. The Espin Sport, by contrast, is a bike you could probably ride without the battery and you’d feel like you’re just riding a regular bike. Check out my Espin Sport Review.
- Varla Eagle One Scooter – The Varla Eagle One is an excellent scooter that can make sense for a lot of people. It can work as a primary mode of transportation. You can use it to work on gig economy apps like DoorDash, Uber Eats, and Grubhub. And it can also be a recreational vehicle if you’d prefer to use it for that. Check out my Varla Eagle One Review.
- Fucare H3 Scooter – The Fucare H3 is a fun scooter and I’ve enjoyed testing it out. For a daily commuter or quick trips or errands, the Fucare H3 is probably the scooter I’ll use. It’s portable and easy to maneuver, so it’s just easier to take on the road when I need it. Check out my Fucare H3 Scooter Review.
More Recommended Investing App Bonuses
For additional investing app bonuses, be sure to check out the ones below:
- M1 Finance ($10) – This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $10 for opening an account. Check out my M1 Finance Referral Bonus – Step-By-Step Guide.
- SoFi Invest ($25) – SoFi Invest is an easy brokerage account bonus that you can earn with just a few minutes of work. Use my SoFi Invest referral link, fund your SoFi Invest brokerage account with $100 and you’ll get $25 of free stock. I also have a step-by-step guide for the SoFi Invest referral bonus.
- Moomoo (5 free stocks) – Moomoo is a free investing app currently offering 5 free stocks (usually worth around $75-$100) if you open an account using a referral link and deposit $2,000. Read my Moomoo referral bonus guide for more information.
- Webull (5 free stocks) – Webull also gives you 5 free stock valued between $3-$3,000 each if you open an account using my referral link. Here’s a guide I wrote about how to earn your free stocks using Webull.
- Robinhood (1 free stock) – Robinhood gives you a free stock valued between $2.50-$225 if you open an account using my referral link.
- Public (1 free stock) - Public gives you a free stock valued between $3-$70 if you open an account using my referral link.
More Recommended Bank Account Bonuses
If you’re looking for more easy bank bonuses, check out the below options. These bonuses are all easy to earn and have no fees or minimum balance requirements to worry about.
- Chime ($100) - Chime is a free bank account that offers a referral bonus if you use a referral link and complete a direct deposit of $200 or more. In practice, any ACH transfer into this account triggers the bonus. This bonus is easy to earn and posts instantly, so you’ll know if you met the requirements as soon as you move money into the account. I wrote a step-by-step guide on how to earn your Chime referral bonus that I recommend you check out.
- Upgrade ($100) – Upgrade is a free checking account that’s currently offering a $100 referral bonus if you open an account and complete three debit card transactions. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Importantly, this bonus says that it’s now scheduled to end on October 31, 2022. As long as you get your account opened before October 31st, you should be eligible. Here’s a post I wrote with more details: Upgrade $100 Referral Bonus – Step By Step Directions.
- SoFi Money ($350) – SoFi Money is a free checking account from SoFi. They’re currently offering a $25 referral bonus if you open a SoFi account with a referral link and deposit $10. You can also make an additional $300 as well if you complete a direct deposit. This is a good bank that is also 100% free, so you won’t have to worry about managing this account. Here’s a post I wrote with instructions on how to earn your SoFi Money bonus: SoFi Money Referral Bonus: Step By Step Guide.
- Fifth Third Bank ($250) – This offer is limited to customers in the following states: Florida, Georgia, Illinois, Indiana, Kentucky, Michigan, North Carolina, Ohio, Tennessee, West Virginia, and South Carolina. If you don’t live in one of those states, you won’t be able to open an account online but you can still open an account in-branch if you happen to be visiting a city that has a branch. This is a fairly easy bank bonus to earn, especially since there are plenty of data points showing what will trigger the direct deposit requirement. In addition, you can open the Fifth Third Momentum Checking bank account, which comes with no monthly fees or minimum balance requirements. Read my guide on this bonus here.
- Current ($50) – Current is a free fintech bank that’s offering new users a $50 referral bonus after signing up for an account using a referral link.Current is an easy bonus to earn and also gives you access to three savings accounts that pay you 4% interest on up to $2,000. That means you can put away up to $6,000 earning 4% interest. That’s very good and makes Current an account I recommend to everyone. Check out my step-by-step guide on how to earn your Current Bank bonus.
- OnJuno ($100) – OnJuno is a fintech/neobank that is currently offering a $100 referral bonus if you open an account using a referral link and complete a direct deposit of $250 or more. The account has no fees or minimum balance requirements. Even better, the bonus posts immediately after you meet the requirements. If you can meet the direct deposit requirements, OnJuno is an easy bank bonus that’s worth snagging. Check out my OnJuno referral bonus guide here.
- Varo ($50) – Varo is a free fintech banking app similar to Chime or Current. It’s currently offering a $50 bonus to new users that open a new Varo account with a referral link. The bonus for this bank is very easy to meet, all you need to do is spend $20 within 30 days of opening your Varo account. Check out my step-by-step guide to learn how to earn this bonus.
- Fairwinds Credit Union ($100) – Fairwinds Credit Union is offering a referral bonus for users that sign up using a referral link. Fairwinds has no fees or minimum balance, so this is a particularly easy bonus to earn. Since this is a smaller credit union, my gut instinct tells me this offer won’t be around long, so if you’re in a position to meet the bonus requirements, grab this bonus before it’s gone. Here is my step-by-step guide on how to earn your Fairwinds Credit Union bonus.
- Novo Bank ($40) - Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. In addition to being a good bank bonus, Novo is also a good business checking account. It has no monthly fees or minimum balance requirements and operates a good app and website. Indeed, it’s the business checking account I currently use for this blog. Check out my post on how to easily open a Novo account.
- Spiral ($50) – Spiral is a fintech bank that's currently offering new customers a $50 signup bonus after opening a free checking account with them. The Spiral referral bonus is especially good because it's a free checking account and doesn't require a direct deposit to earn the bonus. Here is my step-by-step guide on how to earn your Spiral Bank bonus.
- One Finance ($50) – One Finance is a fintech bank that’s currently offering a $50 signup bonus if you open an account using a One Finance referral link and have a direct deposit of $250 or more. This is a completely free bank account with no minimum balance requirement, so if you can meet the requirements, it’s worth doing. Check out my One Finance referral bonus guide here.
- Albert ($150) – If you can manage to do a real direct deposit, Albert is an easy account you can use to earn a referral bonus. Here’s a review about Albert I wrote. And here’s a step-by-step guide on how to earn your Albert referral bonus.
- Netspend ($20 + 5% Interest Savings Account) – Netspend is a company that provides 5% interest savings accounts. If you sign up using my referral link, you’ll get a $20 signup bonus once you make your first deposit into your Netspend account of $40 or more. That means you get a 5% interest savings account and a free $20 to start! Make sure to check out my in-depth guide on how to set up these accounts.
Kevin is an attorney and the blogger behind Financial Panther, a blog about personal finance, travel hacking, and side hustling using the gig economy. He paid off $87,000 worth of student loans in just 2.5 years by choosing not to live like a big shot lawyer.
Kevin is passionate about earning money using the gig economy and you can see all the ways he makes extra income every month in his side hustle reports.
Kevin is also big on using the latest fintech apps to improve his finances. Some of Kevin's favorite fintech apps include:
- SoFi Money. A really good checking account with absolutely no fees. You'll get a $25 referral bonus if you open a SoFi Money account with a referral link, and an additional $300 if you complete a direct deposit.
- Upgrade Bank. Upgrade is a free checking account that’s currently offering a $100 referral bonus if you open an account and complete three debit card transactions. These bonus terms are easy to meet, so it’s well worth doing this bonus as soon as you can. Note that it’s now scheduled to end on October 31, 2022.
- Novo Bank. Novo bank is a free business checking account that’s currently offering a $40 bonus if you open a Novo business checking account using a referral link. It’s the business checking account I currently use for this blog.
- M1 Finance. This is a great robo-advisor that has no fees and allows you to create a customized portfolio based on your risk tolerance. You also get $10 for opening an account.
- Personal Capital. One of best free apps you can use to monitor your portfolio and track your net worth. This is one of the apps I use to track my financial accounts.
Feel free to send Kevin a message here.
Sounds like some good things came out of a pretty bad situation. Humility is huge when it comes to personal finance. A bad starting scenario means you’re a lot less likely to feel entitled to things once the money does start coming in. It sucks that you’ll have to play catch-up for so long when it comes to salary, but I guess at this point you’re mainly thankful to have found work that’s steady and offers benefits, eh? I imagine even all these years later that’s a relief.
There’s definitely something to be said about humility. Coming out of college with a triple major (yes, I had three majors) and not being able to find a real job hits you. I still remember interviewing for an administrative assistant position at a small CPA firm that paid $15 per hour and not getting hired. Contrast that to today where employees are literally ghosting employers.
This is a great perspective and I hope one a lot of people take to heart! – a 2010 grad
Thanks Emily! Glad it resonated with you!
Another upside- you had no money to lose in the crash, and if you started investing right away, the stock market has gone up incredibly since then.
For sure – good point. Unfortunately, with no job meant no money to invest. I didn’t get my first real job until fall of 2013 and didn’t invest my first penny until December 2013 – over 4 years after I graduated from college. Bummer! Now people who kept their jobs during 2009 and kept investing – they are killing it!
What was that old lifestyle quote that is crossing my mind?
“Hard times create strong men. Strong men create good times. Good times create weak men. And, weak men create hard times.”
—G. Michael Hopf
Thanks for sharing, it’s good to see that you’re humble about your journey—despite your current success online!
Thanks! And still working on the success part. I’m just trying to be better every single day.
Thanks for sharing your perspective! I resonate with your points on humility and scrappiness. I also graduated from undergrad in 2009. I got a job working as an instructional assistant at a special education school, making $11 an hour with no benefits. I worked there for about a year and a half before getting a contract job with a large tech company. While it was an unconventional starting point, I really valued the time I had at that school. I learned how to value what others had to teach me, including those who had fewer “credentials” than I did. I learned a lot from my colleagues who only had high school diplomas or were working toward their GEDs. Also, if I have a tough day at my current job, at least I can say that no one tried to bite me today.
It’s amazing to think how different our paths are compared to a young graduate today. Really helps to look at the bright side of things.
What a great post! I also graduated from undergrad in 2009. I recall three (out of 50ish) of my peers in my degree program were able to find a job out of school. I didn’t have much in the way of location independence since my wife was going to attend dental school, and I never received a single reply to the 10s of applications I sent out. The lack of job prospects is a large part of what eventually drove me to pursue an advanced degree.
It’s fantastic that you’ve found the good in your experience. I suppose I’ve tried to do the same, but you’ve made me think back more about how different things might be now had I graduated during more typical circumstances.
Us 2009 grads graduated in such a different world – the grads today can’t even imagine it. But it made us scrappier for sure – definitely a good quality for those of us chasing FI.