Tag Archives: salary

negotiating salaryThis is the second of two posts by Ryan Bonaparte on negotiating salary. 

As we discussed in the first article, negotiating your starting salary (and all subsequent salaries) can be a huge factor in building long-term wealth. Even starting just a few thousand dollars more in the beginning of your career can net you an extra tens or hundreds of thousands of dollars.

But how do you successfully negotiate a salary, when after a long hunt you finally have a potential job that is hopefully better off than where you are now?

It’s actually a very simple process, made even easier with today’s tools and technologies. Below are some do’s and don’ts.

Know Market Rate for the Position

It can be tempting to go into an interview process dreaming of make tons of money. But if the role is a junior one, you should expect to be compensated accordingly.

Websites like Glassdoor or PayScale can get you a sense of what a position at a specific company in your area might be pay existing employees. Use these as guidelines for what to negotiate toward. ...continue reading

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negotiate your salaryThis is the first of two posts by Ryan Bonaparte on how to negotiate your salary. 

Most pieces of advice about starting a career generally focus on the basics of putting together an awesome resume, utilizing your powerful network to get your foot in the door, and landing that critical interview to secure your dream position.

These steps are extremely important, both at the beginning and at any transition point during your career. Without them, you’re basically just throwing your resume into a void, never to get a call back.

What is often left out, however, is the incredible financial benefit of negotiating your first and subsequent salaries.

While it may not feel like it, especially when you receive your first job offer with seemingly little to offer to a prospective employer in return, you are in a position of power in the negotiation process to negotiate your salary. The employer has decided that above all other candidates, you are the best fit. Don’t forget that fact. ...continue reading

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worst financial mistakesAnyone can make a mistake. They're part of everyday life. Financial mistakes, however, can lead to problems for years to come if not corrected soon.

After talking to financial experts and others who have either experienced or seen other people make the worst financial mistakes of their lives, we compiled the following list of 25 of them. Many are common after graduating from college and starting a financial life on your own, but they can still happen to anyone at any age.

We should also note that these worst financial mistakes aren't listed in any order. We'll leave measuring their importance to you:

25 Worst Financial Mistakes

1. Not going to college

The average starting salary for a high school graduate is about $28,000. That figure almost doubles to $48,127 for college graduates in the class of 2014 with bachelor's degrees, according to a salary survey by National Association of Colleges and Employers. Starting your working life by being that far behind in pay is one of the worst financial mistakes you can make.

2. Not paying off student loans fast

The average student loan debt for a college graduate is $28,400, according to the Institute for College Access and Success.

For a college grad who is earning some real money after four or more years of living like a student, it can be tempting to spend much of their new income before paying off debt. That's one of the worst financial mistakes a graduate can make, says Alfred Poor, a college speaker and author of books about problems young people are having in the workplace.

"If college graduates tighten their belts and lower their expectations, and live like they only have the high school diploma, they will rapidly pay off their average $27,000 in student loans," Poor says. "If they spend their whole salary on a more comfortable lifestyle, they could be struggling to pay off that debt for decades, and end up paying much more in interest."

3. Paying off student loans too quickly

Paying off student loans quickly can also have a downside, says Steven Fox, a financial planner in San Diego with NextGenFinancialPlanning.com. If they use all of their extra income paying off student loans, they could be in financial trouble if they don't put some in an emergency fund and lose their job or get in a car accident and have unexpected medical expenses, Fox says.

"They should really think about whether they should pay off their student loans as fast as they possibly can once they get their first job if it means that they're doing so at the expense of not saving or investing anything," he says. "Ending up with zero debt is good, but ending up with zero savings is very bad."

An emergency could lead to borrowing money at a higher rate than what they were paying on student loans, says Fox, who reminds graduates that student loan interest is tax deductible for up to $2,500 for individuals making $80,000 or less without having to itemize.

4. Using max credit card limit

"Just because a bank offers you a credit card that allows you to spend money doesn't mean you should," Fox says.

This goes for all debt, he says. Being approved for a $20,000 auto loan doesn't mean your budget for a car is $20,000. ...continue reading