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Will Drinking Fewer Lattes Really Improve Your Finances?

Will Drinking Fewer Lattes Really Improve Your Finances?

For many working folk, that $4 morning latte is more than just a pre-work caffeine fix—it is a sort of reward to oneself, either for making it out the door in time to stop at the coffee shop, as a treat after an early morning workout, or maybe for simply getting out of bed at all. Whatever the excuse we make to splurge on expensive coffee, that little cup acts as a symbol of our working selves, in a way, and of the sacrifice of eight or more hours of our lives each day to our jobs. Unfortunately, it is also symbolic of the many unnecessary ways we find to waste money and stunt financial growth in our daily lives.

A common bit of financial advice over the past few years has been to reduce the number of trips to the coffee shop, but people often wonder if cutting out the grande vanilla lattes can really help get their finances on track. Aside from looking at the amount of money saved by not going to Starbucks or your local café on a daily basis, how can cutting one everyday expense change the way we think about our budgets?

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Cutting Out Needless Expenses

First, let’s look at the obvious: fancy coffees such as flavored lattes and cappuccinos can cost upwards of $4 a pop at many chain coffee shops, and if you add in those tempting pastries, you could be dropping $7 before you even get to the office. For those who make this a daily habit, that’s anywhere from $20 to $37 a week! Squirreling that money into a savings account instead could get you an extra $960 a year (and that’s on the low end) to put toward a mortgage, new car or a vacation. In his Lifehack guest post, Charles LaReaux explains how you can save $18,000 over the lifespan of your mortgage by cutting out a $3 cup of coffee each day. If your caffeine habit calls for pricier drinks, imagine how much more you can save by quitting!

Aside from the savings on the coffee itself, however, cutting out one needless expense may just change the way you look at your spending as a whole. Realizing that survival is possible without a daily mocha, many come to see the other non-essentials eating up their paychecks: trivial everyday expenses like eating out, paying for cable television and buying only name-brands waste hundreds of dollars a month. Becoming frugal in one aspect of life may inspire a re-examination of your spending as a whole.

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Find Cost-Effective Alternatives

Discovering cheaper alternatives to getting a caffeine fix can lead to finding cheaper ways to provide many daily rituals: making coffee or tea at home saves a bundle, with a pound of whole or ground beans costing as little as $10 and a box of 25 black or green tea bags running as low as $5. That’s nearly a month’s supply of caffeine for what you would spend in a day or two at a coffee shop.

The same savings apply to entertainment and groceries. Monthly movie streaming services like Netflix cost under $10 a month, which is less than the price of one movie theater ticket, and far less than a monthly cable bill. Buying non-perishable groceries like rice and paper goods in bulk is often much cheaper than paying for smaller packages each time you hit the store. When at the grocery store, look at what items you are spending the most on: buying fewer pre-made, name-brand items and meat can reduce your bill significantly, and you’ll find that fresh produce and other whole foods are much cheaper, not to mention much better for our bodies.

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There Are Long-Term Holistic Benefits As Well:

Speaking of the health and budget connection, cutting out fancy coffee drinks may also improve your health, thereby reducing costly medical bills in the future. Not only are caffeinated beverages contributors to increased heart rate, insomnia and heartburn, expensive designer coffees like lattes and mochas are packed with extra fat and sugar, adding unnecessary pounds and increasing risk of diabetes. As Lifehack writer William Masters points out, cutting out certain dietary and habitual vices does not just save money on the items themselves, but also reduces the associated health risks and costs that come with them—things like cholesterol medication, insulin and surgeries. Remember that the more health conditions you have, the higher your insurance premiums will be.

Having said all of that though, think of ways to make the real behavioral changes automatic. Contribute to your company’s 401K straight from your paycheck so you don’t have to exercise the willpower to save each month, and set aside automatic savings in a separate account which you don’t have easy access to. Willpower is finite, and while resisting the daily latte helps, don’t waste your willpower on small tasks if you can put it to better use to effect meaningful change.

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Featured photo credit:  latte on a wood table via Shutterstock

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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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