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What if You Can’t ‘Out-Budget’ Inflation?

Posted on by Laura McMullen

Inflation is a nightmare for the many Americans who already stretch their dollars to cover basic needs. What happens when those dollars lose value?

Their choice is probably not about whether to cut streaming services or opt for store-brand groceries. Instead, they may have to pick between buying enough food and paying rent.

The families hit hardest by inflation typically have little in savings and other resources. And that lack of access to wealth can be rooted in a history of inequality, says Phuong Luong, a Massachusetts-based certified financial planner and founder of Just Wealth, a financial education and consulting firm.

For example, say generations of your family have been underpaid or limited in where they can live, due in part to racist policies. Then inflation causes everything to become more expensive.

You may have to scrape together cash to support not just yourself, but also family or community members. Perhaps you have to spend money and time traveling across town to the grocery store or doctor’s office.

“Your proximity to people with resources and people with wealth is going to be different depending on where you live and who you are,” Luong says. “There’s a larger context than just expenses and budgeting.”

Whatever context describes your situation, here’s how to combat inflation if money is already tight.

Prioritize essentials

Aim to pay for expenses that enable you to live safely: housing (mortgage or rent), utilities and food. Also try to cover costs that help you work, such as transportation, cell phone and child care.

Next-level priorities are those that trigger major consequences if you don’t pay: taxes, child support and insurance.

For credit cards, aim to pay your minimum at least, because you may need that credit access.

Tap local resources

If you’re struggling to pay bills, find support. Luong suggests Findhelp.org, which lists local programs designed to cut costs across many categories.

Calling 211 or visiting 211.org can also help you find assistance related to housing, health, food and emergency costs.

Pick up the phone

You may also save money by calling credit card and insurance companies, lenders, banks, cell phone providers and other businesses you pay.

With the pandemic affecting so many consumers, these companies “are a little more empathetic than they have been,” says Emlen Miles-Mattingly, co-founder of Onyx Advisor Network, a Sacramento, California-based support platform for underrepresented financial advisors.

They may pause or lower payments, for example, or forgive overdue bills. Or they could lower your interest rate.

But you have to ask. And often a patient phone call with customer service yields quicker, more effective results than an email or online form.

Connect with your community

To overcome financial struggles, “community is going to be major,” says Dasha Kennedy, Atlanta-based financial activist and founder of The Broke Black Girl Facebook community.

Leaning on — or supporting — your family members, friends and neighbors can take many forms. For example, Kennedy points out how temporarily living with others can lower housing expenses. Or you can pool resources by sharing a vehicle or splitting a large expense.

To connect with supportive locals you’ve yet to meet, look to libraries, religious organizations and recreation centers. Or use virtual platforms like Facebook and Nextdoor.

In these in-person and online spaces, you may find free or inexpensive goods and services. Maybe someone will give away secondhand clothes or walk your dog while you work.

Or seek guidance. Your neighbors may point you toward free, nearby health resources, for example, or describe what’s helped them stretch their money.

Profit from your skills

Of course, making more money helps, too. If you’re already working, Kennedy recommends first trying to increase earnings through your employer. Consider working overtime or negotiating raises and role changes, she says.

Or explore side work — with caution. Plenty of online gigs could waste your time, take your money or misuse your personal information.

“It’s high time for frauds and scams,” Kennedy says. Trust your gut, and read reviews. Also check the Federal Trade Commission and Better Business Bureau websites for tips to avoid scams.

The most effective way to make money? “Monetize skills you already have,” Kennedy says. These could include anything from cleaning and organizing to writing and designing.

Assuming you start without clients, she suggests tapping your community once again.

“You may not have the time to build trust and reputation, so you’re going to have to rely on personal relationships,” she says. Ask friends, neighbors and family members to promote and vouch for you.

Mind your mental health

Money struggles are exhausting. So regularly “connect with yourself,” Miles-Mattingly says. Identify what makes you feel better, whether it’s walking outside, calling a friend, meditating or reading.

If time is tight, make your activity quick, and consider Miles-Mattingly’s point: “People, when stressed, don’t have the best decision-making abilities.” And hard times mean hard decisions. It pays to feel centered before negotiating a lower bill or agreeing to a side job.

To avoid feeling overwhelmed during times of financial stress, Kennedy tries not to overthink the unpredictable future. Instead, she suggests “focusing on getting through the day.”

Laura McMullen writes for NerdWallet.

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Scam Alert: How to Spot a Bogus Job

Posted on by Bev O'Shea

Lots of us grew accustomed to commute-free jobs during the pandemic and are hoping to find a way to continue to work from home. Scammers hoping to capitalize on that are taking elaborate measures — as far as fake interviews and background checks — to get people’s personal data and/or money.

Lilly Gallaher of Pleasant Valley, New York, applied for several jobs online last year. After a brief online interview process, she appeared to land a position with McKesson, a large distributor of pharmaceuticals and medical supplies. Gallaher was told she’d receive a check to cover her purchase of a computer workstation from its Venmo store. The procedure seemed odd, but she was reassured by the company’s size and reputation. Then the check bounced.

Another Venmo user noticed the transaction and let her know they’d been similarly scammed. When “McKesson” asked for her Social Security number, she refused to give it and reported the scam. Gallaher estimates she lost about $850.

According to the FBI, 16,879 people reported being victims of employment scams in 2020. Looking back, Gallaher says she ignored red flags because she felt assured by a known name and reputation. McKesson now has a “recruitment fraud alert” webpage warning about the scam.

How work-from-home interview scams hook victims

According to the FBI, the newest scams typically work like this:

  • Criminals create a domain name similar in appearance to a legitimate company. They may add a space or flip a digit in the URL — a change so small it’s likely to be overlooked.
  • Next they post job openings on job boards, directing applicants to the spoofed sites.
  • People applying either on job boards or the fake sites get an email requesting an interview, which is conducted remotely.
  • Applicants are told they got the job or are finalists.

After that, what happens can vary, but it tends to involve victims unwittingly revealing their Social Security and bank account numbers to criminals, losing money or unknowingly becoming involved in money laundering.

Know the signs

Job scams have long been a problem, but cloning websites and conducting fake online interviews is newer, says FBI Special Agent Jeanette Harper of El Paso, Texas.

Harper says college students and others with little experience with job interviews and offers are especially at risk.

To them, it may not seem odd to be asked for a driver’s license number early in the employment process or to be asked to pay for a background check. Other signs that could suggest a scam:

  • Interviews conducted by teleconference using email addresses rather than phone numbers.
  • Requirements that applicants purchase startup equipment from the company, sometimes specifying payment in the form of gift cards.
  • Requests for bank or credit card information, or other sensitive personal information.
  • Job postings that do not also appear on genuine company websites (type in the company URL yourself; don’t follow a link).
  • Requests that you pay for lists of job openings before they are published.
  • A request that you send money or packages overseas (it may be money laundering).

Even if you don’t hand over your Social Security number, your resume and list of references have value to an identity thief, says cybersecurity expert Adam Levin, host of the “What the Hack?” podcast and author of “Swiped: How to Protect Yourself in a World Full of Scammers, Phishers, and Identity Thieves.”

Bits of information are “tiles in the mosaic of your life that an identity thief needs to effectively present themselves as you.” Even if you figure out it’s a scam and don’t lose a penny, you can’t retrieve the information, Levin says.

Another hallmark of a scam is a higher-than-expected salary for a relatively low-skill job. Recently, a Reddit poster warned about a Facebook ad for “ramp attendant jobs” paying $40 an hour. The ad assures would-be applicants that the messages being exchanged are encrypted and 100% safe. The employer is supposedly “Breez Airlines.” (Breeze Airways actually does exist.)

“Bad actors have scoped out these companies,” Levin says. “So many companies make available who works there and the kind of employees they are looking for.” That means the name of the person sending you an email may well match an actual person at the company. A cloned website can make it even harder to tell if a job is legit. Your best bet is to call the company, using contact information you looked up yourself and were not provided, and ask HR to confirm the opening you are applying for before you share any information.

Getting an offer quickly should also make you suspicious, Levin says. An on-the-spot offer might mean you are a target, not a potential employee.

Finally: “Trust your gut and ask questions,” Harper advises. Don’t ignore the feeling that something’s not right.

What to do if you think you were scammed

Whether you are applying for online jobs or not, your best protection against identity theft is a credit freeze. If someone has your Social Security number, a credit freeze can help keep them from opening new credit accounts using your personal data.

If you have given out credit card or bank account information, contact the issuer or financial institution as quickly as you can. Ask how you can limit the danger, whether that’s getting an updated credit card number or opening a different bank account.

You should also report an online job scam to the FBI’s Internet Crime Complaint Center at ic3.gov. The more information you are able to provide, in terms of names, emails, texts and the like, the better.

The article Scam Alert: How to Spot a Bogus Job originally appeared on NerdWallet.

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How to Build a Home Office Without Breaking the Bank

Posted on by Annie Millerbernd

For about six months beginning in January, James Hulett’s garage became his home office. His company sent him home earlier than most workplaces in an effort to keep the coronavirus from spreading.

“I have a 3-year-old son who’s way into tools, so he would be [in the garage] finding tools to take them inside and take apart toys and stuff,” he says. “It was a circus.”

In the summer, he and his wife bought a home west of Salt Lake City that could accommodate an indoor workspace. All that was left was to turn it into an office.

Hulett, like employees at many companies in the U.S., expects to work from home at least through the end of the year. Some companies have announced plans to keep office doors closed well into 2021, and others have offered remote work as a permanent option for employees.

If you’re ready to start building your home office, here are tips for managing the costs, plus financing options for more extensive projects.

Consider your cash on hand

Hulett furnished his office using money he could spend within his weekly budget. His emergency fund is ironclad, he says, so dipping into it wasn’t an option.

Over a third (34%) of homeowners who have done home renovations since March 1 took the same approach, paying for their projects with cash they had on hand, according to a recent NerdWallet survey.

If you aren’t using savings designated for home improvement, it’s OK to use your emergency fund, says New York-based certified financial planner Jeff Wolniewicz. After all, he says, that fund is for unexpected expenses.

Just be mindful of how much you need in your emergency fund to feel secure and make a plan to replenish it right away.

“I think everybody has seen how important it is through COVID to maintain that,” he says. “An emergency fund is a huge peace-of-mind right now, so just have that plan to rebuild it.”

You can also put smaller home office purchases on a rewards credit card that gives cash back. Pay the full balance each month to keep interest charges from outweighing the rewards.

Focus your spending

One spending strategy is to invest in pieces that will make your work time more productive and enjoyable and to spend less where it won’t make as much of a difference.

A key piece that can create an effective office environment is a comfortable, supportive office chair, says interior designer Kerrie Kelly, who is based in Sacramento, California.

She suggests finding one that’s similar to what you have at work.

You can also get your money’s worth out of a fresh coat of paint. She says a new color can help create the feeling you want when you’re working.

“If that light blue changes your mood, go for it, or if you think that crisp white is gonna keep you really organized, then go do that,” Kelly says.

Additionally, find a way to compartmentalize. Especially if your workspace doubles as a dining room, for example, invest in ways to hide your work — from yourself, if nobody else. She suggests something like a rolling storage cart.

For his home office, Hulett wanted a formal, work-like atmosphere — he still puts on a button-down and gets ready for work — and for him, that meant an executive desk and credenza.

“I wanted there to be some kind of stepping out of normal home life into a work situation,” he says.

Shop secondhand

Hulett says his office cost $3,500 to furnish, and almost everything in it is secondhand.

His biggest tip is to use websites like eBay and Facebook Marketplace, where people are reselling office furniture in bulk at low prices.

Hulett says his desk was about $100 on Facebook. A similar desk by the same designer is valued at $3,000 by a vintage furniture store. Hulett drove to Phoenix to buy the matching credenza he saw on Instagram for about $800.

“It’s like a weird secondary economic phenomenon of COVID,” Hulett says. “I don’t think it’s ever been easier to get equipment that’s on par with what people are used to using at work.”

Get financing for bigger upgrades

Homeowners hired professionals for about 63% of home improvement projects between 2017 and 2019, according to the NerdWallet report. And professional help doesn’t always come cheap. If you’re thinking about adding a room or a more extensive workspace renovation, you have a few financing options.

A credit card with a 0% interest promotion could help you pay for your office updates interest-free, Wolniewicz says. The no-interest period on these cards is usually 12 to 18 months, so keep the interest rate in mind in case you can’t pay it off during that period.

You usually need good or excellent credit to qualify, Wolniewicz says, and though he sees some issuers making more zero-interest offers than earlier in the pandemic, they may still be hard to come by.

For building a home office, Wolniewicz recommends a home equity line of credit because of its flexibility. You can take only what you need from a HELOC and leave the rest, unlike a home equity loan, which comes in a lump sum.

If you can’t get your hands on a zero-interest credit card and you don’t want to tap your equity, consider a home improvement loan. You usually get the funds from these loans faster than an equity loan, and they can have annual percentage rates lower than a credit card.

Because they have higher rates than HELOCs and typically shorter repayment periods, your monthly payments could be higher, Wolniewicz says, but you’ll also clear your debt faster.

Annie Millerbernd is a writer at NerdWallet. Email: amillerbernd@nerdwallet.com.

The article How to Build a Home Office Without Breaking the Bank originally appeared on NerdWallet.

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Picking a Pandemic Side Gig Takes Hustle

Posted on by Lauren Schwahn

Side gig. Side job. Side hustle. It goes by many names and serves many purposes. For some, it’s a way to keep the lights on. For others, it’s an opportunity to save for a goal or follow a passion.

Since the onset of the COVID-19 pandemic, millions of Americans have become unemployed. Many are turning to the gig economy to make money. And it’s booming.

“Obviously online shopping has become huge, and so delivery services are packed. You’ve got Amazon Flex trucks practically ramming into each other,” says Kathy Kristof, editor at SideHusl.com, a website that reviews hundreds of online moneymaking platforms.

Before you rush into a side gig, scrutinize the risks, the pay and other important details. Here’s how to choose the right pandemic side job for you.

Assess yourself first

As you begin searching for a side hustle, think about your experience, skills and interests. But more importantly, consider what you’re comfortable doing.

Are you willing to be in close contact with other people, or would you prefer a socially distant position? Are you part of a high-risk group for COVID-19? What would happen if you got sick and couldn’t work? The answers to these questions will help you decide what jobs to pursue.

If either your health or financial life could be ravaged by illness, you’re going to have to be more careful than the people without those risks, Kristof says.

“Somebody who doesn’t have that same sort of risk might feel completely comfortable doing contact-free deliveries for Grubhub or Dumpling or any of these other delivery services,” Kristof says. “But somebody who is high risk, you want an online job like online tutoring.”

Expand your definition of ‘side gig’

“Side gig” has become synonymous with a handful of jobs: dog walking, delivering groceries and driving for Uber or Lyft. But these aren’t the only opportunities occupying the space.

You can teach a virtual yoga class, for example, sell clothing online or work as a freelance designer. Through services like TaskRabbit, you can get paid to do odd jobs like yardwork and assembling furniture.

Side and part-time jobs tend to rise during economically uncertain times, according to Brie Weiler Reynolds, career development manager at FlexJobs, a job-search site for remote and flexible jobs. Chances are there’s something up your alley.

Roles outside the gig economy can be worth exploring, too. Features typically associated with side gigs, including flexible schedules and the ability to work from home, are increasingly spilling over into professional roles. Remote jobs posted on FlexJobs in career categories such as marketing, sales and project management have increased over 50% since March, according to a recent analysis from the site.

“Because we’ve never had to do this from home before, there was never as much acceptance. Now you’re getting widespread acceptance from the whole of corporate America,” Kristof says.

Protect yourself and your finances

Once you narrow down your choices, dig into the details. Get a sense for what it’s like to work in a role, what the requirements are and how much you’re likely to earn before you commit.

You can avoid surprises by looking up a company’s Better Business Bureau rating, reading through the fine print on its website and checking out reviews on sites like SideHusl and Indeed.

“Let’s say you’re interested in delivery jobs, and you’ve got DoorDash, Instacart and Postmates. You want to look at each site and see what the fees are,” Weiler Reynolds says.

Many platforms charge registration, listing or commission fees, which can cut into your earnings. Some gigs also require you to pay expenses like gas and insurance for your vehicle. If you’re a rideshare driver, delivery driver or mover, your personal auto insurance policy doesn’t cover you for commercial risk, Kristof says.

“Some online platforms automatically cover you with a commercial policy. Others do not. So you should always look for that if you’re working for an online platform,” Kristof says.

Still, that won’t necessarily cover you in all circumstances, such as when you’re en route to pick up an order. Talk to your insurance company to ensure you get the proper protection.

You’ll also want to find out whether you’ll be classified as an employee or independent contractor. This determines how you’ll pay taxes and whether or not you’ll be entitled to certain benefits. Independent contractors need to set aside a portion of their pay for taxes themselves. Employers automatically withhold income taxes for employees and usually offer health insurance, 401(k) matches or paid time off.

Weiler Reynolds says freelancers or contractors may also have to pay taxes quarterly, which can be a bigger time investment.

Don’t forget to make safety a priority. Find out what protective measures the company or local government requires while you’re on the job. If you’re unable to avoid contact with others, prepare to take appropriate precautions, such as wearing a mask or gloves.

This article was written by NerdWallet and was originally published by The Associated Press.

Lauren Schwahn is a writer at NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.

The article Picking a Pandemic Side Gig Takes Hustle originally appeared on NerdWallet.

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How New Grads Can Handle 3 Essential Post-College Questions

Posted on by Ryan Lane

Life after graduation is always an unknown. But the coronavirus pandemic has added even more uncertainty for the nearly 4 million students expected to receive college degrees in 2019-20, according to the National Center for Education Statistics.

“I feel like when you graduate, you go out into the real world,” says Stephanie Fallon, 23, who graduated in May from Temple University in Philadelphia. But this world “almost doesn’t feel real,” she says.

Even though the real world has changed, the challenges most new graduates face haven’t. Here’s what the class of 2020 can do to answer three essential post-graduation questions during the ongoing pandemic.

Can you get a job?

The job market looked strong for 2020 graduates before the economy took a hit from the coronavirus. A survey in fall 2019 by the National Association of Colleges and Employers projected a 5.8% increase in hiring over the previous year.

Of course, much has changed.

“What [graduates] are facing now is just a horrendous market,” says Edwin Koc, director of research, public policy and legislative affairs for NACE. “There really isn’t any other way to put it.”

A survey in 2018 from the recruitment agency Randstad found that the average job search lasts five months. Koc says it may take more time — and effort — to land a job in the current market. Here are some ways to improve your situation:

  • Be persistent with potential employers but understand if they can’t give you a quick answer.
  • Look to your college career center for help, like connecting you with alumni at companies that are hiring.
  • Consider transitional work or opportunities outside your desired field.

Fallon, for example, plans to pursue a career in nonprofit work. While she currently has a part-time job with a national nonprofit foundation, she’s also working two nanny jobs.

Can you get an apartment?

Many students live at home after graduation: Investment broker TD Ameritrade found in a 2019 survey that roughly half of college graduates plan to move back in with their parents.

You may have already taken this step when your college closed its campus this spring. But that doesn’t mean you’ll want to live at home indefinitely — or be able to.

For example, you may need to relocate for a job. Although a June 2020 poll from NACE found that 66% of employers plan to start new graduate hires remotely, you may need to find a place while still social distancing.

“The industry has adapted,” says Meena Ziabari, chief operating officer and principal broker for Next Step Realty, a Manhattan-based real estate firm that helps new grads find apartments in New York City. “You should not be afraid of renting virtually.”

Choosing an apartment without seeing it in person may be unnerving. What if you arrive to find no hot water, a pest problem or an entire bait-and-switch?

“Do you get landlords who are a little funny or shady? Absolutely,” Ziabari says. But she adds there are laws in New York City on things like an apartment lacking heat — or a kitchen.

To help avoid undesirable outcomes, consider hiring a real estate broker. You may have to pay a broker’s fees; in New York City, these can cost you as much as 15% of a year’s rent, for example. But their relationships with landlords could make that cost worth it.

If you don’t want to pay a broker’s fee or can’t afford to, Ziabari recommends having a trustworthy person who can check out places to live for you in person.

How will you repay student loans?

Roughly two-thirds of the class of 2018 graduated with student debt, according to most recent information from the Institute for College Access and Success. Those graduates owed an average of $29,200.

If you have student loans, there’s some breathing room: Most come with a six-month grace period.

“Go ahead and take advantage of not having to pay,” says Tara Unverzagt, a certified financial planner and founder of South Bay Financial Partners in Torrance, California.

But don’t avoid your student loans altogether — find out how much you owe, then explore repayment options with a tool like the federal government’s loan simulator. Options tied to your income could give you breathing room once repayment starts.

Unverzagt says your top financial priority now should be starting an easily accessible emergency fund. And if money is tight, understand your cash flow — and avoid the urge to rely on credit cards.

“That is a slippery slope into never-never land of debt,” Unverzagt says.

This article was written by NerdWallet and was originally published by The Associated Press.

Ryan Lane is a writer at NerdWallet. Email: rlane@nerdwallet.com.

The article How New Grads Can Handle 3 Essential Post-College Questions originally appeared on NerdWallet.

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4 Expert Tips to Get Hired From Home

Posted on by Lauren Schwahn

Job hunting has always been a little stressful. OK, a lot stressful. A pandemic certainly hasn’t remedied that.

Rather, it’s changing the landscape.

For one, it’s heating up competition. Millions of newly out-of-work Americans are chasing employment simultaneously. Applicant pools are also expanding geographically as remote work becomes widespread.

Plus, navigating the entire hiring process from home presents its own obstacles. If you’re in a community that hasn’t fully reopened or are seeking a permanent work-from-home job, it’s likely the new reality.

Here are four ways to fine-tune your at-home job hunt.

Build your skills

These uncertain times boast at least one advantage for job seekers: Many resources for online learning are now free or more affordable in response to impacts of the COVID-19 outbreak. So make yourself more marketable by learning or developing a skill, or getting a certification (think mastering Excel or dipping a toe into project management). You can find courses for just about any topic on platforms like Coursera and Udemy.

“Then, put that bullet point on your resume. Even if they don’t have a formal certification process, that’s still a big deal to say you invested that amount of time in yourself,” says Julie Kratz, founder of Next Pivot Point, a leadership training organization.

This step can be even more impactful if you’ve had a gap in work experience during the pandemic.

Give yourself credit

Maybe you don’t meet 100 percent of the listed requirements for a position or you’re considering a new career path. Don’t let that stop you from applying.

Be confident and try not to apologize for or otherwise call attention to anything you’re lacking, says Jeannie Kim, vice president of content at career site The Muse.

“What you should do instead is really play up the things that you do have. Play up the skills you have that are in the job description. Play up the background that you have, and make sure that you’re telling the story of how you’re qualified to do the actual responsibilities of the job.”

Highlight your adaptability

Businesses across the country are settling into new normals. That might involve reconfiguring workspaces or learning to operate remotely. You’ll make a good impression by demonstrating you can roll with changes. How do you do that? Showcase personality traits and attitudes like flexibility, empathy and creativity, known as soft skills.

“With people not able to be in the same place as their coworkers, being able to show that you have strong communication and collaboration skills is really important right now,” Kim says.

Resumes and application forms often revolve around hard skills: the technical, measurable skills like proficiency in a particular software or programming language. But your cover letter and interview can be suitable places to insert soft skills.

Transferable skills are also crucial to mention, especially if you’re looking to change roles or industries. Those are skills that apply to a wide variety of roles and can include both soft and hard skills, such as sales, writing or leadership.

Previous telecommuting experience can give you a leg up, too.

“Experience managing a remote team would be huge right now because very few managers have managed like this,” Kratz says. “But even having successfully contributed to a virtual team, especially if you can lead with the accomplishments you achieved on that team, would go really well.”

Prepare for virtual interviews

The interview process could be mostly, or entirely, virtual — even if the job itself isn’t slated to be. Standard interview advice still applies: Dress professionally, ask smart questions and so on. But you should also adopt a few new best practices.

If you’re granted an interview, ask the company what the process will look like. How long will it take? Who will you meet with? Will it be over Zoom, Google, Skype or something else?

Then, do a dry run. Test the audio, video and internet connection on your device. Make sure there’s nothing distracting or inappropriate in the visible background (a ceiling-high stack of dirty dishes isn’t a good look). Get familiar with the software so you’ll know where the controls are located.

“You don’t want to have your first experience with that software or that platform be struggling to log onto it while you know that a recruiter is waiting,” Kim says.

For good measure, set up a mock interview with a friend who can let you know how everything looks and sounds on the other end. Finally, tell the people you live with when you’ll need access to shared equipment and quiet, uninterrupted time.

This article was written by NerdWallet and was originally published by The Associated Press.

Lauren Schwahn is a writer at NerdWallet. Email: lschwahn@nerdwallet.com. Twitter: @lauren_schwahn.

The article 4 Expert Tips to Get Hired From Home originally appeared on NerdWallet.

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How to stand out in this tough job market

Posted on by Kelsey Sheehy

Dear Class of 2020: You are graduating into one of the worst economies in history. But this isn’t news to you. Many of you have already felt the impact, with summer internships and full-time job offers pulled out from under you as the depth and duration of the coronavirus pandemic truly sets in.

As a product of the last recession, I’m here to tell you that all is not lost. You will eventually land a job. It might not be in your field, but if you’re scrappy and creative, you will get there.

My path looked like this: A call center job (to pay the bills), plus a freelance writing gig (to build my resume), then graduate school (to expand my network) followed by a temporary job with a textbook company (again, to pay the bills). Then, finally, a reporting internship that turned into my first full-time journalism job.

Your path may not look like mine or your parents’ or your classmates’, and it will likely look different from what you planned. These tips from career coaches can help you stand out from the other newly minted associate’s, bachelor’s and master’s degree holders — not to mention the over 40 million newly unemployed workers.

Beef up your LinkedIn profile

“You don’t have as much face-to-face opportunity, so it’s important to optimize online visibility,” says Debra Rodenbaugh-Schaub, a career services consultant at the Alumni Association of Kansas State University.

The place to do that: LinkedIn.

The professional networking platform is heavily trafficked by recruiters and hiring managers, making it crucial to put your best foot forward.

Amp up your profile with links to websites you’ve created, articles you’ve written or presentations you’ve given. You can even upload recordings to highlight public-speaking skills.

Look at profiles of people who are leaders in the industry you’re targeting to get inspiration for what to highlight and how to present yourself in your own profile.

Network virtually

Social distancing hasn’t killed networking; it’s just made it virtual.

The usual players — trade organizations, alumni groups and professional organizations — are all still meeting via webinars and video conferencing.

Moving online can make networking less intimidating for newbies. You can ease into building connections, absorbing information and building the confidence to eventually become a more active participant.

You can, and should, also make meaningful one-on-one connections. Not doing so will put you at a distinct disadvantage, since jobs are often filled via an employee referral.

Lisa Kastor, director of career planning at the College of Wooster in Ohio, recommends building a “mentor map” with at least three mentors who can help guide you and make introductions.

“I coach students to identify a person who has at least 10 years of experience, one that knows them well academically and one who knows them well professionally,” Kastor says. “Start with who [you] know, articulate what [you] want and always ask for the recommendation of two more people to reach out to.”

Tailor your resume

Understand what a company is looking for in a candidate. Then, customize your resume and cover letter to that specific job posting. This is an important step under normal circumstances but it is critical now, as the economic upheaval of the pandemic has increased competition for available jobs.

“Don’t be self-defeating and copy and paste the same thing into 100 job applications. That is not the right approach.” Rodenbaugh-Schaub says.

Avoid simply listing skills or tasks. Instead, give them context. Highlight how your experience and actions delivered measurable outcomes.

Tailoring your resume also means including keywords or phrases from the job posting, since companies use software to sift through the initial barrage of applicants.

Consider alternative career paths

“COVID-19 is unlike anything we have seen, so you have to be flexible,” says Glenn Hellenga, director of career and employability resources at Tri-County Technical College in South Carolina.

That might mean working in a short-term contract role in your field or accepting a job that is completely outside your career path. After all, you’ve got bills to pay.

Taking a detour doesn’t mean abandoning your goals entirely. Instead, find opportunities to develop the tools you’ll need for your dream job. Pick up freelancing gigs, find volunteer opportunities and proactively seek out projects wherever you land.

“You can show that you’ve been actively pursuing, enhancing and honing your skills,” Rodenbaugh-Schaub says. “Employers love that.”

This article was written by NerdWallet and was originally published by The Associated Press.

Kelsey Sheehy is a writer at NerdWallet. Email: ksheehy@nerdwallet.com.

The article How to stand out in this tough job market originally appeared on NerdWallet.

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You Lost Your Job? Here’s How to Find Your Financial Footing

Posted on by Kelsey Sheehy

It doesn’t matter if you were fired or laid off, whether you saw it coming or were completely blindsided: Losing your job is disorienting. You’ll feel like you’re in a fog. And yet, in that fog you still need to answer some important questions:

How will you pay rent? Put gas in your car? What about your student loans?

The average length of unemployment is almost 22 weeks, according to the Bureau of Labor Statistics, so it’s important to quickly adapt your finances to your temporary new normal.

Working through these tasks in the first seven days can help you find your financial footing as you figure out the next step in your career.

Day 1: Apply for unemployment

“Filing for unemployment insurance is a critical piece to getting back on your feet,” says Kyle Goulard, a certified financial planner in Portland, Oregon.

Contact your state’s unemployment office the day you lose your job. In most cases, you can file your unemployment claim online. The process can take a few weeks, so don’t delay.

Day 2: Assess your savings

Take stock of what you’ve squirreled away over the years. How far will it get you? Factor in any severance or payouts for unused vacation days, which will help you stretch your reserves.

In an ideal world, you’ll have enough savings to get you through a few months. In reality, you may only have a few weeks’ worth. Prioritizing bills and cutting back spending can help stretch that (more on that below).

Your 401(k) might look like a lifeline, but resist the urge to cash it out. Between taxes, penalties and lost retirement earnings, that’s an incredibly expensive move. Consider it a last resort, and you’re not there yet.

Day 3: Strip down your spending

“As soon as you lose your job, you should switch to an emergency bare-bones budget,” says Bruce McClary with the National Foundation for Credit Counseling.

That means cutting nonessentials, including gym memberships, ride shares, cable, streaming services and other subscriptions.

These changes feel extreme, but they’re only temporary. You can readjust your spending once you find another job.

Day 4: Call your creditors

Contact any lenders, utility companies and credit card issuers that you owe money. Many will have options to help out, including reducing or suspending payments, McClary says. The key here is to be proactive.

“It’s definitely taken into consideration when a borrower reaches out first,” McClary adds. “It can change the entire conversation.”

Day 5: Don’t neglect your student loans

Most student loans have built-in protections to help with this exact situation.

You may be able to temporarily suspend your loan payments through deferment or forbearance, or change your repayment plan to lower the amount due each month. Call your loan servicer to figure out the best option based on your loans.

If you’ve already missed a payment, you may have some wiggle room. Federal student loans aren’t considered in “default” until they’re 270 days past due. Avoid getting to that point, says Dana Kelly with the National Association of Student Financial Aid Administrators.

“Little dings are gonna happen, but you don’t want anything major. Especially when truly there is no need for it to happen,” Kelly says. “You can simply make a phone call and get yourself on better footing while you’re finding that next job.”

Day 6: Prioritize financial obligations

You may need to make some hard decisions if you don’t have enough money to go around. But how do you decide what gets paid and what doesn’t?

“Your top priority should be on making rent, keeping the lights on, putting food on the table,” says Scott Newhouse, a certified financial planner in Thousand Oaks, California.

Debt comes next. McClary says to prioritize collateralized loans, like your mortgage or auto loan. Defaulting on those could lead to losing your home or car.

With credit cards, continue to make at least the minimum payment for as long as possible. Missing payments will damage your credit score, which can take years to rebound. And you may need your credit cards to cover expenses down the road.

Remember: Continue talking with your creditors, especially if you need to miss a payment. You’ll have more control over the situation if you keep them in the loop.

Day 7: Sort out your health care

Health insurance through your employer typically won’t terminate the day your employment does. Often, you’ll have coverage at least until the end of the month, but you’ll need something to bridge the gap until your next gig.

Job loss is considered a “qualifying event,” meaning you can get health insurance outside of the annual open enrollment period. Explore the following options:

  • Your parents’ plan, if you’re under age 26.
  • Your spouse’s employer-sponsored plan.
  • The health insurance marketplace (Healthcare.gov).
  • Continuing coverage through your former employer via COBRA insurance.

One option that should not be on the table: forgoing insurance.

“This is a ‘must-have’ without question,” Goulard says. “The only thing worse than being unemployed is incurring health care costs without health insurance coverage.”

This article was written by NerdWallet and was originally published by The Associated Press.

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The article You Lost Your Job? Here’s How to Find Your Financial Footing originally appeared on NerdWallet.

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3 Things to Do When You Get a Salary Increase

Posted on by Laura McMullen

Bravo! Everyone wants to make more money, and you’ve managed to do just that. Whether you received a raise or took a higher-paying job, a salary increase is something to celebrate.

It’s also something to evaluate within your larger financial picture. That way, you know what to do with your additional cash.

Here’s what to do when you get a salary bump.

1. Determine your new take-home pay

It’s too easy to fall into the “earn more, spend more” trap known as lifestyle creep. Extra spending could easily surpass your additional income — and that’s before you even see most of it.

“People will say, ‘Well, annually, I’m going to make this much more,’” says Autumn K. Campbell, certified financial planner at The Planning Center in Tulsa, Oklahoma. “Well, that’s from one year after the time you got the raise,” she says. In that time, she adds, “we can learn habits that are tricky to get out of.”

Before building such habits, get a reality check by calculating how much more you’ll make in the shorter term. “We need to talk to ourselves in real numbers,” says Lynn Ballou, CFP and senior vice president and partner with EP Wealth Advisors in Lafayette, California.

Say you were making $50,000 and received a 4% increase, or $2,000 over a full year. Divide that $2,000 by 12 for about $167 per month. If you’re paid every other week, divide $2,000 by the 27 pay periods expected for 2020, and you’re looking at $74 per paycheck.

This math doesn’t account for tax withholdings and deductions that chip away at your take-home pay. (Scrutinize your paychecks to calculate that amount.) But having a rough figure for this extra income does help you figure out what to do with it.

2. Check your financial picture

To identify opportunities for your extra income, first take stock of your cash flow (incoming and outgoing money), as well as savings, investments and debts. Depending on your situation, these questions may help you think about next steps:

Are you meeting basic needs?

Consider food and shelter. If you’re facing overdue bills and shut-off notices for utilities, those payments should be a priority, says Campbell, who is also the president of FPA NexGen, a professional group for young financial planners.

Could you cover an emergency?

Emergency funds help prevent you from taking on debt if — actually, when — you face unexpected expenses. This is a smart time to start the fund if you don’t have one, Ballou says.

Ideally, the fund could cover a few months’ worth of living expenses, but it’s OK if you can’t swing that. Just build a buffer. For example, perhaps you set up automatic monthly transfers of $50 from your checking account to a high-yield savings account.

Do you have high-interest debts?

These are debts with interest rates around 20% or higher and could be from credit cards, personal loans or payday loans. They can hinder both your current and future finances. “It’s very hard to plan long-term if our short-term needs are in flux or being stretched,” Campbell says.

Sound familiar? Identify your debt strategy and consider using some of your additional income to pay it down.

Could you put more toward goals?

Use this opportunity to check on your financial goals, Ballou says. (Or identify a few, if you don’t have any.)

Say you’re aiming to retire with a certain amount saved. Consider contributing more to your 401(k), a tax-favored retirement savings account offered by some employers.

Other goals may lead you to put more earnings toward a down payment or vacation fund, or toward your student loans. Or perhaps this is the time to buy life insurance or contribute to a 529 plan for your kids’ college savings.

3. Reward yourself

Celebrate your raise “in a way that honors your hard work and also moves you forward in life without the stress of spending it and never really getting ahead,” says Lazetta Rainey Braxton, CEO and founder of Financial Fountains, a financial planning firm in Baltimore, and president of the AAAA Foundation, which helps cultivate the next generation of African American financial planners.

To pull this off, give yourself the “gift of time” rather than something that costs money, Ballou says. Spend an afternoon hiking or digging into a book, for example.

If you do spend money, Braxton suggests setting boundaries, such as a spending limit equal to the increase you’ll see in one or two paychecks.

Before spending, try to wait a few weeks or even months. By that time, you’ll have paychecks that show exactly how much more you’re taking home — and hopefully you’ll have cooled on any impulse-purchase ideas. After all, “there’s no rush,” Campbell says. “It’s not like the money is going to disappear.”—

The article 3 Things to Do When You Get a Salary Increase originally appeared on NerdWallet.

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What College Students Need to Know About Driving for Uber, Lyft

Posted on by Teddy Nykiel

Rideshare companies promise ultimate flexibility for drivers: Set your own schedule, earn more during busy times, get paid quickly. It seems ideal for college students looking to earn summer cash.

But driving for Uber, Lyft or other rideshare services requires more than simply downloading the app and filling up your gas tank.

Here’s what to know before signing up to be a driver this summer.

Age requirements

Rideshare driving may not be an option for undergraduate freshmen and sophomores due to age requirements.

  • Uber: You must meet your city’s minimum driving age requirements and have at least one year of licensed driving experience in the U.S. Drivers younger than 23 must have three years of licensed driving experience.
  • Lyft: You must be 21 or older. The exception: Drivers can be 18 years old in New York City.

If you’re too young for Uber or Lyft, other options include driving for a takeout or grocery delivery service. The age requirement for DoorDash and Instacart is 18. With Uber Eats, you must meet the minimum age to drive in your city and have at least one year of driving experience.

Insurance coverage

For both Uber and Lyft, drivers must have a valid U.S. driver’s license and provide proof of insurance with their name on the policy. Drivers should inform their insurer that they’re driving for a ridesharing service, or they could risk getting dropped.

But personal auto insurance likely won’t cover drivers when a rideshare app is open. Insurance companies want you to purchase commercial insurance if you’re using your car to make money.

To help solve this, Uber and Lyft insure drivers while they’re en route to pick up passengers and when passengers are in the car. However, coverage is limited when the app is on and drivers are waiting for a ride request. To cover yourself during those gaps, consider purchasing rideshare insurance.

Financial aid impact

Need-based financial aid is determined with tax information from two years prior. In other words, money earned in summer 2019 may reduce the amount of need-based aid a student receives for the 2021-22 school year. But if you expect to graduate within two years, this summer’s earnings won’t impact future financial aid.

Students can earn up to a certain amount before it counts against them for need-based financial aid. The income protection allowance for dependent students is $6,660 for the 2019-20 school year. The allowance is higher for independent students and parents.

If a summer job as a rideshare driver pushes your annual earnings above the income allowance, you could be eligible for less need-based financial aid in the future.

However, students working as independent contractors — as rideshare drivers do — have the “unique ability” to deduct certain expenses from their income and potentially keep their income under the allowance, says Billie Jo Weis, a client service manager at My College Planning Team, a financial aid advising firm in the Chicago area.

Tax implications

Rideshare companies don’t withhold taxes from drivers’ paychecks. Instead, you’re responsible for paying taxes on income earned through the app. You may be able to reduce your taxable income — therefore potentially increasing access to need-based financial aid — by deducting driving-related expenses including gas, tolls and repairs.

Keep track of your car- and driving-related expenses, including your mileage with the app on. The IRS allows drivers to deduct a set amount — 54.5 cents per mile in 2018 and 58 cents in 2019 — for every mile driven for business purposes. Uber and Lyft provide annual reports to each driver that include total mileage and earnings.

Potential perks

Between insurance, financial aid and tax considerations, being a rideshare driver may sound like more of a headache than it’s worth.

But you may have the opportunity to earn more than just cash.

For instance, Uber is piloting a program that offers free tuition for undergraduate degrees online through Arizona State University. It’s available to drivers in more than two dozen cities who have completed 3,000 rides and have gold, platinum or diamond status on Uber Pro, the company’s rewards system.

Emily Kuckelman, 28, of Denver is participating in the program by taking classes in graphic information technology online at ASU while driving 30 to 35 hours a week for Uber. The former teacher estimates that she earns $13,000 to $17,000 more annually than in her previous career. Plus, it’s flexible with her class schedule, she says.

“If I can afford to not drive, I don’t have to,” says Kuckelman, who works during peak hours to take advantage of Uber’s in-app promotions for drivers. “I want to make the most amount of money in the least amount of time.”

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The article What College Students Need to Know About Driving for Uber, Lyft originally appeared on NerdWallet.