Dave Ramsey
Need some financial advice? Debt and income crisis? Pay off the house mortgage first? Check cashing? Taxes? Credit Cards? Check out what folks are asking Dave Ramsey.
Be professional and respectful
Dear Dave,
I’ve always made good money at my job, but recently I was offered a promotion to a salaried manager’s position. The hours and pay would be much better, and I already know the approximate pay range. Do you have any tips for negotiating salary in a situation like this?
Natalie
Dear Natalie,
Congratulations on your move up! I’m sure you worked hard and deserve the promotion and recognition.
There are a couple of measuring sticks you can use when determining something like this. One is a quick and simple approach associated with the revenue you bring in. It’s a nice, quantifiable reference point that appeals to a lot of supervisors and business owners. The second thing you could do is research a few reputable career websites, and develop a short but detailed compensation study based on comparable positions in your area and those similar to your location. Honestly though, if I had a valued and respected member of my team moving up from hourly to salaried, we’d have more of a give-and-take discussion and examination of the situation rather than a negotiation.
Yeah, in your position I’d create a few well-researched compensation studies. Give them to your bosses, and talk with them. I know I would be impressed by that, and depending on the size of the company, they may not have done a lot of work figuring it out.
In a way, it’s kind of like deciding what to ask for when you sell a car. You try to appraise it for what it’s worth in the marketplace to other people. That leads to a discussion. You’re not telling them what to do or presenting an ultimatum, you’re providing information and conducting a dialogue in a professional and respectful way.
Good luck, Natalie!
Dave
READ: Dave Says: Is it an emergency?
Is it ever too late?
Dear Dave,
Life insurance is one of those things I always said I would get around to buying someday, but for various reasons I just haven’t done it yet. Is there ever a time when it is too late to get life insurance?
Angie
Dear Angie,
First of all, I only recommend level term life insurance. It’s fairly easy to get until around age 70, depending on your overall health situation. Once you get into your seventies and beyond, however, it can be more difficult to find reasonably priced coverage.
I recommend that most people have 10 to 12 times their annual income in term life insurance. To be honest, though, you really shouldn’t need life insurance if you’re 70 or older. At that point, if you’ve saved and invested wisely over the years, you can be self-insured. By this, I mean you’ve got enough money in savings and investments to cover funeral expenses—plus enough for a spouse to live on comfortably after you’re gone.
Don’t wait any longer, Angie. Take care of this today!
—Dave