Learn to accept

Bad things happen. It is a fact of life that we all need to accept and the sooner we realize we can’t control the situation only our response to it the easier coping becomes. People who succeed in dealing with such instances more often than not accept that it has already happened and now focus on how to solve the problem. If this happens to your significant other, give him or her utmost understanding and show the willingness to help.

Be a beacon of light

Losing a job can be damaging for the self-esteem and can lead to a lot of self-doubt. Building up your spouse’s self-esteem is very important so that he/she can continue performing his/her duties and attending to a healthy personal life.

Let them announce to family and friends

Try not to preempt your spouse with regard to breaking the news or talking about the layoff to your friends and relatives. Going ahead without your spouse’s consent could be a cause for embarrassment and resentment.

Provide diversions

One of the things that drive people into depression after job loss is the availability of time to think it about it again and again. Try to provide for a lot of stuff to distract your spouse. Let’s say, ask for his or her help on problems in the office, or how to phrase policies on a memo. At any rate, their mind needs to be kept busy so as not to dwell on losing their job.

Count your blessings

Nothing beats the loss of something than knowing, counting and being grateful for what you still have. Sure the loss of a job is hard, but the family’s still intact, the kids are healthy, the plumbing is not busted, etc. Simple things that we normally don’t notice have a magical way of reminding us that life isn’t so bad.

Many employees today are unhappy in their jobs because they feel they are underpaid. However, only a handful of these employees would ask for a raise because most of them are either shy or afraid of being thought of as greedy by their employers. Unknown to them, job dissatisfaction relating to low salary might cause their downfall later on if it will affect their day-to-day work performance.

Below are our top tips on how to break away from a salary rut.

Know your worth

In terms of your education, accomplishments, job experience, trainings and work potential, it is important to evaluate your worth in the industry before asking for any amount of salary or salary increase. Take time to ask friends or people doing similar jobs and with the same experience as you have, to give you a ballpark figure in what they are earning. It is also helpful to look on job sites such as salary.com or careerbuilders.com for insights on pay scales corresponding to your overall worth.

Moreover, you need to research the salary scales of your company. Up to how much can they pay? I had a friend who recently accepted a job from a multinational company thinking he went away with a great deal in terms of basic salary and based on the average market pay. Later on however, he discovered that most of the staff in the company at his same level are getting a far higher paycheck. It was too late when he realized that his company has an above average salary scale and was willing to give a higher than entry-level pay if only he knew how much or had researched further.

Update your skills

In negotiating for a higher salary, employers will normally look for basis of an increase. Why should they give in to your demand? What is your edge over others, the deciding factor that will make them give you the pay that you want. Bottom line is, the more knowledgeable you are of more skills, or the more flexible you are, the higher are your chances of getting a higher salary.

Avail of the various trainings offered in and out of your company. Ask your HR for a list of general or job-specific trainings planned for the year and enlist in those you think are relevant to your skills or interest.

You may also delve into self tutorials for a particular computer application for example, if you feel that it will lighten your work process. In this regard, you can ask for assistance from your IS department. Some companies allow this, but from time to time, you may ask your boss if you can work with or sit in a department whose function requires your assistance or skills. This could be one effective way of exchanging skills and knowledge about the business with others, therefore making you a more valuable employee.

There may come a time when a position in the company suddenly opens wherein your acquired skills and knowledge would be needed and you could be considered for a higher salary. If your boss finds that you’re valuable and would want you to stay in the department, that in itself is an opportunity for you to negotiate.

Be confident

To be confident requires that you build up a good case. You probably won’t walk away with an increase if you are not prepared at least with a bottom line figure. However, don’t mention the amount as soon as you’re asked. Say something along the lines of “according to the salary scale…,” or “according to the industry rate…” If you’re new to the company, you may ask back, “How much can you offer your best candidate?” The company will have a higher regard for you if you know you are professionally sought- after.

State your facts in a matter-of-fact manner. Much as you wanted to stress that aside from the salary, you would also be thrilled by the challenges the job can offer and how much else can you contribute, you might not be able to convince your employer by stating “I won’t settle for anything less than $60,000” unless you really mean it.

The following is a list of suggestions:

Pay off debt. Give more attention to debt with large interest rates such as credit cards, personal loans, and others. The more you pay these off, the smaller the principal becomes, and the lesser the interest piles up.

If you don’t have much debt, then saving the refund would be a good idea. Some people come up with nest egg that they nurture and grow till such a time that its intended purpose comes to pass. You can start with the refund and build from there.

Trade stocks. One misconception about stocks is that when prices are falling, nobody wants to come in and trade. But if you know your numbers, you’d be surprised how some really good companies have very low prices during such times. If you believe in the company and possess some knowledge of its history and financial performance, then by all means buy. Recessions don’t last forever, and strong companies are most certain to regain their balance first.

Perform car maintenance. A well-maintained car provides for little surprises that require huge expenses. So while there is an influx of cash, you might as well have your car serviced for preventive maintenance rather than let any problem get out of hand and affect the running mechanisms in it.

Always remember that refunds can be used to further stabilize your finances. The discipline to stifle the urge to use it all up for materials that you have no need for is paramount. Use it wisely, and it could be of great help in the future.

Failing to Report All Income and Gains

In addition to reporting your salary and bonuses, you must report any gains from the sale of stocks, bonds, mutual funds, property or any other insert-earning investments. The IRS receives copies of your W2s and 1099s so if you fail to include them on your return you could provoke an audit. Also remember if you are one of millions that got laid off last year and received unemployment income you’ll need to report that too.

Claiming a Home-Office Deduction

If you run a home-based business you can write off part of a portion of your home dedicated to business. That means it has to be 100% dedicated to business, not an office by day, guest room by night set up. If you work part-time at home to get a break from the office, you will not be able to write off any home-office expenses since your employer has already provided space for you at work and has not required you to work from home.

Deducting Medical Receipts

Medical receipts are deductible if they exceed 7.5% of your adjusted gross income. If you do manage to spend 7.5% of your AGI, then you will only be able to deduct the amount above the 7.5%. So if your AGI is $75,000, you would have to spend more than $5625 out-of- pocket for a deduction. That means if you spent $6000, you can only deduct $375. Keep in mind “out-of-pocket” means expenses you can’t get reimbursed by your health insurer or flexible spending account. No double dipping allowed.

Failing to Pay Taxes on Forgiven Debt

If your credit card company forgives a portion of your debt they should send you 1099-C. When you file your taxes this needs to be included as part of your income and yes you will have to pay taxes on it. So if your credit card debt is reduced from $10,000 to $5,000, then you’ll have to pay taxes on $5,000. Yes it’s not fair, but right now it is the law. The only to avoid paying taxes on forgiven debt is proving that your debt surpasses your income, or when you go through bankruptcy.

Misreporting Real Estate Gains and Losses

With all the turmoil going on in the housing market, Uncle Sam is keeping a close eye on real estate losses on tax returns this year. It doesn’t matter if you lost your home to foreclosure or lost or gained money on a sale, all real estate transactions need to be included on your tax returns. If you sold your home at a loss, your primary residence is considered a personal asset and can’t be claimed as a deductible. If you were foreclosed on last year, read up on the Mortgage Forgiveness Debt Relief Act of 2007. If your lender decides to forgive all or a portion of your mortgage debt, the forgiven amount is no longer taxable. This only applies to primary residences, rental properties are ineligible for relief, foreclosed on through 2012.

Deal Directly with Your Boss

Once you get the news don’t get angry and don’t take it personally. While it is a hard pill to swallow for most of us, your company has no control over the dried up credit market or the slow down in consumer spending. They need to let employees go to survive the recession. It is normal to feel angry and panic but do it internally or vent at home; you’ll be negotiating with your boss and want to remain on his or her good side. If HR wants to hammer out the severance terms, ask for your boss or department head to be there too. You want negotiate with someone who has the direct authority to tell HR what to do after you agree to terms.

Delay Your Last Day

As soon as you get the news you may feel like throwing in the towel, packing up your office and leaving. Instead try to negotiate staying on as long as possible, you’ll need the extra paychecks and you’ll be more attractive to prospective employers. Come to the meeting with a list of projects you’re working on, a timeline for finishing up and why it is imperative to the company you stay on and finish the job in say, another 1 to 2 months.

Ask for Extended Health Benefits

Negotiate to stay on the companies’ health plan through your severance period and maybe even longer. By law, companies must offer you COBRA coverage, meaning that you can buy health insurance at group rates but the average Cobra premium costs $388 a month for individuals and $1,069 for families. Health insurance coverage is cheaper for the company than it is for you, so if you have anyone in the family undergoing expensive medical treatments, or a wife due to have a baby in 4 months bring those points up.

Vacation Pay

While the dream of taking the family to the Bahamas for the Holidays is dead for this year anyway, remember to ask your company to calcuate the dollar amount for all the fun you won’t be having on vacation this year. Your company may even allow you to accrue vacation time from one year to the next so check your accrued time and employee handbook to see if you can trade the unused vacation hours for pay.

Ask to Stay on As a Freelancer or Consultant

Your company still has projects and clients that need to be taken care of right? Instead of your company wasting time and resources training someone to take over your roll (and probably the roll of your 3 other office mates who were laid off too) make yourself available as a freelancer or consultant. You’ll still have a bit of income coming in and your company will save money by not paying your full salary and benefits.