| Subscribe Read in Browser |
 |
|
|
|
|
| How To Ask For A Raise Now (And Actually Get It) |
Figuring out how to ask for a raise can feel terrifying, even when the economy is booming. And let’s be real…this is not one of those times.
But if you’ve been with your company a while or taken on more work lately, now might actually be a very good time to speak up. Research shows that for the first time in a decade, workers who stayed put saw bigger raises (4.6%) than those who job-hopped (just 0.2%).
So, how do you make that ask? Negotiation and pricing expert Casey Brown joined the HerMoney Podcast to break it all down – how to pinpoint your value, communicate it confidently and ask for a raise in a way that feels authentic (and even a little joyful).
She suggests starting by defining your value. Collect examples of how you’ve improved your company, saved it money, or made it more efficient. Then, tell your story the right way.
“Sometimes when people are gearing themselves up to go ask for a raise or make a big ask for promotion, they think of their neighbor who’s a great salesperson or their sister-in-law who tells a good joke,” says Brown. “It’s like they’re trying to channel someone with more bravado than they may naturally feel, and I think that doesn’t work because it comes across as artifice.”
For more on why now is the time to make your move, click here. |
|
|
|
|
| This Week In Your Wallet |
 |
Are you guilty of “credit cycling?” It’s the habit of maxing out your credit card, paying it down and then racking expenses right back up – all within the same billing cycle. Experts say doing it once in a while isn’t a huge deal, but making a habit of it can come back to bite you. Why? Because constantly churning through your credit limit can raise red flags. As CNBC reports, “Maxing out a card frequently may run afoul of certain terms and conditions, or signal that a user is experiencing financial difficulty and struggling to stay within their budget.” In some cases, issuers may claw back your rewards, close your card (which could cause your credit score to take a hit), or consider it a sign that something shady is going on, like money laundering.
The Social Security trust fund is projected to run dry earlier than expected, according to a new report from the Social Security Board of Trustees. Why does that matter? Because starting in 2033, if lawmakers don’t act, the program will only be able to pay out 77% of promised benefits. Should you panic? Not quite yet – but it is a call to action. "Social Security and Medicare are vital programs that support tens of millions of Americans across the country,"U.S. Secretary of the Treasury Scott Bessent said in a statement. "This data underscores the need for lawmakers to take action to support the long-term viability of these programs."
Just say no…to more work. As the “infinite workday” makes headlines, it’s more important than ever to set boundaries before burnout sets in. Vanessa Patrick, author of “The Art of Saying No,” explains in The Wall Street Journal that learning to say “no” starts with a simple question: Is it worth it or not? If it’s a quick and easy task – a “pass the salt” request – it’s probably fine to say yes. But if it’s more complex, you’ll need to weigh the cost to you vs. the benefit to others. Not worth it? Say no kindly, but clearly. “Frame your response with empowered language,” suggests Patrick. “For instance, use 'I don’t,' not 'I can’t,' which signals that your 'no' stems from who you are and the rules you have set for yourself. Communicate that the refusal stems from our core principles rather than mere convenience.” The best part? Saying no the right way doesn’t just protect your time, it also makes you look more decisive and purpose-driven, Patrick says. |
|
|
|
| Things That Save You Money |
| â—Ź |
Lights, camera…backyard! Just one trip to the movies for a family of four could easily set you back $60 – and that’s before the Twizzlers and popcorn. This summer, skip the theater and turn your backyard into a movie night destination you’ll use on repeat. |
| â—Ź |
Ready to save thousands? Gameify your goals with a stack of Post-its and a shoe box. It’s called the “sticky note challenge,” and here’s how it works: Write the numbers 1 to 100 on individual notes and add them to a shoe box. Each day, give it a shake and draw one at random. Then, put the amount written on the note you pick into your savings. Toss the note you pull and keep going until they’re all gone. |
| â—Ź |
In the battle of warehouse giants, which takes the crown…Costco or Sam’s Club? Kiplinger took a deep dive, comparing everything from prices to return policies. The verdict? If everyday low prices are your thing, Sam’s wins. But if top-notch quality is what fills your cart, Costco is probably more your style. |
|
|
|
|
| Ask Jean |
 |
| Q: |
Today’s question comes from Ta Li. She writes: My employer offers a 401(k) and Roth 401(k). I am currently saving 10%. How should I best allocate this between these two options? I make about $135K a year. |
| A: |
First off, let’s get everyone up to speed on the differences between the two accounts.
With a traditional 401(k), contributions are made pre-tax, which lowers your taxable income today. But, in retirement, your withdrawals are taxed as ordinary income. “These accounts are most beneficial when you are in a higher tax bracket during your earning years and in a lower tax bracket during retirement,” explains David Haas, CFP and owner of Cereus Financial Advisors.
In contrast, Roth 401(k) contributions are made after tax, meaning you pay taxes now, but withdrawals in retirement are tax-free. Roths also have other perks – for example, no required minimum distributions (RMDs) during retirement.
So, how should you allocate your 10%? Given your $135,000 salary, you’re currently in the 24% federal tax bracket, which, as Haas notes, is still fairly low. As he points out, making traditional 401(k) contributions could potentially lower your bracket to 22%. But, because the tax system is marginal, only a portion of your income is taxed at that higher rate.
That’s why, especially if you’re younger and have time for your investments to grow, allocating more to the Roth 401(k) might be beneficial. Paying taxes now at a relatively moderate rate could mean big tax-free growth down the road.
You could, for example, split your contributions 60/40 in favor of the Roth, allowing you to build both tax-free and tax-deferred retirement buckets. This kind of diversification can offer more flexibility in the future.“I prefer the idea of holding some savings in both tax buckets in order to make tactical moves at the right time,” explains Laura Lynch, a financial planner and founder of The Tiny House Adviser. ”For example, if we make a career pivot or take a sabbatical, we may have lower taxable income and an opportunity to make an in-plan Roth conversion with a lower tax bill than we would have if we contributed after-tax dollars in a stronger income year.” |
|
| Submit your questions to Jean here. |
|
|
|
|
|
|
|
| We maintain a strict editorial policy and a judgment-free zone for our community. We strive to remain transparent in everything we do. Website posts and newsletters may contain advertisements, links and mentions of products from our partners. Learn more about how we make money. |
| *This is a sponsored post |
|
