SavvySugar

What Can You Buy With One Day's Worth of Salary?

OnSugar Blog — Sat, 19 May 2012 03:13:44 PDT

Do you ever think about how much you make each day and how much that really buys? This post from Beauty and the Budget really got me thinking.

What can you buy with one day's worth of your salary? Right now, I make about $76 a day, before taxes, which really isn't much. That means that on Monday, when I made an after-work Rite-Aid makeup run, I practically worked an entire day for a tiny tube of RoC Eye Cream ($21.99 at Ulta), a small bottle of Olay Total Effects Anti-Aging Moisturizer ($18.69 at Ulta), Maybelline Colossal Mascara ($6.99 at Ulta), and a can of Salon Grafix Invisible Dry Spray Shampoo ($5.99 at Ulta). Plus I bought an Apple Pecan Salad from Wendy's ($6.99) for lunch. All my money was spent in one day. I really wanted to kick myself when I came to that realization. It was like a spiritual financial wakening.

Of course, I believe I invested wisely in a great eye cream and an anti-aging moisturizer (all of which I am hoping will last at least four to five months), but I'm still disappointed that my money disappeared in a day. I could have put that money toward new contact lenses or my next oil change.

On a much lighter note, let's have a little fun with this topic. To make it easy, let's say you make $10 an hour. That's $80 a day for a full 40-hour workweek. You're definitely on a budget at that rate, especially if you're supporting yourself. Let's look at all your spending options, and tell me which item you're most likely to go for!

Earning $50,000 Will Make You Happy

LearnVest — Wed, 02 May 2012 00:15:28 PDT

The magic number for happiness is apparently $50,000. LearnVest tells us more about it.

Good news! Apparently, happiness is on sale for the new, low price of $50,000.

Nope, we’re not talking about private trips to outer space, or even tuition for an Ivy League college. Apparently, all you need to be happy is $50,000 in yearly income.

That’s the finding of a recent poll by the Marist Institute for Public Opinion, which saw big differences in almost all facets of happiness between those who earn less than $50,000 and those who earn more.

Call it the happiness tipping point, if you will.

Respondents to the poll who made more than $50,000 were more satisfied with their lives concerning factors ranging from friends, to health, to how they spent their time. Unlike getting a raise from $35,000 to $40,000, or even $60,000 to $65,000, “$50,000 is the mark where you start to see significant differences,” researcher Susan McCulloch told LearnVest.

Happiness: Now 33% Off!

Depending on your own situation, $50,000 might sound like a lot. But this is actually a steep discount from what studies previously cited as the golden number: $75,000. A 2010 study from Princeton University’s Woodrow Wilson School found that, up to $75,000, each boost in income increased participants’ happiness. But after that, bringing home more income ceased to matter in their overall life satisfaction.

Read on for more.

8 Things Not to Do When You're Asking For a Raise

Emily Co — Tue, 17 Apr 2012 12:25:19 PDT

In addition to Tax Day, there's another big occasion happening today. It's Equal Pay Day, a day that us women aren't exactly celebrating. That's because we're far and away from making equal pay to our male counterparts. Let's make some progress by making plans to ask for a raise, but before you do so, keep these salary negotiating mistakes in mind when negotiating your salary bump.

Don't bring up your co-worker's salary. Sure, it's not fair that a certain co-worker is making more and you may feel that you're more deserving of a higher salary, but let's not turn this into a "he said, she said." First of all, you may not have all your facts right, and bringing up your colleague's salary will put your manager into an uncomfortable position. What you should do is compare what you're making to the industry average. Research figures and get them from sites like Glassdoor.com, or you can even reach out to your alma mater to see if they have stats on what the alumni are making. Using the industry average will reflect well on you and will show your boss that you've been doing your research.
Don't make it personal. The reason for your raise will be professional, so keep that in mind when you're asking for more. Your student loans may be more than you can handle or maybe your husband recently lost his job so you're falling behind on your bills, but that's not the reason that will get you your raise. There are lines you shouldn't cross into personal territory, and this is one of them. What you need to do is write a list of your wins at work, which will show your boss that you do deserve that increase in salary.
Don't get emotional. If things are not going your way or if you feel that your employer is wronging you, don't get emotional. Oftentimes, the reaction you have when you're emotional is probably more intense than if you had given the situation some time to think over. Collect yourself and don't let your boss see that you're upset. Instead, take some time to think it over after your meeting to carefully craft your next move.
Don't be negative. Don't start complaining or whining about how unfair your wages are. Instead, take the more positive approach and show your boss why you think you deserve more. Being assertive will earn your manager's respect.
Don't underprepare. Before having this talk with your boss, make sure that you've done a lot of prep. Do research so you know what figure to aim for and write out a list of accomplishments that you'd like to mention, so you won't forget any details.

Read on for more.

Savvy Confessions: I'm Not Happy With My Pay

Savvy Community — Thu, 05 Apr 2012 00:15:51 PDT

This reader posted in our anonymous Savvy Confessions group, saying that she's frustrated with her pay.

I know it's a rule that talking about how much you make at work is forbidden. I have been at my job for five years and I recently found out that someone who does significantly less work, has only been with the company for two years, works at a lower position, and does not have a degree makes the same as I do. It's very frustrating because I still live at home and am saving as I cannot afford the cost of living on my own with the amount I make. Not only does she make as much as me, but she also doesn't use our health insurance (she gets it from the state as a single mom) or invest in her 401(k), so she probably takes home twice as much as me! I would never not pay for my insurance or not invest in my retirement just so I can have more money in my pocket. With my review coming up, I just pray that my boss compensates me fairly for all the hard work I do.

Pose your own anonymous questions or off-load your work confessions by posting in the Savvy Confessions group, and I'll find the right expert to help you out.

6 Careers For People Who Want to Make Lots of Money

Emily Co — Thu, 15 Mar 2012 03:05:38 PDT

Sure, we'd all love to find our dream job, but sometimes living off happiness fumes just isn't enough. There are needs to be met, and money definitely helps us achieve some of life's necessities, or at the very least, make things more comfortable and convenient. Is making lots of moola your biggest goal? Read on to find out which careers to shoot for.

Do Gorgeous People Earn a Higher Salary?

LearnVest — Fri, 09 Mar 2012 00:15:24 PST

We're thrilled to present this smart LearnVest story here on Savvy!

Pretty is as pretty does? Maybe according to some. But when viewed through the lens of economics, beauty may be your ticket to getting hired, earning more, and landing a wealthier spouse.

Or so says Daniel Hamermesh, a professor of economics at the University of Texas at Austin and author of the new book Beauty Pays: Why Attractive People Are More Successful.

According to his calculations, a good-looking person will earn, on average, $230,000 more over the course of a lifetime than someone who is perceived as less attractive.

We didn’t like the sound of this, so we decided to speak with Hamermesh about his controversial stance. We sat down with him to discuss why being unattractive hurts men more than women at work, and the one factor that will influence what you earn even more than beauty.

You’ve pioneered the field of pulchronomics - or the economics of beauty. Why?

I started working in this stuff 20 years ago. I had seen some data about beauty and realized that beauty is scarcity, and since economics is about scarcity, this is an economic field of study. Before, there were only studies that had been done with very small sample sizes, and there wasn’t much analysis of the findings. Now there are a huge number of people working on research.

Does everyone agree on who is beautiful?

We don’t all agree perfectly on who’s a five and who’s a one, but we do agree pretty closely, even across cultures.

Symmetry is part of it, but you can’t do this mechanically. Is it age? It’s no question - yes. I say it in the book and show it with data: if you ask someone to rate someone’s looks adjusted for age, we simply can’t do it. We rate younger people higher. It’s especially true for women, unfortunately.

Read on for more.

You Should Ask For a Raise Now

Emily Co — Tue, 21 Feb 2012 14:18:48 PST

If you've been working yourself to the bone and promising yourself that you'll ask for the raise when things start looking up - this might be a good time to do it.

Things are looking better and according to economists at Econbrowser, which analyzed the 2012 Economic Report of the President, ". . . one would be hard pressed to find American business in terrible shape. Productivity has increased, labor compensation growth has been modest, so that it’s obvious where profits have come from. This also means (to me) that there is substantial space for rising wages to be absorbed without a commensurate wage-price spiral."

Of course, if you're satisfied with the raise you got at the end of the year, it might bit too soon to ask for another one. However, if you're unhappy with your pay or if you didn't get a raise, start making plans to ask for higher pay. When you're prepping for this meeting with your boss, make sure you do your research on the amount you deserve and cite evidence of why you deserve this salary bump.

The (Monetary) Worth of a Stay-at-Home Mom

LilSugar — Tue, 14 Feb 2012 11:34:38 PST

Being a stay-at-home mom is an anomaly of a lifestyle. It's one of the only "jobs" around where it's absolutely mandatory to be on call 24/7, 365 days a year. And it's also the only job that's this demanding, yet comes without a salary. Needless to say, we were intrigued to discover Investopedia's "How Much Is a Homemaker Worth?" Check out their calculations below, and tell us whether you think this is an accurate accounting . . . or way off.

The Value of a Stay-at-Home Mom:

Private Chef
The American Personal Chef Association reports that its personal chefs make $200 to $500 a day. Grocery shopping is another chore that needs to be factored in, as grocery delivery services generally come with a $5-10 fee.

Total cost for services: $1,005 per five-day work week x 52 weeks = $52,260 per year

Housekeeping
From vacuuming, dusting, sweeping, and scrubbing, to dealing with dirty dishes and making beds, unless she has regular help, household chores are also the responsibility of a stay-at-home mom.

Total cost for services: $118 per week x 52 weeks = $6,136 per year

Child Care
The International Nanny Association's 2011 survey reported that nannies on average take home between $600-950 per week (and that often includes perks like health insurance, paid vacation and sick days, and federal holidays off - not so much for supermom).

Total cost for services: $600 per week plus perks/benefits x 52 weeks = $31,200 per year

Driver
Employing a private car service may seem like a luxury to most, but getting the gang where they need to be, on time, is all in a day's work for a stay-at-home mom. An elite membership with a service like Red Cap, which provides drivers for the client's own car(s), runs about $1,000, plus between 33 cents and $2 per minute.

Total cost for services: $1,000 per year (plus estimating 8,000 miles driven/50 miles per hour at 33 cents per minute) = $4,168 year

Laundry Service
Professional laundry services charge by the pound. Texas-based Susie's Suds Home Laundry Service said that they charge between 90 cents and $1 per pound to wash, dry, fold, hand, and steam your clothes. Items that take longer to dry (comforters, blankets, rugs, winter coats, etc.) are assessed at $12-15 each.

Total cost for services: 90 cents per pound x 4 pounds of clothes per day x 5 days per week x 52 weeks = $936 per year

Lawn Maintenance
While this category probably doesn't apply to city moms, or those who employ a gardening service (or have a lawnmower-friendly husband), there are plenty who do handle outdoor landscaping. Assuming that these services cost about $30 per week . . .

Total cost for services: $30 per week x 52 weeks = $1,560 per year

And the grand total is . . . $96,261

How-To: Determine If You Can Live on One Income

SavvySugar — Thu, 02 Feb 2012 10:08:03 PST

There are too many families who were taken by surprise when one breadwinner suddenly lost his or her job, but some couples might choose to give up an income for one reason or another. Maybe one person was offered a job in another city, leaving the other one without employment, the couple wants one parent to stay home with the kids, one half of the duo is miserable at work and wants out ASAP, etc. Before you make the choice to live on one income, you need to find out if it's a viable option by following these steps.

5 Money Issues Every Couple Should Prepare For

SavvySugar — Wed, 01 Feb 2012 10:29:01 PST

We talk about love and money quite a bit here on Savvy, and many of you have had a go-round or two with your significant other about the topic. In a new relationship, resolving money issues means adjusting to each other’s spending and saving styles, and coming up with a system you can both live with. But as relationships grow and change, financial situations do too, and many couples find themselves having to adjust their approach to money after years of marriage.

Here's a list of five issues that can cause financial bickering even in established relationships. To see them, along with my advice for how to address them, click away.