Life skills to help you transition
Personal Finance 101
Start Now:
Don't procrastinate when it comes to saving for retirement; begin now. Take advantage of company-sponsored retirement programs such as a 401(k) or Simple IRA.
Another option is a Roth IRA. This type of IRA allows you to begin saving tax-free, and tax-free withdrawals may be made after age 59.
Get Rid of Debt:
Today's "buy now, pay later" mentality has forced many Americans into debt. The Good Life survey found more than 47 percent of adults 18 to 34 had over $8,000 in debt not including a home mortgage. 57 percent did not know how long it would take to pay off their debt.
Analyze your current debt situation and create a plan that pays off debt quickly. By paying off debt, you will have more money to save for the future.
Say No to Credit Cards:
Credit card companies regularly flood college campuses enticing students with free T-shirts and other gifts. While credit cards can be a useful financial tool when used properly, the key is paying them off every month and avoiding interest payments. Say no to credit card spending when you don't have the money to zero-out the balance each month.
Talk with your Parents:
Almost 48 percent of young adults first learned about saving and financial planning from their parents. Ask your parents and find out what has worked for them and what hasn't.
Learning from their mistakes can help you from making the same mistakes and learn from their successes to point you in the right direction.
Finance 101:
Educate yourself on financial planning. There are many great resources available including: magazines, books, financial planners, and local banks.
Gather as much knowledge as possible so you can make an educated financial plan to carry you well into the future.
YouCanDealWithIt.com Provided by American Education Services
Negotiating Compensation
You should know what you are worth walking in the door. Get a good sense of the going rate for someone with your qualifications by doing some research on the Internet (see resource links below). Realize that what you think you should earn, and what the employer is willing to pay, may be quite far apart.
Factors that may drive this difference are:
- Geography (i.e., rural vs urban, northeast vs southwest)
- Employers industry
- How the interviewer perceives your learning curve
While salary is important, you also need to look at the entire compensation package which includes:
- Health/dental/vision
- Life insurance
- Retirement plan
- Benefit time, etc.
Generally, if the value of the benefits adds 15-17% value to your base salary, that's a good deal. For example, if your base salary is $50,000 and the benefits added value is 16%, that means you are actually "earning" $58,000.
It's true that you need take home pay to meet your financial obligations, but what we don't have to pay for is "money in the bank." For example, a company may help you pay back student loans, or maybe they will pay for you to take classes to keep your skills up to speed. These are benefits to you but don't cost you anything.
Know Yourself
To make an argument for a better salary, make a list of your pertinent accomplishments, both professionally and personally.
Project Confidence
Finally, even during those moments when you're not feeling confident, project confidence. Before you go into an interview, tell yourself out loud why you deserve to get what you are seeking. If you believe it, so will the interviewer. Be enthusiastic about the job, confident about the abilities you bring to it, knowledgeable about your market value and firm in seeking a fair compensation package.
Doing these simple things will enable you to negotiate the best possible package.
More Helpful Resources
Glassdoor.com - Gives you an inside look at company interview questions, salaries, and reviews, for thousands of companies.
Salary.com - Use the Salary Wizard to conduct research on salaries of a variety of occupations.
Evaluating Your Benefits Package - CollegeGrad.com provides a list of pointers to consider
Health Benefits Glossary of Terms - from the Society for Human Resource Management (SHRM)
Considerations for Relocation
- Narrow your relocation search to a specific region or a couple of cities instead of focusing on the "South." Select a state or a couple of cities to concentrate your efforts.
- Subscribe to the Sunday edition of a city's newspaper or find the online version of the paper as a good way to learn about housing costs, politics, and business news.
- Contact the Chamber of Commerce to become familiar with the culture and hiring climate of the cities where you seek to relocate.
- Real estate agencies can help you find a new place to live, but they can also provide information on the hiring climate and economy of the city of relocation.
- Compare salaries for cities you are considering. How much will you need to maintain your standard of living in a new city? You can use a salary calculator to determine this.
- If part of a two-career family, career plans and goals for both partners should be considered and discussed.