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Salary, salary, salary. OK — and bonuses. That’s where most people focus their efforts when they’re negotiating the details of an annual review, promotion, or new job.
The reasons for the tunnel vision are pretty clear. We’re conditioned to think about salary and bonuses because everyone else does, because they’re easily quantified, and because employers usually offer them.
As nice as it feels to bring home a higher salary and bigger bonuses, they are taxable and may bump you up into a higher income tax bracket. Additionally, there’s a good chance that your company has pretty stringent rules governing what’s available for an employee at a given grade or level.
Don’t forget that the higher you climb within an organization, the broader your possibilities for non-traditional benefits. But even if you’re not at the top of the pile you can still ask for any of the following:
- 401k account matching — above and beyond what they might otherwise have contributed
- Credit card miles/points — if you’re responsible for making some work-related purchases, see if you can’t get your employer to reimburse you for the purchases charge on your card to earn the miles/points
- A better job title — best of all, it doesn’t cost your employer anything!
- Company products — if you like (and can actually use in your personal life) what your company produces
- Personal computer — or anything that’s not cash so it can’t be taxed
- Reimbursement for:
- Cell phone — the upfront hardware purchase and monthly service
- Home services — internet/phone/etc. are a reasonable request if you ever work from home
- Gym membership — if you’re healthy you’ll be happier, have more energy, and be able to work harder (at least that’s what you’ll tell your employer, right?)
- College tuition — earn your degree without incurring extensive debt
- Miscellaneous training — increase your knowledge of work-related subjects and/or earn certifications on the company’s dime
- Home office space — this one is a bit of a stretch, but it never hurts to ask
- Car expenses — car payments/insurance/gas/etc., or better yet a company car
- Public transportation — in bigger cities a metro card is a must-have, but the expense adds up month after month
- Flexible working conditions:
- Working from home — at least some of the time you could save time and money by skipping the commute
- Creative schedule — if your responsibilities permit, you could work four 10-hour days instead of the traditional work week – this would also reduce commuting time and costs
This list is not exhaustive; it’s intended to get you thinking. Please suggest any others that you have thought of or received.
As you’re coming up with your own ideas, dont’ forget that the most helpful benefits may come in the form of reimbursement for current personal expenses that you’re covering with your own post-tax money.
Prepare yourself now for the next time you’re in the position of being able to request something from your employer. The extra cash might be nice, but you might make out better with something a little less traditional.
One of my college roommates had quite a temper which he often demonstrated for us. When asked why he flew off the handle so much he would comment, “Letting my anger out is an important part of getting past it. It’s much worse if I keep it bottled up inside.”
On the contrary, I believe his gratuitous displays of anger actually made things worse — for everyone. Here are a few of the concerns I personally have with his juvenile behavior.
Self Control. The true, underlying problem with his tendency to loudly vent his anger was that he failed (or refused) to stop himself. He’d make excuses for himself such as, “It’s just the way I am.” As long as he keeps telling himself that, he’ll never be able to change. The truth is that he also lacked control over some other areas of his life as well; this was simply (and sadly) part of a larger pattern.
Respect. As his roommates, we lost a lot of respect for him. We were also embarrassed by his behavior when other people were over at our apartment. Someday he’ll probably show some coworkers (or worse, his boss) just how out-of-control he can be. His temper tantrums will probably have disastrous consequences for at least his future prospects within the company. If customers and clients witness it, they’ll be turned off to the company and he may even lose his job.
Anger Snowball. Each time he gets angry and shows it, he practices the bad behavior. Contrary to the popular maxim, practice makes permanent, not perfect. In fact, he’ll get better and better at not controlling his temper. Every incident will probably outdo the previous one in its severity.
Insecurity & Attention. On more than one occasion it occurred to me that he was demonstrating more insecurity than anger. The insecurity manifested itself in a somewhat thinly-veiled cry for attention. When he thought he was alone, the theatrical element was conspicuously absent.
Example. When (or if) he has children, they’re likely to emulate his (poor) example. What a shame that they’ll have nature and nurture working against them in this regard.
Regret. When we’re overcome with emotion, we’re likely to say and do things that we don’t mean. He’d later apologize for his behavior, but the damage was done. More disappointingly, he’d revert back to the same way of expressing himself the next time he was angry.
Family. Our partner, spouse, children, and other loved ones deserve to have us treat them kindly and with respect. Home is supposed to be a safe haven from the evils and trials of the world, and the effect of inappropriately expressed anger is obvious. Family members are recognizably hurt (physically or emotionally) by the lack of control, and venting his anger could easily cross the line into abuse.
Road Rage. In the car, anger can lead to dangerous aggressive or retaliatory behavior. If someone makes a poor choice in traffic, that’s no excuse for your causing an accident. The potential for severe consequences is much higher because of the risk of serious injury/death, not to mention property damage. At the very least a poor choice may result in a ticket.
Heart On His Sleeve. (Tongue in cheek) He’ll never be a good poker player!
Conclusion
Does righteous indignation (i.e., justified anger) exist? Certainly. But regardless of the circumstances, self control is always the most appropriate method of dealing with those feelings. Channel your frustration into constructive activities such as sports or a determination to succeed.
There’s so much negativity in the world today that it’s a refreshing change to be in the company of those who exhibit self control. I personally appreciate the pleasant vibes, and the good example can be contagious!
My wife and I knew we weren’t saving enough for retirement and other worthy goals. Month after month there didn’t seem to be anything left over to throw at our Roth IRAs. Additionally, she was frustrated because of my constantly trying to justify purchases related to my hobbies, and I felt like she was spending too much on decorating the house.
Chatting with a friend one evening, I described our concerns. He indicated that he and his wife had a monthly allowance program. They started by looking at their budget. From there they determined how much each person would get on a monthly basis. The rule was that one spouse didn’t have to answer to the other for how the money was spent.
If the husband wants to blow it at the arcades, no problem. If the wife wants to pamper herself with a manicure, so be it. No purchase could be too frivolous because it’s money that was budgeted to be spent.
We started this practice back in May setting aside $25 per month for my wife and $25 per month for me. We also established annual budgets for clothing for individual family members, craft supplies for the kids, and tools (we like to think of ourselves as do-it-yourself-ers). I should add that money received from birthdays and holidays is added into our allowances, so we also get to spend that however we’d like.
If the budget for one of those categories (e.g., clothing, craft supplies, etc.) isn’t enough, we might meet to change the amount. If only one of us feels that a budgeted amount was too low, we’re welcome to spend our allowance on purchases beyond the original allocation. For example, if I don’t think I had enough budgeted for my clothing but my wife thinks I had more than enough, the only way I can spend more than the budget is to use my allowance.
We’ve decided to allow a little bit of operating “in the red” in order to take advantage of an occasional good deal on something that we’re looking for. I’m not sure what it says about each of us personally, but I tend to be more the saver and my wife is more the spender. She’s very pleased with what she gets for her money, but of the two of us, she’s more likely to be at (or just beyond) her budgeted allowance.
The honor system has been working well for us so far (as far as I know anyway!), and we have our own Excel spreadsheets to keep track of allowance spending. Depending on how good each of us is at demonstrating delayed gratification, we could build up a decent pile of money. If I were to save up my allowance for a couple of months and invest it in some way, I could potentially increase my monthly allowance since the money (and any proceeds from investing it) are mine, all mine.
The result of this program has been that we’re both much more careful with our spending. Purchases are no longer made with money coming out of a large pot with no personal accountability. We think through buying decisions knowing that there’s only so much and once we spend it, it’s gone.
Will this approach to personal finances alone make you wealthy? Probably not. But it does offer a great way for you to bring some of your spending under control. It’s also a constant reminder of the importance of budgeting and living within the boundaries you set.
TO: ALL EMPLOYEES
FROM: CFO
SUBJECT: OCTOBER 2006 EMPLOYEE OF THE MONTH JULIE JONES
Dear Ladies and Gentlemen:
Could your parenting skills use some sharpening? Our new Employee of the Month is an expert! As Office Manager of the downstairs office, and A/P-A/R clerk, Julie’s maternal talents keep her happily working alongside her daughter and watching over the numerous male occupants of the office. In more than nine years of motherly duty at our company, Julie has sent countless misbehavers to “time out†and confiscated her share of staplers and super glue. Those are her way of maintaining peace and order in any situation, including all-male crises (just don’t make her clean their bathroom). She is long overdue for this recognition!
In recognition of her outstanding talents and contributions, Julie’s co-workers made the following comments:
• Has assumed additional tasks without missing a beat with recent staffing changes
• Is always cheerful and energetic
• Keeps the company’s interest foremost in her work
• Is a very valuable employee and deserves the recognition this award brings
• Keeps our office running smoothly – don’t know what we’d do without her
With hubby John, Julie lives in the house where she grew up. She is the mother of seven, four boys and three girls. Her tribe continues to expand with 18 grandkids and more on the way. Julie is also a great-grandparent—a distinction no one else at our company can claim. Her brand new great-grandchild is her pride and joy. How can you beat that?
In addition to spending time with her family, Julie also loves gardening and camping. She’s still working on him, but thus far her boss won’t add a new bullet point in her job description: You will be paid for days spent fishing at Birch Creek. (Maybe our IT department could figure out how to get wireless internet out to the river. . .) Julie’s love of science fiction and fantasy novels qualifies her as a genuine Trekkie (well, that plus her extensive collection of Star Trek paraphernalia and long-term crush on both William Shatner and Patrick Stewart). She can often be heard saying, “Beam me up Scotty, there’s no sign of intelligent life down here!†Fortunately for us her request will never be granted because Julie is a wonderful colleague and an obvious choice for this award.
Please take a minute to congratulate Julie and remind her how much we enjoy working with her.
I am attaching our press release that announces this special honor.
The Holy Grail of side income is to have it be completely passive, but there are various ways of earning a little extra money depending on your talents, time, and resources.
Unfortunately many people use the term “passive” when they mean something quite different. Most frequently it’s confused with the act of decoupling your time from your earning potential (i.e., when you stop trading a set amount of time for an hourly wage).
Completely passive income is the result of a “set it and forget it” investment. Some examples can include:
- Retirement accounts
- Investments in stocks and mutual funds (provided that you’re invested for the long term and not frequently buying and/or selling), especially those that pay a dividend
- Certificates of deposit
- Savings bonds
- Part ownership in a company that someone else runs
- Lending your money to other people (it’s only passive as long as you don’t have problems with repayment!)
- Create an asset that generates income:
- write a book or e-book
- buy/register a patent and license it to a company owned and operated by someone else
- write software though if it requires updates and/or support, it might fall into one of the other categories below
- videos, music, and other media
- artwork including photos, paintings, plays, etc.
Some people will setup a system for generating income. These usually require your time up front as well as some time to keep it going, but it’s not a typical “trade money for dollars” scenario:
- Owning your own company — the more you delegate, the closer it approaches being passive income
- Investment real estate, whether or not you manage the properties yourself
- Selling a contract or subscription that continues to provide income while it’s in force or when it’s renewed (herbal supplements, personal care products, insurance, service plans, etc.)
- Vending machine routes
- Multi-level marketing programs (after you have people setup beneath you)
- Selling your services to as many people as possible to earn much more per hour than if you were an employee:
- Teaching classes, seminars, etc.
- Hosting meetings, conferences, or conventions
- Performing at a concert
- Websites including blogs – they can generate traffic and cash flow even when you’re not at the computer, though they do require ongoing work
With current passive income in the $100/month range (not including retirement accounts) we’re nowhere near covering our monthly expenses. Fortunately, there are lots of opportunities for earning more money, some more lucrative (or more fun) than others. If you’re not happy with where you currently are, conduct some research then takes some steps toward achieving alternative revenue streams. I know I will.
Note: Please feel free to make recommendations and suggestions. I’m always looking for new opportunities and points of view!
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