When is the right time to ask for a raise

In general there is never a good time to ask for a raise. If you have a good relationship with your boss / company raises should be accomplished at regular intervals. There are a couple of exceptions to this rule.

If you are given a new job, title, or significant increase in responsibility then it is legitimate to ask if additional compensation comes with these responsibilities. Do not be surprised if the answer is that in the next cycle this will be considered. The employees that I have seen get the largest raises over time are those who take on the task with the understanding the money will follow.

Implicit in this relationship / understanding is that you received fair compensation when you hired on. This is the most legitimate time to negotiate your salary and when you can expect increases over your present compensation. If this is the first real job, do some research so you know what is reasonable for the position you are hiring on to. Do not be afraid to negotiate this. Almost every employer I know will make an offer at a lower price then they are willing to pay. This is because a large percentage of people will counter and an employer needs to be able to counter as well. It is also reasonable to enquire about any probation period and if a raise can be expected at the end of this period.

One strong word of caution, never, never, never lead off with this discussion.

First and foremost you must determine if you are a fit for the job, if the job is a fit for you and if the corporate culture is a match for where you wish to work. You should be inquiring / demonstrating how you can benefit the company through hard work, not how you can get a job and what it pays. If you are successful in this exercise, when the offer comes you can then negotiate. Be prepared should you be asked how much you want and respond that you would like to be paid a fair compensation in line with your peers and the position and responsibility you are anxious to assume. Try not to put a price on yourself unless you are confident that you know that number and you will not take less.

I have seen many people state a required starting salary thinking they are starting negotiations. When this number was over what the employer could pay they where taken out of the running. In later discussion I learn that the would have taken less. It is much better to hear what the employer offers, add 10 to 20% and see if that is attractive. It keeps your options open and allows you to make informed decisions when you are not in the interview mode.

Finally the quickest way to raises is to take on functions that are outside your normal responsibilities. Any employer worth their salt will give the larger raises to the folks who are demonstrating they are willing to do more then they are paid for or assigned.... It is just good business sense and leads to a win win situation.

Taking out a loan

Taking out loans are like any other purchase. I have taken loans out for many reasons. Loans are in general never the first choice. The first choice should always be to save for what you need. Of course there will come a time when you need something you just don’t have the cash for and you have to get a loan… A car… A house or some other large purchase. When you find yourself in this condition, the simple rule is the same rule you apply to the purchase of any commodity. Pay the least you can. Loan fees come in three forms. 1. Initiation fees, 2. points to get a better rate, and 3. the interest you pay. You should always take the second two and average them to an annual interest rate you compare from loan to loan. Pick the loan with the lowest Annual Percentage Rate (APR) Do not be fooled with teaser rates or rates which are not put in terms of the APR. The initiation fees are fees you pay someone to get you a loan or process the paper work. Try to avoid these if at all possible by obtaining the loan yourself.

One final thing it is always good to establish your credit before you need it. Get a credit card, use it slightly and pay it off every month. This process establishes your good credit for when you really need it.

Owning a home

To many the dream of owning a home seems unreachable. I think however one may need to realize that the first home will not look anything like their parents and perhaps you might even have to buy something that needs some tender loving care. I bought my first house when I was still in college, if you could call it a house.
It was a 3 room cabin in the hills above the college. It was heated by a wood stove and to get water I had to clean out and replumb to an underground spring. It was on 3/4 of an acre of the hardest hard pan you have ever seen and the only thing growing on it was prickly brush. I spent $12,000 and it was every cent I could beg or borrow from friends and family. The place was so bad, my mom only visited once and her nose was in the air the entire time.

But and here it the big but, I was able to put in a bit of elbow grease, fix it up, slap some paint on it and when I graduated I was able to sell it for $27,500. Sure small numbers now, but the principle still holds. This gave me the money for a down payment when I went to my first job in Seattle and ever since then I was able to buy a house where ever I went.

So my advice is hold you nose and buy what ever you can afford, fix it up and move up. In a few years you will look back on those times fondly and proudly and you will have achieved the American dream of owning a house.

How the heck do you figure out your taxes? Do you do them yourself or do you take them to a friend or service?

Taxes, the evil IRS, how do I cope. I have always been a believer in doing my own taxes. I believe I am the one who cares the most about me and with the inexpensive tax packages available today it is just not that tough.

When doing the taxes I always end up explaining to someone the difference between tax avoidance (a right you should exercise to the extreme) and tax evasion which is illegal and unethical.

The American tax system is extremely complex. But this means you can probably find a clause that works to your advantage. Understanding the code allows you to transfer this knowledge to your business life and makes you sensitive to what others are going through and paying.

While I will always try to avoid taxes, when the time comes to pay what I owe, I do it with a bit of pride. First you have to make money to have to pay taxes and second, my taxes are what help to pay for the American lifestyle and all you have to do is look around a little to know that we have it pretty darn good.

Open questions

Hi there! New blogs will be uploaded soon. In the mean time, as a graduating student, are there any questions you'd like me to address in an upcoming blog? It’s easy, just post a comment (staying anonymous is OK too) to ask a question!