The Emergency Fund, Your First Step Through Chaos

In today's society, where most people spend around 70% of their income on taxes, housing and insurance, what can you do to get ahead?

When there are investments everwhere you look, which one should you choose?

When having a budget frightens and frustrates you and your bills and debt are stacked a mile high, where do you begin?

The answer, to all of these questions, my friend, is the emergency fund.  That's right, before you pay your debtors, before you go for those big fancy home runs that people love to brag about with their investments, you start with the basics.  Before you compound, you impound.

How do you get ahead in life?  Its the small details.  Its always those who focus on doing the small things, so that their activity is compounded over a long period of time, that make the big difference.

The problem with putting all your eggs in one basket, is they just might crack.  The problem with putting the emergency fund off for tomorrow because your bills are so great today, is that it just may never happen.  Start today.  Put aside a little bit each month, until you have built yourself between 3 to 6 months of income.

Its sad, but no one really ever talks about freedom anymore, a principle our country was founded on.  And guess what, your level of financial independence is exactly the number of months you could survive without an income.  How do you do it?  You take the first step.

As readers, we'd love to hear your stories about how you overcame your fears and started to take those baby steps.

This post was reposted from http://finlit.biz/debt/the-emergency-fund-your-first-step-through-chaos/, originally written on October 9th, 2013.

Do Students Have a Need for Financial Seminars?

As you all know, the debt epidemic is rapidly sweeping across America.  Sometimes one wonders if working hard to improve credit scores for the purposes of leveraging is a good thing or a bad thing.  In any case, one of the demographics that is suffering the most is the student population.  With costs of tuition on the rise and good salaries being difficult to find, it is more important than ever to education our youth in an area that a traditional education doesn't touch: finances.

This year we have held a series of various financial seminars, each one hour in length, focusing on various areas of personal finance.  The results have been pretty amazing.  These students are already an outstanding group of young leaders and a financial education is just one more tool we are adding to their tool belt.  The students seemed to have a variety of questions.  On one end, students ask how to start building credit by opening a savings account or credit card account.  On the other end, students already have a desire to start investing, since new graduates will likely have an increase in income yet maintain the same amount of financial responsibility.

Students have given feedback of using resources such as mint.com, creating a monthly budget, cranking through real numbers and taking on additional challenges.  Our discussions about the habits of wealthy individuals have obviously influenced the students as many talk about cutting spending while still maintaining a healthy lifestyle.

The goal is to encourage students to graduate debt free or teach them how to quickly become debt free soon after graduation.  Saving and investing early on in life will not only put them on solid ground to make it in the work place, but will also give them a head start when it comes to raising their families while balancing work, a problem many recent graduates mention.

If you are looking to support a group devoted to our youth, please visit sagescholars.berkeley.edu and donate. We appreciate your support.

If you are a student looking for financial resources, please visit sagescholars.berkeley.edu.  Remember, debt freedom is the key!

This post was reposted from http://finlit.biz/business/do-students-have-a-need-for-financial-seminars/, originally written on March 8th, 2013.

Negotiating Your Job Agreement, Part 7

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 6.

3. How to seal the deal

When you’re at peace with the final offer, contact the employer. Verbally state the agreed salary and benefits and provide the date when you can begin working.

Get it in writing

It is customary to receive an employment contract, or letter of hire, which outlines all of the details of your salary, benefits and work hours. Do not begin work without written confirmation of all the details to which you both have agreed. Verbal offers sometimes can be withdrawn, and terms of employment, salary, and benefits can change. If the employer does not provide a contract in writing, create a confirmation letter or email of your own, outlining all of the terms that were mutually agreed on.

By being prepared and gaining experience with negotiating, you’ll build your confidence and demonstrate great communication and relationship building.

I hope you enjoyed this series! Have you implemented these strategies? How has this helped you?

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-7/, originally written on February 27th, 2013.

Negotiating Your Job Agreement, Part 6

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 5.

Know your own bottom line – other things to consider

Everyone’s personal circumstances are different. Take time to review the pros and cons. Making a list is always helpful. Take the time to thoroughly evaluate the offer. During the time you have asked to consider the offer, do the following:

• Talk to mentors you know who can be objective and knowledgeable.
• Consider all aspects of the job and whether you think you can work effectively with your future supervisor. Take time to reflect on your “gut feeling” based on what you know about the company and your interactions with the supervisor during the interview. Is the supervisor confrontational? Hands-off or hands-on, and which typically works best for you? How do you expect different viewpoints will be handled?
• When you have questions, make a list and ask to speak with the employer again – being careful to limit the number of contacts to no more than two times.
• Consider other job offers you have received or might be receiving. If there is another employer of interest from whom an offer is pending, contact that employer and let him/her know that you have received another offer and when you must make a decision. Having two offers at the same time can greatly increase your negotiating power.

Go to Part 7.

Negotiating Your Job Agreement, Part 5

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 4.

Negotiate benefits

Sometimes the benefits can be as important to you as the salary. A complete understanding of the facts is critical to your successful final negotiation. Be sure you understand all the benefits within the compensation package such as health, dental, vision, disability, life insurance, paid vacation and sick leave, retirement plans, profit-sharing and/or bonuses.

Find out details about vacation, sick time and any other benefit programs such as a continuing education allowance, commute credit allowance, sabbaticals, or a travel program. Depending on your lifestyle or domestic commitments, work hour flexibility may be important to you. And there are other benefits besides salary – such as travel reimbursements or moving expenses.

Negotiate responsibilities

If you will be taking on more responsibility from a previous job or more responsibility than was originally discussed, or if you will be working full time rather than part time, the salary should generally be increased for that.

Go to Part 6.

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-5/, originally written on February 26th, 2013.

Negotiating Your Job Agreement, Part 4

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 3.

Negotiate salary (cont)

Your negotiation range should come from your midpoint to your dream salary. When you have your salary range, you can adjust your requirements appropriately. If the employer provides you with a range of $45k - $55k a year, for example, you can come back with: “I was thinking about $55k - $57k, which means we are in a similar range and my ideal salary is $57k. Is there flexibility at the top of your range?”

This is the appropriate time to gain the information needed. If you are lucky enough to have multiple offers, or other interviews scheduled, definitely let the employer know this as well.

If the offer is a specific dollar amount, mention your midpoint to maximum range. This enables you to negotiate down. You also should demonstrate your worth by saying something like, “Having compared my background with industry standards and knowing my work ethic, I feel my worth is in the range of $X to $Y. Don’t you agree?” If they agree but cannot pay within that range, ask what they have in mind with respect to responsibilities, or ask “Is that the best you can do?“

Some supervisors and employers are limited by budget constraints. There may not have enough money in the budget to meet your salary expectations. If this is so, ask yourself two questions:
- “Are the company culture, benefits, and co-workers worth more to me than my ideal salary?”
- “If I accept this lower salary, will I be able to pay my bills?” Be sure to consider your commute time and expenses, as well as clothes or equipment, and any expected work-related travel.

Even if the offer isn’t what you expected, you still have options. You can ask about a 60-, 90-, or 120-day performance review tying it to an increase in salary. If you don’t ask, the employer probably won’t offer.

Go to Part 5.

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-4-2/, originally written on February 26th, 2013.

Negotiating Your Job Agreement, Part 3

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 2.

2. How to make terms win-win Salary, benefits, work hours and responsibilities can be negotiable.

Negotiate salary

Even before you receive the offer, it’s wise to research pay ranges by position and industry. This is where the work you performed on salaries “pays off.” Look online for surveys to determine average salary. Study similar job descriptions both within and outside of the industry and organization. If the position is in a different geographic area, use salary calculators to factor in cost-of-living expenses to estimate a reasonable salary in your location. See Chapter 6: “Ace the Interview” for tips on how to research salaries by position. custom essay writing service You also need to be considering your salary requirements. How much money do you need to manage financial obligations and live comfortably?

Once you have the offer, you are in a position to negotiate. It is always important to be patient. Counteroffers are typically about 10 – 15% of the original offer. Come up with three figures: (a) a minimum number that you can accept based on what you need and want, (b) a realistic midpoint number, and (c) a dream salary figure that is also within the range of reality. It’s always easier to negotiate down.

Go to Part 4.

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-4/, originally written on February 26th, 2013.

Negotiating Your Job Agreement, Part 2

Excerpt from the book, Get The Job You Love by Marjorie Weingrow. Go to Part 1.

1. The dynamics behind the employment contract conversation

If you are new to offers of employment – here are some things you need to know.

You have some leverage

You are receiving the offer because you have been considered to be the best candidate for the job. This gives you leverage. Most employers invest a lot of time and energy finding the right candidate. They understand that they must offer competitive salaries and benefits and are unlikely to rescind the offer when their #1 choice makes a good faith attempt to negotiate the terms of employment.

You don’t have to agree and sign immediately essay writers for hire Most employers expect you to request time to consider the offer. It’s reasonable to ask for up to a week to make your decision. Be sure to express your enthusiasm about being offered the position and working for the organization or company.

The days following a job offer are important to you. Once the offer is in your hands (or on your computer) use your time to think and do research.

Employers typically make beginning offers at the lower end of the salary range

Surveys show that about 85% of hiring managers don’t make their best offer first. The employer typically makes an offer based on the range in their budget. Employers know that candidates may choose to negotiate, so they start on the low end. You have an advantage because the employer wants you – and respects people with an understanding of their value in terms of the market rate of compensation. You can increase your perceived value by being entrepreneurial in your negotiations – as long as you do it in a very professional way.

Go to Part 3.

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-2/, originally written on February 26th, 2013.

Negotiating Your Job Agreement, Part 1

Negotiation is extremely important to your financial situation. If you are getting paid $8/hr or $9/hr, the truth is that you need to sell your talents better and learn how to negotiate. You are worth so much more! This is the first of a seven part series to introduce the concept of negotiation.

Excerpt from the book, Get The Job You Love by Marjorie Weingrow.

The final step in the hiring process is the negotiation of your employment. If this is your first professional job, your temptation may be to sign immediately. It’s often worth it to take some time to consider and potentially ask for a change to the terms.

You’ll know you’re successful in negotiating the contract when …. the agreement or contract is signed by both parties, there is a win-win, and your new employer appreciates the entrepreneurial and engaging attributes you have demonstrated throughout the process.

The meaning of “negotiate”

In terms of the job offer, negotiation is a collaborative process in which the two parties arrive at a mutually agreeable contract that benefits both. It should be the first of many business-focused conversations between you and your employer in which both parties are invested in the welfare of the other. What often gets in the way of rewarding win-win conversations is our fear of rejection or potential conflict. Even in a tough job market, when the employer wants you, there is usually something you can negotiate.

Negotiating is a learned skill that needs to be developed. This chapter covers:

• The dynamics behind the employment contract conversation
• How to make terms win-win
• How to seal the deal

Go to Part 2.

This post was reposted from http://finlit.biz/business/negotiating-your-job-agreement-part-1/, originally written on February 25th, 2013.

25 Reasons Financial Literacy is Important

Have you ever wondered why someone might change careers all of a sudden?  Have you ever seen someone do something and you thought it would be great if you had the talent to do something like that?  Do you feel that your talents are being utilized to the best of your ability?

Today, we will explore the importance of financial literacy.  Perhaps, you will feel an area that you can relate to and possibly have the desire to jump in and make a career change or pitch in enough to make a difference.  Here are 25 reasons why you might help promote financial literacy in your community:

1. The number one related cause of health issues is stress, often caused by finances.
2. Divorces occur in today's society at an extremely high rate, most often due to financial struggles.
3. People are thousands of dollars in debt which affects their health and relationships.
4. Students are accumulating large amounts of debt before graduating college.
5. Young couples and families are starting their lives together in debt bondage.
6. People are suffering in the shackles of debt, lost without a plan.
7. People are losing their homes, with foreclosures happening on every street corner in the US.
8. Middle class families continue to be left out in the cold.
9. People do not have enough money saved for retirement.
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10. People are losing their hard earned retirement money on real estate investments.
11. The banks and brokerages continue to grow as families continue to suffer.
12. People are gambling away thousands of dollars on stock investments.
13. People are allowed to invest with the click of a button and without a solid investment strategy.
14. Families haven't spent enough time thinking about their future and communicating their goals.
15. The middle class is being taxed to death and slowly shrinking.
16. Loop holes in the system allow people making double the salary to have one third the taxes.
17. People are being ripped off left and right by unethical business contracts.
18. People are typically overinsured or underinsured when it comes to life insurance.
19. Despite lawsuits and years of lobbying, predatory practices continue to be affluent in our society.
20. Families and siblings are left to fight and clean up the mess after their parents pass away.
21. Without adequate estate planning, children are at risk to become lost in the system.
22. Small businesses continue to fail at alarming rates.
23. Business schools continue to be taught by amateurs rather than successful leaders.
24. The lack of mentorship for young people and people in mentorship programs is dwindling.
25. The ability of our communities to negotiate deals fundamentally affects our global economies.

Thank you for visiting!  Remember to spread the word through social media sites such as facebook, twitter and linked in!

This post was reposted from http://finlit.biz/business/25-reasons-financial-literacy-is-important/, originally written on February 13th, 2013.

4 Things You Need to Teach Your Kids About Money

Nowadays you can find a plethora of information about financial literacy on the internet.  With your busy schedule are you teaching your kids what they need to know regarding money?  Check out what kids are doing these days at Fin Lit Biz Park!



Imagine holding a small box in your house.  Whenever your child earns money, place the money into the box.  When the child needs money, they are required to write down what they spent the money on.  Then, at the end of each month, you can go through the withdrawl papers and ask the child why the spent the money.  You may also talk about their earnings for the month.  Rather than tell the child what they should or should not have done, have an open discussion and find out what they want.  Then, help them to get it.  This practice will develop good habits and sooner or later, they will ask what should I have done or what can I do?  Wait until they ask.

Here are 4 things you can cover with your kids today:

1. Teach them how to avoid credit card debt
2. Teach them about the power of earning interest
3. Teach them that investing is a part of saving for retirement
4. Teach them that they should save money to pay cash for a car

Is your child's financial future important enough for you to do this?  Don't you wish your parents did something to teach you?

This post was reposted from http://finlit.biz/debt/4-things-you-need-to-teach-your-kids-about-money/, originally written on February 12th, 2013.

Financial Literacy, Is it Important?

The number of readers is increasing!  It is so exciting to see more and more people take a personal stake into their own future.

Imagine a conversation in your local gas station.  The topic of the 99% movement comes up.

One person describes the 1%ers in a negative light.  The second person asks, "If you think that way about the 1%ers, will you ever become a 1%er?"  The second person asks, "Would a 1%er get themselves into $100,000 in debt before they left college?"

The answers to these types of questions need to come up more and more, if we have any hope of stretching out and enlarging the middle class.  Together we can do it.  Let's keep families in their homes and help them create generational wealth.

From Proverbs 13:22, "A good man leaves an inheritance for his children's children, but a sinner's wealth is stored up for the righteous."

Please share this article or site.  We need your help to increase awareness!  Thank you so much for your support!

This post was reposted from http://finlit.biz/business/financial-literacy-is-it-important/, originally written on February 10th, 2013.