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7 Financial Mistakes You Don’t Need To Make Anymore

7 Financial Mistakes You Don’t Need To Make Anymore

Financial stress affects every aspect of your life. We are living in a society where we can just charge, charge, and charge. It seems like we are never satisfied. There will always be the latest gadgets, cars, and fashion to buy. With so many options, it’s easy to make financial mistakes. These mistakes will get you out of your depth and ultimately take control of your life. Read on for seven common financial mistakes and make sure you don’t ever make them again.

1. Paying unnecessary ATM or bank fees.

Banks are established to make money. With so much going on in life, it’s easy to not check your accounts on daily basis. This financial mistake is common and can really become a problem. ATM and bank fees add up over time, and if you’re not aware of how many fees your bank is charging, you will continue to lose money. Speak with a representative from your bank and be clear what the ATM and bank fees are. This will help you avoid unnecessary fees. Furthermore, you may want to check out some banks that literally have no fees, like Capital One 360 or Charles Schwab.

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2. Ordering too much take out.

Let’s face it: we have busy lifestyles. We can have a very hard day at work and come home late. When this happens it’s very difficult to be motivated to cook a nutritious meal. It is so much easier to just order take out on the way home. Nutritional value aside (this could be a whole other topic!), the price of ordering take out on a regular basis can seriously add up over time. Sometimes Chinese food can be from $10, $12, and sometimes even $15. And who doesn’t love ordering Chinese food every once and a while? Just keep in mind, you could spend that same money and buy something like the ingredients for a healthy pasta from the grocery store. Aim for things that allow you to cook enough for leftovers. You can always bring leftovers to work on your way out the next morning. Leftovers = One Free Meal = You Save Money.

3. Not telling your money where to go.

Money was meant for spending. What’s the point of having money if you don’t eventually spend it? Most of us understand this; it’s probably instinctual. We see money in our account, and we usually have an inclination to spend it. If you don’t tell every penny of your money where to go, there is a very good chance it will disappear. The crazy thing is, most of the time money disappears by small, seemingly insignificant purchases that add up, like ordering take out or eating fast food, magazine subscriptions, clothes, movies, etc.

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In a nutshell, the best thing to do with your finances is to calculate how much income you make and subtract the total amount of your bills and your expenses throughout the month. In your expenses, if you can, be sure to specifically allot a certain amount of “fun money” for yourself, which allows you go out and buy magazines and clothes, etc. If there is any remaining money after you subtract your expenses and bills from your income, put that aside for some savings goals.

4. Never making priorities in life to decide where your money should go.

It’s crazy to think that so many people rarely, if ever, stop and actually think about what things in life make us happy. It makes sense to spend money on the things that make us happy, right? Unfortunately, many people live on autopilot and continue to let their money slip away from them on small, insignificant things that ultimately don’t matter. Don’t make this mistake! Instead make happiness a priority and organize your finances so you can spend money on things that will be fulfilling to you. It doesn’t have to be expensive, either. It could be as simple as just paying a baby sitter so you can spend a few hours of quality time with your spouse.

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5. Starting a retirement account too late.

This is a very common mistake. It can be difficult to see the consequences of not investing in a retirement account. Because there is no instant gratification in saving for retirement, it might be hard to be motivated. Put simply, every day you delay saving for retirement you are hurting yourself. Because of the percentage rate of retirement accounts, your money actually compounds over time. Time is the key word here. If you start early you will actually be making good money by the time you retire. Dave Ramsey recommends to put away $250 a month. The best time to start an IRA account is literally as soon as possible. So start now!

6. Not paying off loans and debt as soon as possible.

This is the exact same concept as point 5, except the situation is reversed. If you have any debt at all, you want to do your best to pay that off as soon as possible. Over time, your account balance won’t be ‘making money’. Instead, you’ll be losing money. The longer you wait, the worse things will get. If you wait too long, debt can spin out of control. Don’t let this happen to you. Make it a priority to pay off any debt you have and avoid accruing any more if you can help it. The best way to handle credit cards is to always live below your means and pay the account balance in full at the end of every month.

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7. Not living within your means.

There is a misconception that if you have good-quality things in your possession, you feel good having them and you will feel good when people see that you have them. Not true! Driving a Toyota Corolla with little debt is better than having a Mercedes-Benz you can’t afford and tons of debt.

The truth is, there may be a legitimate amount of satisfaction from having good-quality things. In fact, there’s nothing wrong with having expensive things. The trouble comes when you overspend way outside your means in order to purchase something. The stress that follows is not worth it. There is no price to having a happy, stress-free life. The amount of satisfaction from owning something purchased beyond your financial means wears off after a while. At that point, all you are left with is the financial stress. Why invite troubles into your life? Remember: smarter is better than sexier!

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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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