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4 Ways To Avoid Being Broke

4 Ways To Avoid Being Broke

In today’s world, we are now running faster than ever to be able to make more every hour. We compete with the people next to us and people on the opposite end of the continent to make our mark and to make our living.

However, as the number of millionaires increases, the number of people reaching bankruptcy and being broke is ultimately increasing too. News of the once rich and famous going broke often pops up in the Financial Report.

How can you avoid the mistakes of the once rich who’ve gone broke? Here are some common-sense tips to help you avoid being broke.

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    1. Don’t purchase what you can’t afford just to impress.

    These days, we are all looking to impress. Looking less is unacceptable in certain parts of the world. While some believe beauty is found within, others believe that beauty is in the Prada you wear and the sports car you drive. So, to impress those who really don’t matter, we spend our paychecks in a department store.

    Take this lesson from history: one should never spend beyond their means. If you can’t afford it, then find alternatives according to your means. This is a survival mechanism which allows you to save and prevents you from going into debt. Getting away from your need to impress is a great way to avoid excessive spending.

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      2. Freeze your credit cards in your freezer.

      The trend these days, instead of carrying cash, is carrying different cards from different banks with different interests in your purse or wallet. You swipe at every single purchase with your mind on your purchase and ignore the bills you’ve been racking up. According to research, one of the biggest reasons for an individual to be broke is overspending on multiple credit cards.

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      Running away and changing your identity is one option, while another is to declare bankruptcy. To avoid either of these, try going old school and carrying cash instead. This limits what you can spend in the moment. If the temptation of using your credit cards is too great, try freezing them in ice in your freezer. This adds another obstacle between you and your next charge.

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        3. Invest smartly, not impulsively.

        Investing is a great way to make money and protect your assets. However, we aren’t all experts in investing. We may be great moneymakers, but the talent of wise investing doesn’t come to us all. Investing emotionally is the same as gambling — we gamble impulsively, hence we lose big or win big.

        As a precaution, always have an advisor who is trustworthy and an expert on investing either in real estate or stock markets. However, research on your part is also important. It will give you the confidence and knowledge you need to make smart investments. After some time, you will be used to investing and your experience will be your greatest advisor.

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        Concept of investment with eggs in the same basket.

          4. Focus on diversifying your assets.

          In the dating world, we are often told to focus on differences rather than similarities. Why? Because it gives us the confidence to secure our emotional selves. Why not act the same way with your assets?

          In the 2000s, the “Get Rich Quick” scheme was on the rise. Many went broke when they invested all their assets in one scheme. History teaches us to never leave all our eggs in one basket. This is an important lesson when it comes to investing.

          Investigate how you can expand your assets and diversify your investments in different markets and different sectors. Read books to help you understand how you can best go about diversifying your assets.

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          Thinking about finances is always uncomfortable and spending is always tempting. However, in today’s world, your assets and your bank balance will give you a sense of security, while extravagant spending may leave you at the bottom of the barrel.

          Featured photo credit: VIKTOR HANACEK via picjumbo.com

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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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