My Dollar Plan» Career on My Dollar Plan

5 Potential Costs of a New Job

Jill — Thu, 02 Jun 2011 13:29:34 +0000

Are you thinking about switching jobs? As the job market starts to loosen up just a little bit, unhappy and underpaid workers everywhere are considering brushing up their resumes to submit applications. Nearly everyone who seeks to switch jobs attempts to get at least a small raise…but a small raise might not be enough if the new positions comes with unforeseen costs.

New Job Costs

Additional gas/public transportation costs if your new job is further from home - in extreme cases you may even have to purchase a car!
Additional child care costs if you work longer hours
Wardrobe costs if the dress code is different
Increased insurance premiums if your new employer is less generous than the old one
The need for higher retirement contributions if you’re losing an employer match

Jobs that require moves might come with even more costs – moving costs, new apartment deposits, additional state or local taxes. But of course these long-distance job offers might also come with quite a few perks (and tax benefits) – and hopefully a worthwhile raise!

Next Steps

If you have a job offer in this dismal employment environment, good for you! If you’re extra lucky, you’ll actually end up with a higher salary AND increased benefits rather than additional costs. But before you sign on the dotted line, consider the big picture…will the increased costs of the new job plus any lost benefits from the old job leave you in a worse financial position than before? If you can truly afford the switch, go for it. But if you recognize that the job could cost more than any salary increase could compensate for, perhaps this is one offer you should pass on.

What other costs – or benefits – might come with a new job? Help your fellow job-seekers out by sharing in the comments!

Written by Jill

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Making the Big Decision to Move Cross-Country

Jill — Wed, 25 May 2011 13:29:42 +0000

I’ve lived in DC for a total of eight years, four in college and four since. At the end of each of those post-college years I have contemplated my next steps – do I stay where I’m at, move to a new local apartment, or make an even bigger move back to my home state of Texas? As I’ve noted before, moves are expensive even when they’re just a few miles (or even blocks) away. So the decision to move across the country is certainly not one that is financially simple – especially depending on the costs of any new job that might come with the move.

A Little Background

In early April, I made one of my semi-regular trips home to Texas. As always, it was difficult to leave my family and friends, even though I had a great life to get back to in DC. This return, though, was different – when I returned, I found out that my company had an opportunity for me to transfer to our offices in my hometown. Basically, I could just say the word and I would be relocated to Texas.

I’ve been wanting to move back to Texas pretty much since I left (I understand this is pretty common among my fellow Texans!). Even still, the decision was a little complicated: I would have to leave a very good life here and move over 1,000 miles away from my college friends. Additionally, I would be leaving an office with 500 employees to one with roughly 5 – a very different professional environment, and one with different challenges (but also different opportunities). I would have to break my apartment lease a few months early. I would have to buy a car when I got to Texas. And finally, I would have to find a way to move myself and my entire life’s possessions across the country!

Considerations

From the second I first found out I had the chance to move, I think I knew in my gut that I would ultimately do it. Even still, though, I ran through a list of considerations. They included:

How will my income change? Because I can keep my job, my income will stay the same – and since Texas has no state income tax, I will actually see an increase in take-home pay.
How will my expenses change? It’s no secret that Texas is much cheaper than the east coast. In fact, some cost of living calculators tell me it is over 50% cheaper to live in my hometown versus the DC area! However, I don’t own a car here – which means I will have to buy a car AND get used to gas, parking and insurance costs.
What costs will I incur by leaving? Obviously the physical cost of moving is the largest consideration here. But I also had to think about the cost of breaking my lease (my entire security deposit, unless my landlords fill the spot within a month).
How badly do I want to move? The answer – very badly. I’m blessed to have a large family (my parents, brother, four grandparents and about 50 aunts, uncles and cousins on both sides of the family live in or near where I will settle) as well as a solid group of friends. I’ve always known that Texas is where I would raise my own family.
If I don’t do it now, when will I? I think this was the thing that ultimately made me take the leap. I’ve been waiting for an opportunity like this to come up basically since I started working. In fact, I took this job after graduation because I knew the Texas office was opening, and that I could ultimately move there. My friends are starting to get married, and more than a couple have already left the area, or will do so soon. There was basically no reason to stay in DC now that wouldn’t exist a year or more from now – and I didn’t have a guarantee that the same opportunity with work would be available to me later if I passed it up now.

In addition, I spent some time talking with the people I am closest to, both in my personal life and at work. In the end everyone agreed that the situation was kind of a confluence of events that resulted in a pretty easy decision…I’m going home!

Making the Move Cost Effective

In order to make my move cost-effective, I tried to really do my research on options. In the end, I decided to ditch my furniture, fly home with a few extra checked bags, and ship the rest of my belongings. It turns out that shipping a 50 pound box by either FedEx Ground or via the postal service is about $35 – so I could take 10 boxes worth for $350. Taking things in a UHaul would cost over $1300 plus gas – and since I didn’t want to drive for two days alone, I would have had to also pay for a one way flight for one of my parents or a friend, as well as a hotel room for at least one night. Hiring professional movers was $1800 and up. And a pod or similar mechanism was about the same price. If I had a car, my calculations would undoubtedly be different – but since I don’t, it will take me about 5 hours and a few hundred dollars in shipping costs to make the big move. In fact, by the time you read this, I may already be in Texas!

Lessons Learned

If you are thinking about making a cross-country move, I would recommend a few things:

First, do a serious assessment of your future income and expenses. Changing jobs might entail costs you hadn’t thought of, and every home comes with a flurry of new expenses.
Next, do your homework on moving options – I learned that shipping is not nearly as expensive as I might have thought, and that a UHaul is not nearly as cost-effective as I might have thought!
Finally, really analyze your possessions to decide what is worth bringing with you. As I told my cousin earlier tonight, each pound of things I am shipping home costs me roughly 70 cents. So if a 10 lb item would cost less than $7.00 to replace, I’m leaving it behind! Moving is a great time to up your charitable contributions for the year…or make a few dollars selling unwanted items on Craigslist or in a yard sale.
A bonus tip: if you really want to do it, and you can afford it – make the leap. At the end of the day, your gut is often your best indicator of the right decision.

Have you moved cross country? What drove you to make the decision? And how did you do it on the cheap?

Written by Jill

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My First Job Ended in Unemployment

Amanda — Thu, 19 Aug 2010 14:27:28 +0000

During good economic times, finding a new position after losing your job typically takes 2-3 months. I remember hearing this from my favorite career counselor—whom I still seek advice from even five years out of college—and thinking to myself, “two to three months? That’s impossible!” But she was right. When I was unemployed in 2006, it took three months to find new employment.

My Unemployment Story

I never thought that I would find myself laid off, especially at my first job out of college. Five years ago I began work as an International Sales and Marketing Specialist for a start-up company. The offer came in during the last weeks of my undergraduate education, and was just too tempting to turn down: a $40,000 base salary and a title for a soon-to-be college grad that, while I knew I would have to grow into, gave me the sort of instantaneous definition I desperately needed in a rapidly transitioning time.

Hired on a one-year grant to promote international sales of agricultural-based food products, my task became painfully clear in the first weeks of work: to convince companies in other countries to sell our products with no history of success, no travel budget, and no clue as to how to begin.

After almost a year’s worth of hard work, one morning my international title came out of hibernation and I received my first order from a large food distributor in Taiwan. I presented the deal to our board, detailing how I was going to execute all of the logistics. To make this happen, I needed to be a salesman, a freight forwarder, a project manager, and a quality control expert rolled into one.

The end result? The order was a disaster nearly every step of the way with the sort of kinks that happen for every start-up company’s first export: our shipment was late leaving the factory, resulting in extra costs at the dock. Our plant manager gave me the P.O. address of the factory instead of the street address, which resulted in an overhaul of all documentation. The client had not understood that our manufacturing facility was in a different state from our office location, and almost canceled the order entirely.

And yet the order shipped, so I thought everything was okay. Unfortunately, what I did not focus my attention on was my time within the one year grant whittling away. One $27,000 shipment, even with the promise of future business, was not enough to justify an international department. Two weeks later is when I found myself sitting across from my boss, being asked to pack up my things and leave.

Have you found yourself among the growing number of unemployed in the U.S.? If so, What to Expect When You File for Unemployment will help you apply for benefits and pay your bills while you and our economy work on redefining yourselves.

Do you have an unemployment story? If so, we’d love to hear about it.

Real Estate and Investing

By the Numbers

And More!

Written by Amanda

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7 Ways to Further Your Education Without Paying Full Price

Amanda — Wed, 18 Aug 2010 12:51:40 +0000

I have such a hunger for learning. Even after graduating college I’ve continued my education by taking classes in yoga, cooking, SEO/Blogging, Japanese, Microsoft Excel, and whatever else I can get my hands on. If I am interested enough in a subject, I will go to great lengths to pursue study in it; after all, knowledge is the most powerful and valuable tool in life.

Each Thursday night after working at my first job out of college I would rush home, change, then head 1.5 hours away to Washington D.C., park my car at my Aunt Anita’s house in Chevy Chase, MD, then walk half a mile to a subway station, change trains at Union Station, walk another half a mile, and enter a classroom that whisked me away to the foreign tongues of Japan. When I lived in Palm Beach Gardens, Florida, I signed up for another class with a professional chef that had me leaving work half an hour early on Wednesdays and driving 45 minutes down to Ft. Lauderdale to a community college kitchen. Learning is a lifelong love affair of mine.

Something that makes learning an obstacle for me and for others is the oftentimes high price tag. According to the College Board, the average tuition cost for 2009-2010 for private school is $26,273, and for public schools is $7,020. Even signing up for a 12-week course in Yoga can cost you several hundred dollars. One cooking class can run you upwards of $200 all by itself.

I encourage lifelong learning despite the high price tag, and have found many ways to get around paying full price. Below is a list of several resources so that you can find a way to continually increase your knowledge without paying a small fortune.

1. Adult Community Classes

Many community colleges offer continuing education classes at nights and on the weekends, and we are not just talking about biology and algebra. If you are looking for a class in cooking, instead of searching the internet and finding overpriced, stuffy classes with Grade A chefs, look to your local community college. I was able to snag an 8-week course in cooking which included all of the ingredients and a free meal each night for $100. What a steal! You can also find classes on knitting, cooking, languages, or really anything else you are interested in.

When I was thinking about pursuing a graduate degree in psychology, I went to my local community college and signed up for a beginner’s course to test the waters and see if it was something I really wanted to do. Total cost was $250 (and that included the registration fee to become a student at the college). Not only did I get access to a great class, but as a student, I had access to their library, gym/pool and all other amenities on campus. That is less than what I would pay for a gym membership!

In addition, the new student loan forgiveness program also allocates a large chunk of money to help community colleges, which will in turn help students save money.

2. Give Your Time in Exchange for Knowledge

If you are able to donate some of your time, then you can be trained in a variety of fields. AARP has a program that does free tax returns for low-income citizens. If you want to volunteer your time, then you will be trained in basic tax and accounting. Volunteer at a local farm or farmer’s market, and you can walk away with gardening skills and cooking tips. Volunteer at the zoo and learn about an array of animals. If you’ve got the time, the sky is the limit.

3. No Loan Colleges and Free Tuition for Low Income Students

Many colleges out there offer No Loan programs, meaning that they eliminate loans from financial aid packages for low income students. Some of these colleges include Princeton, Rice University, UNC Chapel Hill, University of Virginia, and the University of Pennsylvania. Check out this resource for more information (scroll down for a chart of many different colleges that have reduced tuition offerings).

And income does not have to be all that low to get free tuition; Harvard gives out free tuition to students whose parents make below $60,000.

4. Download Free Classes from Top Universities

Universities such as MIT, Stanford, and Yale are making class lectures and notes publicly accessible. You can take a course in literature on your laptop, or download a biology lecture onto your iPod. Taking a trip to France? Why not take a free course in the French language before you go. The sky is the limit here, and you now have access to information others are paying a boatload to get.

5. Leisure Learning Classes

Check out your community centers and do a google search for leisure learning or adult learning classes. Most cities and towns offer adult classes at very good prices in an array of fields. In Houston, we have the Leisure Learning company, which has hundreds of new classes twice a year in subjects as varied as beer making, Microsoft Access, and horseback riding. These courses are taught by experts, professionals, or perhaps your neighbor who learned a great skill and wants to earn some extra money on the side.

6. Look to Businesses

Many companies and retailers offer free classes to draw in potential customers. You can take a cooking class at a grocery store or farmer’s market, brush up on some computer skills by a major firm looking to launch a new product or take a free wine tasting class at a local winery.

7. Tuition Assistance through Your Job

I was surprised to learn—after being at my job for over a year—that one of my benefits is up to $1,000 in free courses at an approved University. The course needs to be in my field (environmental), and I have to cover tuition up front until I can prove a passing grade at the end. But what a great resource! Check out your own benefits package to see if a similar deal is being offered. If you are up for a raise but your company cannot give you one due to economic hardship, suggest that instead they offer to reimburse the cost of one or two classes you are dying to take—make sure to include how your new knowledge will help the company in your proposal.

What educational resources have you found that were great deals? I’d love to hear about them!

Written by Amanda

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6 Job Search Tips for New College Grads

Kate — Wed, 13 May 2009 13:29:08 +0000

The Class of 2009 faces one of the toughest job markets we’ve seen in decades. Hiring and salary freezes are more common than ever and career fields that once almost guaranteed high salaries are among the most difficult in which to job search now.

As graduation nears, here are some things to consider to make your search a success.

New Grad Job Search Tips

Network. One of the most valuable things you can do throughout your career is to make contacts. Use Facebook, Twitter, and LinkedIn to your advantage or start your own website telling potential employers a bit about yourself and highlighting your skills. You become more than just a resume if an employer can learn more about you online.
Visit Your Career Center. Each college is different but many have fantastic resources for fixing up your resume, finding out what fields may best suit you, and putting you in touch with alumni who are often very willing to help with advice or hiring contacts.
Freelance. Freelancing can be a great way to make some money and build some experience while looking for a more stable offer. Craigslist is a great place to start when looking for contract jobs. You may find that freelance income can earn you more than a 9-to-5 gig or that you can even keep it up in addition to a steady job.
Save Money. Remember to take a look at any tax deductions you can take for expenses incurred during your job search and to start planning your financial future even if you’re still searching for a steady source of income.
Be Flexible. It may help to consider some occupations that may not have occurred to you in a stronger job market. Becoming a teacher, police officer, or firefighter can lead to careers that society will always demand. These can be lucrative options for those who want to really help others.
Get Creative. Look in places that others might be leaving off the list and that offer unique perks. For example, your college or university is probably full of great contacts (professors, dorm staff, admissions personnel) that you haven’t even considered. University employees receive admission to great entertainment like sporting events, bands, plays, and interesting academic forums, as well as graduate classes, for huge discounts, or even free!

What other job search tips would you share with new college grads?

Written by Kate

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Would You Quit Your Job for a Whole New Career?

Madison — Tue, 17 Mar 2009 13:36:14 +0000

I mentioned while reflecting on leaving my job that my husband is reevaluating his plan to work. He was presented with a unique career opportunity, but he only essentially had 2 days to make a decision.

Background

I mentioned that my dad was in the hospital. He was recovering slowly, but wasn’t able to return to his job at the time. He’s a self-employed business owner of 30 years, but has no employees. That means no one to run the business while he’s gone.

His business is about 75% sales, but there is plenty of physical labor involved.

My husband, Scott, has a job at our University as a computer programmer. He’s been there about 10 years and likes his job.

Obviously, the two careers are at opposite ends of the spectrum. Scott currently has a salaried, office job, with terrific state benefits in the IT world. My dad has a manual, self employed business, in a field Scott doesn’t know anything about.

Opportunity

Can you guess where I’m going? When my dad got sick, it became apparent that he wasn’t going to be able to run the business anymore. I thought, why not have Scott take over my dad’s business? After all, I didn’t want to see my dad’s business close, since I’ve grown up around it and I feel a bit of emotional attachment to it.

I pitched the idea to Scott and my parents. One day later we had a plan devised. However, because my dad’s business had been closed for two weeks already, time was of the essence. Scott needed to make a decision immediately.

Considerations

We discussed various pros and cons all weekend. Here were some of our bigger discussions:

Health Insurance. Scott carries our health insurance, which is the primary reason he stayed at his job when I quit. It’s really important considering the upcoming birth of our next child. We got some quotes from our local HMOs and the price right now is fine…. since we’re all healthy. However, the variability of the health insurance market is something I’m not sure I feel up to placing bets on.

Different Field. Did I mention they are in two completely different fields? Scott would have a steep learning curve, although my dad would be more than willing to teach him. Probably the most valuable asset to the company is my dad’s knowledge, so Scott would have to work really hard to learn as much as he could from my dad.

Being Your Own Boss. Since Scott has watched me stay at home over the last six months and seen the business take off, he has started to consider working for himself more and more. The appeal of being your own boss is something that really is starting to entice him.

Established Business. Because my dad’s business has been around for 30 years, it isn’t like Scott would be starting from scratch. There is a solid customer base, and the majority of sales would continue, even if my dad handed over the business.

Income. The income wasn’t really a factor in the decision, as either position would allow enough income for Scott to continue his hobbies. However, the appeal of being able to have a more direct impact on the income is something that interests him, since his raises are currently not usually tied to performance.

Stability. Because Scott works for our local University, his job is pretty stable. Each time the state faces budget cuts, it’s something that comes up, but overall, his job is much more stable than many in the current economy.

Expansion. One of the possibilities for taking over the business was the ability for Scott to use technology to update it. Currently the business has local customers, however, developing an online presence and a distribution system, could mean endless possibilities, and using some of Scott’s technical background.

Will He Like It? A huge factor, would be whether or not he actually enjoys the work. We thought it might be good for Scott to go to work with my dad for a few days to see if it’s something he might like. We also considered using part of Scott’s upcoming paternity leave to give it a trial run for six months or so.

Back Up Plan. I like to have a plan in place in case things don’t go as planned. If Scott decided after a year, that he hated it, would he be able to return to the computer field? And in a job that he enjoys?

His Decision

Find out what he decided in: The Decision on a Whole New Career.

Written by Madison

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Reflections on Leaving My Job… Six Months Later

Madison — Mon, 16 Mar 2009 13:29:04 +0000

Six months ago, I left my corporate job. My goals to spend more time with my kids, teach others about personal finance, and pursue a life with more freedom are more fulfilling than I even imagined.

Over the last six months, I’ve had time to reflect on my decision to follow my heart. Stepping off the climb up the corporate ladder was no doubt the best decision that I ever made. My only regret? I should have done it sooner!

Six Month Update

Stock Market. Obviously, the stock market decline had an impact on our portfolio. It hasn’t affected my decision much, but that’s because I had some plans in place in case this happened. For example, my planned withdrawals were moved to CD ladders before the market decline. In addition, I was planning to withdraw significantly less than I could safely. Of course, the timing of the market wasn’t the greatest, but I still have a long term perspective.
Retirement Withdrawals. The FIRECalc models show that a significant decline in your portfolio in the first year of withdrawals can have a detrimental long term affect on outlasting your portfolio, so I actually chose to hold off making early Roth IRA withdrawals for awhile. I had a lot of cash on hand to cover a worst case scenario; I’m glad I did! Once the market is more stable, I’ll resume my withdrawals.
Retirement Contributions. In fact, because of the market decline, I’ve actually decided to contribute more to our retirement accounts, via our Solo 401k, instead of making my planned withdrawals. I couldn’t resist being able to add to our portfolio while stocks were on sale!
Asset Allocation. I still maintain a total market asset allocation with low-cost index funds, with an overall 0.148% expense ratio. However, I will need to rebalance soon, as the cash and bond portions have grown while the stock portions have obviously declined.
Cash Flow. Ironically, even though I held off on making my planned withdrawals, our monthly cash flow is actually more than it was when I was working! It’s a combination of significantly less in child care costs, less in taxes, and more in business income than I predicted when I was planning for my new lifestyle cash flow.
Severance. Many of you may remember that I mentioned my company went through a major realignment just after I left. I did find out that I missed out on an optional severance package by just three months. At first I was disappointed that I potentially walked away from a healthy sum of money; however, if I had it to do over again, I think I would still make the same decision. Getting to spend that time with my kids was worth every penny.
Changes in Spending. I accurately predicted that our gas costs would go down without a commute. In addition, I save a lot of money because I don’t eat out for lunch, like I used to. However, we still like to eat out for dinner, and we actually probably do more so, because it’s fun now. Overall, the biggest categories of savings are gas, clothes, child care, and taxes.
Making New Friends. One of the scary parts about leaving my job was that I would miss many of my friends that I saw on a daily basis at the office. I made an effort to get to know more people in my community, especially stay-at-home-moms, to build a new network of support. In addition, I still keep in touch with some of my old co-workers.
Time with my Kids. One of my main reasons for leaving was to spend more time with my kids. The last six months have been amazing, and I know I made the right decision. I can’t imagine having spent that time at work and missing some of the most magical moments I’ve had with my children.
Less Stress. No more Sunday night blues. No more working late to finish a project. No more stressing about work. I’m sure I’m healthier now, because my life is much less stressful.
Life Mix. I always tried to maintain a healthy life mix pie chart. However, now I don’t need to draw a pie chart to determine if I spend my time on the right things…. does that tell you something?
Education is Never Wasted. I worked hard to get a marketable well paying degree and took some heat for wasting it by leaving the corporate world. Although, I still think that a solid education is worth the investment, no matter where life takes you. None of my education was wasted and I will encourage my children to take advantage of every educational opportunity available to them.
My New Goals Are Undefined. I have yet to restructure my old dollar plan and determine what my next step is. However, the freedom to not actually care, has been very rewarding.
Net Worth. You may have noticed that I stopped doing monthly net worth updates. The best part about not working a corporate job, is that I haven’t felt the need to be completely obsessed with knowing how much money we have every day and how many more days I need to work. While I need to update it soon, just so I know our complete financial picture, it’s been very rewarding to finally be able to step back and enjoy life! I’ll probably update it on a yearly basis going forward.
Less Materialistic. I’m sure it has to do with my new lifestyle, but I seem to be less materialistic. My designer purse sits in the closet, my fancy car is long gone, and we’ve even considered downsizing the house. While I never considered myself one to keep up with any of the Joneses, just by not working in the corporate world, I seem to do what I enjoy 100% of the time.
Less Connected. As I mentioned in What Worries You Most About the Economy?, I am somewhat less connected with the outside world on a daily basis. I spend much less time on the computer reading the news and scouring financial publications. However, doing research to answer some of your questions does keep me somewhat in tune with the current economic environment.
I Have to Say No. Some amazing things happened with the writing opportunities. I was given various chances to expand, write more, and take on some new projects. I’ve even had the want and desire to spend more time on My Dollar Plan. However, all of those opportunities would involve spending more time than I currently do, and they would all take away some of my time from doing other things. So I’ve had to turn down a lot of great opportunities.
My Husband’s Plans. My husband stayed at work because he wanted to, and because he carries our health insurance, which is really important considering the upcoming birth of our next child. However, due to some changes at his work, we have been talking about his plans for the near and long term. He hasn’t made any decisions yet, but I’ll keep you posted on what he decides to do.
I Still Suck at Cooking. One of the things I wanted to work on was my ability to cook. While I’ve been working at it, I just don’t have the passion for it that I do for personal finance.
Pursuing New Interests. With my new found free time, I have some time to dive into some projects that I’ve always wanted to do. I finally have time to pursue my new plans to get started in real estate investing and play with the investments at Lending Club.
Keeping Old Hobbies Going. Even though Rate Chasing with High Yield Savings Accounts isn’t as lucrative as it used to be, I’m still running a substantial credit card arbitrage. However, many of the deals I take advantage of now, come in the mail from previous accounts. The game has changed, but it is definitely still going strong.
Risks. Our biggest risks haven’t changed. They continue to revolve around kids (how many we’ll have and how much we’ll spend on them), the length of time in the market, changes in our wants and desires, and health care.

What’s Next?

It’s been a fantastic six months, and I’m really grateful that I decided to take the leap. I’m looking forward to the nice weather to finally get to enjoy my time outside.

In addition, with the new baby on the way, I’m excited that I don’t have to worry about a limited amount of time to spend with my newborn before having to head back to work.

I can’t say enough about following your dreams and finding happiness in your life. For me, it was aggressive savings from an early age, I opened my first IRA at age 16, that enabled me to take advantage of this opportunity.

If you are planning to do something similar, don’t let what others say sidetrack you from your goals. Just keep on saving!

Written by Madison

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Is Your Credit Application Affected By Your Job?

Madison — Mon, 01 Dec 2008 14:29:30 +0000

The following is a guest post by Tisha Tolar. Special thanks to Tisha for filling in while I’m on vacation.

As the economy continues to remain unstable, it seems for many that all four walls are starting to crumble. Facing more struggles paying bills, worries about job loss, and even concerns about day to day survival are now topics familiar to the average family. While there are still plenty of people who manage okay and are able to maintain a good credit rating, it still may not be good enough anymore to just be “good”.

In the days of old, credit cards used to be relatively easy to apply for and obtain. Now, the application process of a new credit card is much less guaranteed. For many reasons, namely risk on behalf of the credit card companies, a consumer must prove beyond a reasonable doubt that they are credit worthy. This is also true in the many other lender industries, including mortgages. A few years ago, 720 was considered to be an excellent credit score. At this point, lenders want to verify a 740 or better before they may be willing to grant you a line of credit.

In addition to your credit score and solid history of paying your bills on time, ALL of your bills, a lender may also take into strong consideration the type of work you do, as listed on your application. If you are working in an industry such as mortgage brokering, which is currently standing on shaky ground, your lender may not be so quick to give approval. Not many consumers may consider that lenders even looked at the information listed on a credit card applications much beyond the pulling of the credit reports.

You probably can’t change your job just to get a credit card but there are other things you can do to ensure credit card companies and other lenders see fit to approve your application for credit. Here is a reminder list to keep you in good standing and credit worthy, even during the current credit crisis.

Analyze Your Current Credit Worthiness
If you are contemplating a switch to a new credit card company to avoid increased interest rates or to consolidate card balances, make sure you first have the most accurate information on your credit report before starting any application. Order your credit reports with score and seek out any mistakes. If you find incorrect information, follow procedure to resolve the issues.
Continue On-Time/More-Than-the-Minimum Payments Each Month
Even if you struggle, make it a priority to pay your credit card balances each month until you can consolidate and transfer balances onto one card. If you fail to make an on-time payment or miss a payment entirely, your lender will likely jack up your interest rate immediately, leaving you drowning in even more debt. As for minimum payments, forget them. Always tack on at least $10 extra each month to pay down the balance.
Be Wary of Account Closures
Some card companies will close your cards for inactivity. You have to be careful with this situation, as too many closed accounts can negatively affect your credit score. Closed accounts will decrease your debt-to-credit ratio which will drop points in your credit rating.
Read and Understand Credit Card Changes
Credit card lenders are changing the rules. They are raising interest rates, even when you technically don’t do anything wrong. For example, your card’s interest rate can go up just because you paid another one of your bills late. In addition to raised interest rates, your credit card company may also choose to lower your limit of credit. Imagine that scenario happening without your knowledge and you end up charging purchases that put you over the limit. Now you are stuck with the additional fees for going over the limit. Read every piece of mail coming from your credit company. Don’t assume your account will not change from month to month.
Deal Straight with the Lender
If you have been a good customer, chances are good the credit card lender will not want to lose your business. If you are considering a new card to transfer balances, call your current company first and let them know your intentions and what has made you unsatisfied. There is no guarantee the lender will help you out but as a good customer, they will likely work hard to retain your business, as good customers are getting harder to come by.

Tisha Tolar is a freelance writer providing content for CreditCardAssist.com, where she regularly writes about credit cards, rewards programs and general consumer finance issues.

Written by Madison

Career Skills: Tips and Strategies for After Your Job Interview

Madison — Thu, 17 Jul 2008 13:29:19 +0000

The following is a guest post from Ben at Trees Full of Money. Ben’s personal finance story revolves around his realization that he was over $90,000 in debt in 2003. They developed a plan, and paid off the debt within two and a half years. Way to go Ben!

For more great articles from Ben, subscribe to Trees Full of Money.

Making a great impression with a prospective employer goes well beyond the formal interview. A quick search on the Internet will reveal a virtually unlimited number of tips, some good and some bad, on how to “nail” your job interview. However, landing your dream job goes well beyond a nice suit and good grades. Here are some suggestions to remember after the interview to raise your stock as a prospective employee.

Maintain Your Professionalism

There have been many cases of recruiters being blown away by a candidate’s curriculum vitae and interview performance only to be discouraged later by his lack of manner in follow-up conversations.

An anonymous writer in a recent letter to “Dear Abby” suggested candidates refrain from slang such as “when does this gig start” when communicating with a prospective employer. She also cautioned against using personal email accounts such as “hotchick99”. If you haven’t already, get a more appropriate email account such as your initials and last name @yahoo.com (for example).

Write a Thank You Letter

To this day, 10 years later, I am convinced the main reason I landed my current job is because immediately following my interview I sent the recruiter a respectful “thank you letter” with a reaffirmation of my interest in the company and my future with them.

As an added touch, I included a bumper sticker from my school, Maine Maritime Academy. It didn’t make my GPA any higher but I believe it gave my name more recognition.

Unfortunately, the recruiter left the company shortly thereafter and I never got a chance to formally thank him (Kevin O’Flaherty if you are reading this, thank you!).

Clean Up Your Online Profile

The Internet has become a powerful tool for recruiters looking to dig up information on a prospective candidate. You may not mind a recruiter discovering that you were an all conference athlete in school; however, that picture of you doing a “keg stand” at your friend’s bachelor party might be a detriment to your job prospects.

A general rule is to remove anything from your MySpace or Facebook page, or other social networking sites, that you wouldn’t want your grandparents to see.

Written by Madison

The Big Reveal: New Kids & Money Site!

Madison — Sun, 22 Jun 2008 20:08:49 +0000

Here it is! I mentioned last week that we had launched the next phase of our business. Here’s the newest place to find me writing about money. And this isn’t just any money, it’s Kids & Money!

About.com

I joined About.com as the Kids & Money Guide focused on teaching children about money management.

What better way to combine two of my favorite topics – parenting and finance – into one? If you are a parent or grandparent, it should be a great resource for you.

Kids & Money Articles

Here’s a sample of some of the articles I’ve written:

I’ll highlight articles here that you might enjoy from the Kids & Money site; otherwise, feel free to visit me at About.com!

Small Business Launch

Back in February, I made a goal of expanding our business beyond My Dollar Plan in the results of my Stay Home or Go Back to Work Decision. I’m pleased that I met that goal just a quick four months later.

With the addition of About.com to our business plan, we’ve completed the first two phases. We have plans for two more, but between My Dollar Plan, About.com and freelance work with Mint, I’m pretty much exhausted. (Don’t forget to count the kids, my husband, and my day job in there too!) It might be time for me to revisit my Life Mix Pie Chart.

Written by Madison

Negotiating a Raise

Madison — Fri, 29 Feb 2008 13:44:30 +0000

My husband works for a university. He has a great job that he enjoys and has a great salary and benefits. However, because the university is funded by the state, raises for staff are negotiated and given across the board. The raise is not tied to performance.

He has long accepted this as a way of doing business. However, he felt that it was time to see if there wasn’t a way to negotiate a raise anyway.

Challenge the System

Through some investigation Mr. Dupaix found that there was a title change that had a higher compensation range. After some careful planning, he brought up the subject of pay during his performance review. He gave examples of his strengths, cited highly successful projects and illustrated his value to his department.

Don’t Whine

He was careful to avoid these “reasons” as they don’t often go very far when you are negotiating with your boss:

I need it to keep up with the cost of living.
I have been here X number of years, so I am entitled to it.
Comparing work to others.
I can make X somewhere else.

Result

His boss agreed with his self assessment and suggested that it would be best to pursue a title change (promotion). Because of a tight budget, there likely wouldn’t be any other way to get an increase in pay. Because he had done his research ahead of time, he knew that this was a perfect solution and agreed.

Mr. Dupaix found out this week that his promotion will be granted for the 2008 fiscal year! Next year he’ll receive the negotiated raise and his increase in salary for the title change.

Lessons Learned

It’s best to find out how the system works before you meet with your boss. Don’t assume that everywhere is the same. Plan you negotiations to complement the system rather than asking for something that won’t be possible.

In addition, it’s important to show what you have done. Give specific examples of when you performed exceptionally and what the impact is for the business. Show your value. Don’t bring up the “negative reasons” of entitlement, comparison, or personal needs.

This article is featured in The Carnival of Money Stories at Piggy Bank Blues.

Written by Madison