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You Won’t Die if You Don’t Buy. Here’s Why.

You Won’t Die if You Don’t Buy. Here’s Why.

Are you grappling with finances? Advice on how to make money is everywhere – from investment planners, successful start-up CFOs, online gurus, and self-proclaimed experts sitting next to you at the bar. They’re all focused on getting more income into your wallet, which is great! But no one talks much about where your money disappears to. I’m not offering a complicated output analysis or turning you into a miser. Consider these suggestions to keep expenses in check. Whenever you’re tempted to purchase on  impulse, I’ll be the voice in your head that asks ,”Will you die if you don’t buy?”

Here’s an interesting statistic: Black Friday is a peak U.S. shopping day. A National Retail Federation Research shows the total spent on Black Friday in 2013 was a staggering US $57 Billion! That’s a lot of buying.

Let’s begin with questions that help you find and plug the holes in your wallet.

1.  What do you spend the most money on?

You won’t forget the restaurant bill last weekend anytime soon but how much in any given month goes to groceries, eating out, fuel/car maintenance, the children and school-related expenses? Numbers in black and white jolt you with a picture of your spending patterns. You’ll know your monthly expense totals per spending category and payment medium like cash, credit card, or check payments. You can then plan which areas to cut down on. You’ll also see exactly why your expense total shot up. If you don’t buy unnecessarily, you’ll stay within limits.

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Tracking expenses requires that you keep all receipts and spend some time once a month to record and add them up. Initially, you need to prepare customized templates using any spread sheet – one form for cash payments, the other for credit card and check payments. Tally your expenses by relevant categories such as groceries, eating out, phone and other utilities, car, etc.

2.  Do you know how much money you have?

Sure you know how much you make and yes, you have money squared away, but do you make sure there is money left after paying your monthly bills? Again, recording your funds in black and white guides you to prioritize your necessary expenses. Don’t buy anything else if your funds are low.

3.  Are you able to pay your credit card bills in full?

If the answer is no, don’t use one. In her book Women and Money: Owning the Power to Control Your Destiny,” Suze Orman describes this as “the downward spiral of paying less than the entire bill and being charged interest on everything you don’t pay off.” Imagine if you had multiple credit cards! Interest on credit card debt is an expense you can avoid. Don’t buy on credit if you cannot  pay  the statement amount in full each month.

4.  Do you know when bills are due?

It’s when bills catch you by surprise that you hastily issue a check and don’t realize that it is not supported by your account balance. Or else, you opt to pay the bill late. You get slapped a penalty for issuing a bad check or you pay interest for late payment. Both are avoidable.  Prepare a monthly and yearly schedule that shows when mortgage, taxes, insurance, school fees, and utility payments are due. Don’t buy at all on the week or month when big payments are scheduled.

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5.  Don’t buy before asking, “What if?”

You’re thinking of buying a new outfit for a close friend’s wedding. What if you look deep into your closet for that cocktail dress you hardly used and jazz it up with a glittery wrap?  What if you borrow a dress from your sister? You want to buy a new grass cutter and a tent for monthly barbeques. What if you rent instead? You’re shopping for a present for your favorite aunt. What if you make her a bead necklace or an embroidered pillowcase? It’s your hobby and you have the materials already! Buying is not the only option.

6.  Mindful shopping can be guiltless, rewarding, and fun.

Review your intention and answer these questions.

Why? Shop only to buy something that’s needed or to get a treat you’ve been saving up for.

How? Make a list and keep to it. Learn the discipline of buying only one major thing at a time. Don’t buy an expensive pair of shoes plus an outfit or a bag at the same time. It builds restraint and guards your cash flow.

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When? Shop only when you can afford to. It’s best to time it during a sale. Don’t go shopping every weekend or simply because there’s a sale. That’s the reason you have a closet full of unused stuff and higher-than-usual expense.

With whom? Don’t shop in a group. You’ll end up with purchases made from getting carried away. Maybe someone else bought it or somebody said “Buy it. It’s such a good deal!” It’s hard to think clearly with opinions flying about, but going with a level-headed friend can curb your impulses.

Working as hotel expatriates, a group of 5 of us single women often shopped together. We were of the same built and shoe size. We bought – in one go – similar outfits and shoes in varying colors and styles. It was really fun but even then, I was the voice of reason (and party pooper) always asking “Will we die if we don’t buy?”

What? Buy the original. Go for quality and versatility. Be willing to pay expensively. The number of times and ways you’ll use good-quality things will be worth their price. There is no real excuse to buy knock-offs or pirated stuff which don’t last and add to landfills. Instead, save up and buy the original or choose good quality, unbranded products. Never buy products from endangered species. Animals should not unduly die just so you can buy.

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Where? Have a list of personally preferred brands you use and shops you buy from on the basis of quality of product and service. This builds relationship and rewards. It also keeps you from unscheduled purchases in random places.

Who? Consider the makers’ and sellers’ corporate social responsibility record: do they pay fair wages, sustain the environment, minimize waste, and give back to the community? Choose to spend your money in support of people who’re doing good things.

By sticking to a set of criteria, you simplify buying decisions and actually save money. Check out these other money-saving enjoyable experiences, too.

7.  Do you block the flow?

Doing all these suggestions could reveal you’re not doing so badly, financially. Don’t forget other people who are not doing so well financially and be willing to help them out. Help could be in the form of a small monthly donation or a one-time donation to a cause you care about. Or it could be a loan to a struggling friend. Be part of the flow and respect the law of abundance. When you cascade some of what you have to others, you also make space in your wallet for more.

Featured photo credit: cohdra via morguefile.com

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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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