Employers Are a Big Reason Millennials are Saving
Only a third of them are saving outside of workplace plans.
employment
Learn how the latest employment trends affect your bottom line.
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Employment has more of an effect on your finances than just a paycheck!
It’s obvious to just about anyone that employment has a huge impact your finances. How much income you earn directly dictates your cost of living (or at least, it should). But even beyond that bi-weekly paycheck, your career path affects your finances. It has an impact on your ability to maintain a balanced budget. Your job can determine how easy or hard it is to save for retirement. And it also factors into how much you have to worry about other concerns, like healthcare and life insurance. The articles in this section are all about the financial impact of employment trends today. Below the articles, you can find Debt.com’s tops tips for using your employment to improve your financial situation.
Millennials Are Taking Job Promotions Without Pay Raises
Company budgets are too tight to give them both.
College Enrollment Is Down, And It’s Not a Bad Thing
The costs stress people out, and most are relying on loans to pay for school.
More Employees Are Working Outside of the Office
The ability to work anywhere at any time boosts productivity.
Millennials Want to Be Their Own Bosses
More are trying to start businesses and freelance for a living, than working 9-5 jobs.
Men Are More Likely Than Women to Commit Fraud at Work
Women are more honest employees, yet are still paid less.
Your Boss Wants to Give You a $784 Bonus
What’s the catch? You need to learn how to budget — not at work, but at home.
Americans Want Retirement Income Over Savings
Old and young Americans want work-sponsored pension plans.
Women Stress More at Work And Earn Less
Not surprisingly, their largest stressor is money.
College Grads: Bosses Are Hiring And They Want You
And if you don’t get the job, it’s probably your fault.
Is Withholding Taxes On Sales Commissions “B.S.”?
A reader is finding customers for a construction firm. But is he being bulldozed?
Will The “Pay Gap” Ever Close?
Women don’t believe they’ll ever earn the same as men.
Hey, New College Grads: Want A Job? Stop Lying
Hiring managers list the 8 biggest mistakes they see from the Class of 2018
8 Things to Know Before Freelancing Full-Time
Don’t allow financial surprises to stall your freelancing momentum.
Closing The “Pay Gap” Would Benefit Everyone
When women advance in their careers – men do too, research says.
Running Late For Work? Don’t Say This
From “it’s too cold,” to “I fell asleep in the parking lot,” people have crazy excuses.
Don’t Let Debt Keep You Chained to a Job You Hate
You don’t have to suffer for years at that soul-killing job just because you’re paying down debt.
The Work Benefit Millennials Want But Can’t Have
Want millennials to stick to a job? Teach them about money.
If You Want The Job, Don’t Do This
From pulling out drugs, to dressing as Darth Vader, people do crazy things in job interviews.
How Necessary Is Grad School?
Students say they need the degree to get ahead even if that means starting off behind financially.
Unemployment is Down, Which Means It’s Harder to Get a Job
If you think that there aren’t any jobs right now because of low unemployment, think again. Companies are hiring — you just need to know where to look.
2018 Is a Good Year to Quit School and Get a Job
More decent jobs are hiring than in years, and many don’t require a college degree.
Nick Hustled to Build His Own Business
He worked nights and weekends to become an entrepreneur.
Your Boss Thinks You Won’t Be Ready to Retire at 65
And employees agree
Millennials’ Financial Habits Are Making Them Ill
And they’re more stressed about money than their parents and grandparents
Where Your Money Is Worth the Most
This map will show you where you can make the most of your disposable income.
How To Make Money On Craigslist — Safely
There’s easy money to be made if you’re willing to wade through the junk to find it.
Overseas Workers Fear Financial Negatives of Their Jobs
Workers fear shaky job security and a lack of health coverage.
A Portrait Of America’s Side Hustlers
Surprisingly, income level doesn’t determine who has a side gig
How Is Trump Doing on Jobs?
He promised 2.5 million jobs a year. Here’s what we have after six months.
Millennials Most Likely to Have Side Jobs
But even with those, they can’t keep up with older generations
Pay Me and Don’t Ask Questions
People don’t want to negotiate salary based on their previous pay
Battle of the Sexes in the Workforce
As every year passes, jobs usually held by one sex or another become less prominent as both move into jobs typically held by the opposite group.
Trump Supporters Say These Financial Traits Make Him Great
Ethics and concern for the poor are not among them.
Nontraditional Employees Don’t Have Benefits
One in four Americans are part-time workers or independent contractors, yet don’t have the same benefits — like health insurance or a retirement plan — like their traditional-working peers.
Better Body Language Can Land You A Job
Make eye contact, but not too much.
Looking For Work? Now’s A Good Time
More money and more jobs are on the horizon for those in and out of the market
We Don’t Know What To Wear To Work
And our company dress code policy isn’t helping.
3 Profitable Facts About Your Workplace
Learn how to make more money from these new studies.
Work-Life Balance Is Improving
And managers are helping set the example
Americans Hope They Can Work in Retirement
And that’s a good thing, since we aren’t saving enough anyway.
Is It The CFPB Versus The Education Department?
Looks like Richard Cordray and Betsy DeVos are going to fight over student loan forgiveness.
Employees Stress Over Saving Instead of Working
Majority say it has an impact on their ability to get their jobs done
Job Recruiters Are Making Great Money
Job recruiters are seeing faster-than-average wage growth compared to other jobs around the country.
College Seniors Struggle To Pick Careers
One reason: They focus too much on class and not enough on what else colleges offer.
Competing For College Grads
Job growth is up, and companies are hiring recent college graduates for higher pay this year.
This Summer: More Seasonal Work at Higher Pay
More companies, large and small, are on the hunt for great workers this summer, while pay for those jobs is also expected to go up.
Can Volunteer Firefighters Get Student Loan Forgiveness?
A reader wants to know if you need a real job to get real debt relief.
Entrepreneur Moms Never Stop Working
Most entrepreneurial moms are still the primary caretakers of their families, but that hasn’t stopped them from leading hugely successful careers.
What REALLY Happens If You Don’t Pay Your Taxes?
A reader fears for her boyfriend’s future — and her own.
10 Ways to Use Employment to Support Your Financial Goals
#1: Split your paycheck so saving money becomes automatic
Most jobs pay through Direct Deposit now and you can send the money wherever you want. This means you can split the money between two accounts, which can be really beneficial for saving.
Ask your HR department to send a portion of each paycheck to your savings account through Direct Deposit. Determine how much you want to save each month (ideally, 5-10% of your income), then separate your Direct Deposit. It’s free to do and it prevents savings from becoming an afterthought you always miss.
#2: Know how your company’s 401(k) program works
Some companies automatically enroll employees at the end of their probation period; others require you to sign up. Some companies match a certain amount of contributions, such as 50 cents for every dollar you contribute up to 7% of what you make. But others don’t offer this “free money for retirement.”
This means it’s up to you to know how your company’s 401(k) plan works. Understand how enrollment works and if they offer incentives like matching. Take advantage of this tool and use it as early as you have access to it. Your retired self with thank you.
#3: Check into flex spending or savings accounts
These can include savings accounts for out-of-pocket healthcare costs, child care costs and work transportation. Which flex accounts your company offers will vary, but most companies offer at least one.
The benefit of these accounts is that the money you put in is tax-free. They take the funds out of your paycheck before taxes. Then you can use them tax-free throughout the year. Just be aware of how the accounts work. Many are “use it or lose it.” In other words, you must use all the funds that you put in before the end of the year. If so, calculate carefully to avoid wasting money or scrambling at the end of the year to use it.
#4: Don’t ignore insurance because you’re healthy
This is one of the biggest mistakes that people make that leads to severe financial distress. You don’t get health insurance because you’re healthy. You don’t bother with company term life insurance or disability insurance because you’re in your 20s or 30s.
But accidents happen and your health can change quickly. So, the right time to get insurance is when you’re healthy. Always take advantage of company insurance – it’s usually the most affordable and hassle-free option anyway.
Also consider life and accidental death and disability insurance. If something happens to you, your family may not be able to afford the loss of your paycheck. Insurance payouts help ease that burden. Ideally, any life insurance you purchase should cover one and a half times your annual salary.
#5: See if they offer a financial wellness program
Many companies now offer free financial wellness programs as part of their benefits packages. It’s basically a free resource that can teach you how to budget, save money, manage debt, plan for retirement and maximize your credit score. These are all fundamental skills and free resources should always be used to your advantage.
If your company offers one of these programs, see if it includes free financial coaching. You can basically get access to a certified financial planner that can help you take the right steps in life.
#6: Take advantage of HR spam from good/free stuff
Don’t just ignore those spammy-seeming emails that your HR or administration staff sends out. They often include free offers and good discounts that you can actually use. Companies are constantly contacting HR departments to set up these deals and market to employees like you. Your HR team likely vets the offers as legit and useful before they forward them on. So, you can have some confidence that the offers are worth your time.
You can also get access to useful financial tools you may not get anywhere else. You might get credit union membership with your employment, which could offer better accounts and great financing rates. Otherwise, your company’s bank could have specialized accounts and promotional rates for company employees.
#7: Consider decreasing your tax withholding
Most people love getting a tax refund, but it’s actually a sign that you’re not managing your money correctly. A tax refund is not the government paying you or rewarding your hard work for the year. It’s them returning money that you overpaid in income taxes throughout the year. They basically keep your funds that you pay throughout the year and refund any amount you overpaid. But in the meantime, that money sat in that account, wasted and earning no interest.
If you get a huge refund every year, talk to your HR department about decreasing your tax withholding. This will mean you get more money in each paycheck, instead of a seemingly “big windfall” in the spring of each year.
#8: Don’t wait for raises, ask for them!
You should ask for an annual review each year around your work anniversary. This is the right time to review everything you’ve done for the company over the past year and ask for a raise. Most companies cap raises at less than 5%. However, if they give you a promotion and put you in a job that requires double the work, a 5% raise is not enough.
Check job websites to see what the salary range for your position is. This will help you negotiate pay increases accordingly. If you’re a good employee, at minimum, you should get a raise every few years. If you work hard and don’t receive regularly salary or wage increases, it may be time to find new employment.
#9: Pad your savings to cover paychecks in case of unemployment
Most experts recommend that you should have 3-5 months-worth of paychecks in emergency savings. So, if you make $2,000 per month, you should have $6,000 to $10,000 in savings. The money can also be saved in cash equivalents like Money Market Accounts or CDs – any account that can easily be converted to cash if you need it.
The idea behind this is that you can lose your job for 3-5 months and live comfortably while you look for new employment. This will help you avoid amassing credit card debt during a period of unemployment. A quick note: During a recession, you should increase this amount to six months to one year. This will help you avoid debt during extended periods of unemployment caused by a weak job market.
#10: Set a salary goal for getting job offers
If you keep your resume posted on job sites or you just have a really nice professional social network through LinkedIn or other social platforms, you may regularly receive job offers. Don’t just ignore offers because you like where you work. There’s probably some salary amount that could tempt you into leaving, so you need to figure out what that is.
If you’re satisfied with your employment, set the amount high. Ask for 15%-20% more than the annual salary you make now. That would make it worth it to leave, even though you could be taking a risk of leaving somewhere you’re happy. For so much more money, it may be worth the risk. Again, always check salary ranges in your area to make sure you’re not asking for something that’s completely unreasonable.