Career

What is The Minimum Wage in Alabama?

October 23, 2020 By Tamila McDonald Leave a Comment

Whether you are just entering the workforce or are seeking out an entry-level position, it’s common to have questions about the minimum wage in your state. It helps you understand your earning potential, as well as any laws that require companies to pay a specific amount. If you want to know more about the Alabama minimum wage, here’s what you need to know.

What Is a Minimum Wage?

The minimum wage is a particular dollar amount that employers are required to pay all covered nonexempt employees per hour. The majority of the workforce falls in the covered category. However, there are exceptions, including for young workers, full-time students, and some disabled individuals or student learners. Additionally, the rules are a bit different for tipped employees, as well.

The federal minimum wage is $7.25 per hour. If an employee is a tipped worker, that minimum is different, coming in at $2.13 an hour. As long as the tipped worker’s tips bring them up to the equivalent of $7.25 per hour, the employer doesn’t have to pay more than $2.13 per hour. However, if their tips fall short, the employer is legally required to make up the difference.

It is important to note that states and cities can pass their own minimum wage laws, but they can only make it higher than the federal minimum. Additionally, states can pass legislation to require employers to pay tipped workers a full minimum wage if they so choose.

However, states and cities can also default to the federal minimum wage. This can be done through formal legislation or by simply not passing separate legislation addressing the minimum wage in their state.

What Is the Minimum Wage in Alabama?

Alabama does not have any additional minimum wage laws. As a result, the federal minimum wage – as outlined in the Fair Labor Standards Act – applies across the board, including the exemptions listed above.

For most non-tipped employees, that means the minimum wage in Alabama for them is $7.25 per hour. For tipped workers, the base hourly wage is $2.13. However, if your tips don’t bring you up to the equivalent of $7.25 per hour, your employer is legally required to make up the difference.

As mentioned above, different rules apply to workers under the age of 20, full-time students, and certain disabled employees.

Do you think the Alabama minimum wage is high enough? Why or why not? Share your thoughts in the comments below.

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$18 an Hour Is How Much per Year?

August 6, 2020 By Trey LaRocca Leave a Comment

As economies start to open up, many people are getting back to work. Now, oftentimes these “starter jobs” tend to have hourly wages. So, piggy-backing off of our last wage-calculation article, we are going to go over how to calculate annual income from your hourly. As an example, we will calculate how much $18 an hour is on a yearly basis.

Pre-Tax Breakdown

Here is the hourly-to-annual formula we will use:

[(hourly wage)*(hours worked weekly)] * 52

So, just like the last time, you can plug in any hourly wage and this will work. Just make sure you have an accurate “hours worked” variable, as you have to make sure all parts of the formula reflect reality if you want a realistic estimate. here is what the formula looks like when you plug in $18 an hour, 40 hours-per-week:

(18*40) *52

If you run this equation, you will end up with just over $34,000. It isn’t much, but it is okay to start out. If you fill in any other hourly wage, and any other amount of hours worked, you’ll get your pre-tax annual total.

Post-Tax Goal

When trying to make a post-tax annual goal, you’ll need the help of a paycheck calculator or financial pro. The calculators will be a great way to get a ballpark estimate for your specific income and locality, and the pros will help you narrow it down much more accurately.

$50,000 per Year Is How Much an Hour?

August 4, 2020 By Trey LaRocca Leave a Comment

When it comes to income goals, not many have the end goal at $50k annually. Although, the best place to begin your financial journey is a starter goal. $50,000 may not seem like much for the tail end of a career, but it is a great place to set your sights if you are just starting out. The issue is, if you’re just starting out, your wage is probably shown by the hour. So, if you are an hourly or freelance worker, it is important to ask: $50,000 is how much an hour?

Pre-Tax Breakdown

Here is a formula that will serve you well in these situations:

[(annual wage)/52] / (hours worked per-week)

This is how you will determine the hourly wage required to land you annual goal. The formula will work part-time or full-time, as the hours worked is something you substitute in yourself. The reasoning is simple: There are 52 weeks in a year, and most people know their weekly hours.

Just knowing those two things, along with your income goal, you can fill it in pretty easily. So, if you work a full-time job and want $50k annually, the equation will look like this:

(50000/52) / 40

Once you punch those into a calculator, you will end up with around $24-per-hour to get right about $50,000 on-the-year. Say you work 20 hours each week as a part-timer or freelancer; just substitute the 40 for a 20, and you’ll need a little over $48-per-hour to meet your goal.

Post-Tax Goal

Post-tax gets trickier, as different states have different withholdings. Not only that, but different types of income are taxed at varied rates. So, this is something you’ll want to get in touch with a financial professional about. If you just need a rough ballpark, assuming traditional 1044 employee status, consider using an online paycheck calculator. This will help get an idea of what you will actually need to make in order to take home $50,000 each year. Once you get that yearly estimate, plug it in and see what you find for your hourly.

Should You Quit Your Job and Start a Business?

July 17, 2020 By Kathryn Vercillo Leave a Comment

You want to quit your job to start a business. Nobody can blame you. There are many wonderful things about being your own boss. However, it’s a risky endeavor. It’s not all sunshine and roses. Moreover, you can lose a lot of income at the beginning of starting a business. Should you really quit your job? Or should you perhaps scale back on your regular work as you first start your business? There are a lot of things to take into consideration when you make this decision. Let’s explore the pros and cons a little bit.

Why Do You Want to Quit Your Job and Start a Business?

This is the most important question to answer before you actually quit your job and start a business. And, in fact, you should answer it as two separate questions:

Why do you want to quit your job?
Why do you want to start your own business?

Many people consider it to be one question. However, if you are honest about the answers to both parts of the question then you’ll be a lot clearer whether or not this is the right step for you.

For example, let’s say that you answer part one: “I hate my boss.” As you dig into part two, you may realize that you don’t actually want to start your own business at all. In contrast, you simply don’t want to work for that same boss anymore. Realizing this early on will go a long way towards making sure that you’re taking the next right step in your career.

Alternatively, let’s say that you don’t have a clear answer to part one. You know that you want to start your own business because there’s a particular cause that you’re passionate about. Could you keep your day job and just volunteer in a capacity that fills that need?

If you are very clear about why you both want to quit your job and why you want to start a business then you’re well on your way to making smart choices as you move forward.

Benefits When You Quit Your Job to Start a Business

When you quit your job and start a business, you do reap some benefits:

You immediately begin to work for yourself. This gives you a huge feeling of freedom. However, don’t discount how much responsibility it requires.
You have plenty of time to devote to your new business. After all, if you regularly work 40+ hours per week and then you quit, that’s 40+ hours per week to devote to your new passion project.
You avoid any conflict of interest. If you want to start a job that’s similar to what you do now then there might be a conflict of interest that would prevent you from staying at your current job. Review any non-compete agreements and related terms of your contract.

If you are the type of person who works best under pressure then you might find that it’s worth it quit your job to start a business. You could thrive under the stress of trying to make a go of it when you don’t have another income to fall back on. The time you free up by quitting your job, and the freedom you get from working your own schedule, could be worth it. But don’t fail to take into consideration that there are drawbacks when you quit your job to start a business.

Drawbacks When You Quit Your Job to Start a Business

Research indicates that entrepreneurs do better if they stay at their job when first starting a business. There are some big risks and drawbacks to the decision to quit your job and start a business. Those drawbacks include:

You’re obviously no longer drawing an income. Therefore, there’s a lot of pressure on your new business to succeed dramatically and right away. You aren’t giving it enough time to scale up.
It could be harder to get loans for your business. If you can’t show that you’ve got an income coming in then getting credit for your new business could be more difficult.
If the business doesn’t do well, you might not be able to get your old job back. After all, the economy isn’t thriving right now. If you’re lucky enough to have full-time employment then you might not want to sacrifice that to start your own business.

Starting a Business: What to Do First

If you decide that you do want to quit your job to start a business, then you have to take that decision very seriously. You have to put your all into this new endeavor if you want to make it work. Here are some of the things that you need to do before you even quit your job:

Create a business plan. It’s imperative that you know exactly what you plan to do and how you plan to do it. You need goals, milestones, and timelines. Of course, those may shift with time but try to get a solid plan in place.
Crunch the numbers. Figure out what it’s going to cost you to start a business. Consider the initial costs, your own paycheck for the first year, and all other first-year expenses. Figure out how to make that work before you quit your job to start a business.
Start working. Don’t delay getting your first clients or customers. You might want to get the first few clients lined up before you quit your regular job.
Network. Just because you’re working for yourself doesn’t mean that you don’t need other people. Build your team. This might mean hiring people, working with consultants, or simply networking with other entrepreneurs. Make sure that you have a group of people in your corner.

Weigh the pros and cons before you quit a job to start a business. Does it make sense for you, considering the economy, where you are in your career, and what you truly want from starting your own business? The more thought that you put into the process ahead of time, the better chances you are to get the results that you desire.

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Do This if Your Job Doesn’t Come Back After the Pandemic

May 27, 2020 By Tamila McDonald Leave a Comment

Since the COVID-19 pandemic led to widespread layoffs, furloughs, and business closures, 38.6 million people have filed for unemployment. For some, the situation is somewhat temporary. Their employers intend to bring them back as soon as they are able. But, for others, their job might not come back even after the situation calms. Figuring out what to do can be a challenge, particularly if your inability to return wasn’t anticipated. However, that doesn’t mean there isn’t anything you can do. If your job doesn’t come back after the pandemic, here are some steps to take.

Harness Your Transferable Skills and Explore Other Fields

Certain industries have been harder hit than others. Additionally, some businesses simply couldn’t shoulder the burden of the long-term closure, causing them to fail during the pandemic. In either of these cases, jobs may evaporate, leaving professionals without a place to return.

If this happens to you, it may be time to explore new fields. Not all industries experienced the same hardships, so transitioning into one of them may allow you to find a new position relatively quickly.

Consider which of your existing skills are transferable into other areas. After that, research potential roles in that field that you could reasonably handle. Once you have some options identified, connect with your network to learn about potential opportunities. Often, it’s easier to transition if you can secure a referral, which is why using your network is a wise choice.

However, you can certainly apply to openings, as well. In either case, you’ll need to revamp your resume and LinkedIn profile to focus on your transferable skills and accomplishments that are relevant in that industry. By doing so before you start applying, you’ll be able to streamline your process.

Acquire New In-Demand Skills Before Reentering the Workforce

In some cases, acquiring new in-demand skills before you start looking for new opportunities might be a smart move. Not all industries were evenly impacted, and certain sectors that are doing fine in this economy have been plagued by shortages for years. By gaining relevant capabilities, you could transition your career into one of these areas.

If you aren’t sure where to begin, focus on essential services. These continue regardless of the situation as they are universally critical. For example, medical and healthcare have to keep going no matter what. The same goes for grocery-oriented services, ranging from retail operations to shipping to food production.

Keep any job that continued during the pandemic on the table. Give each one a solid look and then consider pursuing one that catches your interest.

Consider Contract or Part-Time Opportunities

If the idea of leaving your field isn’t appealing, but you can’t find full-time opportunities, then consider going another route. Contract, freelance, and part-time positions may be able to tide you over for a period, giving you time to find a permanent job while keeping a source of incoming available and your skills sharp.

While navigating these uncertain times is challenging, that doesn’t mean you can’t position yourself for success. Use the tips above to come up with a plan, allowing you to move forward even if your job doesn’t come back after the COVID-19 pandemic subsides.

Do you have any other tips that can help people bounce back if their job isn’t going to return? Share your thoughts in the comments below.

If you enjoy reading our blog posts and would like to try your hand at blogging, we have good news for you; you can do exactly that on Saving Advice. Just click here to get started.

How to Earn Big in the Gig Economy

February 19, 2020 By Trey LaRocca Leave a Comment

Nowadays, the “side gig” has become all the more common. While many still maintain full-time work, the independent contractor has become a staple in the US economy. The good news is, you don’t have to give up your full time employment to take part in the gig economy. For many people, it just takes the form of monetizing a hobby they already do in their free time. The difference between those who strike gold, and those who don’t, is effort. Not only in your work ethic, but in your online presence and scheduling. To make sure you maximize your earning potential, here are some great tips on how to earn big in the gig economy.

Focus

One big mistake a lot of side-hustlers make is spreading their focus too wide. Casting a wide net can seem useful at first, but long-term business comes from building a book of business. The best way to do this is to begin by focusing in on one particular skill you have, and hitting it hard from the get-go. You can diversify later, but if you want steady income, spend your first months developing a clientele and a good reputation at one trade. Use that initial endeavor as the anchor for your independent work, and you’ll find yourself ready to be your own boss much sooner than if you spread your efforts around many different jobs.

Online Presence

Getting clients for your side gig is more than just posting ads. While it is vital to have adds up on all relevant sites like Facebook Marketplace and Craigslist, having a central point of entry is extremely important. Instead of just dropping your contact info on each ad, get ahold of a cheap or free web domain and create a site for your trade. This way, you can direct people to a website focused on you and your portfolio. Now, instead of saying “they did great, I found them on Craigslist,” your clients can send a link to their impressed friends and family. Now you are dealing with a faster referral process, and much less competition. The site will also provide more space for you to explain what you do, and how well you do it.

Scheduling

Consistency is key. If you have a set schedule of when you can get jobs done, make it public and stick to it. One of the biggest issues people have with independents is reliability, and you can be the one to change that impression. Having this schedule public will also serve to reduce friction in the customer acquisition process. “Can you do 6pm on Thursday?” leads to a close much faster than “When are you able to come by?” As with anything, the more information you give at the onset (without overloading) the less they need along the way. When it comes to business that more or less has to finds you, a fast initiation process can make or break you. People are usually asking around many different ads, and the person who can close them the fastest will usually win the day.

Career

What Is a Minimum Wage?

What Is the Minimum Wage in Alabama?

Pre-Tax Breakdown

Post-Tax Goal

Pre-Tax Breakdown

Post-Tax Goal

Why Do You Want to Quit Your Job and Start a Business?

Benefits When You Quit Your Job to Start a Business

Drawbacks When You Quit Your Job to Start a Business

Starting a Business: What to Do First

Read More:

Harness Your Transferable Skills and Explore Other Fields

Acquire New In-Demand Skills Before Reentering the Workforce

Consider Contract or Part-Time Opportunities

Focus

Online Presence

Scheduling