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5 Surprising Benefits of Tracking Your Spending

5 Surprising Benefits of Tracking Your Spending

Quick: How much money did you make last month? Too easy? Okay…how much money did you spend last month, and on what, exactly?

If you’re struggling to answer that one, you’re in good company. According to a poll from Gallup, two-thirds of Americans do not track their monthly spending. This blind spot may seem benign, but it’s often to blame for problems like snowballing credit-card debt, family fights, daily stress, and anxiety about the future.

The solution might be easier than you think: taking a few minutes each day to monitor and think about where your money is going can improve your life in dramatic ways. Tiller Money recently announced the results of a survey that asked 100 people, all spreadsheet users, about what they’ve gained from tracking their finances for at least 3 months.

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1. 93% Agree – You’ll Have Better Insight into Your Spending Habits

Most of us have only a vague idea of where our money goes each month. But look around: Are you surrounded by overflowing closets, fitness devices gathering dust, and cosmetics spilling out of bathroom drawers? These are a result of your spending decisions.

In an era of one-click purchasing and automatic billing, it’s easier than ever to spend mindlessly: while we’re at work, eating dinner, sitting on the couch, or even sleeping. But when you pay attention to each and every outlay of cash – just a few minutes a day is all it takes – you’ll see trends, identify waste, and notice expenses that are misaligned with your values and priorities. Before long, you’ll find yourself questioning your spending decisions before you hand over your credit card.

2. 80% Agree – You’ll Have a Better Relationship with Your Spouse or Partner

Money is the leading cause of relationship stress, according to a survey by SunTrust Bank. Not kids, affairs, or household chores – money! It’s only natural that you and your partner will have different approaches to spending and saving, but this doesn’t mean finances have to cause friction. Eliminating this particular stressor demands open, transparent communication about money. Take the time to sit down with your partner and agree on savings goals. Then look back on your spending decisions together, without judgement or recrimination. This will force you to have a healthy discourse about your respective priorities and make compromises as a team.

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3. 79% Agree – You’ll Spend Less Impulsively

We all spend impulsively from time to time — that’s not a bad thing. But making frequent or large or purchases on impulse — “What a cute car! I’ll take it!” — can ruin you. So before you make each purchase, pause and ask: “Did I come to the mall looking for a new pair of boots or did they catch my eye as I was walking past the store?” “Do I really think an Apple iWatch will make me more productive, or am I just trying to keep up with my friends?”

You may be spending more impulsively than you realize — and using money that was earmarked for more important uses. No one, regardless of wealth, likes to waste money! Tracking your purchases will force you to acknowledge unconscious spending, and with time, you’ll find yourself naturally spending in ways that don’t leave you feeling guilty later.

4. 81% Agree – You’ll Be More Confident About Reaching Your Financial Goals

We all have goals for the future. Perhaps yours is to retire early, travel around Europe, or take a year off to write a book. But while our goals often depend on money, few of us know exactly how much we’ll need or how much we have to save each month to get there.

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People who track their spending know how much they’re earning, spending, and saving. So when they’re faced with a pay cut or unplanned medical expense, they know what levers to pull to keep saving at the right pace to achieve their goals.

5. 75% Agree – You’ll Feel Less Anxious About Money

Most of us avoid discussing or even thinking about money because it makes us uncomfortable. According to a survey by the American Psychological Association, the vast majority of Americans reported feeling stressed about money during the past month. We feel stressed about bills that are due and things we want to buy for ourselves or others that we can’t afford, and we feel anxious about our future financial security. But burying your head in the sand isn’t the answer. As Tiller’s survey shows, facing your financial fears head-on by owning up to and taking control of your spending is a proven way to reduce anxiety and stress.

If you’re among the majority of Americans who don’t have a process in place for keeping tabs on your cash flow, take a few minutes each day to adopt this powerful new habit. There are many, many tools out there that make it quick, easy, and yes – even fun. You can use a slick app with pre-built reports like Mint or YNAB, or create your own custom dashboard with Tiller, which lets you link your bank accounts to Google Sheets.

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Featured photo credit: alejandroescamilla.com via hd.unsplash.com

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Sharen Ross

Marketing Strategy Consultant

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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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