Articles by Miranda Marquit

Should You Move For A Better Paying Job?

Recently, Kiplinger released a list of cities with the best paying job opportunities. It is no surprise there there are a number of people hiring movers and trying to get to these areas.

The site also has an interactive map that shows where the best paying jobs are — and the worst. I'm not surprised that the major cities in my state of residence, Utah, are among the worst paying in the nation. I've seen first hand how much people can expect to make here. Some of the cities with the better paying jobs include Washington, D.C. and Manchester, New Hampshire.

The rankings were based on the number of job openings available that pay more than $50,000 a year. The idea is that you can look at some of those cities with higher paying jobs, and consider whether or not to move to any of them. It doesn't seem like a bad plan, as long as you actually do plan.

move for a better paying job

Do You Have the Skills to Land One of Those High Paying Jobs?

One of the first things you have to do is honestly evaluate yourself and your skills. Are you qualified for a higher paying job? In many cases, higher paying jobs require some sort of certification, or education. If you aren't qualified for the better paying jobs, it might not do you any good to make the move, since you won't be any better off. Before you pick and move cities, check to see what kinds of job openings are available, and make sure that you are qualified to work them.

Have You Considered Cost of Living?

It's great that Washington, D.C. has a relatively high number of $50K+ jobs available. But, stop and think for a minute: How far would $50K go in D.C.? I mean, if you wanted to have a high quality of life. One of the things you need to take into account when figuring out where to live is what things cost. How much is housing? Food? Transportation?

You also need to decide what kind of neighborhood you want to live in. If you want a higher quality of life, you have to pay more for it. Many people can't afford to live the good life on $50K a year in some of the cities that have high paying jobs.

Disposable Income

As you consider the cost of living, contemplate what it would do to your disposable income. After you pay all your obligations, and take care of your needs, what's left over? Sure, you're not going to receive good pay here in Utah. However, $35,000 a year will go further here than $50,000 would go in D.C.

With my current annual income, I live pretty nice here in Utah. I have a home that I can afford — with a mortgage payment that is less than 1/5 my monthly income. Food prices are mostly lower than what I paid when I lived in New York, as are utilities, gas prices and other expenses. If I were to move somewhere else, my money wouldn't go nearly as far, and I wouldn't be able to enjoy a lot of things that I get to do now.

Before you become too excited about the prospect of making more money by moving, consider the factors involved. You might be better off staying where you are and earning a little less.

Double Check Your Employer’s Retirement Plan

By Miranda Marquit 3 Comments

When you work for an employer, you might have access to benefits, including a retirement plan. Your company's retirement plan — usually a 401(k) — can be a way to help you build your nest egg through the power of investing and compound interest. However, you want to double check to make sure that your employer's retirement plan is what you want to be devoting your resources to.

In some cases, you might not want to rely too heavily on your employer's retirement plan to build your wealth. Here are some things to consider:

retirement plan double check

Matching Contributions

One of the biggest advantages of many employer sponsored retirement plans is the matching contributions that you can receive. Your employer will match your contribution up to a certain amount. This is free money that goes into your retirement account.

Before you sign up, make sure that you check into the vesting rules. In some cases, the employer portion of your contribution might not be available to you for a certain number of years. If you're planning on changing jobs in the next couple of years, you might lose the employer match portion because of vesting rules.

Employer Stock

Another consideration is how much of the plan's investments are in company stock. Some retirement plans require that a large portion of your contributions buy employer stock. If the company goes down, this means that you lose out in your 401(k), as well as in terms of your job. An employer's plan that is heavily weighted in its own stock might not be the choice for a large portion of your money.

Investment Options and Fees

What investment options are available with your employer's plan. Some plans only provide options to invest in managed funds with high fees. Other plans may not provide you with enough options that you are interested in. You want to be able to make decisions that work best for you, and if your company plan is light on low-fee options, you could lose a lot of money on unnecessary costs.

What to Do if You Aren't Happy with Your Retirement Plan Options

You can always talk to your human resources representative about your options. You might be able to persuade your employer to re-vamp the plan offerings. If this isn't possible, consider your other options. If your employer offers a matching contribution, it might be worth it to contribute the maximum you can to get the match, and then use an IRA for the rest. You can open an IRA even if you have a 401(k) at your job. This can make it possible for you to invest in low-fee options with the bulk of your contributions.

In some cases, employees will fully fund an IRA, and then invest whatever's left in terms of budgeted contributions with an employer's plan. It's important to weigh your options. A tax-advantaged account has benefits that a “regular” investment account doesn't have when it comes to the long-term. Consider what is likely to work best for you, and how you can make the best of the situation if you aren't happy with your employer's 401(k) options.

Dress For Success: Find Business Attire For Less

By Miranda Marquit 3 Comments

After I graduated college and began looking for my first job, I realized that I didn't have much in the way of business-friendly clothing. I wanted a skirt suit for interviews, as well as a few pieces that could be worn to work in a professional environment.

The first thing I bought was the suit. We went to Nordstrom, and bought a suit off the clearance rack. It was a simple, classic black affair of decent quality. We got it for close to 70% off. The suit was perfect for job interviews, and it could also be mixed and matched, since I could wear the skirt, sans jacket, with different shoes and blouses.

As I built the rest of my professional wardrobe, here are some things I kept in mind, since funds were limited at the time:

Look For Versatile Items

Versatility is one of the best ways to avoid spending a great deal of money on business attire. Look for solid colors, and try not to buy too much that can only be worn with one other piece. My husband has a few different slacks, in black, brown and dark blue, that he can mix and match with button down shirts.

Versatility can also include buying classic pieces. While one or two trendy items can be fun to have (and cheap to pick up if you get them on clearance just as the trend is on the way out), you will always be replenishing your wardrobe to keep up with the latest. Classic clothing items can be used for years, giving you more bang for the buck, and saving you money.

Buy On Discount

There are a number of ways to buy on discount. The Internet is full of discounted clothing. Additionally, you can look for clearance items and big seasonal sales from department stores in town. And, of course, don't forget stores like Marshalls, Ross and TJ Maxx. You can find a number of quality name brand clothing items (and accessories to go with them) for low prices. However, if you do end up with flawed clothing, make sure that the flaws aren't noticeable. Buying clothing for less, especially if it's versatile, can ensure that your wardrobe budget stretches that much further.

Second Hand

Search for high quality second hand clothing. Ask your friends and family for hand me downs. You can also head to consignment shops. Some thrift stores also have high quality clothing, gently used, at low prices. However, if you do buy at a thrift store, try to identify the day of the week on which new items are set out. Many thrift stores have a regular schedule, so if you are there on the day new merchandise is displayed, you have best pick of what's available.

Sometimes, you can also find good deals on second hand clothing at yard sales, but you are likely to have more success at an estate sale if you are looking for something a little more high end.

Of course, I no longer worry too much about a professional business wardrobe, since I work from home. But if I ever need to rejoin the professional workforce, I'll have a strategy ready.

New Year’s Resolution: Giving More

By Miranda Marquit 1 Comment

This time of year, we think a lot about New Year's resolutions, and what we can do to improve ourselves — and our lives. While these resolutions can be helpful in improving your financial situation and your lifestyle, you might be surprised at what you can accomplish in your own life if your resolutions focus on someone else.

Giving can be a great way to help others, while at the same time improving your outlook on life. As you contemplate the way you want your life to look over the course of the next year, consider making a resolution to give more:

Goal of Giving More

Money

The easiest way to give more is to donate money to a cause or a charitable organization. Look around your community and see if you can find worthy recipient of your money. In some cases, it might be as simple as increasing your regular donation to your religious congregation, or upping your donations to the local food bank. In any cases, being generous with your money helps your own finances in a couple of ways:

Increased contentment: One of the interesting effects of giving money away to good causes, or even to help loved ones, is that you tend to look at what you have in a new light. When you help the less fortunate, you are reminded of what you already have — and it can help you feel more contentment with your situation. The more content you are with what you already have, the less you feel the “need” to buy more stuff to augment your situation.
Better money management: A regular policy of giving forces you to better manage your money. If charitable giving is a financial priority, then you have to properly manage your finances so that you can meet your regular obligations while meeting your goal of giving.

And, even though many people don't give with the tax deduction in mind, it's still a consideration. You can reduce your tax liability through charitable giving.

Stuff

You don't always have to give money, though. Some of us just don't have the resources we'd like to write big checks to our favorite charities. Instead, you can consider giving some of your stuff away. Look for friends and family who might need the stuff, or give it to charity. Chances are that you have a few things, in good shape, just sitting around, not fulfilling any purpose. Give it away, and someone else could get good use out of it, and, on top of it, if you get a receipt from a charity, it can also count as a tax deduction.

Time

Many charities just need your help. Make a resolution to volunteer more often. Go once a month, or every two months, or whatever you have time for. Helping others can provide you with a healthy mental state, and it can also give you something worthwhile to do. Your time is a valuable commodity, true, but you might find that you are making a good investment by volunteering your time, expertise or talents to those who could benefit.

What are your New Year's resolutions? Are you planning to give more in the coming year?

Why NOW Is The Best Time To Start Saving For Retirement

By Miranda Marquit 4 Comments

Actually, years ago was the best time to start saving for retirement. As soon as you started earning income was the best time to save for retirement. But now is the second best time to start saving for retirement.

Don't wait until you have “enough” money to start a retirement account. Many brokerages offer you the ability to start saving for retirement with a rather low account minimum. You can pretty much start saving for retirement with any amount of money.

Start Saving Now

Get In The Habit

One of the best reasons to start saving for retirement now ist that you get in the habit. Even if you can only contribute a few dollars a week to a retirement plan, the fact of the matter is that you are developing the habit of setting aside that money.

Besides, you might be surprised at how much money you can “find” to set aside for retirement if you look around a bit. You can increase your income through creative means, or you can reclaim wasted money by cutting back on expenses. In either case, the result is to look for money that can be put toward the future.

However, you don't want to remain complacent about the amount of money you contribute to your retirement account. As your income increases, so, too, does the amount you should be able to put into your account. Periodically evaluate your retirement account contributions and make changes to the amount. But the idea is to start as early as you can, so that you develop the habit of setting money aside for retirement. The practice of thinking ahead with your money is a vital one to be in if you want to create a successful financial plan and achieve financial freedom.

Dollar Cost Averaging

When you start now, and put a regular amount aside as a retirement contribution, you are taking advantage of dollar cost averaging. This is a great way to affordable build up your retirement account, while getting the habit of saving. The idea behind dollar cost averaging is that you use the same amount of money each month to buy however many shares of an investment that you can.

In times when the market is down, your retirement contribution dollar goes further, purchasing more shares for less. (Of course, when the market is higher, you get fewer shares for your money.) This means that it actually isn't a bad idea to build your portfolio during times when the market is struggling. You'll be able to buy more shares, and later, as the market moves higher, those extra shares will be worth even more.

Put Compound Interest To Work For You

Another reason to start now is that you have more time for compound interest to work on your behalf. The sooner you start investing, the more time the interest you are paid has time to earn interest of its own. There are numerous studies and articles written about how starting just five or 10 years earlier can make a huge difference in the amount of money you ultimately end up with. Get started now, and your money will have more time to work on your behalf, resulting in a larger nest egg by the end.

How To Choose Good Tenants For Your Rental Property

By Miranda Marquit 8 Comments

I‘m pretty sure I'm not cut out to be a landlord. However, I have watched friends and relatives do the landlord thing. I know that, if you are the right sort of person to be a landlord, it can be profitable. You could easily fund your retirement with the income from your tenants.

On the other hand, though, if you aren't careful, you could end up in a nightmare. The wrong tenants might ruin the house, or be late paying. You could end spending far more than you are bringing in, just to make repairs and try to collect rent (or end up losing your money altogether). After watching the saga play out with my in-laws, and after what happened across the street from me, here is what I would do if I were choosing tenants:

how to choose tenants

NEVER Rent To Friends Or Relatives

As with so many things in life, trying to make something business-related work with friends or family can backfire on you. Friends and relatives might assume that you will give them a break — even if you do sign a lease (and you should always sign a lease), and do everything by the business book. In the end, friends and family expect your personal relationship to come first, and the business relationship to come second. If you try and stick to the business relationship on rent-related matters, your personal relationship can easily become strained.

Credit Check

Before agreeing to let someone move in, you should run a credit check. Find out what sort of credit the tenant has. Check references. Don't be afraid to ask for the name and phone number of a prospective tenant's boss. Even if you don't run a credit check, you can ask for proof of income, and proof of employment. Pay stubs or bank statements (tell the tenant to black out the account number) can serve to help you verify income.

As part of this process, ask for a previous landlord's information. Our friends rented out their house, across the street from us, and even though the tenants were evicted from their last home, they still allowed them to move in. Needless to say, after more than a year of frustration, our friends finally evicted these tenants — and performed extensive repairs on the house. Talk to the previous landlord, and find out what kind of tenants they were.

Get Money Up Front

You don't want to start your landlord-tenant relationship out with your renters owing you money. Find out if they can give you the first month's rent plus security deposit up front. For the most part, responsible tenants are also responsible with their money, and build this type of payment into their plans. Establish,

When all else fails, trust your gut. If you have a bad feeling about a potential tenant, don't go through with the transaction. Look for someone else. Interview potential clients so that you know what to expect, and look them in the eye. While you can be fooled by some people, your gut can be very valuable as you decide which tenants to accept. Remember: As long as you follow the law, you can be picky about the people who live in your rental.

What are your tips for choosing tenants?

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