Your Money_ The Missing Manual Part 8

- Look for discounts. Believe it or not, you can find coupons for prescription drugs. Before your next trip to the pharmacy, do a quick Google search for coupons and rebates, or try going to the website for the medication you're interested in.

- Consider pill splitting. Because of the way drugs are priced, it's sometimes possible to get a tablet that's twice as strong for the same (or slightly higher) cost as your normal dose. You then simply cut the pill in two before taking it. To learn more about this option, ask your doctor or pharmacist. (You can read more about pill splitting at WebMD: http://tinyurl.com/pill-splitting.) - Think long term. If you use maintenance drugs (like blood-pressure medication) or have long-term prescriptions, you might save by ordering a 90-day supply. Mail-order programs, like Walmart's (http://tinyurl.com/WM-homepharm), can often get you a 3-month supply for the price of 2 months' worth.

For more info on the costs and benefits of various prescription drugs, visit these sites: - Consumer Reports Best Buy Drugs is a free site that lets you search for drugs by category and offers tips for managing your prescriptions. (You can download a PDF that explains their advice for getting the best price from http://tinyurl.com/CRdrugs.) - WorstPills.org is a subscription-based site from Public Citizen, a watchdog group that aims to warn consumers about possible side effects of various prescription drugs and drug combinations.

And don't forget the best way to save money on medical costs: Stay healthy. It sounds trite, but your health really is your most important a.s.set. Regular exercise and a proper diet reduce the risk of many diseases and improve self-esteem, both of which will help your pocketbook.

Maximum Fun at Minimum Cost Some people are afraid to embrace thrift because they think they'll have to give up everything fun, but nothing could be further from the truth. In many ways, free fun is even better than the stuff you pay for. There's nothing like the satisfaction you get from enjoying a great evening that costs next to nothing.

Your Money And Your Life: Cheap ThrillsDoes being frugal mean you can't have fun? "No way," says Trent Hamm from The Simple Dollar (www.thesimpledollar.com). This Iowa father-and author of 365 Ways to Live Cheap 365 Ways to Live Cheap! (Adams Media, 2009) and The Simple Dollar The Simple Dollar (Financial Times Press, 2010)-believes a thrifty lifestyle can be (Financial Times Press, 2010)-believes a thrifty lifestyle can be more more fulfilling than one where you sh.e.l.l out cash to find happiness. fulfilling than one where you sh.e.l.l out cash to find happiness."I used to run with a crowd that spent a lot of money," Hamm says. "We went golfing all the time. We'd go out for drinks after work several times a week. We had gadget wars, competing to see who could buy the latest and greatest toys." Hamm says it was fun-but costly. "I didn't even use all the stuff I bought!" He had piles of debt and lots of Stuff (How Money Affects Happiness).Things changed when he and his wife had their first child. Instead of going out frequently, he was staying home with his family. This forced him to find other ways to spend his leisure time, and he learned that he didn't need money to have fun."I spent a lot of time walking around town, holding my son," Hamm says. "I began to notice things. Like, I was vaguely aware that my town had parks, but I had no idea the parks had free Ultimate Frisbee leagues. And I didn't know about all the hiking trails nearby."Hamm recommends you look for the fun, not the price: "The mistake most people make is looking for the free stuff first. Look at the things you really really enjoy doing. Once you know what you like to do, there's almost always ways to do these cheaply." For example, Hamm still goes golfing with his friends-but he's found cheaper ways to do it. He doesn't play as often, and when he does he uses public courses and cheap golf b.a.l.l.s. "Why would I spend $30 on a ball?" he says. "I'm not Tiger Woods." enjoy doing. Once you know what you like to do, there's almost always ways to do these cheaply." For example, Hamm still goes golfing with his friends-but he's found cheaper ways to do it. He doesn't play as often, and when he does he uses public courses and cheap golf b.a.l.l.s. "Why would I spend $30 on a ball?" he says. "I'm not Tiger Woods."

Here are some ways to have a good time without spending your last dime: - Play games. A deck of cards costs a couple of bucks. A fancy board game costs about $40-or less if you find it on Craigslist.org. Either one will provide hours of fun with friends and family. (You can still have poker nights with your buddies, just do away with the high-stakes jackpots.) - Take up a hobby. Some of the best times you'll ever have come from pursuing your favorite interests. Gardening and playing music are two great examples of hobbies that cost something up front, but which yield great rewards down the road. Things like knitting and woodworking can be expensive, but if you're knitting a scarf or building a table, those useful items mitigate some of the cost. And if you sell the things you make, you can even earn money.

- Read. Don't overlook your public library, which has a wealth of entertainment options, including books, magazines, CDs, DVDs, audio books, lectures, Internet access, board games, story time, and more. Some libraries even give pa.s.ses to zoos, museums, and other cultural inst.i.tutions. The library is like a giant entertainment warehouse, and since you pay for it with your tax dollars, you might as well get some use out of it!

- Take a cla.s.s. Strictly speaking, this option isn't low cost. Community-ed cla.s.ses usually run about $50, and cla.s.ses at your local community college might be up to $200. Even though you have to sh.e.l.l out some money for these cla.s.ses, you're not only having a good time while you learn about woodworking or French or computer programming, you're also picking up a skill you can use to improve your life.

- Exercise. Physical fitness is some of the cheapest fun there is, and study after study shows that exercise improves both physical and mental well-being. If you're bored by walking, running, or biking, check into city league sports.

- Use what you own. If you're like most Americans, you have stacks of CDs, DVDs, books, and magazines sitting around your house. When was the last time you watched your complete set of Star Trek tapes? That's weeks (or months) of fun right there. If you start using the Stuff you own, you might never run out of things to do.

- Explore your community. Search out the cheapest deals in your town, like movie theaters or museums or Mexican restaurants. Spend a Sat.u.r.day touring yard sales or browsing the local shops you've never bothered to visit before. Attend a high school musical or an open-mic night at the coffee shop. Stroll through nearby parks. Your city or town likely has tons of cheap entertainment, but most people are too busy to notice.

The key, as always, is to do what works for you. Choose activities that you enjoy and find ways to do them for less. No matter what you're into-photography, knitting, restoring old cars-there are people who have found ways to do it without spending lots of money. If you're clever and resourceful, you can connect with these frugal folks and learn their techniques. (The Internet is always a good place to start.) You can find dozens of other ideas for frugal fun in this discussion at Get Rich Slowly: http://tinyurl.com/GRSfrugalfun. And don't forget what you learned in Chapter1 Chapter1: A life well-lived is rich in relations.h.i.+ps and experiences, so get out there and do things with other people.

Save While Shopping If you're trying to save money, shopping can be dangerous. Sure, you have to buy some things like food, pet supplies, and new underwear, but, especially if you're a recovering shopaholic (Curbing Compulsive Spending), shopping can tempt you to buy things just for the thrill of it.

Thrifty people still shop, but they shop for things they need, not just for fun. They understand that shopping is a means to an end-and they realize the dangers of being burdened by too much Stuff (The Tyranny of Stuff).

Some people recommend window-shopping as a subst.i.tute for the real thing. If you think you can do that without spending, go ahead. But be careful: It's often better to avoid the temptation altogether.

TipSome savvy shoppers save money by playing the "drugstore game" (http://tinyurl.com/drugstore-game). By combining coupons and sales, they score amazing bargains from free toothbrushes to cartloads of household goods for just 5 or 10 bucks. For more on this sort of saving, visit www.moneysavingmom.com.

When you do shop, keep these guidelines in mind: - Shop with a purpose. The key to keeping your shopping under control is to buy only what you need. It may help you to shop with a list, just like at the grocery store. Knowing exactly why you're shopping can help keep you from getting distracted.

- Don't be afraid of used. Buying used items has something of a stigma in the U.S. But a recent poll by Harris Interactive showed that 70% of American adults say that it's now more acceptable to buy used than it was a decade ago. If you're on a tight budget, used stuff can be awesome. You can find all sorts of great bargains on Craigslist.org and eBay.com and at yard sales around town. And don't forget to check your local thrift stores, which carry more than just clothes: Many are great places to find furniture, kitchenware, and even inexpensive entertainment. (For more thrifting tips, check out www.thethriftshopper.com.)NoteSome things are actually better used. Here's Liz Weston's list of 10 things you shouldn't buy new: http://tinyurl.com/Liznonew.

- Beware of shopping momentum. Researchers at Stanford University warn that shopping can lead to more shopping: At first you deliberate over whether to buy something, weighing the pros and cons. But once you've made the decision to buy, you spend less time deciding on additional purchases. This phenomenon, dubbed shopping momentum, increases the likelihood you'll buy more.

- Something you'll never use isn't a bargain. It's tempting to pick up stuff you know is dirt cheap. But even if you save 90% on a salad spinner, it's money wasted if you never use it. A deal is only a deal if it's something you had a need for before you saw it. So only buy what you know you'll use-everything else is just Stuff (The Tyranny of Stuff).

Finally, here's a flowchart April Dykman created to help her stay on track while shopping (http://aprildawnwrites.wordpress.com/). It helps her keep emotions out of the buying process so she can focus on just the things she needs.

[image]

Using such a flowchart may be a little too much for you, but a tool like this can help people who struggle with compulsive spending (Curbing Compulsive Spending) make conscious choices instead of buying impulsively. If you don't need the flowchart but want a little help, here are 10 questions to ask when you're tempted to buy: http://tinyurl.com/GRS10questions.

On The Money: Online ToolsSometimes you can find the best deals at the mall by turning to your computer. A growing number of websites can help you save money-even if you're not shopping online. Here are some good ones: - FatWallet (www.fatwallet.com) is one of the oldest, largest, and most-respected money-saving sites. It lists coupons and cash-back offers, and has a section highlighting top deals. But the best part is the discussion forum, where you can find out about the best bank accounts, travel deals, and more.

- RetailMeNot (www.retailmenot.com) started as a database of online coupon codes for discounts at popular shopping websites. It now also includes printable coupons for supermarkets and other stores.

- PriceProtectr (www.priceprotectr.com) lets you save money after you buy things. A lot of stores have price-protection policies-if they lower the price on an item you've bought, they'll refund the difference. The catch: You have to notice the price drop, and who has time for that? PriceProtectr does! Simply tell it you bought a new plasma TV from Target, for example, and the site will email you if the price falls.

- Wishpot (www.wishpot.com) lets you save all the things you're shopping for online in a wish list or registry. This keeps you from buying impulsively and creates a place for your friends and family to go to see what sorts of gifts you might want.

The Tyranny of Stuff There's one huge way to save money that few people talk about: Own less Stuff.

In his brilliant essay ent.i.tled "Stuff" (www.paulgraham.com/stuff.html), Paul Graham writes that before you buy anything, you should ask yourself, "Will this be something I use constantly?"

Graham used to pick up free Stuff from the side of the road. He'd buy something at a garage sale simply because he could get it for a tenth of what it cost new. Eventually he realized that nothing is a bargain if it just sits in the garage or a storage unit. Things only have value if you use them. (For info on the outrageous cost of storing Stuff, check out http://tinyurl.com/cost-of-stuff.) On The Money: The Science of ShoppingIf you want to spend less at the supermarket or shoe store, get a copy of Why We Buy: The Science of Shopping Why We Buy: The Science of Shopping (Simon & Schuster, 2008) from your local library. In the book, Paco Underhill suggests ways to win the retail battle, including: (Simon & Schuster, 2008) from your local library. In the book, Paco Underhill suggests ways to win the retail battle, including: - Spend less time in stores. Underhill writes, "The amount of time a shopper spends in a store (a.s.suming he or she is shopping, not waiting in line) is perhaps the single most important factor in determining how much he or she will buy." The takeaway: Don't browse; shop with a purpose (Save While Shopping).

- Only seek employee contact when you need help. There's a reason the employees are so eager to please at your favorite store: Interacting with staff makes people buy more. Underhill notes "the more shopper-employee contacts that take place, the greater the average sale." So steer clear of clerks unless you have a specific question.

- Just say no to samples. Research shows that people are more likely to buy something if they sample it first. So don't try the samples at the giant warehouse store-they'll just tempt you to spend more.

- Hands off. The more you interact with something, the more likely you are to buy it. According to Underhill, "Virtually all unplanned purchases-and many planned ones, too-come as a result of the shopper seeing, touching, smelling, or tasting something that promises pleasure, if not fulfillment." So when you're out shopping, keep your hands (and nose, and mouth) to yourself.

- Have Mom do the shopping. 6070% of supermarket purchases are unplanned, and men are bigger culprits than women. One study found that almost all women take shopping lists to the supermarket, but less than a quarter of men do.

For many compulsive spenders, Stuff is comforting. When these people buy things (even on credit), they feel wealthy. But in time, Stuff becomes clutter. One of the great things about setting goals and recognizing what gives meaning to your life is that it helps you differentiate the Stuff from what's important. For example, to you, that weight bench in the bas.e.m.e.nt may be an integral piece of your life plan, but to someone else, it's just another piece of Stuff.

Stuff plays a huge role in your happiness-or unhappiness. Stuff costs money to buy, store, move, and maintain. But the costs aren't just financial. There's a real mental toll to having too much Stuff: You think about it and worry about it; it becomes a burden.

There's nothing wrong with owning things you use and value. The problem is acc.u.mulating Stuff you never use. The best way to cope with Stuff? Don't let it into your home in the first place.

TipEvery time you buy something, it has an impact on the world around you. Buying fewer things means a little more money in your pocket and a little less pollution in the world. So do your part for the environment: Buy less Stuff.

Here are some ways to guard against Stuff: - Ignore the Joneses. Peer pressure is powerful, and one of the most dangerous paths to clutter (and overspending) is the urge to own as much as your friends do. But life isn't a compet.i.tion. Learn to be content with what you have; owning more Stuff won't make you happier.

- If you don't need it, don't buy it. In his book Clutter's Last Stand Clutter's Last Stand, Don Aslett argues that the value is in the using, not the owning. "No matter how you look at it," he writes, "clutter is a poor investment." So buy only what you need.

- Focus on experiences, not things. As you learned in Chapter1 Chapter1, experiences are more likely to make you happy than material goods. Of course, experiences cost money, but a trip to Thailand, a nice dinner with friends, and the entrance fee for a marathon all have one thing in common: They don't take up s.p.a.ce. You get value for your money without any residual Stuff.

- Practice the one-in, one-out rule. Try to keep a steady state of Stuff. If, for example, you have 12 pairs of pants and buy another, get rid of an old pair to prevent Stuff from building up.TipHere's another strategy: Every week, fill a bag with Stuff you no longer want or need. At the end of the month, give the four bags you've filled to the charity of your choice-and start filling another bag. This is an easy way to slowly purge clutter from your life. (If you itemize your tax deductions, make a note of what goes into the bags so you can save on taxes at the end of the year.) - Focus on quality. Base your buying decisions on the value an item will give you. Often it makes more sense to have one excellent, expensive item than several lousy, cheap ones that just clutter up your home.

- Borrow and lend. When you borrow and lend among friends, each person needs to own less, so you share the joy of having less Stuff. And why own thousands of books when there's a public library down the street?

- Ditch packaging. Why buy DVDs when you can use Hulu.com or Netflix? Why purchase CDs when you can get songs through iTunes? If you don't need the packaging, don't buy it.

- Reduce advertising exposure. Many people report that they buy much less Stuff when they stop watching TV. But radio programs, newspapers, magazines, and the Internet are all filled with ads, too. The more you avoid-or ignore-advertising, the less you'll be tempted to buy.

TipMany web browsers let you install plug-ins (little additions to the program) that help block ads, like this one for Firefox: http://tinyurl.com/FFadblock. Search around online to see what's available for your browser or ask your geeky friends for recommendations.

For more about the tyranny of Stuff, check out Unclutter Your Life in One Week by Erin Doland (Simon Spotlight Entertainment, 2009), Clutter's Last Stand by Don Aslett (Marsh Creek Press, 2005), and It's All Too Much by Peter Walsh (Free Press, 2007). These three websites are also great resources: http://unclutterer.com, www.flylady.com, and http://mnmlist.com.

As you purge Stuff from your life, you come to realize that all you really need are the bare essentials-everything else is just Stuff.

Leading a Rich Life on a Budget Frugality keeps you focused on your goals. When you buy generic food at the grocery store or get your clothes at a thrift shop you're not being cheap-you're prioritizing and working toward a greater goal. You're not depriving yourself-you've decided to live debt-free or follow a spiritual ideal or save for a trip around the world. Small, frugal, everyday choices can help you attain these big aims.

TipOver the years, the readers at Get Rich Slowly have suggested tons of ways to feel rich while being frugal. The most common suggestion? Give to or volunteer at a church or charity. (For more on this, see Church, Charity, and Community Church, Charity, and Community.) It's all about balance. When you cut spending on things you don't need, you can indulge in things that really matter to you. Frugality isn't about depriving yourself of everything you enjoy; it's about making smart choices to reach your goals.

We all like nice things, and there are plenty of ways you can have nice things without spending a lot. More importantly, being frugal can help you feel a sense of achievement from money saved, not money spent. Remember that buying things won't make you a better person-you aren't what you own. As Tyler Durden says in Fight Club, "You're not your job. You're not how much money you have in the bank. You're not the car you drive. You're not the contents of your wallet."

When you stop wanting to always have the newest, best things and you realize that money is in no way connected to your self-worth, you'll not only be better at managing your finances, you'll be happier, too.

Chapter6.How to Make More Money.

"Your greatest a.s.set is your earning ability."-Brian Tracy As you learned in the last chapter, frugality is an important part of personal finance: By managing your expectations and living within your means, you're more likely to be wealthier and happier. But cutting costs isn't the only way to boost your cash flow. If your goal is to build wealth, you'll get the best results by looking beyond frugality to increasing your income.

For most people, this means managing a career effectively: finding the right job, learning how to ask for a raise, and knowing when to move on. Others can up their incomes by selling stuff they already own, pursuing money-making hobbies, or starting their own businesses. This chapter explores all these ways to get more cash coming in.

Working for Others Your health is your most valuable financial a.s.set, but your career is a close second. Few things affect your financial situation-and your happiness-as much as what you do for a living.

Positive cash flow (The Power of Positive Cash Flow) is important. It lets you avoid debt, buy things you need, and save for the future. But you can't have positive cash flow without income. And unless you've won the lottery or inherited a ton of money from Aunt Mabel, your main source of income is your job, so you should make the most of it. This section offers pointers on how to do just that.

For Love or Money: Which Career Should You Choose?

Before you can start down a career path, you have to decide what to do for a living. Should you pursue your pa.s.sion, doing work you love regardless of how much you earn? Or should you focus simply on the money? In his essay on how to do what you love (www.paulgraham.com/love.html), Paul Graham writes: Finding work you love is very difficult. Most people fail. Even if you succeed, it's rare to be free to work on what you want till your thirties or forties. But if you have the destination in sight you'll be more likely to arrive at it. If you know you can love work, you're in the home stretch, and if you know what work you love, you're practically there.

Some folks claim that if you do what you love, the money will follow. Others say that a job is just a job-you're not meant to like it. The truth is somewhere in between. There are few things worse than a job you hate. Lots of people do enjoy fun, fulfilling careers-and earn a good living at it-but these dream jobs don't just magically appear.

To find a promising career, you have to take certain steps: 1. Decide what you want to be when you grow up. Don't just pick a job because it pays well; have a goal in mind (see Setting SMART Goals Setting SMART Goals). Choose a field based on your interests and experience, and know where you want to go in that field. If you don't know what you want to do, explore: read, take cla.s.ses, and talk to people about their jobs (see the box on Taking a Second Job Taking a Second Job). For more inspiration, read Richard Bolles's cla.s.sic book What Color Is Your Parachute What Color Is Your Parachute? (Ten Speed Press, 2009).Your Money And Your Life: Finding Your Sweet SpotIn his book Good to Great Good to Great (HarperBusiness, 2001), Jim Collins describes how successful businesses are built by finding the sweet spot where pa.s.sion, excellence, and economics meet. You can apply this idea to your own career. To help decide what you want to do, think about what you're pa.s.sionate about, what you do best, and what people will pay you to do. (HarperBusiness, 2001), Jim Collins describes how successful businesses are built by finding the sweet spot where pa.s.sion, excellence, and economics meet. You can apply this idea to your own career. To help decide what you want to do, think about what you're pa.s.sionate about, what you do best, and what people will pay you to do.[image]Figure6-1.Finding Your Sweet SpotThere's a sweet spot where these three things overlap. In real life, that spot is where you find work you love, are good at, and can earn a living at. But if one of these pieces is missing, you haven't found your sweet spot. For example, if you're good at something and people will pay you to do it, but you're not pa.s.sionate about it, you'll still hate your job.Once you find your sweet spot, try to organize life so you can spend your time doing that thing. Whether you work for yourself (Working for Yourself) or somebody else, this is the key to a meaningful, rewarding career.TipThe Department of Labor's Occupational Outlook Handbook Occupational Outlook Handbook ( (www.bls.gov/oco/) lists hundreds of different jobs and describes their educational requirements, earning potentials, future prospects, and typical working conditions.

2. Start at the beginning. Once you've picked a field-and received the required education or training-find a job, but be patient: Don't expect to graduate with a degree in library science and immediately be the head librarian at a prestigious university. It would be great if we could all have our dream jobs by age 21, but that's not how it works. You have to start low on the totem pole and work your way up. The sooner you start, the sooner you'll reach your goals.

3. Get the most from the grunt work. Since entry-level jobs are unavoidable, use them to your advantage. If you're a receptionist or a file clerk, make the most of it: Use your time to learn the jargon, make connections, and understand the industry. To excel in any field, you have to be in it every day. So do the drudgework, but make it count.

No matter what career you choose, follow the age-old advice: Keep a good att.i.tude. Learn how to deal with your boss and coworkers. Rise above the gossip. Help others succeed by sharing credit and taking your share of the blame. Know when to ask for help and when to take charge. Be curious. Solve problems. Learn from those around you. Work hard and be professional. Do these things and you'll gain knowledge and skills you can apply to every job you ever have.

TipFor 20 tips on how to nail a job interview, visit www.howtonailaninterview.com.

Starting on the Right Foot: Salary Negotiations Your pay doesn't necessarily reflect your performance or seniority. In fact, your buddy who does the same work you do (and just as well) may get paid twice as much. Why? Because he's a better negotiator.

One of the best ways to increase your income is through salary negotiations, either when you're first offered the job or when you have a performance review. Salary negotiations make a lot of people uncomfortable, but they're extremely important.

"We spend years thinking about what we'll be when we grow up," Jack Chapman writes in Negotiating Your Salary Negotiating Your Salary (Ten Speed Press, 2001). "But when it's time for a raise, most of us just accept whatever we're offered. How many minutes do we spend negotiating the money? Zero." (Ten Speed Press, 2001). "But when it's time for a raise, most of us just accept whatever we're offered. How many minutes do we spend negotiating the money? Zero."

Chapman argues that with just a little effort, you can make the case for a higher salary during a review or a job interview. Asking for what you're worth during those few minutes can make a difference of hundreds of thousands of dollars over your lifetime.

NoteThe best way to get the salary you want is to make yourself a desirable employee. This means you have to work hard and well, which puts you in a position to ask for-and get-a better salary.

Here are Chapman's five rules for negotiating your salary when interviewing for a job: 1. Postpone salary negotiations until you're offered the job. Let your potential employer decide whether you're the right candidate, and then talk about money. The same is true of raises-discuss them after you have your performance review. (The next section has more about asking for a raise.) 2. Let them go first. It's hard to come out ahead by naming a number, so let your employer suggest a salary. Lots of people find it awkward to evade direct questions about salary history. For these folks, Chapman has posted a short video that explains how to answer questions about salary expectations: http://salarynegotiations.com/Video.htm. (Also see Penelope Trunk's advice on the subject: http://tinyurl.com/BCsalary.) 3. When you hear their offer, repeat the top value-and then stop talking. "The most likely outcome of this silence is a raise," Chapman writes. This technique buys you some time to think while putting pressure on the employer. For more on this step, check out Chapman's video about it: http://tinyurl.com/theflinch.

4. Counter their offer with a researched response. Next, make a counter-offer based on what you know about yourself, the market, and the company. This means you have to do some research beforehand so you know the reasonable salary range for the position.

5. Clinch the deal-then deal some more. Finally, lock in the offer, and then negotiate additional benefits like extra vacation days or a company car. This is like agreeing on the price of a car before you negotiate the value of your trade-in (see Sell your old car separately Sell your old car separately).

Chapman's book has detailed info on each of these five steps. It also offers tips for determining your fair-market value (though you can do a lot of that online at sites like PayScale.com, SalaryScout.com, and Gla.s.sDoor.com) and applying these techniques to raises and performance reviews. It also explores situations where you should break these rules.

The average person doesn't spend enough time looking for ways to boost his income. Learning how to negotiate your salary when applying for a job is one of the best ways to improve your financial position. And as the next section explains, once you have a job, it's important to know how to ask for a raise.

On The Money: The Value of a College EducationDoes earning a college degree make a difference in your financial future? Absolutely! The facts are striking: On average, people with college degrees earn almost twice as much folks who never attend college.Here are the U.S. Census Bureau's median 2007 income levels based on education (see Caught Up in the Rat Race Caught Up in the Rat Race for a refresher on medians): for a refresher on medians): Highest Level of Education Completed Median Income Increase over Level Below Some high school $19,405.

- High school degree $26,894.

38.6%.

Some college $32,875.

22.2%.

College $46,805.

42.4%.

Advanced degree $61.287.

30.9%.

Of course, these are just statistics: Getting a college education doesn't guarantee you'll end up earning more money than you would otherwise. Some English majors wind up working in convenience stores and some high-school dropouts end up running multi-million dollar corporations. But in general, completing college has a huge impact on how much you earn in your lifetime-it can be worth a million dollars!For more on the financial benefits of a college education, check out http://tinyurl.com/college-census.

How to Ask for a Raise If you do a good job, keep a positive att.i.tude, and help your boss meet her goals, you should expect regular raises. But not every company is as free with the salary b.u.mps as they ought to be. (In fact, some employers-such as government agencies-can't give discretionary raises at all!) And, of course, if the economy is in the toilet, even companies that used to regularly give raises may have to tighten their belts.

The best way to get a raise is, well, to ask for one. If you think you deserve a raise but haven't heard that anything is in the works, schedule a meeting with your manager. Keep these tips in mind: - Make your case. Draw up a list of ways you've helped the company, and try to state these achievements in dollar terms, if you can. For example: "By creating the new maintenance schedule for our delivery trucks, I've saved the business $10,000 over the past 3 months." Be honest and don't exaggerate. Try to think of things from the company's point of view-n.o.body's going to give you a raise just because you need extra cash.

- Do your homework. Before you meet with your boss, have a target salary in mind. Use sites like PayScale.com, SalaryScout.com, and Gla.s.sDoor.com to research the going rate for similar jobs in your area. (Better yet, ask around to see what colleagues at other firms are earning.) - Seize the moment. The best time to ask for a raise is after a strong performance review or after your boss gives you new responsibilities. You're not ent.i.tled to a raise simply for coming to work every day, but you've got a right to request one if you're doing good work.

- Don't complain. Be positive and professional: Emphasize your strengths and accomplishments, and give examples of how you've helped the company. Don't gripe about your workload or other employees.

- Follow up. After your meeting, be sure to follow up on any promises your boss made. Get the details of the raise in writing, and keep an eye on your paycheck to make sure it goes up when it's supposed to.

TipIf your boss turns down your request for a raise, ask what you need to do to earn one and when you can meet to discuss the subject again.

If you're really an a.s.set to the company, they can almost always find enough money for a raise. Businesses know that it's better to pay a bit more to keep a proven performer than to go through the ha.s.sle and risk of hiring somebody new.

NoteDon't ask for a raise if your work isn't up to snuff. Raises are rewards, not ent.i.tlements. Your boss will be more willing to give you a raise if you make her life easier. That doesn't mean you have to suck up-just make her look good.On The Money: Earning More Without a RaiseRaises and promotions aren't always options-especially in a rocky economy. Here are a few ways to get more for your labors-even if your paycheck stays the same: - Use your company's retirement plan. If your employer offers a retirement plan, take advantage of it-especially if the company matches your contributions. Never turn down free money! (See if the company matches your contributions. Never turn down free money! (See Chapter13 Chapter13 for more on retirement savings.) for more on retirement savings.) - Refer a new employee. Some companies will pay you a bonus if you refer someone who ends up getting hired. (Check with your HR department for specifics.) At the very least, helping the company out this way will earn you some goodwill.