Category Archives: Money

Should You Accept a Bad Job That Pays More Money?

Should You Accept a Bad Job That Pays More Money?The good news is that you got a new job. The even better news is that the new job pays more money. But, you haven’t accepted the offer yet because there’s bad news – it’s a job that you’re probably not going to hate. Your first impulse might be to take the job expecting the money to make up for the job dissatisfaction. But, considering that you spend most of your waking hours at work, you have to question whether it’s really worth it take a job you won’t like.

Why Do You Want to Make More Money?

Before you decide whether to take the job, take a step back and consider your true motives for wanting more money. The money itself won’t necessarily make you happier, especially not happy enough to deal with the downsides of the job. However, tying the income to a bigger financial goal, like paying debt or building your child’s college fund, can help keep your reason for taking the job in perspective. It gives you a reason to deal with a job you don’t like.

Another benefit of connecting your extra income to a goal is that you have an “out” from the job. Once your goal is met, you can give yourself permission to move on to a new job.

When Should You Turn the Job Down?

You can likely find as many pros as cons to accepting a bad job that pays more money. It can be helpful to list out your dealbreakers – reasons you absolutely cannot take the job. If any of these are true, taking the job may not be a good idea.

  1. The job takes you too far off course of your career path.

A bigger paycheck is nice, but not at the expense of your career. After the novelty of a bigger paycheck wears off, you’ll be stuck with a job you don’t like that’s not helping you get to where you ultimately want to be in your career.

  1. The work is too soul crushing.

If the job involves something that you find unethical or that doesn’t line up with your morals, don’t take it. Being unhappy at work is one thing, feeling guilty about the work you’re doing can affect you in an entirely different way.

  1. It takes you away from your family.

A job that requires additional travel will mean being away from your family for more time. No amount of money is worth damaging your relationships, so get input from your spouse or partner to help make the best decision for your family and your finances.

  1. You don’t want to become a slave to money.

Once you start sacrificing what you truly want for money, you could start down a path that’s hard to turn back from. That’s why it’s important to be sure that you tie the extra income to a financial goal and stick to that goal. Otherwise, if you start experiencing lifestyle inflation – where your cost of living increases with your income – you need to keep making more money to keep from feeling broke.

Making a Final Decision

You may be able to negotiate some aspects of the job that would make it easier to deal with. For example, you may be able to negotiate for more work from home time or work it out so that you travel only a few days of out of the money rather than every week.

Don’t feel bad if you ultimately decide to walk away from the job. Avoiding a job that will make you miserable is better for you than any salary.

The Expensive Side of Roommates

The Expensive Side of RoommatesIf you are just starting off in your career, you want to lower your expenses. Housing is a major cost. Rents increased 2.7% from March 2015 – March 2016, well above the overall inflation rate of 1.02%. Consider these median monthly rents:

  • Los Angeles: $1,930 for a one bedroom; $2,630 for a two bedroom
  • Washington D.C.: $2,180 for a one bedroom; $2,990 for a two bedroom
  • San Francisco: $3,550 for a one bedroom; $4,450 for a two bedroom

Yikes!!

Even smaller cities like Colorado Springs, Co and Orlando, FL saw rents rise 11.4% and 8.9% respectively. Faced with these financial realities, you want to consider getting a roommate (or two) to split expenses. However, you need to take certain precautions so that a roommate does not end up costing you money.

Protect Yourself Financially

You can take steps to protect yourself from a bad roommate. Address these three situations before you move in with other people.

  1. Just Not Paying Rent- The first problem is the most obvious one. Your roommate, because of financial hardship or because he/she is a jerk, fails to make rent payments. You can be on the hook for costs and at risk for eviction. Consider these ideas:
  • Ask the landlord for a separate lease. A separate lease spells out how much each person pays in rent. You are only responsible for the amount you agreed to in writing.
  • Make a written agreement. Not every landlord accepts a separate lease. However, you can protect yourself with a written agreement that details when rent is due, how much is due, and a method of acceptable payment. This method is not as iron-clad as a separate lease, but you at least have something in writing if you need to pursue the matter legally.
  1. Damage to the Apartment- Ever wonder why fast food wrappers come with warnings to not put them in a microwave? The answer is that a whole lot of roommates in the world harmed microwaves through that action.

If your roommate damages any part of the apartment, it costs you some or possibly all of your security deposit. When looking for a roommate, take into account if this person has a lot of common sense. You might even consider running a background check if you do not know the person well.

  1. Theft- Unfortunately, not every roommate is too particular about who he or she brings back to the apartment. If your roommate likes to party, that person might bring home a thief who steals your property and possibly your identity. Make sure you secure your valuables and identification if you are out of the apartment and others are there.

Fewer Costs, Not More

A good roommate reduces your housing costs so you can focus on other priorities such as paying off student loan debt. It can be very beneficial to both people when done right. However, some roommates are prone to problems. Consider the aforementioned three situations to reduce the risk of having to deal with the expensive side of roommates.

7 Financial Decisions You’ll Regret

Financial mistakes are easy to make and hard to undo. That’s why it’s important to put careful thought into the decisions you make. Bad financial decisions not only lead to major regret, they can make your life more expensive. Here are seven financial decisions you’re sure to regret.

Not paying off your debt before retirement. Going into retirement, you want to have as few monthly expenses as possible – the lower your monthly expenses, the easier it is to survive on your monthly income. Maybe you can manage your debt payments during retirement, but you’ll experience much greater financial freedom if you don’t have to. It can be tough to balance debt payments and retirement savings, but balancing the two is better than neglecting one for the other.

Not saving enough for retirement. What’s worse than not paying off your debt before you retire, is not saving up enough money to maintain a comfortable standard of living. Multiply your desired annual retirement income by 25 to estimate the amount you need to have saved by the time you retire. Max out your retirement savings and take advantage of any employer matching programs your job offers.

Not refinancing while interest rates are low. If you purchased a house or car when interest rates were high or when you didn’t have the best credit, your payments are probably high. When interest rates drop and your credit score improves, it’s a great time to refinance your loan for a better rate and lower payment. You’ll save money and possibly pay off your loan faster.

Not having enough taxes withheld. Some people adjust their tax withholding to have more money in their paychecks, but it only takes one time to see how this can backfire. If you don’t have enough taxes withheld from your pay, you can end up with a tax bill instead of a refund at tax season. Having to fork over several thousand dollars to the IRS – all at once – is incentive to take a second look at your tax withholding.

Spending money for the wrong reasons. You will always regret buying things to impress other people, to make the wrong people happy, or out of fear of being left out. Make sure your spending decisions based on your own goals and values, not those of others. You’ll be much happier with the decisions you’ve made.

Spending instead of building an emergency fund. Thankfully, financial emergencies don’t happen often, but that can make you feel complacent about not having an emergency fund. You don’t want to learn the hard way – like losing your job without having any money in savings – how essential it is to have some money set aside for a rainy day.

Ignoring your credit. Your credit plays a major role in your life and more businesses are turning to your credit history to make decisions about you. Most people know that banks use credit to approve credit card and loan applications. Cell phone companies, utility service providers, and even employers use your credit to make decisions about you. Check your credit periodically to see how you’re doing. Paying your bills on time and borrowing only what you can afford are the best things you can do for your credit score.

The money decisions you make today are preparing you for the future. Be careful that you don’t make financial decisions you’ll regret.

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