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10 Tips for Improving Your Finances

10 Tips for Improving Your Finances

The vast majority of Americans are only one $500 emergency bill away from being financially destitute. In fact, a survey indicated that 62 percent of U.S. adults could end up homeless if they skipped even one paycheck. Out of this group, only 58 percent believe that they could make up for an unexpected $500 expense by reducing their other expenses, using a credit card or borrowing money from a family member or friend. In other words, there are far too many people who currently do not have any type of safety net.

To help prevent yourself from remaining or falling into this trap, it is imperative to take a close look at your finances and make a few lifestyle changes. Fortunately, this does not need to be nearly as drastic as most people fear. By implementing even a few of the following suggestions, you should be able to build your savings account and begin more effectively planning for retirement.

1. Do an Audit of Your Bills

When was the last time you sat down and thoroughly looked through all of your bills? If you are like most people, you pay the minimum due amount on each bill without paying much attention to errors or interest rates. Auditing your bills can help you make sure that billing mistakes are not unnecessarily increasing your expenses. Additionally, a bill audit will enable you to learn how much money you would save in the long run by adding $10 to each of your credit related payments.

2. Purge Unnecessary Expenses

We all make choices regarding how to spend our money, and most of us have developed at least one or two unfortunate blind spots. For example, you may really like the version of yourself that goes to the gym once a month and continuously pledges to go more often, but this does not mean that you are making a wise financial decision by paying that monthly fee. Unless you are regularly utilizing something, it is best to purge the unnecessary expense.

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It is also smart to look at unrealistic expenses such as a beer budget that outweighs what you pay for electricity. If you are struggling to build a savings account or pay your bills on time, you must make difficult choices that will include cutting back or eliminating things that serve no practical purpose.

3. Contact Creditors to Renegotiate Your Repayment Terms

Many people erroneously assume that their interest rates and repayment terms are set in stone. However, the truth is that you always have the ability to call and attempt a renegotiation. In some cases, this technique may not get you anywhere. Overall, though, creditors are usually willing to work with people who have kept their payments up and express a need for a temporary or permanent alteration to their repayment terms in order to continue paying everything off on time.

4. Carefully Explore Your Trading Options

There are numerous trading options that can help you save for retirement, but you need to carefully examine everything before you make any large investments. The stock market can be very volatile, but there are some stocks that tend to stay more stable or have a better chance of rebounding quickly. Studying trends and talking to an experienced stock broker will help you make a better choice.

Binary options are another robust possibility that many people are not very familiar with. In a nutshell, binary options allow you to not only get involved in trading stocks, currency pairs, commodities and indexes but to also make predictions about how well they will do within a specified time period. If your predictions are accurate, you can earn a nice return on your investment. You can also use loss protection to prevent yourself from losing a lot of money when your guesses are inaccurate. In other words, binary options can be a viable way to earn some extra money for your savings account.

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5. Utilize High-Yield Investments

High-yield investments do come with a bigger risk factor than turning to treasury bills that have an almost non-existent return rate, but this does not mean that you cannot use them to your advantage. The younger you are, the safer it is to gamble on truly high-yield investments because you will have more time to recover any losses.

Please note that it is not wise for people who have a minimal savings account to invest everything they have into these investments. But if you put 10 to 20 percent of your savings into an investment that has high-yield results and a relatively solid history, you could end up cashing out with a significantly higher amount of money that can then be rolled into a safer opportunity.

However, if you want to play it safe altogether, a money market account should help you earn at least 1 percent annually on your savings. Once you achieve a savings of $50,000, this would provide you with a free $500 bonus after one year.

6. Optimize Your 401k

Your 401k options are probably diversified and very confusing, especially if your employer has put a few plans in front of you that do not come with a detailed description. When you add the recent turbulence of the stock market into the picture, it can become quite terrifying to invest money in this way.

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Instead of running away from this investment opportunity, take the time to more carefully examine your choices. You may find that the plans that are being pushed toward people in your age range are not right for you. After all, a conservative plan will not accrue much money, but it will also minimize your risk of losing everything you have contributed to your 401k.

7. Make a Weekly Savings Plan

In just one year, you can put together a savings account that will enable you to avoid any $500 financial disasters. $10 a week is all it takes to build up a savings account with $520 in it. It may seem unrealistic for people who live paycheck to paycheck to set aside $10 weekly, but you should be able to find this money by prioritizing your expenses and purging anything that is not necessary.

8. Build a Precise Budget

According to a Gallup poll, 68 percent of Americans do not build or use a detailed budget to help them manage their expenses. This is a major mistake that could seriously hinder your ability to get your finances on track. Instead of allowing yourself to spend money without having any idea if you can afford it, you need to sit down and build a precise budget every month. This budget should include everything from your major expenses to minor purchases.

By doing this, you will be able to see how your money is really being used, and this will make it easier to cut out unwise expenditures. Looking at this budget regularly and updating your check register daily is the absolute best way to keep yourself from spending money you do not have.

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9. Take Advantage of Free or Inexpensive Hobbies

We all need hobbies or a way to blow off steam. For some of us, this comes in the form of televised entertainment. The average cable bill has reached an astounding $99, though, so this is not a good way to scale back your expenses. Instead, you should consider cord-cutting measures such as Netflix or Hulu. For a fraction of the cost, you will be able to enjoy countless movies and TV shows.

Walking and many other physical activities are another free or inexpensive way to fill up your spare time, and they come with the added bonus of being good for your health. If you prefer to stay in and do something quiet, Scribd provides readers with unlimited access to eBooks and comic books for less than $9 per month. Adult coloring is another popular trend that has an initial cost due to acquiring the necessary supplies but will ultimately provide many hours of cheap entertainment.

10. Prioritize Your Personal Goals

We all have personal goals aside from the desire to not fall into bankruptcy over one medical bill. Prioritizing these goals can help ensure that you spend your money as wisely as possible. A good example is that some people buy a daily latte from Starbucks but then bemoan the fact that they cannot afford a monthly wellness massage.

If reducing stress and improving your health is your top personal goal, then it makes sense to skip your daily latte so that you can save up for a massage instead. Keep in mind that you could always make coffee at home for a smaller fee. This will give you a personal daily indulgence without derailing your goals. No matter what your personal goals are, you can achieve them in this same way by being smarter with your daily expenditures.

Now that you have access to several actionable tips, it is time for you to put some of them to work! You may also want to download some handy expense apps to make it easier to monitor your spending. With a little practice and some dedication, you can reach your goals and build a savings account that will allow you to avoid financial disaster during an emergency.

Featured photo credit: Piictures of Money via flic.kr

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Published on November 8, 2018

How to Answer the Tough Question: What are Your Salary Requirements?

How to Answer the Tough Question: What are Your Salary Requirements?

After a few months of hard work and dozens of phone calls later, you finally land a job opportunity.

But then, you’re asked about your salary requirements and your mind goes blank. So, you offer a lower salary believing this will increase your odds at getting hired.

Unfortunately, this is the wrong approach.

Your salary requirements can make or break your odds at getting hired. But only if you’re not prepared.

Ask for a salary too high with no room for negotiation and your potential employer will not be able to afford you. Aim too low and employers will perceive as you offering low value. The trick is to aim as high as possible while keeping both parties feel happy.

Of course, you can’t command a high price without bringing value.

The good news is that learning how to be a high-value employee is possible. You have to work on the right tasks to grow in the right areas. Here are a few tactics to negotiate your salary requirements with confidence.

1. Hack time to accomplish more than most

Do you want to get paid well for your hard work? Of course you do. I hate to break it to you, but so do most people.

With so much competition, this won’t be an easy task to achieve. That’s why you need to become a pro at time management.

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Do you know how much free time you have? Not the free time during your lunch break or after you’ve finished working at your day job. Rather, the free time when you’re looking at your phone or watching your favorite TV show.

Data from 2017 shows that Americans spend roughly 3 hours watching TV. This is time poorly spent if you’re not happy with your current lifestyle. Instead, focus on working on your goals whenever you have free time.

For example, if your commute to/from work is 1 hour, listen to an educational Podcast. If your lunch break is 30 minutes, read for 10 to 15 minutes. And if you have a busy life with only 30–60 minutes to spare after work, use this time to work on your personal goals.

Create a morning routine that will set you up for success every day. Start waking up 1 to 2 hours earlier to have more time to work on your most important tasks. Use tools like ATracker to break down which activities you’re spending the most time in.

It won’t be easy to analyze your entire day, so set boundaries. For example, if you have 4 hours of free time each day, spend at least 2 of these hours working on important tasks.

2. Set your own boundaries

Having a successful career isn’t always about the money. According to Gallup, about 70% of employees aren’t satisfied with their current jobs.[1]

Earning more money isn’t a bad thing, but choosing a higher salary over the traits that are the most important to you is. For example, if you enjoy spending time with your family, reject job offers requiring a lot of travel.

Here are some important traits to consider:

  • Work and life balance – The last thing you’d want is a job that forces you to work 60+ hours each week. Unless this is the type of environment you’d want. Understand how your potential employer emphasizes work/life balance.
  • Self-development opportunities – Having the option to grow within your company is important. Once you learn how to do your tasks well, you’ll start becoming less engaged. Choose a company that encourages employee growth.
  • Company culture – The stereotypical cubicle job where one feels miserable doesn’t have to be your fate. Not all companies are equal in culture. Take, for example, Google, who invests heavily in keeping their employees happy.[2]

These are some of the most important traits to look for in a company, but there are others. Make it your mission to rank which traits are important to you. This way you’ll stop applying to the wrong companies and stay focused on what matters to you more.

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3. Continuously invest in yourself

Investing in yourself is the best investment you can make. Cliche I know, but true nonetheless.

You’ll grow as a person and gain confidence with the value you’ll be able to bring to others. Investing in yourself doesn’t have to be expensive. For example, you can read books to expand your knowledge in different fields.

Don’t get stuck into the habit of reading without a purpose. Instead, choose books that will help you expand in a field you’re looking to grow. At the same time, don’t limit yourself to reading books in one subject–create a healthy balance.

Podcasts are also a great medium to learn new subjects from experts in different fields. The best part is they’re free and you can consume them on your commute to/from work.

Paid education makes sense if you have little to no debt. If you decide to go back to school, be sure to apply for scholarships and grants to have the least amount of debt. Regardless of which route you take to make it a habit to grow every day.

It won’t be easy, but this will work to your advantage. Most people won’t spend most of their free time investing in themselves. This will allow you to grow faster than most, and stand out from your competition.

4. Document the value you bring

Resumes are a common way companies filter employees through the hiring process. Here’s the big secret: It’s not the only way you can showcase your skills.

To request for a higher salary than most, you have to do what most are unwilling to do. Since you’re already investing in yourself, make it a habit to showcase your skills online.

A great way to do this is to create your own website. Pick your first and last name as your domain name. If this domain is already taken, get creative and choose one that makes sense.

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Here are some ideas:

  • joesmith.com
  • joeasmith.com
  • joesmithprojects.com

Nowadays, building a website is easy. Once you have your website setup, begin producing content. For example, if you a developer you can post the applications you’re building.

During your interviews, you’ll have an online reference to showcase your accomplishments. You can use your accomplishments to justify your salary requirements. Since most people don’t do this, you’ll have a higher chance of employers accepting your offer

5. Hide your salary requirements

Avoid giving you salary requirements early in the interview process.

But if you get asked early, deflect this question in a non-defensive manner. Explain to the employer that you’d like to understand your role better first. They’ll most likely agree with you; but if they don’t, give them a range.

The truth is great employers are more concerned about your skills and the value you bring to the company. They understand that a great employee is an investment, able to earn them more than their salary.

Remember that a job interview isn’t only for the employer, it’s also for you. If the employer is more interested in your salary requirements, this may not be a good sign. Use this question to gauge if the company you’re interviewing is worth working for.

6. Do just enough research

Research average salary compensation in your industry, then wing it.

Use tools like Glassdoor to research the average salary compensation for your industry. Then leverage LinkedIn’s company data that’s provided with its Pro membership. You can view a company’s employee growth and the total number of job openings.

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Use this information to make informed decisions when deciding on your salary requirements. But don’t limit yourself to the average salary range. Companies will usually pay you more for the value you have.

Big companies will often pay more than smaller ones.[3] Whatever your desired salary amount is, always ask for a higher amount. Employers will often reject your initial offer. In fact, offer a salary range that’ll give you and your employer enough room to negotiate.

7. Get compensated by your value

Asking for the salary you deserve is an art. On one end, you have to constantly invest in yourself to offer massive value. But this isn’t enough. You also have to become a great negotiator.

Imagine requesting a high salary and because you bring a lot of value, employers are willing to pay you this. Wouldn’t this be amazing?

Most settle for average because they’re not confident with what they have to offer. Most don’t invest in themselves because they’re not dedicated enough. But not you.

You know you deserve to get paid well, and you’re willing to put in the work. Yet, you won’t sacrifice your most important values over a higher salary.

The bottom line

You’ve got what it takes to succeed in your career. Invest in yourself, learn how to negotiate, and do research. The next time you’re asked about your salary requirements, you won’t fumble.

You’ll showcase your skills with confidence and get the salary you deserve. What’s holding you back now?

Featured photo credit: LinkedIn Sales Navigator via unsplash.com

Reference

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