How to ask for a raise–even in this economy

If you’re still working in this economy, I’m sure that you’re really grateful to just have a job when so many folks are getting laid off. But still, with living costs on the rise, and some of us taking on additional job duties because of downsizing, you may also feel like you’re getting short-changed.

While it may be difficult to ask for a pay raise right now, it’s not impossible. The trick is to show your manager how much you’re worth.

Here’s a game plan to get that bump you deserve:

Know your market value
How does your salary stack up? Are other people with the same job title and experience making much more than you? One way to find out is to speak with a recruiter in your industry. Recruiters are very knowledgeable when it comes to the range of pay and benefits for positions similar to yours, and can give you a better idea as to whether your compensation package is competitive.

Another way to find out is to check out sites like Indeed, which has a salary search. Or try PayScale.com, which has a more detailed comparison service.

Make a list of accomplishments
What major projects have you worked on in the past year? Has your job grown from the original job description for which you were hired? Write down all the milestones you’ve been hitting, along with any additional roles you may have taken on in this recession. If you’ve made or saved the company money, list those numbers too.

Are your skills in demand?
It’s important to be aware of the competition in your given industry. For example, there is currently a big demand for health care workers and software engineers–too many openings, too few qualified applicants. If you’re lucky enough to be in a situation like this, the cards are stacked in your favor. After all, your boss is probably aware that it won’t be easy filling your position and, if you’re doing a fantastic job, she will be more motivated to keep you.

Conversely, if you’re in a field where there are lots of qualified job candidates and very few openings (e.g. marketing, graphic design), you may want to wait until things start picking up to broach the salary issue.

Consider your company’s performance
Is your company struggling with its financial spreadsheet and, as a result, laying off employees? If so, it may be poor taste to ask for a raise during this time. However, if your company is hiring–even if it’s only a few positions–you may be able to make a case. Just be sure to do your research, list your strengths and accomplishments, and gauge your competition.

It’s all about the approach
When you request a meeting with your boss to discuss a raise, it’s often not what you say, but how you say it. Don’t ambush her. Let her know you want to discuss your expanding role, and that you want to be on the same page in terms of responsibilities and compensation.

Forbes.com suggests this technique:

“Don’t say, ‘You’re underpaying me,’” says Doug Arms, chief talent officer for Ajilon Professional Staffing. “Say something like, ‘Over the last year we had very specific targets in the organization that I had a vital role in assisting the company with. That, combined with the research I’ve done on current market conditions, makes me feel that my position here is worth the fair market value. I’d like to have a conversation to discuss my value to the organization.’”

It’s not always about the money
Consider perks like vacation time, work-from-home options, health benefits, or reimbursement for education and training. If money is tight, you can try negotiating for other things that aren’t in a paycheck, like a four-day work week or an extra week of vacation.

Have a backup plan
Chances are your boss won’t grant you a raise on the spot. Moreover, managers have to consult with the accounting and human resources departments to ensure that there is money in the budget, if the raise is still within your grade level, etc.

If you are turned down, ask what would it take to get a raise, and if you could meet in six months to determine whether you’ve hit these marks.

Here’s an interview with an expert for more advice:

Good luck!

20 ways to waste your money

Whether a newbie or seasoned budgeter, nearly everyone has spending holes — leaks in your budget that drain money with you hardly noticing.

These small drips can add up to big bucks. Once you find the holes and plug them, you’ll keep more money in your pocket. That spare cash could be the ticket to finally being able to save, invest, or break your cycle of living paycheck to paycheck.

Here are 20 common ways people waste money. See if any of these sound familiar, and then look for ways to plug your own leaks. Full story

More cash for your clunker

Cash for Clunkers is a hit–and you can save even more money for trading in your old car for a new one with Tech CU!

It’s also known as the Car Allowance Rebate System (CARS)—a federal program passed by Congress and signed into law by President Obama on June 24. (The program was so popular that our government went through most of the funds dedicated to Cash for Clunkers the first week it was launched. Luckily, the program received a $2 billion injection.)

Here’s the deal: you can get a tax credit up to $4,500 if you trade in your older, less fuel-efficient vehicle for a new one that gets better mileage. If you want to take advantage of the deal, don’t wait—the program ends Nov. 1, 2009.

While we’re getting tax credits for trading in our clunkers, why not combine some other special offers to get the most money for our rides?

Check out Tech CU’s Fuel$mart program. If you purchase a hybrid vehicle (or one that gets 30 mpg) you’re eligible for the Fuel$mart loan—with a rate discount of .30%.  And Tech CU will give you an additional .25% rate discount if you buy your vehicle through The Car Store. Combined with a Fuel $mart loan, that’s a total rate discount of .55%!

Add up all the money you’d be saving on your new car with these rate discounts and the CARS tax credit and that’s a whole lot of cash that can go towards your ‘Grow Your Green’ goal!

To figure out whether you qualify for the CARS credit, check out Edmunds.com. They have a great eligibility calculator and at-a-glance chart:

Here are the basic requirements:

Trade-in vehicle:

• Is in drivable condition
• Has been both continuously insured, consistent with the laws of your State, and continuously registered to the same owner for at least one year immediately prior to the trading-in of your vehicle under the CARS program
• Manufactured less than 25 years before the date of trade in and, in the case of category 3 trucks, not later than model year 2001
• Has a combined MPG of 18 or less (this does not apply to category 3 trucks)

New vehicle:

• Is new and title has never been transferred
• Has manufacturer’s suggested retail price of $45,000 or less

There are also different categories of vehicles and restrictions for each too, so pay attention to that. The rescource center for more detailed information if you still have questions.

Five signs you’re living beyond your means

If you are concerned that your finances could be in danger, read on for five key indicators to help you determine whether you’re living beyond your means.
Full story

Can I retire early?

Whether you love or hate your job, I’m sure you’ve probably contemplated retiring at some point in your adult life. I mean, really, how appealing to just sleep in every day, spend your time gardening , vacationing or just hanging out with friends and family?

Unfortunately, with this major recession in full swing, for a lot of us and our poor, beaten 401(k) plans, the retirement dream seems even more out of reach–especially if we want to retire early.

Take this example: if you retire at 55 and live to 77 (the average life expectancy in the U.S.), that means you’re relying on your retirement funds for more than 20 years. That’s a whole lot of money and the last thing we need is to run out of it halfway through what are supposed to be our “golden years,” right?

So here are a few factors to take into account if you’re considering early retirement, or retirement in general:

• How much do you expect to have in monthly income?
• How much in assets will you have accumulated by retirement?
• How much do you plan to spend? How will retirement affect your lifestyle?
• How will inflation affect your retirement funds?

Keep in mind that you can’t begin receiving Social Security until the age of 62, and that if you elect to begin receiving these benefits at 62, you will receive smaller monthly payments than you would if you waited until 65. That’s because, as a general rule, early or late retirement will give you about the same total Social Security benefits over your lifetime. If you retire early, the monthly benefit amounts will be smaller to take into account the longer period you will receive them. If you retire late, you will get benefits for a shorter period of time but the monthly amounts will be larger to make up for the months when you did not receive anything. (Learn more  here.)

Also remember that you have to factor in inflation so what you may need to retire at 55 could be very different than what you need to retire at 62 or 65 or even 70.

Yeah, I know, it’s a lot to think about. Fortunately, there are plenty of online resources to help you understand some of the complexities of a retirement plan. For instance, ING offers this basic retirement calculator. Tech CU has one too.

Of course, while these calculators can give you an idea of what you will need to retire, it’s always smart to see a financial advisor who can navigate through all these numbers and get you on the right track.

Your retirement strategy is a highly individualized decision that should be based on your situation, retirement horizon and tolerance for risk. That’s why it’s important to work with a financial advisor who understands your goals and how you hope to reach them.

Stop paying for things you don’t need

A big coordinated garage sale in my neighborhood recently gave me a surprising wakeup call. It’s one thing to see a family’s stuff spread out in the front yard, but quite another to see a whole neighborhood’s castoffs at one time. All I could think of as I walked from one yard to the next was all the dumb decisions that led to this colossal display of stuff— purchased with dollars, now offered for pennies. Full story

Bank fees rise as lenders try to offset losses

Even now, after all those bailouts, banks never seem to tire of dipping a little deeper into your wallet. Despite the tough economic times and increased scrutiny from Washington, they are keeping most fees at record highs, and are eking out slight increases on others like overdraft charges — a step they rarely took during past recessions.

The result? Americans are paying more to save and spend their money. Full story

It does really pay to wait

Collecting Social Security as soon as you are eligible is a tempting proposition — but experts agree you should try to resist if you can. The majority of people don’t follow that advice, choosing instead to start benefits early. Why wait to collect what is rightfully yours? Full story

Thinking of a second job?

I’m sure I don’t have to tell you times are tough. I mean, we hear and read about it every day: “The economy’s in the tank!” or “Unemployment is on the rise!” or “This is the worst recession since the Great Depression!” Ai yi yi.

If you haven’t yet been affected, chances are you know someone who has. Many of my friends, for example, have had their hours or pay reduced so that their employers can “weather this economic storm.” These same friends, most of whom are college educated, have started picking up second jobs to make up for the difference in their shrinking incomes.

They’re not alone. Millions of Americans have second, even third jobs. And it seems to be a growing trend, especially with health care costs on the rise. So if you are thinking about joining the 17 percent of Americans who work more than one job, here are some ideas to get you going.

Pick up freelance or consulting work
Put your professional skills to use outside your 9-to-5 job. Are you an IT professional? Many small businesses and start-ups like to use contractors to beef up their limited IT teams. Are you a website designer? Search for local companies that could use some fine-tuning with their online presence.  Are you a writer? Content is huge, and most companies and nonprofits could use more help generating it in the form of newsletters, marketing emails and blog posts.

Teach and/or tutor
Are you an expert in some field or subject? Do you love to cook? Get a rush from working with investment portfolios? Why not show others the way? Teaching courses at your local community college could bring in some extra cash. (It could also be a great way to network.) If you like working with kids, check out tutoring and college prep centers. Tutors make about $20/hour and usually work a few hours each evening.

Head to the mall
Retail jobs offer flexibility, if you don’t mind working evenings and weekends. While you may be competing with teenagers and college graduates, who are facing a tough market, you can tout your managerial experience and maturity. Another plus? Employee discounts! (Just don’t spend every dollar you earn there! )

And, along the same lines, waiting tables is also a great way to earn some cash: flexible hours, free meals, and tips!

Help around the house (for a price)
Do you ever find yourself straightening up your sister’s house? Or maybe, with that green thumb of yours, you’re always bringing limp azaleas back to life? Well then, you should get paid for it!  Cleaning houses and landscaping for easy ways to earn extra money. Consider babysitting, house sitting or dog sitting too.

Be an eBay Power Seller
I have a friend who collects velvet Elvis paintings–he usually finds them at consignment stores and garage sales–and then sells them online. (Yeah, there really is a market for this. Who knew?)

Do you have a collection you can part with? Old clothes you no longer wear? You can make hundreds, even thousands, of dollars selling your used goods online because, as they say, one man’s trash is another man’s treasure.

While we’re all about saving money here at ‘Grow Your Green,’ we understand that life is also all about balance. Now that you have a few ideas under your belt, make sure that your bases are covered with your primary employer.

Before you moonlight…
Before you take on that second job, you should consider some things:

• Let your current employer know you’re thinking about moonlighting. Many companies have policies that prohibit their employees from doing certain things outside of work, such as consulting for competitors. See what limitations you may have.
• Be clear with both employers about your schedule, so that things don’t overlap. Get schedule terms in writing if you must.
• Don’t overextend yourself. If you do, your performance or health could suffer and that does no one any good.

Alright, there it is. What about you? Have you had to take on extra work? Are you considering it? Let us know how it goes, or if you have any other ideas for a second job, send them to us. Good luck!

Beware: foreclosure rescue schemes

The escalating number of California homeowners in distress and seeking help with their mortgage has unfortunately led to a sharp rise in loan modification scams. In recent months, the California Department of Real Estate has issued several consumer alerts, warning of companies that promise to provide loan modification help, charge consumers thousands of dollars for that help and then fail to provide it. Full story

Next Page »