Lines around the block! A new tell-all TV series! Is Snooki dumping her poof? Did Lindsay make parole?

No, but Georgetown Cupcakes—the hot bake shop started by two sisters in Washington—just hit the big time with "DC Cupcakes", a six-part series on TLC this month.

DailyWorth asked entrepreneurs Sophie LaMontagne and Katherine Kallinis to share their thoughts on making sure your business has the right ingredients.

Flex your plans.
"Don't start with some 30-page business plan—it'll be extinct in the first year," says Sophie. "Map out the critical stuff, like your financial model. But let accidents happen. We opened on Valentine's Day 2008, with pink boxes. When we tried to switch to white boxes—which were a lot cheaper—our customers wanted the pink boxes back. So it became part of our signature."

Start small, think big.
"We had a dream of opening a bake shop, but we started out with what we could afford, not this huge space," says Katherine. "But we were also prepared to grow quickly, if we had to. I think you have to be conservative in your forecasting, but be able to scale up quickly and take advantage of momentum."

Prepare to fail.
"We knew that half of all restaurants and food businesses fail in the first year. You have to ask yourself, Would you be OK starting over? You have to feel emotionally and financially secure with the level of risk you're taking."

Work it.
"Running your own business is 24-7, it's nothing like the amount the work you do in a job. It's always on your mind. Be prepared to work hard."

Bottom line
"It's worth it," both sisters say. "If you have a dream of starting your own business, we say, Do it! You don't want to spend your life wondering, What if...?"

Check out "DC Cupcakes" on TLC this Friday, July 30.

Read more...

OK, faithful DailyWorth readers. We want your opinion.

Following is a summary of a slideshow that ran on the Huffington Post last week, with the rah-rah title of:

"8 Jobs in Which Women Make MORE Than Men"

First of all, we're not sure that digging up eight occupations in which women earn more than men—"out of hundreds," as writer Sarah Yin says in the intro—is good news. They could only find eight?

Second, each slide depicts a woman at work, with a caption stating what the average weekly earnings are for women vs. men in that position. Female lab techs, for example, earn $740 per week on average, compared to $723 for men.

Doesn't strike you as a stunning difference? Right. On average, in these eight jobs, women only earn $14.50 more per week.

The job with the biggest wage gap—of $40? Busser.

"They clean tables, carry dirty dishes, refill coffee, replace soiled table linens, etc.," the caption reads.

So then it occurred to us: Maybe a big drag on women's earnings is what you might call Pervasive Financial Delusion Syndrome, in which bad news gets repackaged as good news. The article was well- meaning, yes, but it's not going to help anyone's self-worth to be handed a baloney sandwich all dolled up.

Let's call a spade a shovel already. We'd like you to re-title this story. Submit your suggestions here.

Read more...

Just say the phrase "rental property" and people's eyes light up. Everyone knows that rentals have the potential to generate income above and beyond the cost of carrying the property.

And some folks do turn a nice profit from rentals.

But the devil himself is in the details—as I discovered when we decided to rent out a house we owned in 2008. Little did we know that the rent would barely cover our costs, the upkeep would cost thousands, and we'd end up trying to sell it for zero gain. Here's what I wish someone had told me:

1. Wear a flak jacket. Dealing with leases, tenants and repairs is not for wimps. Build up the muscle for hard-nosed negotiations and legal battles before you start. Brace yourself to see the worst side of human nature: raw greed, deception, blinding rage. Everything may go smoothly. Or not. Be prepared.


2. Know the rules. Tenants' rights are strong. Retain a savvy local lawyer to help you draw up leases and contracts. Tap into landlord-friendly resources to help you sort out complex issues. A strong defense is your best offense.


3. Run the numbers. Many people get fixated on the idea of profit—forgetting that no one is paying for a new garage door but you. Also, loan terms and insurance rates are typically higher for rentals. Yes, you can deduct many rental costs (mortgage interest, property taxes, repairs)—and you may be able to write off some losses. But the out-of-pocket costs can eat into your earnings. Do the math, factor in the drain on your time—then decide if being a landlord is the path to wealth for you. I wish I had.

On the money. Have you set up successful alternate income streams? Swap stories here!

Read more...

You may know me as DailyWorth's editor, but I still write for many other publications. And as a long-time free agent in the journalism world—12 years and counting—you'd think that I'd know how to negotiate by now.

You'd think that I could nail every contract to the wall with a single, steely glance.

Ahahahahaha.

Crybaby
In fact, when I got the contract for a recent project—and the fee was mysteriously less than what had been discussed during the original meeting—I did everything you're not supposed to do.

I cried for three days. I felt insulted. I called and emailed all my friends and regressed back to 7th grade, saying things like, "Do you think that they think that I think..."

When the time came actually negotiate—I'm embarrassed to say—my stomach churned and my voice was shaky. I was barely able to restate the original fee and terms.

Open mouth, extract words
"OK, so you want $X more on this, X on that," the project manager said. "And?"

"And, um, well, that's it," I said.

"That's IT??" the manager was puzzled. "OK, fine. We'll send you the new contract, no problem."

It. Took. Two. Minutes.

Most embarrassing of all, it's the same old lesson—the one you and I have all heard 78 million times:

Just ask.
Apparently, some of us needed to learn it one mo' time.

Speak up. Tell us about when you've asked for more. What happened?

Read more...

Fact check
It drives me crazy when I talk to entrepreneurs who are stubbornly attached to projects, ideas, services, blogs—without a clear path to meaningful results or revenue.

Yes, commitment is required to be successful. I'm just concerned that some of you (entrepreneurs in particular) are misdirecting your energy into activities that don't produce results.

I should know, I've been there. About a year ago, I was fixated on winning Divine Caroline's "Love This Website" award. I was convinced that going all out for this award would put DailyWorth on the map and result in a tsunami of traffic.

We asked all of you, dear readers, to vote for us repeatedly over a three-month period. The net net, after all that time and effort? Virtually no measurable results, no surge in traffic, nada.

Bottom line: It was a giant waste of time.

Know the value of your time
I did learn one invaluable lesson, however: Time really is money, and if the time you are putting into a project, product or marketing effort isn't yielding a measurable return or a clear path to results—cut your losses and move on, or reconsider your tactics.

Bragging rights: How has a change of direction boosted your project, job hunt or business?

Read more...

Kate Hanley is the author of "The Anywhere Anytime Chill Guide," and the creator of the Ms. MindBody website.

Ch-ch-changes...
How do you change old financial patterns so you can earn more?

The road to wealth is paved by saying the word "no"—to jobs, people and situations that keep you stuck in an under-earning pattern, says Marianna Olszewski, author of the national bestseller "Live It, Love It, Earn It."

Here's how to build the right kind of negative reflexes, "so you can say yes to the jobs and activities you really want," says Olszewski, who built her own multi-million dollar business.

Just say no
Turning down low rates, bum jobs and not-so-great opportunities requires you to exercise a new set of muscles. Ask a friend to read the following list—while you practice answering, N-O.

And don't elaborate, adds Olszewski, "we woman especially have a tendency to overexplain, then give in."

• Can you help me with my project?
• Can you read this report for me?
• Can you cancel your [fill in the blank] and go out with us instead?
• Can I pay you just $50 a session?
• Can you stay a little later?
• Can I leave storage boxes in your basement?
• Could you give me a couple of contacts in that area?

For a longer list of questions, click here.

Brag about it
What's your biggest win from saying no?

Kate Hanley is the author of "The Anywhere Anytime Chill Guide," and the creator of the Ms. MindBody website.

Read more...

What a long strange trip it has been.

Our Tuesday post—about one woman's job negotiation, in which she admitted having inflated her salary—provoked a feisty debate about the ethics of lying about your income.

Alas, what got obscured in all the mudslinging was the more vital issue of how women handle salary negotiations. In the original post—pause, wipe off mud—the writer admitted that in a 20-year career she had never once asked for a salary increase.

When she did ask for more money, in the course of her recent job application, she got it.

Here at DailyWorth we are on a mission to close the gender wage gap. We don't condone lying. Unfortunately, that's what hogged the spotlight, instead of the real travesty: Countless women are underpaid and they lack the confidence and know-how to ask for what they are worth.

Consider the letter we got from a former recruiter:

"I had a range and I couldn't go over that range," she wrote. "I was told to always offer the lower amount—period. The men ALWAYS negotiated their salaries and ALWAYS got more. The women NEVER negotiated their salaries. It used to pain me to hear women accept the first offer."

And when the NYT blogged about the DailyWorth debacle, this was the top-voted reader response:

"Discussions of salary are negotiations, and bluffing isn't the same as lying."

While we retracted the original post so as not to put anyone at risk, we did so with reservations. Our aim is to show women that their true worth is rarely reflected in their pay—and that by speaking up they can and should earn more.

Read more...

This post has been retracted.

A message from DailyWorth founder Amanda Steinberg:

When I started DailyWorth, I had a lot of goals in mind. Among them was the desire to help women become great negotiators by learning the tricks of the trade. Another was to address money taboos head on, even if the discussion became controversial. Finally, we vowed never to be boring or formulaic.

When we released this post, we knew it would spark heated debate. And it did. We've heard from a number of HR personnel in the DailyWorth community that even slight salary history inflations are illegal and could jeopardize your job application.

Update from New York Times coverage of this situation: "While inflating your salary may not be a criminal offense that can land you in jail (assuming you don’t inflate your salary under oath or under penalty of perjury), it still can be a civil law issue. Specifically, according to Della Barnett, a plaintiffs’ employment attorney in California, “Affirmative misrepresentation of a material fact can be construed as fraud” and your potential future employer could sue you for it."

Many thanks those of you who constructively and thoughtfully shared your opinions with us.

A Little White Lie in Salary Negotiation Ellen O'Hara is a book editor in New York City. The numbers game In most ways, I’m a pretty assertive woman. But when it comes to money, I can be a total wimp. Case in point: In a 20-year career, I’ve never asked a boss for a raise. Not once. But a recent experience while I was job-hunting taught me how silly it is to be passive about pay. I'd found a position I liked and applied for it. The recruiter asked for my current salary. Let’s just say I inflated the figure—and told her I was earning $5,000 more than I was. (“Everyone does that,” a successful colleague had told me. “Just don’t puff it up too much, so that figure seems realistic.”) Well, it worked Fast forward six weeks: The recruiter called to offer me the job. “I’m pleased to tell you we will match your current salary,” she said. My first instinct was to happily accept the offer. After all, I'd given myself a stealth raise. But then, my mind flashed back to an article I’d read by a female manager, lamenting how passive women are about compensation. She said her male employees almost always pushed for raises while the women never did. So I summoned up my inner guy, and politely said: “I was hoping to do a little better salary-wise." Ask and ye shall receive Here’s what didn’t happen: She didn’t angrily hang up the phone and move on to someone else. She didn’t sound annoyed—or even surprised. “Let me see what we can do,” she said. The following day she called to say they would bump up the salary by another five grand. Wow! Just like that! Between my white lie and my assertiveness, I’d managed to snag $10,000 more than I was making. Needless to say, I learned that it pays, literally, to be strong and assertive when it comes to money. My only regret is that I’d been such a wimp about it for so long. Your cents Would you inflate your salary in a job interview? Is it ethical? TAX ALERT FOR THE SELF-EMPLOYED: Estimated tax payments due today!

Read more...

For worse, not better
Divorce is rarely kind to women. You knew that already.

But women—even wealthy women like Tipper Gore—face special risks when a long-standing marriage falls apart.

"The biggest assets later in life are usually the couple's home and retirement accounts," says Jeffrey Landers, a certified divorce financial analyst in New York.

After years of saving and building household wealth together, how do you a) get your fair share now and b) protect your future security?

Yours, mine, ours
The first thing is to get clear on marital property laws in your state, as we covered here.

Most states have community property laws, which means that there is a "fair and equitable" distribution of assets. Alas, says Landers, that doesn't mean your share will be fair.

For today, we'll focus on the true value of household assets; retirement (a complicated calculation all its own) is next week.

Landers gives the example of an investment account worth $500,000 versus a house that's worth $500,000. They're not worth the same.

"The house has certain expenses: property taxes, fuel costs, maintenance," Landers says. "And if you sell the home, you could get hit with a big capital gains tax bill."

If you make $400,000 on the sale of your home, after subtracting the $250,000 capital gains exclusion for a single person, you would have to pay tax on $150,000. "At next year’s capital gains rate of 20%, that’s a $30,000 tax bill," Landers says.

Bottom line
You may not relate to Tipper Gore, but like millions of women, she invested decades of her life in her marriage and family. Know your financial rights so that you can recoup what you invested.

Question: If a man supported his family financially for 25 years, while his wife supported them domestically, is a 50-50 split of assets fair? Should he get more? Discuss here.

Jeffrey Landers is hosting a free seminar on June 15: Smart Financial Strategies For Pre-Divorced Women, in midtown NYC.

Read more...

Disappearing act
Here today, spent tomorrow. How can you hang on to more of those precious dollars you earn?

Income protection is on the way, with the publication of "Your Money: The Missing Manual," by J.D. Roth, founder of the award-winning blog, GetRichSlowly.org (and long an inspiration to us at DailyWorth).

More for your money
True, most personal finance books cover the same old ground, and "Your Money" has some been-there-read-that moments. ("Pay yourself first." Bet you never heard that one.)

But Roth belongs to the new generation of non-formulaic personal finance writers, and he can zip through five times the amount of information in half the space of most money books. He delivers the basics (saving, getting out of debt, boosting your credit) and a wealth of money issues in between. How to...

• Set goals and stick to 'em (try 43things.com, joesgoals.com, Stickk.com).
• Plan a fab staycation (splurge on a deluxe tour—but stay in your own, ahem, budget accommodations).
• Get a better job (go on informational interviews; test drive the new position part-time).
• Invest in a four-in-one index fund (FFNOX).

Bottom line
$21.99 is a small price to pay to keep more money in your pocket.

Your move
Got a teensy Wowsa-What-a-Weekend-Can-Cost hangover? Tell us about it—and how you plan to regroup.

Read more...

Boys club
Picture this: Rookie walks into the bar for a beer after work. He strikes up conversation with Mr. Career Man while watching the football game. They talk sports... and they talk business.

Mr. Career Man thinks the kid’s got potential, gives him advice, and they continue to meet. Eventually, Rookie meets Mr. Career Man’s other pals. Without forcing anything, they form a friendship—along with a mentorship and a helping network for the Rookie.

How often do women do this for each other? Rarely.

Flying solo
I posed the question to some female colleagues at my job recently: “Why don’t women reach out to each other more?”

The answer: “Oh, haven't you heard of the women’s organization here at work?” Ugh. That’s not what I meant. Why don’t women cross generational and professional boundaries to develop relationships that mix business and pleasure? Why, in short, don't we have an "old girls network"?

Although I know older women who could be mentors, our connection stops at friendship. We all seem to obey an unspoken rule: It's not cool to mix personal and business. Now that I've been out in the working world a few years, I see a wealth of missed opportunities because women don't buddy up like men do.

I often wonder what stops women from building those casual work-and-play relationships. I wonder if older women think the younger ones are only trying to use them? I have to admit that I feel a wave of guilt if I attempt to create a friendship with an older women that could also help me out. So I avoid it.

I understand, of course, that there are some wonderful organizations out there that were created to help women build networks (National Association of Women Business Owners, Business Women’s Network, Advancing Women). But what about fostering connections as natural as the "old boys club" that many men seem to have?

Maybe we devalue ourselves and think we don’t have much to offer. Maybe we feel a sense of perfectionism in that we have to meet X, Y, Z criteria before we can mentor someone else—or accomplish A, B, C tasks before we feel it’s OK to ask for help.

Maybe it’s more sinister: I’ve heard that some older women feel that since they’ve had to struggle, they think the young ones should struggle, too (which makes me think, then what the heck was the point of the feminist movement?).

Or maybe we’re threatened by each other. Sometimes we even derail each others’ success à la "Mean Girls." According to the Workplace Bullying Institute, women bullies aim at other females more than 70% of the time!

Do you have to be best friends with every woman you meet? Of course not. But let’s not close ourselves off from each other, and be more open to letting honest, mentoring camaraderie develop naturally. There's no need to join a dues-collecting organization to help each other out. That’s not how the boys do it. Men are buddy-buddy with each other because it has helped them build professional and political success for centuries.

Join me in starting the old girls club revolution today. Where will you start?

Kenia Perez works in the aerospace industry in California.

Read more...

Cliff Notes with a kick
Your potential is dazzling. Your will to succeed—a tireless force. So what will your pool-side reading look like this summer?

Check out "The Skinny on Success", part of a new series of short books on deep topics by entrepreneur Jim Randel, illustrated with stick figures, no less.

At first, cartoons seem like a flip way to approach a puzzle that the greatest minds in history have grappled with. (Can Bill, the unhappy stick figure CPA, succeed as a stand-up comic? Do we care?)

But Randel uses the conceit of striving for something you want to dig into the meatier issues that drive people to succeed.

Strength-training
In comic-book format, he uses pithy quotes, new research and nuggets from seminal books—"Do You," by Russell Simmons; "Outliers," by Malcolm Gladwell—to strip success down to its nuts, bolts and gears.

Never mind about innate talent and intelligence. Success comes from the strength and skill you source from within: being true to what you love to do, working your bootie off, enduring discomfort and failure—and keepin' on keepin' on.

"Success is not just about what is visible," Randel writes. "The true keys to success—heart and will—cannot be seen a first glance."

Bottom line
Need to boost your moxie? "The Skinny on Success" will kick you into gear. Hmmm... just like another short-and-sweet resource you love.

Read more...

More than a paycheck
In today's unpredictable job market and economy, it's smart to think about developing multiple streams of income.

Whether starting a side business, becoming a consultant or learning to invest, you can capitalize on your existing skills (and time) to increase your overall net worth.

Risks and rewards
Any new income source can take years to show even a small return. Consider this conversation a seed in your mind to help you evaluate your options—and build future returns, one year, five years or even 20 years out.

Every investment is a risk. Amanda Steinberg, DailyWorth's founder, has started five businesses in the past 10 years--two of which are successful and growing. The other three were learning experiences and, well, costly failures. Do not invest time or money unless you've calculated that you can afford to lose it.

Listen up
Last week, Amanda (photo, left) interviewed Jacquette Timmons (right), author of Financial Intimacy, MBA, and CEO of Sterling Investment Management, Inc.

In this 15-minute podcast Amanda and Jacquette explore the specifics having multiple streams of income, from low-risk options like consulting to higher-risk options like real estate investment.

Your move
Do you have more than one stream of income? Share the What, Where, When, How and Why with the DailyWorth community.

Read more...

Reality check
What do your skills command in the marketplace right now?

If you feel like your self-value has gotten stuck at your current income or fee, it's time for a check-up using one of these online calculators.

(Footnote to entrepreneurs: You may have to fudge some details, but this is a good way to double-check your rates.)

Be calculating

1. If you're job hunting or want to know how your current salary stacks up, this eye-opening PayScale quiz will tell you. (Opt out of the free account sign up and just get your results.)


2. You have an offer, but what's it worth? To find out your actual takehome pay ($60,000 isn't really $60,000) use this nifty calc from PaycheckCity. The results may push you to ask for more.


3. How would your income translate in another city? See what your job would pay in another area, and what the relative cost of living would be, here on Salary.com.

Bottom line
Knowing your worth, and earning your potential are twin endeavors. Work it, baby.

Your move
Negotiate much? Prep yourself.

Read more...

Tara Gentile is the blogger behind ScoutieGirl and the founder of her own boutique web design company.

Bye-bye retail
In the fall of 2008, when my maternity leave was over, I quit my dead-end retail job and decided to explore work of my own making.

A few months later, I was earning about $1,200 a month as a fledgling blogger and website designer.

Today, barely 18 months later, my income ranges from about $4,000 to $5,000 per month; I'm booking jobs weeks in advance; and every day I take another step toward the financial security and abundance I once believed that I didn't deserve—and might never achieve.

From starving to thriving
How did I go from making $14 an hour in retail hell to creating actual personal and professional prosperity? Believe me, I never thought I'd be the one to raise my hand and say I'd crossed the line from starving artist to thriving artist. Even now I feel nervous saying so.

But in the last few months, I've had a revelation about my own worth, and the worth of my work. And because DailyWorth was part of that, thanks to its trademark "kick in the pants," I wanted to tell you what happened.

I'll never forget when I was working 50 to 60 hours per week at a well-known bookstore chain, earning about $28,000 a year.

The company justified its low wages by providing "an ideal work environment." Being surrounded by books and cheap coffee everyday is indeed wonderful but it doesn't pay your bills, help you realize your dreams, or bring you a deep sense of self.

I've always had a high idea of my personal worth, but I didn't put a lot of thought into the worth of my work, my innate skills or the things that I can produce.

At one point, I said to my co-manager, "I feel like I should be making more." And I remember feeling ashamed and embarrassed. What did I have to offer? Y'know, other than experience, passion, skills, and a knack for sales?

I stagnated. I even started to believe that despite my education and experience I wouldn't be able to find another job. So when my daughter was born in July 2008, I took it as an opportunity to start fresh, learning about myself as I learned about her. I quit after my maternity leave was over and never second-guessed my decision.

I bought a business
I found myself drawn to writing and to my own creativity again. I began blogging, built a web presence, and learned web design. I learned everything I could about beginning a web business and I invested more time than my husband would have liked! Exactly a year after my daughter's birth, I bought an existing business, with a loan from our credit union and a huge leap of faith.

I now had a huge audience to entertain, edify, and enrich. I took those responsibilities seriously, and soon several business owners started inquiring about other services I might offer: web design, coaching, development.

You mean I have to charge people?
Then came the dreaded question: what is your fee?

Uh... um... Well, I know I'm pretty good at this, but I don't have much experience so how about $25 bucks an hour for me to revolutionize your business or $150 to do this whole website. Heck, $25 an hour is double what I was earning before, right?

I certainly don't begrudge the people that took me up on those rates. I appreciated the income and the experience. And my business grew.

By January of this year, I had more inquiries than I could handle. I also received a link from a friend that showed I was leaving about $1,200 on the table every time I worked with a client.

Rates-raising time
What's a girl to do who's been reading the DailyWorth daily for eight months? I raised my rates. At first, slowly. Then, steeply. I researched what others who were doing what I do made per hour, per project, per client and I decided to charge something much closer to that.

Guess what happened? I haven't lost clients. My client list continues to grow, and now I'm scheduling jobs six to eight weeks ahead. Not only am I making a lot more money, I'm securing my income. I'm putting money into our savings account. I'm reinvesting in my business.

Over at Scoutie Girl, I've been writing a series of posts on embracing abundance and making the "kick the door down" decisions that create financial opportunity. I think artists and creatives (and maybe you, too?) often need that extra push. We tend to think that anyone could do what we do if they tried. We think that because what we create is often a luxury, that others won't buy if the price tag is too high.

I've even found myself worried that my colleagues and peers might resent me, that my success might be unfair to other people. There is almost a stigma around earning more.

What I realized, through the constant prodding of DailyWorth, is that my skills are rare, and that people are willing to pay for them. My skills are valuable—in terms of the time, peace of mind, and return on investment—to business owners. What sense does it make to not charge the true worth of these services out of some unfounded idea that it's too high or not fair?

Despite my new and improved mindset, I still get a bit anxious telling you this story. I am proud of what I make and what I'll be making by the end of this year but, because so many women in the creative community are mired in a scarcity mindset, I am worried that they will look at my income as "not fair" or "not justified." I'm learning to move beyond that. And I'm also doing my best to empower the creative community to accept their own worth.

My success is your success—and your success reminds me that my own is possible.



Tara Gentile is the blogger behind ScoutieGirl and the founder of her own boutique web design company.

Ask a question or leave Tara a comment below.

Read more...

Work-family imbalance
For working moms in search of that elusive work-life balance, part-time employment can look dreamy: You bring in some income, but still have time for your family, your home, maybe even (gasp) yourself.

In fact, 62% of working mothers said they would prefer part-time work, according to a survey last fall by the Pew Research Center; only 37% said they'd rather work full-time.

But men? Nearly 80% said they'd rather work full-time. That's a stark difference, and it reveals a lot.

Cost-benefit analysis
Some people argue that moms who choose to work part-time pay too high a financial price. Their earnings are lower, their retirement savings suffer, and their professional trajectory flattens.

Then again, full-time working moms may gain professionally and financially—but they also lose, thanks to the stress of laboring at home and in the workplace, as Business Week editor Anne Tergesen notes here.

And even when moms work full-time, they may still pay a penalty in lower earnings and a pervasive anti-mom bias, according to an eye-opening Stanford study (watch this video summary).

POLL! How do you work it, mom?
Hey working moms, or those about to be, tell us what you think about part-time vs. full-time work. Take our poll here.

Please pick the statement that best reflects your views. (Sorry, you can only pick one.)

Read more...

Make a Plan, Stan
So you want a raise! Whether you plan to negotiate a raise next week or next fall, the key is careful prep work, says Kathi Elster, an executive coach in New York and co-author of the bestseller, "Working for You Isn't Working for Me."

Raise Your Profile
Start with a snappy memo of your achievements, and add small wins that might get overlooked: a rave from a customer; your eagle eye on the competition; the 17 weeks you covered Maryann's maternity leave.

Tip: Write down your successes daily or weekly so you don't forget them. (Bonus: A steady and well-deserved ego boost.)

Know Your Allies
Ask managers in other departments to put in a good word for you. If you're self-employed, collect praise from colleagues in your industry. Volunteer on projects that expand your visibility, skills and contacts.

A Winning Strategy

• Know your worth by doing market research.
• Role play with a friend or mentor and rehearse all the possible scenarios, advises Amanda Steinberg, DW's earning diva.
• According to this fun how-to video, ask for a raise when you're doing significantly more than when you were hired. Added value justifies more money.

Bottom Line
Know your own bottom line before you walk into your boss's office. If she says no, are you willing to try harder? Revisit in three months? Take perks in exchange for cash? Or start polishing your resume? Part of knowing your worth is realizing that you have options.

Tell us your experiences asking for more money.

Read more...

Today's guest blogger Jenny Newcomer is a busy mom of 2 and the founder of LobotoME {eco-friendly organizational products} - For more information visit at www.LobotoME.com or Jenny's blog -- lobotomeblog.blogspot.com.

As an entrepreneur and mother of two young kids—and with college tuition of about $100,000 looming down the road—I realized last year that I needed to pay off the remainder of my own student loans, which have lingered like a bunch of forgotten junk in the basement.

Did I say forgotten junk? Right after the holidays in early 2009, a bell went off in my head. As I began the post-holiday cleanup, I realized how much STUFF we owned. Bags, shoes, DVDs, books, iPods, old laptops, old kayaks, skis that didn't fit, bikes that we no longer used, etc.

And I decided to sell it. All of it. And here's how I did it—and made $15,000.

1. Gather the goods. Go through your house, basement, attic, garage and make an inventory of items you could sell (smaller items can be gathered into a pile as you go). The majority of the items I sold were clothes, handbags, shoes and sporting goods. Also consider tools, small appliances, craft supplies, kids toys, etc.


2. Take pix. Assuming you already have eBay and PayPal accounts (and know how to use a computer), the next step is to take digital pictures of your first 10 items. The better the picture and description, the better the price. Ebay charges if you upload more than one image, but I suggest adding at least one additional picture as buyers like to see different angles and details.


3. Keep records. While taking pictures, jot down the size, measurements, materials, and any additional details of the item you are listing. Then, get an accurate estimate on shipping costs online at www.usps.com or www.ups.com. Generally, I ship things via Priority Mail flat rate boxes (as its easy to figure out what to charge). For example, a large handbag fits in a large flat rate box for $12.95.


4. Set your price. Anytime I list an item, I search eBay first for successful sales on similar items. This allows me to set a fair opening price (and also get good ideas for describing my item).


5. Sell it! Log on to www.ebay.com and click on the Sell an Item tab and list the items, one by one. Once I got into the rhythm, I could post 10 items in an hour. Also, be sure to check your ebay account frequently for messages, bidding questions, etc. Once the bidding has ended and the buyer has paid for the item, promptly ship it.

Here is the key part: Resist the temptation to use the money that you just earned to buy MORE crap! Transfer the money immediately from your PayPal account to your bank account and send a check off to pay off your debt or stash it in savings.

Here, some related links that I found helpful from Ramit Sethi and the folks on 43things.

Jenny Newcomer is a busy mom of 2 and the founder of LobotoME {eco-friendly organizational products}- visit www.LobotoME.com or Jenny's blog -- lobotomeblog.blogspot.com.

Read more...

Earning more is challenging, in part because your income gets calcified in your brain. Whether you work for yourself or someone else, it's easy to wander down the path of least resistance—I earn X, therefore I can afford Y—and get stuck.

Instead, put the horse back in front of the cart: I want to afford A, B and C. Therefore I need to earn D. In other words, make an accurate assessment of what your current lifestyle, future goals—and security—will cost. Maximize your earning power to achieve those aims.

This method is sometimes called a reverse budget, but it's really a way to hone your priorities and rev up your earning power.

Here's how it would work for Karen, who earns $60,000 a year working as a legal secretary. If you are self-employed, this system still applies.

Karen's Current Budget
Gross Income = $60,000
Monthly take-home = $3,750
Basic expenses (mortgage, car, utilities, insurance, etc.) = $2,400
Saving = $250
401k = $300
Debt = $300
Misc. (eating out, clothes, ATM, random expenses) = $500

Total Spent: $3750

• But Karen knows she should be saving 10% toward retirement (+$200 = $500).
• She wants to double her personal savings so that she can buy a new car and take a vacation (+$250 = $500)
• She wants to get out of debt (+200 = $500).
• Also, she knits beautiful babywear, and she would like to launch her business online (+ $300 per month for supplies, other costs).

Karen's Reversed Budget
Basic expenses (mortgage, car, utilities, insurance, etc.) = $2,400
Babywear biz = $300
Saving = $500
401k = $500
Debt = $500
Misc. (eating out, clothes, ATM, random expenses) = $500

Total Expenditures = $4,700
Added Income = $950 X 12 = $11,400
Required Income = $60,000 + $11,400 = $71,400 plus taxes = approximately $75,000

It's daunting to put a pricetag on your dreams. But money helps to make things real. Karen may need to read last week's post, "6 Ways to Earn More" and either negotiate a raise or look for better paying work.

 

Read more...

Erica Sandberg is a columnist for CreditCards.com, and the author of "Expecting Money: The Essential Financial Plan for New and Growing Families."

Confession: Like many women, I’m not skilled at negotiating proper compensation. This is ironic, given that I'm a personal finance adviser. However, I've taught myself to command a fair fee. Here's how:

Know the marketplace. It's critical to find out what others in your position earn. Ask around and use salaryfinder.com salary.com. Once you have a range, focus on the high end. Never low-ball yourself, because climbing up from the bottom rung is tough.

Know your worth. When asking for a raise or stating your fee, lay out your relevant experience and achievements. People pay you because you're good, not because they like you.

Channel a bigwig. I'm friendly with a successful Wall Streeter, whose chutzpah is legendary. When quoting my rates, I adopt his persona. Try it: Identify someone whose confidence is off the charts and imitate his or her attitude. This classic ‘fake it till you make it’ technique works.

Request the range. A large corporation recently asked me for my day rate, which I nearly revealed. Instead I asked what their norm was—and it was three times what I typically charge. Lesson: When an employer asks what you expect to be paid, politely but firmly say it depends on many factors, and ask for their range.

Rehearse. Pretend a potential employer is on the phone. State your ideal salary or fee out loud. Repeat that figure until it feels natural—and you get that question mark out of your voice.

Dwell on what you deserve. Good-for-the-world professions are rife with underpaid women. If you look at the top, though, the directors are usually well-compensated. You should be too. Quality employees come at a cost and they know it. Negotiate with that in mind.

Read more...

 

Mikelann Valterra, director of the Women's Earning Institute, is a prosperity teacher and money coach dedicated to helping women earn what they're really worth.

When you live in Noble Poverty, you tend to believe there is some unnamed virtue in not having money—or that Truly Good People shouldn’t want a lot of it. Your mantra is something like: "I may be struggling, but I'm a thrifty soul who doesn't need material trappings to love life!"

While there is immense value in avoiding senseless consumption, Noble Poverty takes that principle to an extreme, where the pursuit of comfort or even solvency is suspect. The result is a series of decisions that a) keep you in financial straits; and b) never earn you that halo.

You may be mired in Noble Poverty if…

• You say you want to earn more, but never raise your rates or pursue better-paying work.
• You "make do" with a beater car, worn-out boots and a toaster that occasionally flames up because you believe deprivation is macho.
• You judge friends with money as bourgeois and slightly sad.

Because it's easy to justify Noble Poverty as “anti-materialism”—you end up keeping your income low to avoid the danger of becoming materialistic. But materialism has nothing to do with earning money, but how you spend your money!

The real danger is that when we decry the wastefulness in the world, we deny ourselves the money to live a truly full life.

If you've taken an unconscious pledge to keep your income in line with your internal financial beliefs, revoke that pledge. When you charge and earn enough money, you can enjoy life, take care of your family, your self and give back to the world. It is time to be bigger.

There is nothing noble about poverty. Nothing.

Mikelann Valterra, director of the Women's Earning Institute, is a prosperity teacher and money coach dedicated to helping women earn what they're really worth.

Read more...

Mikelann Valterra is the director of the Women’s Earning Institute, a money coach, prosperity teacher, speaker and published author. Check out her blog here: www.savvywomenearning.com.

Why do many women struggle with earning enough money?

We could give you 15 different answers, and each one would ring true for someone. Women don’t negotiate as often as men do; we still earn less for comparable work, and so forth.

But there's another, deeper issue that many women need to address: the fantasy of being rescued.

The rescue fantasy can be disguised in many ways. It's not always a fairy tale scenario (charming prince, castle, etc.). Yet many of us cling to the illusion that somehow, some way, it won't be up to us to earn what we need to earn.

• Your investments (or home) will appreciate enough that earning won't be an issue
• You'll inherit enough money so that you'll always be okay.
• A big idea (screenplay, website, business) will make you millions.

What is operating as a form of “Prince Charming” in your life? What do you secretly hope will rescue you?

Fear drives the rescue fantasy. Perhaps you're overwhelmed by what it would take to secure your financial future. Or you fear that you can’t earn enough money doing what you do.

Women often worry that they don't have the right money skills—they can never be financially competent.

Enter...the person or event that (in your dreams) will save you.

These fantasies aren't bad in and of themselves. But when they shift from occasional distraction to unconscious financial backup plan, you put yourself in a passive position, never earning or planning up to your potential.

So name your rescue fantasy. When we become conscious of our rescue fantasies, we can finally let them go—and discover the power to rescue ourselves.

Mikelann Valterra is the director of the Women’s Earning Institute, a money coach, prosperity teacher, speaker and published author. Check out her blog here: www.savvywomenearning.com.

Read more...