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10 Financial Moves You Need To Make This Year

10 Financial Moves You Need To Make This Year

Whatever past mistakes you’ve made, 2014 is the year to change your habits. I’ve noticed I’m an impulse spender who always looks forward to that next big purchase. No matter how much money I make, it never feels like enough, as I’m always filling previous voids. In order to break that habit, I sought the advice of several financial analysts and life coaches. Each helped me identify trends in my personal life that affect my finances. To combat it, we’ve come up with a list of financial moves I need to make this year, and you should too.

Assess Yourself

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    Smurfette wept at she stared at the pile of bills she earned at the strip club…

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    Take an objective look at your finances. Are you making enough to cover your spending while paying your past financial obligations and preparing for the future? If you’re spending based on future income, there’s an issue. You need to look at the numbers involved in your personal finance at least once a month to ensure you’re staying abreast of your current financial situation.

    T.J. Tillman, a founding partner at Empire Wealth Management says, “My recommendation is to have a hierarchical set of financial priorities and not stray from it.  The order would be (from bottom to top) paying for basic monthly expenses like food, shelter, etc., money set aside for emergency savings, money set aside for retirement, and then discretionary income to save up for major purchases. By following these guidelines, it’s possible to live a life with significantly less stress and still work towards those material things that are nice but not necessary.”

    Pay off Your Credit Cards

    Your highest interest rates are coming from your credit cards–and that’s just the start of where they get bad. Having revolving credit is only good for your credit if you have an abundance of available credit (money you could spend, but haven’t). Even this is only true of true credit cards; pre-paid credit cards don’t even report to your credit agency (you’re paying a fee to use your own money).

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    Paying off credit cards is a vital step in treading above financial waters. Pay off cards with the highest interest rates first, and know that if you took out any cash advances, that balance is paid off last (earning the banks the highest interest rate for as long as possible).

    Strengthen Your Reserves

    Every penny you save counts. Stop looking at bonuses as “free money.” In fact, stop looking at any money as free; you have to work for every cent. Stop discrediting the effort you put into your own personal blood, sweat, and tears, and instead start paying the most important bill of your life: your monthly payment to your personal savings account. You want to have at the ability to pay at least 3-6 months worth of bills in case an emergency comes up. You’re never 100% in control of your own income, and even if you were, life happens. Be prepared for an empty tanks with a reserve can just in case.

    Settle Your Debts

    It’s never fun owing anyone; I’ve never heard someone say, “I’m so happy I owe money to (insert anyone’s name).” Settling debts will strengthen your reputation and lift a mental burden from your shoulders. Instead of thinking about who you owe what to, you can concentrate on what’s important in life. “Karma is real, baby,” explains Life Coach Melanie Cobb. “Money can’t flow to you if your incoming channel is clogged with old resentments, guilt, or small stories.” Drop the guilt and clear those burdens off your plate.

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    Tired Until You’re Retired

    Unless you’re Benjamin Button, one day you’re going to get old. If you don’t start saving now, you’ll be one of those old people who’s still working. It’s easy to think you’ll never be that way, but it’s as inevitable as death if you don’t do something to prepare now. What if the world ended today? What if aliens invaded and are going to destroy the earth. You’re not on the president’s call list–he doesn’t even know you exist. So what will you do? If you don’t have a plan, you’re not a survivor of the zombie apocalypse; you’re a zombie.

    Habits Are Made to Be Broken

    Bad spending habits are the root of most people’s financial problems. Stores know this, and that’s why there are impulse items strategically placed throughout the store. In fact, nearly everyone is counting on you to spend money, and the only person you can count on to be responsible with your personal finances is yourself. Break free of bad spending habits by practicing discipline and focusing on your financial goals, rather than relieving your temporary cravings. Also a word of advice–eat before you go grocery shopping to keep from overspending.

    Review Your Permanent Record

    You need to check your credit report today; in fact it’s a good idea to check it at least once a month. Remember how you had a permanent record in school? Teachers would always threaten to list misdeeds on your permanent record. You couldn’t see your permanent record then, but you can check your credit report to ensure you truly are responsible for the financial decisions you’re being credited for. Now you know, and knowing is half the battle.

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    Be Open About Your Finances

    If you keep your finances a dirty secret, it’ll eventually come out the closet to bite you in the ass. You need to be honest with people–you don’t have to tell them how much money you make or have, but you don’t need to be ashamed to tell people you’re not willing to pay to go out because you’re currently saving. They may ask questions, but you can politely remind them that you’d rather not discuss finances whenever it gets too personal. You don’t need to broadcast your checking account balance; just don’t act like you have ends you don’t.

    Seek Professional Help

    There’s no shame in asking for help. Even Michael Jordan needed coaching. People like T.J. Tillman and Melanie Cobb represent an entire industry dedicated to coaching and motivating people through the tough financial times. It’s not necessary to take on the burden of all your debt and finances yourself. Cash rules everything around me, so it’s a pretty big deal that’s worth spending time discussing with a qualified professional.

    Be Realistic

    We all want to be billionaires and spend money on all the things Bruno Mars sings about, but we’re not all CEOs, so we’re not likely to have that chance. Be honest with yourself; you can lie to everyone else, but always be honest with yourself about where you actually are. You can’t find your destination if you don’t even know where you’re at. Realistically assess your resources and options, and stick to goals you can actually stick to; it may take a little suffering, but, with resourcefulness and perseverance, you can make the right financial moves this year to bring success to any endeavor.

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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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