advice

7 Reasons You Shouldn't Hire a Friend for Professional Services

Mikey Rox — Wed, 13 Mar 2019 09:00:10 +0000

They say you shouldn't mix business with pleasure. Hire a friend to work for or with you and it could turn into a total nightmare. Save yourself a massive headache (and keep a friendship intact) with these reasons why someone you don't have a personal relationship with is always the best person for the job.(See also: 8 Professional Ways to Make Friends at Work)

1. You and your buddy may see eye-to-eye in friendship, but not business

You have one idea of how things should be done, but your friend has a different idea. How do you reconcile that? Sometimes you can't, and a rift in the friendship could establish itself before the project even starts. Talk your project over at length and establish expectations from the get-go to avoid this initial roadblock if you really want to hire a friend.

2. Loyalty and work ethic are two different things

You hired your friend because he or she is a good friend, and is always there when you need them. But while their loyalty is on point, their work ethic may be lacking. Halfway into the project, they might be missing deadlines because they think they can get away with it based on your bond.

Once you get a peek into that disparity, you'll regret entering into a professional arrangement. How do you tell your friend they're not living up to your expectations? It's difficult, and it could also create resentment that'll linger for the length of the project and beyond.(See also: 5 Friend Types That Can Hurt Your Finances)

3. Negotiating could cause resentment

If you're hiring a friend, you might expect a "friends and family" discount. But going into the project with that mindset will likely offend your friend from the jump. If you're not prepared to pay your friend's standard rate for services, hire someone else, preferably the pro whose services are in your price range.

4. A friend will take your criticism much harder

It's hard to take criticism from anyone, especially a friend. Likewise, you may find yourself being more critical of your friend than you would a service provider with whom you have no relationship, because you feel more comfortable being honest with your friend. Honesty is okay — you deserve to get what you pay for — but at what cost? Not the price of a friendship.

5. Playing favorites will upset other employees

Even if you're okay with giving your friend special treatment, this favoritism will not sit well will other employees or contractors. Why does your friend have different rules and expectations? Sure, you've known each other longer and perhaps your families spend time with each other outside of work, but that's not a fair position to take when everyone else is working just as hard or harder than your friend. You don't want a mutiny on your hands.

6. When money is involved, people show their true colors

There's a reason why people say the love of money is the root of all evil: It makes people, including friends, act in ways you wouldn't expect. If don't want to see the cash-hungry Hyde to your friend's Jekyll, keep financial transactions between people with whom you have no personal investment. (See also: How to Talk to Friends and Family About Money)

7. Firing a friend can destroy the relationship

If your project is going down the tubes because your friend didn't live up to your expectations, you will have to fire them, but how do you do that to a friend? You don't. You hired a friend, but you'll have to fire your ex-friend. Feelings will probably be hurt, words will be exchanged, and demands may be made. None of that bodes well for the friendship, at least not in the capacity it was before the professional relationship began.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Survive and Thrive as a Young Boss

Kentin Waits — Wed, 27 Jun 2018 09:00:10 +0000

I work in the world of digital marketing — a decidedly youth-obsessed field where being in your 20s is considered a tactical advantage (for me, an advantage that expired about two decades ago). But the blush of youth isn't always so welcome, especially if you're gunning for a manager's position and the corner office.

Some fields are filled with traditionalists who may only see you as a pair of skinny jeans with a fast metabolism and good hair. But fear not! Here's how to overcome the skeptics and thrive as a young boss.

Learn the ropes

Every workplace is unique and every job is different. Take time to learn about the processes and expectations of your new position or new employer. That means showing interest, engaging with staff, and demonstrating a willingness to absorb information before making any big changes. (See also: 6 Simple Ways to Make a Fantastic First Impression)

Own your knowledge

The best way to thrive as a young boss is to own your knowledge and stop apologizing for it. Realize that very few companies give promotions by accident or hire without reason. Strike a balance between healthy self-confidence and a level of modesty that keeps you accessible, open to new ideas, and willing to work hand-in-hand with your team.

Be conscious of subtle ways you may be contributing to negative perceptions about your age. Uptalking is one of the most pervasive. Uptalk or upspeak is the tendency to end declarative statements with a slight vocal lift (which makes statements sound like questions). This linguistic habit suggests you're unsure of what you've said and are looking for approval.

Exercise diplomacy

Diplomacy is a valuable skill for any employee in any job, but for young bosses, it's absolutely essential. Realize that many of your co-workers were likely vying for the very position you now hold. Tread lightly while the dust settles. Pay attention to office politics (they're an inevitable part of every work environment) and be transparent as you build your team and work to make your mark as a manager. (See also: 15 Soft Skills Every Employer Values)

Focus your energy

Young bosses are anxious to prove themselves, but there's risk in taking on too much too soon. Your eagerness may be interpreted as insecurity, as one-upmanship, or as blatant brown-nosing. Even worse, overextending yourself can lead to costly mistakes or early burnout — both bad ways to earn respect. Focus your energy and talents on those duties you were hired to perform. (See also: 10 Tricks to Avoid Workout Burnout)

Delegate wisely

Now that you're focused on the most crucial parts of your job, delegate other duties strategically. But choose your resources carefully. Match the task to the talents of the individual and set clear expectations about timing and results. Remember, delegating not only helps you, it allows those around you to develop new skills and demonstrate professional growth. (See also: How to Delegate at Work and at Home in 4 Easy Steps)

Nurture careers

It's one of the most profound duties of being a good boss: supporting the career growth of the people you manage. Though you may still be trying to sort out your own professional path, don't forget about your employees. Find the strengths in each of your team members and help them use those strengths to take their next career steps. When people see you're genuinely committed to career development, they'll have a whole new level of respect for you. (See also: How to Be Successful as a First-Time Manager)

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This article is from Kentin Waits of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

5 Obstacles You Can Expect on Your Journey to Financial Freedom

Denise Hill — Fri, 01 Jun 2018 09:00:29 +0000

The road to financial freedom is paved with good intentions — and littered with skid marks from those who started out, but opted for an easier path. It can be a lonely, winding road that has potholes, roadblocks, and detours. The best way to ensure any journey is successful is to properly prepare.

Here are a few pitfalls you can expect to run into on your way to financial freedom, and what you can do to cope.

1. You'll get tired

Living a life of frugality can be exhausting. Always pinching pennies, weighing options, tracking expenses, and telling yourself "no" can get old quick. Your ability to remain on the financial straight and narrow is directly proportional to your level of tolerance.

Some people can go months without new clothes, drive the same hoopty for years, take one vacation every decade, and be perfectly happy. Others cannot. Find a pace and intensity that fits your personality and level of discipline. Give yourself the wiggle room you need to succeed.

A great way to combat the fatigue that will pop up along your journey is to take breaks. Allow yourself the opportunity to relax and enjoy the view from time to time. Set financial goals that secure your future, but also keep you happy. Plan to take a vacation, save up for a mini shopping spree, and blow a little cash every once in a while just hanging with friends. The key is to pace yourself. This journey is a marathon. (See also: Yes, You Need "Fun Money" in Your Budget)

2. You'll feel lonely

Forging a path toward financial freedom goes against the grain of our current society. You are bombarded with messages that tell you that you deserve the best no matter the cost. You are worth it. And you only live once, so you might as well live it up now. You are encouraged to indulge yourself.

Living a lifestyle contrary to the popular consensus can be extremely lonely. It can be hard to find people who support your money management value system. And not having someone you can talk to and who understands the dilemmas that come with financial freedom can leave you feeling isolated. You may even find yourself tempted to abort your mission and follow the crowd.

Before you give up and join the ranks of the financially irresponsible, consider this — you are not alone. There are others like you out there. If you're surrounded by those who do not share your passion for financial independence, you must look for those who do.

There are countless online forums, social media groups, and communities of people who are committed to living a financially responsible life. Join a few. And don't be afraid to strike up a conversation about finances with your friends, family members, and colleagues. You'd be surprised how many people you can recruit to the frugal side. (See also: 5 Friend Types That Can Hurt Your Finances)

3. You'll have setbacks

The number one thing to absolutely count on during your quest for financial freedom is setbacks. They will come. Sometimes they come in packs. The important thing is knowing that they will happen and how to recover when the wagon crashes and the wheels fall off.

As soon as you have painstakingly saved and set aside $500 in your emergency fund, you will have a $700 emergency. These kinds of setbacks can be demoralizing and can quickly deplete your energy and drive. However, setbacks — even the ones you cause — don't have to completely derail you and end your journey.

You have to go into your journey fully aware that you will encounter unexpected surprises, unplanned emergencies, and occasionally fall victim to good ol' lack of discipline. Instead of trying to avoid them, you should work on becoming adept at contingency planning. Not falling down is an impractical goal. Getting up quickly is where your focus should lie.

Planning spending fasts, aggressive saving bouts, and ferociously attacking debt for a while are all ways to strategically plan for the unexpected. When the $700 emergency depletes your emergency fund, immediately launch a spending ban and throw every extra dollar you have at your emergency fund until you've caught back up. Every time you fall, get back on your feet. (See also: 4 Reasons to Cut Yourself Some Slack Following a Financial Setback)

4. You'll hear conflicting information

Another incredibly frustrating pothole you'll encounter is that of conflicting financial information. The longer you are on the journey, the hungrier for information you become. You begin to have questions and want to ensure that all your efforts are properly focused. This is a good thing.

The issue you'll find yourself running into quite frequently is that often, financial experts don't agree. Some tell you to pay off your mortgage as soon as possible, while others say it's financial suicide. And the topic of investing can be particularly convoluted and confusing. Who do you believe? How do you discern practical advice from hoopla?

As a rule of thumb, when it comes to financial advice, KISS — keep it super simple. If you don't understand it, don't do it. If it sounds too good to be true, run. You don't have to be a financial Einstein to achieve financial freedom. If you understand basic addition, subtraction, and can operate a calculator, you are good to go.

Get rid of your debt. Have an emergency fund. Set aside money in a basic retirement account. Stick to financial experts you trust and who are easy to understand. Trying to be overly sophisticated will keep you broke. (See also: The Ten Commandments of Reaching Financial Freedom)

5. You'll want to do it all at once

One of the hardest things to do once you get going is to remain patient. Financial freedom is a slow walk. It takes regular baby steps in lieu of random leaps in order to be successful long-term. Consistency is the key. You have to do the same things over and over again to make progress.

It's hard — nearly impossible — to pay off debt, establish an emergency fund, save for retirement, and put away money to purchase a new car with cash all at the same time. You have to work on things slowly and you have to make tough choices. The trick is to do what you can while you can, and everything will work out in the end.

Stay the course and trust the process. It is a slow grind. But a funny thing happens as you chip away at your goal: Your progress picks up speed the longer you stick with it. The more money you save, the more interest it earns, and the faster it grows. Financial freedom takes patience and fortitude. Hang in there. You can do this. (See also: 5 Ways to Boost Your Financial Resilience)

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Pick Your First Stocks and Funds

Tim Lemke — Tue, 19 Dec 2017 09:00:07 +0000

You know you need to start investing, but you’re not sure where to begin. There are a million different investments, so how can anyone determine which to start with?

There is no real wrong way to begin investing, but it helps to start in a familiar place and educate yourself about some of the most common stocks and mutual funds. Follow this advice, and you’ll be well on your way to building a great investment portfolio.

Pick something you know

When just getting started, it helps to have some familiarity with the company you are investing in. So go with a company whose products or services you use every day. Maybe it’s Starbucks, or Walmart. Perhaps it’s Coca-Cola or Pepsi. Do you have an iPhone? Investing in Apple might make sense for you. By starting out with something you know, you’ll have a greater interest in tracking the stock’s movements and paying attention to the company’s operations.

It’s also fun to know that when you buy something from the company, you may be indirectly boosting the stock price. Moreover, if you invest in something well known, it’s likely to be an established company with some track record of success. (See also: How to Buy Your First Stocks or Funds)

Listen to your grandfather

You may tune out when your granddad starts espousing the virtues of shopping at Sears. But there are many companies that were huge 40 years ago that are still big today. Think Coca-Cola, General Motors, General Electric, IBM, or McDonald’s. These are still “blue chip” stocks that have shown consistent, solid shareholder returns over time.

In many cases, these companies don’t even do what they originally did when your grandfather was your age. But that’s OK. If your granddad has invested in a stock for decades and is living comfortably in retirement, it’s probably a solid stock. Following your grandfather’s advice is a great way to familiarize yourself with “large cap” stocks that include some of the world’s biggest companies. (See also: 9 Ways to Tell If a Stock is Worth Buying)

Go after growth

The entire point of investing is to see your money grow, right? So it’s a good idea to familiarize yourself with growth stocks. These are stocks that represent companies poised to see strong earnings growth over time, and are often in fast-growing industries, such as technology. Growth stocks will often have earnings and cash flow that are higher than the average company, and will often have some sort of competitive advantage that gives it an edge in the marketplace.

Famous tech companies including Apple, Netflix, and Alphabet are well-known growth investments. Smaller companies can offer great growth stocks as well, because their size allows for rapid increases in share value. Keep in mind, however, that growth stocks can often carry higher risk than other investments. (See also: What Are Growth Stocks?)

Find a good dividend stock

When learning to invest, it’s important to know that stocks cannot only grow in value, but provide you with some income along the way. Many stocks will pay out a portion of their income to shareholders in what is known as a dividend. Getting your first dividend payment can be very exciting. This is real money that a company gives you each quarter simply for being a shareholder. And many companies will shell out dividends at a rate much higher than interest from the bank.

When researching the best dividend-producing companies, look up how much the company will pay quarterly for each share of stock. That amount relative to the company’s stock price is known as the dividend yield. A good dividend yield, coupled with solid financials and some growth in share price, can make for a great company to invest in.

To find good dividend stocks, research the list of “dividend aristocrats.” These are companies that have managed to increase their dividend payments for 25 years or more. They include Procter & Gamble, Exxon-Mobil, and AT&T.

Invest in “The Market”

If you’re confused about what stocks or funds to purchase, why not invest in everything? Or at least a small piece of everything. There are many mutual funds and exchange-traded funds that are designed to mirror the performance of the broader stock market or major indexes like the S&P 500. You won’t necessarily “beat the market” with these investments, but you’ll see your investments move with the overall stock market, and get exposure to a wide range of companies in various industries.

These investments are often available with very low fees, as well. Good examples of these kinds of investments include the iShares Core S&P Total U.S. Stock Market ETF [NYSE: ITOT], Vanguard Total Market ETC [NYSE: VTI], or T. Rowe Price Equity Index 500 Fund [NYSE: PREIX].

Look for value

One of the most basic pieces of investment advice you’ll receive is to “buy low and sell high.” At its core, this means it’s smart to find investments that are undervalued and have a strong potential to grow and make you a profit over time. These “value” stocks aren’t always easy to find, but they have driven the portfolios of some of the world’s most successful investors, including Warren Buffett.

There are several key things to look for when searching for value stocks. First, it’s important to understand why a stock may have a low price. Often, it’s because the company is not doing well financially. But sometimes, a stock price can fall for reasons that have nothing to do with company performance, in which case it may be poised to rebound.

A company’s price-to-earnings (P/E) ratio is another thing to consider. You can determine this ratio by dividing a stock's earnings by its stock price. A low P/E ratio compared to other stocks may indicate it’s undervalued. (See also: Make Smarter Investments by Mastering This Simple Ratio)

If you are unsure of what value stocks to buy, consider mutual funds that zero in on value stocks. Popular options include the Vanguard U.S. Value Fund [NYSE: VUVLX] and the T. Rowe Price Value Fund [NYSE: TRVLX].

Understand competitive advantage

There are some companies that are just kicking butt. Their edge over their competitors is as vast as the Pacific Ocean, and they are practically synonymous with the industries they are in. Some investors refer to this as a “moat.” A company with a wide “moat” is often viewed as having a large enough competitive advantage to withstand any operating hiccup or economic downturn.

Think Amazon in the e-commerce sector, or Facebook in the area of social media. Alphabet, the parent company of Google, also leaves most of its competitors in the dust, and Walmart dominates the traditional retail sector.

If you’re looking to buy one of your first stocks, consider any company that seems to be just crushing the competition. You may not be able to get shares on the cheap, but you’ll be getting ownership in a company poised to make you money over time.

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Things Your Boss Wishes You'd Tell Them

Paul Michael — Wed, 13 Dec 2017 10:00:06 +0000

Most of us have a boss of some kind. And a lot of people think that bosses only want to hear good news all of the time, but that's not the case.

Positive information is nice, but negatives are just as important. If issues are preventing you, your coworkers, or your company from doing a job well, it makes life harder on everyone — including your boss. As long as you are bringing solutions with the problems, your boss will thank you for pointing out areas that need improvement. So, speak up on the following things, and do yourself and the boss a favor.

1. You want to be challenged more often

Most of us don't want to coast through our careers without learning, growing, and climbing the ladder. To do that, we need to face new challenges, step outside of our comfort zones, and take on tasks that will sometimes throw us into the deep end. While it's a scary prospect at times, it's essential for genuine advancement.

However, your boss may not realize that you are not being challenged enough throughout the week. He or she may think you have just enough on your plate to cope; bosses are not mind readers, and may not realize you are lacking the trials and tests needed to gain experience. Tell the boss what you want to be doing. Ask if you can take on projects that are beyond what is expected of you. If you put in an honest effort, a promotion may even follow. (See also: 8 Career Moves That Prove You're Finally a Grown-Up)

2. Any major issues you have with other employees

The boss needs to know this ASAP, because small problems can become big problems, and those big problems can lead to lawsuits and dismissals. You only have to look at the issues plaguing Hollywood right now to know that keeping things hidden could hurt you in the long term. So, whether it's unwanted attention, inappropriate comments, discrimination, or bullying, tell your boss as soon as you notice the problem. Furthermore, document the issues when they happen, as this gives your boss solid evidence that can help with human resources and dealing with an employee that is making your life difficult.

3. The current state of employee morale

In many companies, bosses aren't privy to the day-to-day events and processes that their employees are going through. If your boss is in and out of meetings all day, traveling weekly, and working on large projects, it will be hard for them to know what the morale situation is like. Maybe it's great. Maybe it's awful and people are ready to quit. Either way, if you can give the boss a regular temperature reading on morale, you will be doing everyone a favor. And even if morale is great, there's nothing wrong with asking for team building events to keep it there.

4. Your daily frustrations

Your relationship with your boss is in some ways like a relationship with a romantic partner. Little things here and there can get on your nerves, and you bottle up your feelings. These small frustrations can eat away at you day after day, and become overwhelming. So, find the time to bring them up in a weekly status report or one-on-one. Don't whine. Don't complain. And don't do it without having possible solutions up your sleeve. The boss will be thankful that you addressed it sooner rather than later.

5. How they are doing

One of the biggest reasons people leave a job is their relationship with the boss, and in some instances this could have been repaired long before it became an issue. So, find ways to tell the boss what they're doing right, and what they could be doing better.

Suggest things the other employees are asking for. Maybe they would like more transparency, and weekly updates on the status of the company. Perhaps they want a simple night out every month, together as a team, to help with morale. Let the boss know.

Of course, judge each case by its merits, and never insult. If your boss is known to be sensitive, you should throw a lot of great compliments out before hitting them with a problem.

6. What you like, and don't like, about the job

Start with what makes you happy and excited to come to work every day (and if you can't think of anything, you should probably start looking for a new job immediately). Are there certain projects that really get you going? Are there challenges you enjoy taking on? Make a list of all the reasons you enjoy coming to work, and let your boss know about them. He or she will not only appreciate it, but may throw more of those things at you when the opportunity arises.

Similarly, make a list of the things that stop a good job from becoming a great job. Are there tasks that are boring? Are there systems in place that make your life hell? Tell the boss while offering solutions, and it will give them a chance to fix the issues. (See also: 13 Great Reasons to Quit Your Job)

7. How you could be an even better employee

Nothing stirs a boss quite like an employee who is driven to do better, be better, and go further. Self-improvement is an admirable quality, and if you see ways in which you could grow and become a greater asset to the company, talk to your boss about it. Is there a conference coming up that would be invaluable to you? Ask if you can attend. Are there skills you would like to learn? Research workshops and online training.

In many cases, bosses are happy to pay for some, or even all, of the cost of these events, as they are a direct benefit to the company. What's more, many businesses actually put aside money for employee training, so you would be making your boss look good by taking advantage of this benefit. (See also: 7 Certifications That Add Big $$ to Your Salary)

Remember, at the end of the day, if you make your boss look good, you will prosper. So talk to him or her about any of these topics in a cordial way, and work together to resolve any problems. You will do your career a world of good.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 Fundamentals of Naming a Small Business

Paul Michael — Wed, 06 Dec 2017 09:30:11 +0000

What's in a name? When it comes to a small business, quite a lot, actually. While it may seem like a fun side project, the name you choose for your business could have a long-lasting impact on the success (or failure) of your startup. However, if you follow these guidelines, you should come up with something that makes a great first impression for your new business venture.

1. Do not name it after yourself

The biggest mistake people make when choosing a business name is to go straight for the ego option: "Well, it's my business, I should use my name." You see it with law firms, handymen, auto garages, and so on. While it may be nice to see your name on a big sign and a business card, it doesn't tell anyone anything about what you do or provide. Therefore, you have to add a second line to spell it out: "The Smith Brothers: Plumbing and Heating Experts." That's not catchy.

2. Be smart, but not too clever

It's tempting to have fun with your business name. However, keep in mind that when people see the name of your company for the first time, they do not have the background that you do. They know nothing about your business, how long you've been dreaming of it, and what kind of thought process you went through.

For example, imagine someone passionate about great hot dogs opens an eatery called The Top Dog. To that person it's a great name, but they know it's a reference to hot dogs. To someone else, it's more likely something to do with actual dogs; perhaps a dog grooming service, products for pooches, or a place to buy a dog. The business is going to have to work harder to identify itself as a restaurant. If instead they'd chose a name like Hot Dog Heaven, or The Tasty Wiener, there wouldn't be any confusion.

3. Keep your sights set on expansion

Small businesses sometimes become big businesses. When that happens, and the company grows to include new locations, your company name might suddenly become very confusing. For instance, if you base the name on your current location (maybe something like Delaware Dinners), you may have people scratching their heads when you move to a different state, or even a different country.

Similarly, think about not just physical expansion, but product line growth. You may start out as a T-shirt company, and call yourself something like Top Shelf Tees. But what happens when you decide to make branded caps, bags, and sneakers? Your original product name limits the expectations of customers, and you may have to rebrand to Top Shelf Apparel. So, think about the future.

4. Cutesy spellings aren't for everyone

The rise of the internet, and the need for a unique dot-com address, has brought about a glut of misspelled words. Carz instead of cars. Kabbage instead of cabbage. Wzrd instead of wizard. All in the name of getting a name that sounds memorable.

But consider the additional steps you will have to take to inform your customers of the odd spelling. For example, if you choose to do radio promotions, you'll have to say something like, "Remember, that's carz with a Z." And when potential customers hear a little buzz, and search for you on the web, will they be searching for the right company? Chances are, they'll use the typical spelling, and it could end up taking them to a major competitor.

5. Completely made-up words make life difficult

There are hundreds of companies out there that have names that either mean nothing, or were based on a real word from any number of languages. You already know some very well, including Verizon, Google (although it was based on Googol), Etsy, Skype, Hulu, Zillow, and eBay.

Now, the reason you know these words so well is because the companies are huge, and spent major branding and advertising dollars to get their name to be recognized. Plus, as word of mouth has spread, the familiarity of these names has grown. Let's be honest, have you ever considered what Google means over the many years you have used the service? Because the brand is so dominant, it hasn't really mattered to most people.

However, you're the owner of a small business right now, not a major corporation. You have limited funds. Unless you think your company will scale to the size of these giants, you are better off avoiding completely nonsensical words.

6. Make sure your name conjures positive imagery

To this day, it baffles many marketing and branding experts that the company The Athlete's Foot was named something so horrendous. Athlete's foot is described as "a contagious fungal infection that causes itching, blisters, cracking, and scaling, especially between the toes." And yet for some reason, a boardroom full of people said "Yeah … we want our footwear store to be associated with that."

Bizarrely, it worked; the store is still going. But you really do not want to take that chance with your own company. If the first thing people conjure up in their heads is negative, you have a tough image mountain to climb. If you are a mobile hairdresser, Curl Up & Dye might sound funny for a second — but what kind of image are you putting in your customers' heads? Keep it positive, unless it really does fit the bill (like Vinyl Resting Place, a store that sells old vinyl records and has a sense of humor about it).

7. Don't pick a name out of a hat

The hat comes in many forms. It can be a dictionary or thesaurus. It can be a random word generator online. Or, it could in fact be a bunch of words you put into an actual hat. These methods are just not going to work out for you. There has to be a logical reason as to why you went with the name you did.

What's the background? How does it tie to your business? Does it accurately describe what you do, or at least invoke some part of it? For example, Pinkberry is not an accidental or random name. While it sounds fun and trendy, it also relates directly to the fresh fruit cut daily for its frozen yogurts and ice creams. If the company had simply pulled a word out of thin air, it would not have been as successful.

8. Think alphabetically

There's a reason there are so many AAA Plumbers, and AAAA Lawyers; they were looking to be first in the phone directory. While that is not always the case anymore when it comes to search engines, alphabetical listings are still a way to organize companies. If your company is called something like Zoomfood or Yogalicious, you're going to be stuck at the back of the line.

Consider a name that will bump you up without compromising the fun and originality of your name. For example, Foodzoom is just as fun, but vaults you way higher up the list. While it may not be the most important consideration, it's worth thinking about.

9. Combining words can produce great results

One of the easiest ways to come up with a good business name is to combine two (or more) words to create a new word that's both eye-catching and memorable. Start by writing down a list of all the traits of your company. Don't worry about coming up with actual names just yet, this is a brain dump. Your company mission statement will include a lot of these words. When you have that list, start making connections.

Which words fit well together? For example, if you're a meal prep company, you may have a list that includes food, easy, preparation, timesaving, meals, dinners, fresh, delicious, organic, diet, delivery, and simple. Now, which of those words can you combine to make something new? It could be as simple as FreshPrep, or EasyMeals. You could also do it another way, like Dinner 'N Delivery, or Meals On Time. These are just quick examples, but it's a great way to brainstorm a name that includes essential aspects of your company.

10. Test out a few names before you commit

When you have a list of business names that you're happy with, it's time to put them to the test. Narrow the list to the top three, and set up a simple survey through a site like Survey Monkey. Ask questions like, "What did the name instantly make you think of?" or, "Does this business sound professional?" You want a good variety of questions and possible answers. Send the survey to people you may already be working with, online forums, a subreddit devoted to your industry, and anyone else that could be of help. However, don't send it to immediate family and friends; they know too much and won't give you an unbiased opinion.

One last note: When you have picked the winning name, think about how you will turn that into a memorable and noticeable logo or brand mark. Work with a freelance designer to get some options, and use the same survey system to help you select the best one. This will be your logo for the foreseeable future, although brands change identities often, so it's not as important as the actual business name. Good luck.

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This article is from Paul Michael of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Invest If You're Worried About a Stock Market Crash

Carrie Kirby — Thu, 26 Oct 2017 08:30:09 +0000

It seems that every time I turn on a financial report, someone's warning that the bull market we've been enjoying for more than eight years is about to come crashing down. Some analysts point to signs such as the rising price of gold, decreased trading volume, and muted reaction to strong earnings reports as harbingers of a crash. Others just point to the calendar: Since 1926, the average bull market has lasted nine years, and ours by most measures is about eight and a half years old. (See also: Are We Headed Toward a Bull or Bear Market?)

While there is some truth to the notion that no party lasts forever, there is also no definitive way to predict when we might see a correction (a 10 percent decline) or a crash (a 20 percent or greater drop). So before we get into the nuts and bolts of market disaster preparedness, understand this: No matter how nervous people feel, a correction may not happen this year or even next. This is really important to know, because if you make drastic changes to your portfolio to protect it from stock declines, you may well miss out on months or even years of growth that you can never get back.

Does that mean you should plunge your head into the sand and do nothing, no matter how worried you feel about a possible market crash? No. There are steps you can take that would both set your mind at ease and help prepare your finances for whatever the market brings. (See also: Want Your Investments to Do Better? Stop Watching the News)

Take stock

Harness the energy of your market jitters to perform some portfolio hygiene that you should have been doing all along. If you've been carrying too much risk without even realizing it, now's the time to adjust that.

"Figure out what your allocation is between equities (stocks) and fixed income (bonds and cash)," recommends investment adviser Bob Goldman. "A lot of people will find they had a higher concentration of equities than they thought they did, because equities, especially U.S. equities, have done so well in the past few years."

How do you know if you're carrying the right amount of risk? It's all about your goals and your timeline. Riskier portfolios generally have a higher percentage of stocks and a lower percentage of bonds and cash. If you need your money to grow to meet your goals, you'll have to take on some risk to get there. If you're not sure how much risk you should take on, consider investing in a target date index fund, where you input when you need the money, and the fund manager does the rest.

If your portfolio is considered appropriate for your timeline but you just can't sleep at night, it's OK to dial back the risk to give yourself peace of mind — as long as you can afford to. Use an online investment calculator, consult portfolio allocation models, or talk to an adviser to figure out if you could reduce your stock allocation by 10 percent and still have enough money to retire when you want to. If you'll still have enough, then go ahead. (See also: 5 Essentials for Building a Profitable Portfolio)

Keep investing

If you have been contributing money from each paycheck to your 401(k) or buying stocks in a taxable account, don't stop just because you're worried the market may be peaking. Remember that if a bear market happens, it won't last forever. In fact, bear markets are almost always shorter than bull markets, with an average decline and recovery of just three years.

You may be tempted to slow down your investment schedule, dividing your money into periodic investments instead of buying stocks and bonds in one lump sum. This would save you some losses if a crash really does come during the year, but this approach, known as dollar cost averaging, usually doesn't pay off since timing the markets is typically considered futile.

So what if you buy today, and the market crashes tomorrow? By one expert calculation, in this worst case scenario, it takes an average three years to get the money back. If you are investing for the next 10 or 20 or 30 years, rest assured that even if the absolute worst happens, it will almost certainly work out in the long run.

Don't invest anything you'll need within five years

If a downturn happens, you don't want to be forced to sell and take a loss. This five-year rule is always a good one to follow, but if you believe that a downturn is coming, it's a great time to double check to make sure you have what you need for near-term spending in cash, CDs, or a money market fund.

What you "need" means different things to different people based on their situation. If you were planning to send your kid to college in two years, it means the first three years' tuition should not be in the market at this point. If practical, Goldman suggests keeping a two-year emergency fund, covering all your minimum expenses for that period. That way if a downturn snowballs into a recession and you lose your job, you'll still be OK. When making the calculation of how much you need, don't forget that you probably won't owe taxes or be making retirement contributions if your income goes away.

Consider saving up for bargain shopping

When stock prices crashed in 2007 and 2008, I had no money to invest. Warren Buffett did, though. One of Buffett's financial crisis investments was putting $5 billion into Goldman Sachs, a stake that increased in value by 62 percent within five years.

Probably no one reading this will ever be in the position to take advantage of a bear market to that extent. But it's not a terrible idea for investors to put aside a cache of cash earmarked for buying stocks in a downturn. Just remember not to short circuit your entire investing plan by putting all your money into that basket. As Buffett said in his most recent investor letter, investment gains and downturns will be "totally random as to timing." You don't want to put off investing for years waiting for a downturn that doesn't materialize.

Don't forget that five-year rule here, especially, because if you buy stocks that have just declined, you have no way of knowing if the price you pay is the bottom. You may be "catching a falling knife," meaning that the stock you buy may continue to plummet after you purchase it. But if what you bought is a diverse index fund, don't feel too bad if it keeps going down after you purchase. After all, within a few years, you should be gaining again.

Beware of salespeople who prey on fear

Stockbrokers and other sellers of investment products may take advantage of jittery investors to push vehicles that promise to limit downside, such as annuities, insurance policies, or even that old supposedly safe haven, gold.

Analyze all investment opportunities with a cool head. Find out what the seller has to gain by getting you to sign on. When in doubt, stick to investments that you understand well, or consult a fee-only planner with no stake in where you put your money.

"The end of bull markets, in my experience, are often signaled by the invention of esoteric and exotic investments that sound good but are really a mix of ordinary stocks and bonds mixed with leverage to give you 'enhanced' and 'select' returns," warned Mitch Goldberg, president of ClientFirst Strategy, in a CNBC commentary. "If you've recently put money, or been advised to put money, into an investment that is very narrow, or you simply don't understand, get out."

Avoid debt and leverage

One of the causes of the 1929 stock market crash was excessive leverage, which means that lots of investors were playing the market with borrowed money. Typically, brokerages will sell stocks to some investors "on margin," which means that the investment bank lends you the money to buy the stock, holding the stock as collateral. This is risky, because if the market price of your investment declines sharply, the bank can call in your loan, forcing you to sell at a loss.

Buying stock on margin can be considered reckless in the best of times. If you fear a correction is coming, getting rid of leverage is an obvious way to make your portfolio more conservative.

If you are able to pay down debt in other areas, such as car loans and credit card debt, this can also help strengthen your financial standing to help you weather any bad times that may lie ahead.

The other nice thing about paying down debt in an uncertain time is that it's a safe place to put your money. If you have a 4 percent interest rate on a loan, paying down that loan is like getting a guaranteed 4 percent return on your money. That's not a huge return, but if you are scared that you'll lose that money in the market, reducing your debt is a safer bet.

Keep it all in perspective

We may lose a lot of sleep worrying about a stock market crash without really knowing how such an event would affect us. Here's a little exercise that might help ease your mind: Look at your current portfolio, then cut 10 percent or 20 percent, or even 30 percent from the total. Then use an online investment calculator to figure out what the typical return would be on that money, if it was a new investment, over the course of your investment timeline. Can you live with the results?

Then remember that even if the market does drop 10 percent or 20 percent or even 30 percent, chances are the effect on your personal portfolio won't be as extreme.

"You have to remember, if you're diversified, and the U.S. stock market drops 30 percent, that doesn't mean everything else will drop," Goldman says. That's why you have a diversified portfolio containing international stocks, bonds, and other investments.

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This article is from Carrie Kirby of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Talk to Friends and Family About Money (Without Making Everyone Mad)

Annie Mueller — Mon, 09 Oct 2017 08:00:07 +0000

Talking about money can get awkward in a hurry. Don't believe me? Ask your friends how much debt they have at the next social gathering and observe as the silence fills the room. However, sometimes those financial discussions need to happen. Here's how you can handle them with minimal discomfort.

1. Find neutral ground

If you need to talk about a mutually owned asset, or who's going to take over the finances for an aging or incapacitated parent, get to neutral ground. Schedule lunch at a favorite restaurant or find a quiet corner of a local cafe.

A public space helps everyone stay calm: Who wants to make a scene? And the neutrality of the space can help defuse any sense of intimidation or ownership of the discussion, leaving it open for all parties to state their needs and concerns.

2. Give a three-point introduction

Growing up in the South, I heard a three-point introduction every single Sunday. It was a Baptist preacher staple in which they'd tell you, in summary form, what they were about to tell you. Three points made just about the right length for a sermon.

Use this approach by clearly outlining what you want to discuss, and take all the other stuff off the table. It will help set the other people at ease: Now they know what the conversation is and isn't about. Everyone involved will feel as if they're more in control, which in turn makes them feel more comfortable.

3. Repeat it back

The most important part of a potentially tense financial discussion is understanding. You want to be sure that the other folks involved understand what you're saying. In turn, they want to be sure that you understand their needs and concerns. As you listen, give their words all your attention. Then, repeat back what you've heard: "OK, what you said is that you think it's best to sell the family property as soon as possible because … "

This approach helps to avoid misunderstanding. As you repeat back what you've heard, they get a chance to listen to their own words and revise them if needed. And, by repeating back what you've heard with the intent to understand, you put yourself in the position of advocate, or ally, rather than enemy. You may not agree with the point they've made, but by striving to understand before you argue or correct, you lay the groundwork for a calmer and more productive discussion.

4. Use facts, not feelings

Feelings matter, of course. But when you're discussing finances, don't argue on the basis of feelings, intuitions, or preferences. Instead, if you disagree with a point or opinion, strive to explain why you disagree with facts. This helps to keep the discussion from becoming personal or offensive.

For example, if you don't want to split the check evenly because you only got an appetizer and everybody else got an entree and a drink, don't say, "I'm not doing that, guys! It's not fair and I don't want to pay for half of Melinda's cocktail again!" Instead, say, "Actually, my appetizer was only $8, which is less than 1/5 of the total bill." That's a calmly stated fact, rather than vented frustration and a thinly-veiled insult of Melinda.

5. Suggest a specific action

Specific actions are the way to move things forward and solve problems. In fact, many times people end up in arguments not because they disagree on the major point ("We need to pay the bill"), but because they're not sure exactly how to make it happen. We stumble over anthills more than we do over mountains. In the scenario above, you could follow up your calmly stated fact by suggesting a specific action: "I'll put in $10 to cover my part, and you guys could split the rest evenly."

By suggesting a specific action, you've solved the problem of too many options, which can be very unsettling for us humans. When we feel unsure and unsettled, it's often easier to fight than to move forward, which is why financial discussions can degenerate into insults so easily. Suggesting an action helps move people forward and give everyone a clear next step, which can prevent that discomfort and conflict.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

This One Thing Could Be the Key to Retiring Rich

Annie Mueller — Fri, 29 Sep 2017 08:00:06 +0000

Writing things down is a powerful exercise. Productivity experts and personal growth coaches have long known this truth, and frequently promote writing down goals and priorities as a way to take control of life and achieve more. Does the power of writing apply to your financial life, as well? Turns out that it does in a very significant way.

Written plans lead to more retirement savings

A recent report from Charles Schwab makes it clear that writing down your financial goals can have a huge effect on how well you do in reaching them. According to the report, people with a written retirement plan are almost twice as likely to increase their 401(k) contributions and rebalance their portfolio. And that's not all a written plan can do for you: You're also twice as likely to stick to your savings goals if you've written down your plan.

Despite the obvious power of a written financial plan, most people don't have one. According to the Schwab report, even though about two-thirds of Americans have a financial plan, only a quarter of us have that plan in writing.

Is it really a plan if it's not in writing? Maybe, but it's certainly not as powerful.

Writing things down makes them seem more real and helps you understand clearly how to reach the goals you're setting. A survey from Wells Fargo found that folks with a written retirement plan felt much more secure about reaching their financial goals for retirement. It isn't that the amount needed for retirement changes, but that a written plan helped these individuals understand exactly what they needed to do to reach their retirement goals.

Start getting your plan on paper

How do you get your financial plan written down? Start simple and start right now: Get a piece of paper or open up a computer document, and start writing down your goals. Focus on three main areas: an income goal, a budget goal, and a long-term savings goal.

The key is to just get started and remember that you can adjust your plan as you gain more information. Until you have everything written down, you don't really know what you're aiming for or if your goals are even possible. (See also: Half of Americans Are Wrong About Their Retirement Savings)

Get some professional help to improve your plan

Once you've gotten some basic ideas down on the page, consult a professional financial adviser to help you turn those basic thoughts into a viable financial plan. Over two-thirds of the people who do have a written financial plan got help from a financial professional.

Getting professional help is a good idea for two reasons: First, it helps you to actually finish that plan you started. Second, having professional advice will result in a better financial plan. An adviser can help you ask questions, look at issues, and develop solutions you might have missed on your own. (See also: 7 Things Financial Advisers Wish You Knew About Retirement)

Turn your plan into actions

Once you have your plan written down, you need to translate it into regular actions.

For example, if you set a savings goal that you want to meet in five years, you'll divide that into a monthly savings amount. Now you have a monthly savings target (and we know that, with a written plan, you're much more likely to reach it). When you turn the goals on your plan into actions, you can quickly assess whether you're making progress or not.

Automate your financial actions

As much as possible, automate the actions that you derive from your financial plan. Set up automatic transfers into your savings account, for example, or have a certain percentage of your paycheck deposited into your savings account rather than your checking account.

Those small automations take the work out of reaching your financial plan. The easier you make it on yourself, the more likely you are to stick to your plan. (See also: 5 Ways to Automate Your Finances)

Review your financial plan regularly

A written plan is not a static thing, so you need to review it regularly and adjust it as needed. Perhaps you get a salary increase or an unexpected windfall; how will you apply it? Review your plan, decide where to apply your wealth increase, and adjust your plan as needed.

It's a great idea to set an annual appointment with your financial adviser; you can use that time to review your plan together. Then you can apply that professional insight to any adjustments you make to your plan, and move forward with even greater financial efficiency.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

10 New Podcasts That'll Improve Your Money Mindset

Christa Avampato — Wed, 20 Sep 2017 08:00:06 +0000

Podcasts are all the rage right now. We even have podcasts that review and recommend other podcasts! I'm proud to say that I'm a podcast junkie, as is most everyone I know. But did you know that your podcast addiction could actually help you manage your personal finances? Here are 10 that will improve your money mindset.

1. Listen, Money Matters

Listen, Money Matters lives up to the promise of its tagline, "Manage your money like a badass." If you think personal finance is dull, Andrew Fiebert (a self-professed personal finance nerd) and Thomas Frank (a productivity expert) are here to dispel that myth. They'll help you work smarter so that your money works harder for you. They break down complex terms and host some of the smartest minds in the personal finance field. Topics range from investing to debt reduction, and everything in between.

2. Planet Money

This superb NPR podcast is the gold standard when it comes to personal finance programs. Think breaking financial news meets the nuts and bolts of how our economy actually works told to you by your best friend. At almost 800 episodes, Planet Money has clearly found the secret recipe to making personal finance fascinating.

3. Stacking Benjamins

Endlessly action-oriented and infinitely original, Stacking Benjamins is all about taking personal finance advice and putting it to work for you immediately. With episode titles such as "Where Financial Planning Goes Wrong" and "69 Things That GO BUMP in Your Portfolio," this podcast is so much more than tips on how to save money. It's actually changing your mind about how you view money and its place in your life.

4. The Money Tree

If investing is an area of personal finance you haven't delved into until now, The Money Tree is the place to grow your knowledge and personal wealth. From choosing the right investments, to making career choices, to answering your questions about pensions and Social Security, the hosts and their guest panelists for each episode will help you invest like the best.

5. Money Box

This gem from the BBC combines the latest personal finance news with brief guides on topics such as compound interest. It also offers societal commentary on topics like the future of retirement. What I like best about Money Box is that it serves up full episodes plus very short clips that tightly focus on one concept, such as energy savings and the return of the 100 percent mortgage.

6. HerMoney with Jean Chatzky

A personal finance expert, award-winning journalist, and best-selling author, Jean Chatzky is masterful at breaking down personal finance advice and combining that advice with what's happening in the lives of women. This mindfulness includes acknowledging finance challenges women face, such as saving for our own retirement while caring for our older loved ones, and providing timely advice based on big calendar events like back-to-school and tax prep time. Though it's geared toward women, this podcast is a winner for male listeners, too.

7. Freakonomics Radio

If you're looking to expand your mind and your thinking around money, Freakonomics Radio is for you. In the tradition of their wildly successful books Freakonomics, SuperFreakonomics, and Think Like a Freak, Steven D. Levitt and Stephen J. Dubner bring together masterful storytelling with human psychology. From supply and demand through the lens of line standing, to explaining the stupidest thing you can do with your money, this highly-provocative, well-researched gem is perfect for intellectually curious listeners.

8. The Dave Ramsey Show

Dave Ramsey approaches the management of money from a Zen place — he wants you to make peace with it so you can focus on doing what you love and spending time with people who matter to you. He recognizes the stress that money can place on your relationships and happiness, and his goal is to help you mitigate that stress with knowledge and a game plan. That perspective and motivation make the content about wealth building, reducing debt, and budgeting easy to digest. His message resonates with a wide listener base — this year he's celebrating his 25th anniversary on the air.

9. The Dough Roller Money Podcast

Interviews, Q&As, deep dives into individual money topics, and career advice from a financial perspective make The Dough Roller Money Podcast one of the most well-rounded personal finance podcasts. The variety of content and format has helped Rob Berger and his 14-member team become one of the highest rated personal finance podcasts with 75,000 downloads per month.

10. Money for the Rest of Us

For everyone who needs their personal finance advice beautifully wrapped in a compelling story that has nothing to do with personal finance, Money for the Rest of Us is tailor-made for you. You're going to get the knowledge and lessons you need to create a money mindset, but they'll be delivered with such an immersive and entertaining narrative that you won't even realize you're learning. Some of my recent favorite episodes are "Do Homeowner Tax Breaks Cause Homelessness?" and "Is Infrastructure a Good Investment?" Combining personal finance education with social justice and impact gets people to pay attention and take action.

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This article is from Christa Avampato of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Ask for Your Old Job Back After Leaving

Paul Michael — Tue, 29 Aug 2017 08:30:08 +0000

Every day, people dream of quitting their jobs to move on to greener pastures. And then, that glorious day happens: You get a new job offer and start planning your "I quit" speech. But for some reason, things don't work out with the new gig. The company folded soon after you started, or maybe the new job just wasn't a good fit. Suddenly, you need to go back to your old job. What do you do now?

First, assess the damage

How did you quit? Was it a polite and respectful resignation letter, with a send-off party and tearful goodbyes? Well, no worries — in this case you probably won't have much trouble getting your foot back in the door. If you were a great employee, you are a known quantity and need less time to get up to speed; in fact, you're actually a superb candidate.

However, not everyone leaves on such good terms. If you quit in spectacular, dramatic fashion, you've got a problem. Still, even burned bridges can be repaired. Take stock of how you left, what you did, and what impression your former employer has of you. Then you can figure out the steps you need to take to get back in their good graces.

Contact current employees that you know

You will know at least a handful of people who still work at the company you quit. Hopefully, you have a great relationship with them. Now is the time to reach out and see exactly what kind of ground you stand on.

First and foremost, find out if your old job is even available anymore. It's highly likely the position was filled, but maybe your former colleagues can let you know if there are other suitable positions open.

Probe them to also see how management, and the hiring manager in particular, feels about you. Has your name come up a lot in conversation, in a positive or negative way? Are you missed? Would they secretly kill to have you back, or were they glad to see the back of you? The answers to these questions will help you in your approach to your old boss. You don't want to be tone deaf when first approaching him or her about a job.

Lay the groundwork — carefully

It takes baby steps to get back in the door. You cannot assume that you will be welcomed back with open arms to a ticker-tape parade. Even if you left on the very best terms, you still have to be humble about your approach. And if you parted ways on bad terms, even more so.

Start by making a call (not sending an email) to the person responsible for the position you're interested in. Do not go to the human resources department: If you attempt to get the job through the usual channels, you will be doing yourself a disservice. Remember, you have history with this company, and you know people. Human resources is primarily there to protect the company, and they will not be looking to rehire someone who quit. They can get involved once you have gained momentum, and have senior people in the company ready to go to bat for you.

Get ready to eat a whole lot of crow

It's time to kiss your pride goodbye and approach this as you would a partner with whom you've had a falling out — even if you left on good terms. If you are looking to get your exact same position back, tell the hiring manager that you made a mistake in leaving. You loved your job and you will do whatever it takes to get back in the door. You miss your work colleagues. You miss the food in the cafeteria. You miss Hawaiian shirt Fridays. And be genuine: If you fake this, it will be glaringly obvious.

Make sure you can explain why you left

You still may be asked "If the job was so great, why did you leave in the first place?" That can really stump you if you're not prepared. Here, you will have to be a little economical with the truth, or downplay some of the reasons.

For instance, many people leave because of a bad relationship between a boss or coworker. If that boss or coworker is still around, how does that play out? You can explain there were some misunderstandings that got out of hand, or that you had differences that you have worked through and resolved. You can be completely honest if it was something out of your control that didn't work out, like moving to a different state. Just make sure you can allay any fears the hiring manager may have about your return. If they suspect that you could up and leave again, or that you'll cause trouble, you won't get back in.

Be open to getting less for the same role

If you're looking to get your exact same job back, you're in no position to make any kind of demands, and the employer knows this. It's possible that your old company will take you back with the same benefits and salary that you had before, but there's absolutely no guarantee. They know you need this job, and they can play that to their advantage.

Now, some companies will have a benefits policy that they have to stick to. For example, if you return within 12 calendar months of leaving, all of your former benefits, including vacation days, sick days, personal days, 401(k) match, and employee discounts will be reinstated. So, if you left the company after 10 years of service, and come back within the year, it could just be a continuation of those 10 years. But not all companies do this.

Chances are, if you left with four weeks of vacation per year, you'll be coming back with the standard two weeks. And your salary could be cut to whatever the going market rate is for that position. After years at the company with raises and promotions, you may have left earning more than most people in your position earned. Expect that to be ironed out in your return.

Overall, making a return to an old job is very doable. Just be prepared to turn up the charm, make a whole lot of apologies, and start on a lower rung of the ladder than the one on which you left. Good luck.

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Sell Your House Faster With These 6 House Flipping Tricks

Annie Mueller — Mon, 21 Aug 2017 09:01:06 +0000

When you're ready to sell your home, there's no reason you can't sell like a professional. People who flip homes for a living know what makes a difference for a quick sale at a great price. Take advantage of their insight and tips for a better home-selling experience.

1. Invest in your curb appeal

You might be super-proud of your hardwood flooring or custom cabinetry, but what's the first thing a potential buyer sees? Your lawn. Those scraggly trees. The flower beds, or lack thereof. The front door with its faded coat of paint. All these outdoor elements create a first impression, and a good first impression sets the selling stage.

House-flipping pros know a fresh coat of paint on the doors, shutters, and exterior trim can have a much better impact on potential buyers. It's a good idea, too, to invest in a new, stylish mailbox that matches your home's exterior.

Other curb appeal updates can be accomplished with a little spare time and hard work. Clear out any outdoor clutter; ensure that the roof, entry, and sidewalks are clean. Clean outdoor lighting and replace any burned-out bulbs or broken fixtures. Update the landscaping by trimming trees, adding in some annuals for a punch of color, and putting down fresh mulch over all beds. (See also: 6 Ways to Improve Your Curb Appeal for Next to Nothing)

2. Know your neighborhood

Pro flippers know how important it is to make sure a home for sale fits well into its surroundings. If your home is noticeably shabbier than its neighbors, it will stand out, and not in a good way. You run the risk of people seeing it as rundown or neglected.

Conversely, if your home has too many luxury upgrades to fit into the price point of the surrounding area, you might price yourself right out of a sale. Potential buyers want to know they'll be able to resell the house in the future; if it stands out as too costly in an area that doesn't match, you're likely to scare them away.

3. Do renovations right — and highlight them

The 2016 Zillow Group Report on Consumer Housing Trends found that homeowners who tackled a major renovation before selling their home tended to sell for up to 2 percent above the asking price. So if there's a big, obvious project you need to take care of, whether it's a dated bathroom or a sagging roof, it's worth the time and cash to do it.

Just make sure you do the renovations right! Skimping on materials or trying to DIY a project that's beyond your capability can reduce your home's value, not increase it. Hire the professionals you need and pay for good materials. Then highlight the work you've had done, so potential buyers see the care, thought, and cost that's gone into it. (See also: 10 Home Renovations That Almost Pay for Themselves)

4. Make minor upgrades for a major difference

Experienced house flippers know that minor upgrades can make a huge difference in how a home's value is perceived. For example, replacing contractor-standard light fixtures, cabinet hardware, and faucets with premium and custom fixtures can make your home stand out. The custom upgrades are noticeable and differentiate your home from comparable ones on the market.

Consider replacing kitchen appliances with used, high-end models, as well. You can score great deals on a used stove or refrigerator. Homebuyers don't know or care that it's been used by someone other than you; they just notice and appreciate the quality.

5. Stage for a quicker sale

You can stage a house yourself, or you can hire a professional stager. Since staging is somewhat of an art form, it can be worth the price to hire an experienced pro. It's hard for some potential buyers to picture themselves in a home that's already lived in. The magic of staging is that the home looks just lived in enough; it's appealing, stylish, and comfortable, but not too personal.

Professional staging is a relatively small investment, typically costing around 1 percent of the home's listing price. You might be able to pay a little less for a one-time consultation with a professional stager who will give you ideas you can implement yourself.

You might think that staging isn't really necessary, but you'd be surprised by the difference it can make in your home sale. According to a 2015 profile by the National Association of Realtors, many realtors have found that staging can raise a home's value by up to 10 percent. And according to the Real Estate Staging Association, staged houses sell 73 percent faster than non-staged homes.

6. Do some modern marketing

The final expert tip is to use technology to put out some great marketing for your home. Social media is easy to use, and you can approach your ideal buyers as a group instead of waiting for them to come find you. Take (or hire someone to take) great photos of your house, write up a smart description, and spend a little money on targeted advertising on Facebook or Twitter.

Social media advertising can be very inexpensive. Even a couple of dollars a day will put your ad in front of several thousand people in a targeted group. After they see that curb appeal, upgrades, and staging, you'll be selling like a pro flipper in no time.

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This article is from Annie Mueller of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Think Like a Startup to Boost Your Finances

Damian Davila — Fri, 28 Jul 2017 09:00:05 +0000

From tech giants like Facebook, Dropbox, and Instagram, to retailers like Harry's, Warby Parker, and CartFresh, companies who found success as startups seem to be all the rage in business news. But don't take startups as a business fad — there are plenty of personal finances lessons that the average Jane and Joe can learn from them.

1. Focusing on too many things can kill your finances

Spreading your financial goals too thin can often do more harm than good. Successful startup founders often find that a service that does one thing really well works better than a service that tries to do many things.

Venture capitalist and PayPal co-founder Peter Thiel advises all budding entrepreneurs to think hard and pursue a single idea that nobody else is doing. In an article for The Wall Street Journal, Thiel asked entrepreneurs, "What valuable company is nobody building?" The answer to this question is harder than it looks.

Personal finance lesson

Keep things simple. Focus on the biggest issue affecting your finances. For example, hone in on paying back a 401(k) loan or eliminating high-interest credit card debt.

2. Forgetting that cash is still king

Startups famously burn through cash for "growth," believing they will land yet another round of capital the next time around. That plan cannot only backfire, but become the death sentence of some startups. An example of this is server chip designer Calxeda. Despite raising $131 million in four rounds of financing, executives had to shut down operations in 2013 and declared, "We simply ran out of money."

Personal finance lesson

Plan ahead and be ready for periods in which you won't get a constant paycheck. Even when receiving payment from your employer, sometimes paychecks can bounce! Pay yourself first out of every paycheck and build an emergency fund to cover your basic expenses for three to six months.

3. Preparing to be wrong

"Pivot" is among the top three terms most used by startup founders. And for good reason: There are countless stories of million-dollar ideas that flopped but were able to turn into much more profitable ones after a well-timed adjustment.

Take Payal Kadakia, for example, who first founded Classtivity (a self-described "OpenTable for fitness classes") with a pay-per-class model. About two years into operations, Kadakia's service wasn't seeing the user traction that she was seeking. So, she pivoted Classtivity into ClassPass, a monthly $99 subscription that lets users go to any class at any participating gym. Once a struggling startup, ClassPass is now a $470 million business.

Personal finance lesson

If the plan isn't working at all, it's time to change the plan. Consider these facts:

50 percent to 70 percent of college students change their majors at least once and most will change majors at least three times before graduation.
American workers stay on the same job for a median of 4.2 years, according to MarketWatch.
The average person changes jobs 10 to 15 times (with an average 12 job changes), according to data from the U.S. Bureau of Labor Statistics.

Change is inevitable, so welcome it and make the most out of it. It may very well improve your financial situation.

4. Outsourcing nonessential activities

"Spend your calories on things you do well and the things that make you and your business valuable — and outsource things that aren't core to that mission," Jeff Haynie, co-founder and CEO of Appcelerator, wrote for Recode. From accounting to employee meal planning, startups are well known for outsourcing as much as possible to keep overhead costs down.

To improve your overall productivity, Matt DeCelles, co-founder of sunglass retailer William Painter, recommends mapping out all tasks and determining which ones may be better completed by another person. By focusing on core operational activities, DeCelles is able to make the most out of his day. (See also: 11 Time Saving Hacks From the World's Busiest People)

Personal finance lesson

Remember complaining about how you never seem to have time to balance your checkbook, organize your tax deductions, or get an additional quote for a home or car loan? Spending money on "help" to complete these tasks can save you a couple hundred dollars in the long run.

If you think that you need to be a high roller to hire somebody, think again. Leverage gig economy sites such as Fiverr, Elance, ODesk, Fancy Hands, or Zirtual to post your tasks, find talented freelancers, or hire a virtual assistant for as little as $5 to $10 per hour, depending on the type of task.

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This article is from Damian Davila of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Financial Basics Every New Grad Should Know

Matt Bell — Fri, 21 Jul 2017 08:00:11 +0000

If you're a recent college grad, congratulations. As you settle into your first job, you'll probably have more money flowing through your life than ever before.

Take a minute to think of your financial potential. Let's say your starting salary is $45,000. If you're 21 years old, earn a 3 percent raise each year, and work until you're 70, you will have made nearly $5 million by the time you retire! (To use your actual salary and change other assumptions, use this lifetime earnings calculator.)

Here are seven ideas for making the most of your financial potential.

Plan to succeed

To be intentional about your use of money, you need a plan. That's right, you need a budget — or as I prefer to call it, a cash flow plan. Today, free tools such as Mint.com make the process relatively painless.

There are three key activities involved in using a budget: planning, tracking, and adjusting. First, figure out how much of your income you need to allocate to housing, food, clothing, and all the rest of your expenses. Your income will determine how much you have for discretionary spending on, say, entertainment.

Then, keep track of your expenses. You can jot them in a notebook or spreadsheet, or link a tool like Mint to your checking account and credit cards, so it can do much of the tracking for you.

Don't be discouraged if you don't hit your numbers each and every month. Your assumptions may have been unrealistic. Plus, your goals and circumstances will change, so the amounts you allocate for various categories will need to be adjusted over time as well.

Put some away

The key to building wealth is to set aside a portion of every dollar you earn for saving and investing. There are two separate types of savings that are important.

First, there's an emergency fund. In life, stuff happens. An important way to avoid going into debt for that stuff is to have some money set aside in savings. Financial advisers often recommend your emergency fund have enough to cover three to six months' worth of essential living expenses.

But when you're just starting out, you probably have relatively few breakable moving parts in your life. For example, renting an apartment is less financially risky than owning a home. If that's you, having three months' worth of expenses in savings is probably enough.

The second type of savings is for periodic expenses. These are expenses that occur every year, but not every month — things like a semiannual car insurance premium, end-of-year holiday gifts, or a vacation. Take the annual total of each of these items, divide by 12, and then put that much in savings each month. That way, when the expense comes due, you'll have the money already set aside.

Invest for your future

A little bit of money invested each month for a long time and at a decent rate of return will eventually turn into a lot of money you can use for retirement. Using our earlier assumptions (age 21, starting salary of $45,000, and a 3 percent annual raise), if you invest 10 percent of your salary (a good target) and generate an average annual return of 7 percent, by the time you're 70, you will have built a retirement nest egg of $2.7 million!

Bottom line? If your employer offers a workplace retirement plan, such as a 401(k), sign up as soon as possible. And don't miss out on any matching money.

Keep your biggest expense under control

Aim to spend no more than 25 percent of your monthly gross income on housing — even better if you can keep it to no more than 20 percent. If you own, that's the combination of your mortgage, insurance, and property taxes. If you rent, that's the combination of your rent, insurance, and utilities.

Keeping your housing costs within that range will give you the margin you need to save, invest, and enjoy financial peace of mind.

Avoid a car payment

Vehicles depreciate in value quickly, so avoid financing them. If you can't pay cash right away, see if you can go without a car, at least while you save up for one. That may be viable if you live in a city with good public transportation. If not, get the least expensive used car that's highly rated by Consumer Reports.

You're not looking for something flashy. You're looking for a car you can pay off quickly and keep for a long time. By the time you need to replace it, the combination of your savings and the value you'll still be able to get when trading in your current car should enable you to afford a nicer car.

Choose your bank or credit union carefully

Too often, people choose where to open a checking account based on which bank has the best promotion. Once you go to the trouble of setting up online bill-pay with your utilities, insurance providers, and others, the hassle factor involved in changing banks goes up a lot. So, choose carefully.

If you use an ATM frequently, you'll want a bank with lots of ATM locations. And you'll probably want a bank that doesn't charge a fee for a low balance.

Get a credit card

Having a credit card in your own name will help you start building a credit score, which is beneficial for everything from getting a job to paying the least for insurance. (See also: How to Use Credit Cards to Improve Your Credit Score)

If you don't have a credit card already, see if you could get one through your bank. If not, a retailer may be more willing to approve you — but retail cards are notorious for having high interest rates, so make sure you pay off your bills quickly. If you still have trouble, look into getting a secured card. With a secured card, you'll have to put down a deposit, which will usually be equal to your credit limit.

Just be sure to be responsible. That means using your credit card only for preplanned, budgeted expenses, recording any charges in your budget right away, and paying the balance on time and in full each month.

If you take the steps and build the habits described above, you'll give yourself the best possible chance of making the most of your financial potential.

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This article is from Matt Bell of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways Retirement Planning Changes When You're Single

Emily Guy Birken — Fri, 14 Jul 2017 09:01:05 +0000

It can sometimes feel like everything is created with couples in mind — including retirement planning. When every article, tip, and suggestion for retirement starts with the assumption that you are married, you might be forgiven for assuming that retiring solo is just a matter of cutting retirement planning advice in half.

But there are specific challenges and concerns (not to mention benefits!) that single retirees need to prepare for before they hang up their careers. Here are seven ways that preparing for retirement is different for singles.

1. You need to have adequate disability insurance

Relying on no one but yourself can feel pretty liberating. Not only do you answer to no one but yourself, but you also get to enjoy the fruits of your own labor without having to compromise.

The downside to this, however, is figuring how you will protect yourself in case your income runs dry. While anyone who relies on income from their job should carry adequate disability insurance, this is even more important for single workers who may not have another safety net to catch them if a disability makes it impossible to work. You need to protect yourself, your income, and your assets from the possibility you may be unable to work, even before you start the nitty-gritty of retirement planning.

Even if you have disability insurance through work, that may not be adequate to protect you from a loss of income. Make sure you know exactly how much your work insurance covers and for how long, so that you are not left without an income if it's not enough. Also, don't assume that you are immune to potential disabilities just because the most strenuous thing you do at work is operate the copy machine. Illness is behind the majority of long-term absences from work — and anyone can get sick at any time.

2. Prepare for your health care needs

Health care costs are a major concern for all retirees, since this is one aspect of your retirement budget that you may not have control over. According to a 2016 Fidelity study, a 65-year-old couple retiring in 2016 would need $260,000 for health care to cover their medical and health care needs for the rest of their lives.

That dollar figure is frightening no matter your marital status, and it's important that single people recognize that their costs may be higher than just half of a couple's health care costs. That's because many married couples can help each other to remain independent in ways that single retirees would need to pay for. For instance, you may need to pay for someone to help you at home or for entry into a retirement community sooner than a married couple would need those things.

While long-term care insurance has often been touted as a method of mitigating these expenses for both married and single retirees, the cost of this kind of insurance has become prohibitive. To prepare for the possibility of bad health in retirement, singles should also explore creative solutions to long-term health issues. For instance, taking in a rent-free roommate who helps with daily tasks is not only money-saving, but also offers social support. Planning ahead for potential solutions to health and mobility issues can provide you with some imaginative solutions that money can't buy.

3. Assign a power of attorney

It's easy to assume that you can skip the whole issue of legal planning if you are single and childless, but that's not necessarily true. For instance, do you know who will take care of your health care or financial decisions if you should become incapacitated? You need to assign a power of attorney to make sure that your wishes are followed if you cannot make your own decisions.

Your power of attorney also needs to know where to find your important papers and should be kept apprised of any changes in your life or directives. This is the person who will pay your bills and handle your advanced directive if you fall ill. You can either pick someone in your life whom you trust, or hire a professional whom you trust to fill that role.

4. Invest in tax-deferred retirement vehicles during your career

Single workers miss out on a number of tax breaks that are offered to married couples. According to Jane Hodges writing for The Wall Street Journal, "Without child tax credits, a spouse exemption, and no one with whom to realize the benefits of filing jointly, singles can take a pretty big tax punch during peak earning years."

For this reason, single workers have a particular need to invest in tax-advantaged retirement vehicles, such as 401(k) and traditional IRA accounts. These vehicles allow you to make pretax contributions, which lowers your taxable income while also helping you prepare financially for retirement.

5. Consider rolling over into a Roth IRA before age 70½

Of course, Uncle Sam will still want his cut of the income you put in tax-deferred retirement accounts, which can cause a nasty tax surprise for singles post-retirement. That's because withdrawals from tax-deferred retirement accounts are taxed as ordinary income, and single retirees still do not have access to the tax breaks offered to married couples.

This can become a serious problem for some single retirees as of age 70½ because of the required minimum distributions on tax-deferred accounts. Traditional IRAs and 401(k)s require that retirees begin withdrawing a minimum distribution (based on a percentage of total assets) at age 70½, which means you might be facing a surprisingly high tax bracket upon reaching age 70½. You may also be forced to take more money from your accounts than you want or need because of the required minimum distribution.

To protect yourself from this potentially painful tax bite, consider rolling over a portion of your assets from tax-deferred funds to a Roth IRA account before age 70½. Since Roth accounts are funded with after-tax dollars, you will have to pay ordinary income tax on your rollover. However, this will allow you to decide when you will pay those taxes and give you more freedom to keep your money invested if you don't need it.

6. Hold off on Social Security for as long as you can

Options for optimizing Social Security benefits are much simpler for singles. Basically, the only way to get a higher monthly benefit if you are single is to wait. The longer you can wait to receive your benefits between age 62 (the earliest you can take benefits) and 70 (when the benefits stop growing), the more money you will see with every monthly check. Even if you cannot wait until age 70, or your full retirement age (currently age 66), know that each month you delay taking your Social Security retirement benefits means a little more money in your checks.

It's also important to remember that the federal government does not necessarily define single the same way you do. If you are divorced but were married for at least 10 years, then you are eligible for spousal benefits based on your ex's income record. However, you will collect your spousal benefits concurrently with your retirement benefits, so you will only see an increased benefit if your ex-spouse made a lot more money than you did.

7. Embrace the opportunities

While the IRS and Social Security Administration may both make marriage look like the better option — at least financially — it's important for singles to remember how many more opportunities they have available to them than do married couples. That's because a footloose and fancy-free retiree has far fewer obstacles to retirement than does a married couple.

For instance, retiring abroad can be a very economical (not to mention fun) choice, and it is much easier for a single retiree to pull up roots than it is for a couple. Similarly, traveling in retirement can be much cheaper for one, since you do not have to compromise on where you are willing to save money.

Single retirees can also explore alternative living options, like living with several friends — there's an excellent reason why all the Golden Girls were single, after all — or taking in a younger boarder or roommate, or even moving to a cheaper state. Making these decisions solo means you can find the living situation or opportunity that best fits your needs, wants, and temperament.

This article is from Emily Guy Birken of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: