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Salary Requirements
By Daphne | April 11, 2008
When looking for a new job, think about how much you really need in order to live. We have all seen the ads for different jobs and if a salary isn’t posted, there may be a short line somewhere near the bottom: salary requirements.
You may already have a budget in place but let’s say you are downsized, unemployed or just entering the job market. Depending on your stage in your career, you may need to take a pay cut. Just how much do you really need for the basic necessities? If you are changing careers for something bigger and better or if you were involuntarily let go, you still have bills to pay.
How much do you really require to get by? Meaning, no luxury vacation every year, no new car every two years, no expensive extras.
Assessing your salary needs is important when looking for a job. If you are relocating, you need to take into consideration the cost of housing and prices in general. If you are changing jobs locally, will you have to drive to work every day or can you continue to take public transportation. Driving may be more convenient but if you don’t have a car and public transportation won’t get you to the job, that may be one to pass up.
Do you need to pay rent, utilities and buy food? Some hourly salaries won’t pay enough, but it is something until a better opportunity comes along. But if you have to drive to a job that is across town and pay for the upkeep of your car, you might as well just put your paycheck into your gas tank.
Even if you already have a budget, go through your monthly bills to see what you definitely need to pay and how much you need to earn in order to maintain your basic needs. Your current job may pay you $50,000 but do you know where all of your money goes? When you look at your monthly expenditures, you may see that you are spending money unnecessarily. If you don’t have a job, add up all of your monthly expenditures and any that you might have to incur for a new job such as transportation, relocation or clothing. Then you will have a better idea of a comfortable salary range for your new position.
When figuring out what you would like in a salary include a percentage of your wages for savings and investment or savings and debt reduction.
When you take a hard look at your regular expenditures, you will see that there may be a lot of waste or that you could get by on a smaller salary which may open up some greater career options.
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Topics: April 2008 |