Know the Facts

You will want to compile a few different sets of statistics before asking for a raise. First, know the industry standard salary range for you position. Second, gather as much financial data about your employer as possible, including who has the authority to negotiate a higher pay rate. Also write up a detailed analysis of how your contributions added to the bottom line. How did you save the company money? How did you make the company money? If you have data concerning the rising costs of living including housing costs, fuel, utilities, groceries, and other necessities, that couldn’t hurt to include. Cover all your bases, not only should you be able to prove what others with your education, experience, and job title are making, you should be able to prove you both need and deserve additional compensation.

The reason all of these factors are important is that hard facts will overcome all of your employer’s objections. The old stand-by excuse of poor profits will be hard for the supervisor to say when you’re politely confronting him with last quarter’s earnings report. The cop-out that you have hit a salary cap is impossible to argue when you’ve compiled an accurate report of industry standards for your position. You want to remove the possibility of such waffling before you face off across a desk in a conference room. Know the facts, as they will be indisputable.

Timing Your Request

Do yourself a favor and do not ask for a raise if you have spotty attendance, your company has just posted huge losses, or your CEO was just replaced by a new one. You will only make yourself look bad. You want to ask for a raise when the company is doing well, stable, and nothing is amiss. If your company is consistently under-performing, you should be looking for a new job, not asking for a raise.

If at all possible, take advantage of your yearly or quarterly review to ask for a raise. Often, salaries are renegotiated during such reviews and you are already speaking to the person who holds the power to grant your request. Your preparation for your review will also show initiative to your superior and shows that you value his or her time.

Should you work for a company that does not have regularly-scheduled reviews, you will need to make a formal request for a meeting. Mince no words in your polite, concise email or written request. It’s far better to be honest and simply state you would like to hold a private meeting concerning your compensation. Do not apologize or backpedal. Remember, you already have your proof lined up. You’re not going to go in groveling.

Confidence and Clear Communication

On the day of the meeting, wear your version of a ‘power suit.’ If you work in a stuffy, corporate job, wear a suit, literally. If the environment is more relaxed, wear something that makes you feel confident and capable. Men might want to get a new haircut and a straight shave the morning of the meeting, while women might like to go in after a before-work massage or facial.

During the meeting, present your facts. Share your findings. Make your case. Remain calm and professional. Also, always ask for a little more than you wanted. This gives you room to negotiate while still acquiring the salary you deserve. For example, if you want $42,000 a year and free parking, ask for $44,500 and work the parking stipend in as the number comes down. Your superior will probably try to wheedle. If you begin to feel backed into a corner, pause for three whole seconds after he or she stops talking. This will allow you to answer in a thoughtful, controlled way. Take your time, don’t get flustered.

Consequences

As the meeting progresses, your manager may try several different tactics to make you accept your current wage. Think ahead as to what you will accept in lieu of additional compensation. How about 100% employer-paid benefits? Would you consider accepting more paid time off instead? Can the company interest you in a lighter work load or a different position with better hours? Often, managers try these tactics because they are cheaper for the company than outright handing you more cash. If you’re not sure if it’s in your best interest to accept a counter-offer, ask for time to conduct more research. Your superior should not try to bully you into accepting on the spot.

If you feel you are getting nowhere or are met with outright hostility for asking for a raise, you may want to simply end the meeting. Ask your supervisor if the issue could be re-visited in six months or a year. Then, start applying for other positions. While the inability to grant your request is understandable, rudeness or brushing you off is not. Always be the bigger person and thank your superior for meeting with you. You still have to work for the company, and bridges are always better left unburned.

While asking for a raise during tight economic times can be tricky, it can be navigated successfully. If you’ve been at your company a while and made yourself into a valuable employee, chances are they will not want to spend the necessary time to train somebody new and get them caught up to speed. By doing your research ahead of time, timing your request correctly, and conducting yourself well in negotiations, a higher salary may just be one meeting away.

Emergency fund. The recession has underscored the importance of an emergency fund. Be sure to have at least six months’ worth of living expenses in your emergency fund. That means it’s money that can easily be accessed in case crap happens. The job situation today hints that a years’ worth of living expenses as emergency fund isn’t that bad. Replenish it before spending your money on other things.

Insurance. Aside from your emergency fund, you can also protect yourself and your stuff through insurance. While many might claim that these can be an unnecessary expense, my own experience has taught me to value insurance. Prioritize getting health, life, home, and car insurance policies. Just shop around to get the best deals.

Let us expound on the topic. Given the recession, you should have at least six months to a year’s worth of living expenses as emergency fund.

First of all, let’s be clear on what things do you actually need an emergency fund for.

What are emergencies anyway? Your mother-in-law’s birthday is not an emergency. Your anniversary isn’t an emergency. These are events that happen yearly so there’s no reason to consider them emergencies.

A blown water pump in your car is an emergency. Hospital bills from your kid’s broken foot from a skateboarding accident is an emergency. Getting laid off is an emergency.

So in such unfortunate instances, you’d only be thankful that you have your emergency stash to tap into. But what do you do after? Once your affairs are in order again, well, you should replenish the fund, of course.

It might take a few sacrifices again such as deferring buying that new widescreen TV but it’s always important to keep your emergency fund topped up.

Rainy days come fast and plenty these days so why leave a nasty gash on your umbrella?

Republic Federal Bank in Florida, SolutionsBank in Kansas, and Valley Capital Bank in Arizona were closed by the Office of the Comptroller of Currency and by state regulators.

Customers of these failed banks are all protected and other banks were able to buy the banks. Branches are expected to reopen as branches of controlling banks. The FDIC covers deposits of up to $250,000 per depositor.

2009 saw an average of 11 banks a month and it’s the first time the FDIC has gotten in the red since 1992. The FDIC expects to be in the black again by 2012.

It basically boils down to two popular choices – term life insurance and whole life insurance.

You may initially purchase a term life insurance which costs the least but it is only valid for a specified amount of years. Once this period is over, you would need to renew your insurance for higher rates.

A whole life insurance may cost higher but they are kept at a set rate until everything is paid off. The only time the premiums change is when the one covered by the insurance decides to discontinue the coverage but later on comes back.

Another consideration for death insurance is if it accrues money or not. This is the reason that term life insurance costs less. You are paying for the term, in most cases about $100,000, and though you may be paying for fifty years, that amount will never increase.

The deciding factor would actually be your financial situation. If you have more money, go for a whole life insurance. Although it’s more expensive, it will be much better for your family in the end. However, if you’re tight on the budget, a term life insurance is a good-enough alternative until you save more to upgrade your policy.