Part 9 (1/2)

- Improve your skills. Even if you didn't get a raise this year, you can increase your odds of future salary b.u.mps by learning new things. Attend training sessions, go to seminars and conferences, and get certified in job-related skills. (Many companies will even pay for your cla.s.ses.) You can then use your new skills at your current job-or to help you find a new one.

- Ask for non-monetary rewards. If there's no room in your company's budget for a raise, ask for other compensation, like an extra week of vacation, a more flexible schedule, or a better parking s.p.a.ce.

- Network. Consciously build new connections inside and outside your company by doing things like joining committees and volunteering for the tasks n.o.body wants (taking on the tough jobs can bring you to the attention of your boss-or even your boss's boss).

- Know the rules. Make sure you're familiar with all your company's policies. Reading the employee handbook is tedious, but you might find out about some little-known perks you can ask for.

Moving On Few things last forever. Even if you love your job, you'll eventually want to try something new. And if you hate your job, it's important to know how to quit without burning bridges. You don't want to let your guard down during your final days and do something foolish that could damage your career.

On eWeek.com (tinyurl.com/jobquit), Deb Perelman offers some excellent advice for leaving a job: - Be sure you're making the right choice. Sometimes that dream job isn't. If possible, ”test-drive” the new job first-by working at it part-time during weekends or evenings-so you don't give up what you already have for something that isn't a good fit for you.

- Give written notice. Be sure to submit a written letter of resignation to your boss (or HR department); it makes you look professional and makes everything official. In your letter, stick to the facts, don't let your emotions get the better of you, and don't lie about why you're leaving. Whether your letter is simple or complex, keep it positive. You can read sample letters at Emurse: tinyurl.com/rletters.NoteIf you're thinking about switching jobs, pick up a copy of Alexandra Levit's New Job, New You New Job, New You (Ballantine, 2009). Levit profiles 35 people who've managed to reinvent themselves with new careers. (Ballantine, 2009). Levit profiles 35 people who've managed to reinvent themselves with new careers.

- Tell your boss first. Respect the chain of command: Talk to your manager before telling your buddies you're leaving.

- Be ready for a counter-offer. If you're a valuable part of the company's plans, they may try to get you to stay. Be prepared for this, and know what you're going to say. (This is one reason it's important not to lie when resigning: If the company offers to fix the things you claimed were wrong but they aren't your real reasons for leaving, you could end up in an awkward position.) - Leave in good standing. As tempting as it is to mentally check out before you're done working for your old company, resist that urge. If you said you'd stay 2 more weeks, work during those 2 weeks. If you don't, you put the company in a tough spot and make yourself look bad. You never know when you'll need a reference from a former boss or find yourself working with former coworkers again.

On The Money: Informational InterviewsFinding a job can be tough. Compet.i.tion is fierce, and even if you've got the right skills, it's challenging to make yourself known to the right people. Informational interviews are a way to get an edge on your compet.i.tion. These aren't the same as job interviews-they're an opportunity to learn more about a career or company.The first step in setting up one of these interviews is to find people with jobs that interest you. Prepare a simple list of questions to make sure you get the info you need when you contact these folks. It may help calm your nerves to approach the interview as if you were a reporter: Pretend you're gathering facts for a news story.The cardinal rule of informational interviews is don't ask for a job don't ask for a job. If you tell somebody you're just gathering info but then turn the meeting into a job interview, you're just going to make her angry. (If she thinks you're a promising candidate and she has a position available, she'll contact you.)Here are some more guidelines: - Ask politely. If the subject agrees to an interview, set a time and a date. If she's not up for such an interview, respect her boundaries.

- Be prepared. Dress appropriately, be punctual, do your homework about the company or field, and be ready to ask intelligent, relevant questions.

- Listen. Ask open-ended questions, and then let the subject talk about herself and the company. Good questions include ”What's your typical workday like?” and ”How is your company different from its compet.i.tors?”

- Take notes. You're conducting this interview to learn more about a possible career, so write things down and ask follow-up questions.

- Be brief. Keep track of time. Don't rush, but don't overstay your welcome.

Afterward, remember to send an email or hand-written note to thank the person for taking time to meet with you.For more about informational interviews, check out tinyurl.com/NYTinfoview.

Taking a Second Job One of the best ways to earn extra income is to get a second job. Earning a few bucks in your spare time is a great way to boost your cash flow, and it's something that almost anyone can do.

Some people don't like the idea of a second job; they feel like it's beneath them. But if you can get over that, it's a simple and straightforward way to bring in predictable income. You should be able to find something you're willing to do at a place that needs part-time (or even full-time) help on evenings and weekends: a bookstore, coffee shop, amus.e.m.e.nt park, whatever.

When I needed extra income to pay off my debt, for example, I taught myself computer programming, and then landed a part-time job using my new skills. And I know a biologist who picked up a few hours a week at an upscale clothing store (which let her earn extra cash and use the employee discount to save money on her wardrobe).

Working a second job involves less risk and planning than some of the other ideas in this chapter, and it's likely to cause you far less stress than your main job. But before you go out and pick up a s.h.i.+ft at the local Starbucks, make sure your regular job doesn't have a policy against moonlighting. It's not worth jeopardizing your career over a job at the Kwik-Mart.

For tips on landing the perfect second job, head over to the Good Morning America website: tinyurl.com/2ndjob.

Working for Yourself Working for a big company isn't for everyone. In 2008, there were 29.6 million businesses in the United States. According to the Small Business Administration, about 75% of these had no employees. That means that three quarters of all American businesses are owned by people working for themselves.

People choose self-employment for lots of reasons. Some can't stand working for somebody else. Others see it as an opportunity to make more money. And a few recognize it as a way to do work they're pa.s.sionate about. Working for yourself can be freeing, increase your income, and let you focus on doing what you love. But as wonderful as self-employment is, there are plenty of pitfalls.

The Pros and Cons of Entrepreneurs.h.i.+p There's a big difference between doing what you love as a hobby and having it for a job. When you make a little money from your hobby (see Money-Making Hobbies Money-Making Hobbies), that's extra income, which is part of the fun. But when you flip the switch and it becomes your sole means of making a living, some of that fun vanishes-sometimes all of it disappears.

Working for somebody else is like renting an apartment, whereas working for yourself is like owning your own home; both have their rewards and drawbacks. Having to generate your own income can add a lot of stress to your life: You have to draft the business plan, find the customers, send the invoices, and pay the bills. Sure, there's pressure when you work for somebody else, too, but there's also a sense of freedom: You're not responsible for the daily decisions, and if you don't like the job, you can quit. Plus, unless you're in sales, the actual source of income probably isn't your responsibility; it's something management worries about.

Despite the downsides, owning your own businesses can be tremendously rewarding, both emotionally and monetarily. The authors of The Millionaire Next Door The Millionaire Next Door write that, ”self-employed people are four times more likely to be millionaires than those who work for others.” write that, ”self-employed people are four times more likely to be millionaires than those who work for others.”

If you decide to make the leap, be careful. Take your time, do research, and make smart choices. Here are some other things to keep in mind: - Have a plan. Just as a budget is important for your personal finances, a business plan is key to entrepreneurial success. If your business is small, the plan can be as simple as a list of goals. But if you're looking for outside funding or hope to take over the world, your plan needs to be as detailed as possible. You can find free sample business plans at .

- Don't quit your day job-at least not at first. If possible, start by going solo on evenings and weekends to get a feel for your business and find out if you really want to pursue it full time. You may discover your new gig isn't what you'd hoped for.

- Find advisors you trust. A new business is uncharted territory, so it's really helpful to have guides. Heed the advice of your mentors, and find a good lawyer and accountant and follow their instructions.

- Play by the rules. Some small-business owners strike out on their own because they're mavericks. This independence may make them think they can cut corners by not filling out paperwork or filing taxes, but shortcuts like these put everything at risk. It's easier to do things right the first time than to sort out a mess later.

- Keep business and personal accounts separate. Don't mingle work and personal funds; open a checking account specifically for the business. Then doc.u.ment everything that enters and leaves that account.

- Keep costs low. Do what you can to keep your overhead down. For example, don't spend $1,000 on a fancy Aeron chair when you can pick up a decent desk chair from Goodwill for five bucks. You'll be less stressed and have better odds of success if you don't have a lot of bills dragging you down.

- Be willing to spend on training. Buy the books and manuals you need and pay for cla.s.ses. Training like this is a necessary business expense, not a luxury.

- Keep good records. Business will be slow at first, so it won't seem like a big deal that you keep receipts in a s...o...b..x and don't have a filing system. But in time, you'll be flooded with paperwork. Get organized from the start to prevent future headaches.NoteIf you run a small business, take a look at Outright.com, a simple, free bookkeeping site. It's like Mint or Wesabe (Web-Based Tools) for freelancers and small businesses.

- Be confident. When you start out, don't let your customers know you're nervous. They're lost, too, and hoping you'll guide them to the right product or service. So do research and become an expert. And if you make mistakes, learn from them.

- Charge the going rate-or close to it. If you start a house-cleaning service, don't go in with low-ball bids. If you're too cheap, people will think there's a reason for it. Charge the going rate, and raise your price as demand increases.

- Have an exit strategy. Know where you're going and why. Is your goal to sell your business? To have competent employees who can run things, leaving you to pursue other interests? Or is it just a lark, something you'll do for fun for a few years before dropping it altogether?

These are just the basics. There are tons of books out there with more detailed advice on starting and running a small business, and they're well worth reading if you want to make a go of it on your own. Remember: Millions of people have successfully quit their day jobs and pursued their dreams.

NoteTurning something you love into your full-time job may kill the fun. After all, work is work. If you decide to pursue your pa.s.sion, take it slow. Start as a hobby business (Money-Making Hobbies) and expand from there. If you reach a point where you don't enjoy what you do, back off a little to see if you can get the magic back.

Resources for Entrepreneurs If you're curious about starting your own business, your best source of info is the people you know. Do you have an uncle who owns his own machine shop? A friend who does freelance web design? A coworker who does landscaping on the side? These folks have real-world experience. Take them to lunch and pick their brains-it may be the best $20 you ever spend.

Here are some online sources of information: - A List Apart has a great article about starting a business (tinyurl.com/starting-business). The piece is aimed at artists and computer programmers, but its advice applies to nearly everyone.

- The U.S. Small Business Administration () has more than 5,000 pages of free articles, tools, and forms to help small business owners get started. For $39 a year, you can get access to even more material.

You may also want to read a book or two on the subject: - Pamela Slim's Escape from Cubicle Nation Escape from Cubicle Nation (Portfolio, 2009) gives advice about leaving a safe career to start your own business. Slim advocates a ”life first, business second” philosophy: By setting clear, meaningful goals, you can develop a business that fits your lifestyle. (Slim has a blog at (Portfolio, 2009) gives advice about leaving a safe career to start your own business. Slim advocates a ”life first, business second” philosophy: By setting clear, meaningful goals, you can develop a business that fits your lifestyle. (Slim has a blog at .) - In Career Renegade Career Renegade (Broadway, 2009), Jonathan Fields explains how to turn your pa.s.sion into a business. He includes lots of stories about people who've made a great living doing what they love. (You can read more from Fields at (Broadway, 2009), Jonathan Fields explains how to turn your pa.s.sion into a business. He includes lots of stories about people who've made a great living doing what they love. (You can read more from Fields at .) - In Go It Alone Go It Alone (Harper, 2005), Bruce Judson argues that to succeed with a small business, you should focus on what you do best and automate or pay others to handle everything else. For example, if you're a good photographer, focus on taking great shots and hire someone to balance the books. (Harper, 2005), Bruce Judson argues that to succeed with a small business, you should focus on what you do best and automate or pay others to handle everything else. For example, if you're a good photographer, focus on taking great shots and hire someone to balance the books.

On The Money: Outearning Spending”You can't outearn dumb spending,” financial author Greg Karp likes to say. Some people believe they can always earn more money to maintain their lifestyles-but their spending usually grows to match their income. (For some examples, see the box on How Much Is Enough? How Much Is Enough?.) And you never know when the economy is going to take an unexpected turn, making it hard to find a job.When you earn more, resist the temptation to spend spend more. If your spending increases with your earnings, you'll get stuck on the hedonic treadmill ( more. If your spending increases with your earnings, you'll get stuck on the hedonic treadmill (Caught Up in the Rat Race) and be at risk of a financial crisis if you lose your job. If, on the other hand, you keep your spending steady, you can use that increased cash flow to pay down debt or save for the future.By spending smart (see Chapter5 Chapter5), you can make the most of your income and enjoy life.

Money-Making Hobbies Even if you're not interested in owning a business that you work at full time, a small-scale venture might be right for you. Why not build a business around one of your hobbies? You won't get rich by playing your violin at weddings or weaving baskets, but it never hurts to earn a little extra cash from things you'd do anyhow. This section suggests some key ways to make money from your hobbies.

Do what you love Choose a hobby you enjoy, and then try to find a way to make money from it. Don't dive into a hobby simply because it might be profitable. You should do this thing because you love it; any income should be secondary. Keep it fun and it won't become a ch.o.r.e.

Example: I love to write. When I was struggling with debt, I read personal finance books, and then summarized what I'd learned on my website. Eventually, this grew into Get Rich Slowly. I've managed to make a career out of writing about personal finance, but I didn't start doing it for the money-I was pa.s.sionate about the subject.

Be creative If you don't know which hobby to pursue, think outside the box. What skills do you have that others don't? Define the term ”hobby” broadly so you don't limit yourself. Find something that you can do that most others can't-and that people might be willing to pay for.

Example: One of my friends loves to travel, and he discovered that he can fund his adventures by writing about the places he visits. He makes money selling e-books, and gets paid to write for newspapers and magazines.

Don't expect too much You probably won't get rich off your hobby. In fact, you likely won't even earn enough to quit your day job. But you might be able to earn enough to make the hobby self-sustaining, meaning you earn enough to cover the cost of new tools and equipment.