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How Saving $5 A Day Can Change Your Life

How Saving $5 A Day Can Change Your Life

How many times do you spend $5 each day? That morning coffee, a quick sandwich at lunch, a snack at the gas station after work, or a drink out with friends at night can all cost $5 or more. What if you decided to not purchase one of those items each day? What if you made your coffee at home instead of buying it at a fancy coffee shop? What if you packed your own sandwich or decided to get water instead of a coke when you went out at a restaurant? Many people will say they don’t want to give up life’s little luxuries, but here’s what could happen if you did and saved the money instead.

If you saved $5 a day for a month, you would have $150. With that money you could do the following things:

  • You could buy a new smart phone.
  • You could buy a new bike.
  • You could buy a brand new outfit.
  • You could buy a really expensive pair of shoes.
  • You could pay your friend back.
  • You could buy your books for school.
  • You could have a nice day at the spa.
  • You could purchase birthday gifts for 5 friends or family members.

This could change your life significantly if you, for example, rode a bike every day and got in great shape. It could also barely affect your life if you only got to enjoy your new shoes every now and then. So why not save $5 a day for a little longer?

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If you saved $5 a day for six months, you would have $900. With that money you could do the following things:

  • You could finally repair your car.
  • You could pay for a month of rent.
  • You could buy a plane ticket to New York City for two.
  • You could pay for your gas for 3-5 months in cash.
  • You could get ahead on your electric bill.
  • You could finally start that emergency fund.
  • You could pay off your credit card.

Not bad for just giving up a tall café mocha every day for 6 months, right? You can easily see how $5 a day for six months can change your life. Having an emergency fund just in case could prevent you from going into credit card debt. Paying off your last credit card would make you feel so much freer, knowing you were financially stable. Buying a plane ticket somewhere fun could give you memories for a lifetime. Yet, if you saved for a little bit longer, here’s what could happen:

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If you saved $5 a day for a year, you would have $1,825 dollars. That amount of money could get you the following items.

  • You could go on a really nice weekend vacation.
  • You could finally buy your girlfriend that engagement ring.
  • You could put a down payment on a car.
  • You could donate it and make a difference to a charity of your choice.
  • You could pay for a college class.
  • You could fully fund an emergency account.
  • You could finally see the Leaning Tower of Pisa.
  • You could buy a really nice watch.
  • You could pay for 2-3 months of rent in cash.

All of these scenarios so far have involved spending the money you save right away, but what if you grow it instead? Many people say they don’t have enough money to do this, but here’s what could happen if you only save $5 a day for one year.

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You could take the $1,825 and invest it. Even if you add nothing to it, you could reap significant rewards. A very conservative estimate if your investment earns 4% and is compounded once a year shows that you could have $147,000 after 35 years. All you would have to do is give up life’s little luxuries for 1 year, invest that amount, and theoretically let it sit for 35 years.

With $147,000 to spend, you could not only change your life, but the lives of your family. With that you could do the following:

  • Pay for a modest home in cash.
  • Send all three of your kids to college.
  • Go on a luxury trip around the world with your spouse.
  • Start your own business.
  • Invest even more and make even more.
  • Buy an outrageously expensive car.
  • Quit working for 5-7 years.
  • Pay off all of your consumer and student loan debt and that of your children.

As you can see, the best way to change your life with just $5 a day is to save the money for the long term. Sending your kids to college will definitely change their lives. Quitting work for a little while and seeing the world will give you the experience of a lifetime. Paying off debt or buying a house in cash would be a tremendous personal accomplishment. The truth is, no matter what you do or how long you save it for, saving $5 a day for any length of time can make your life better whether it’s in a small or in a really significant way.

Featured photo credit: Making money concept 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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