The most satisfying way of working towards a big purchase, a house, a car, a cottage, isn’t by taking a bigger slice of your income pie and putting it towards savings. It’s by making sure your pie is as large as possible and taking the same percentage out. Yes, it sounds obvious, and no one is says “No” when offered more money, but do you ASK for more money? Now this works the best when you’re going into a job fresh; don’t be afraid to negotiate even though you are so excited to get that job that you may be afraid asking for more cash could hinder you right out of the gate. If you are already in a job, you probably have an annual performance review where you will get a bit of a bump if only to keep current with inflation. It’s during these periods that you need to be ready, and here are some tips to help.
Learn Your Value – Talk to people and research how much people make in your field. Now you can go about this by asking your colleagues what they make, but be careful with this, some people can get touchy about how much they make and some employers may take issue with these types of questions. Getting hauled into HR won’t look good if you plan on asking for more money shortly after. What you can do instead is ask people in the same field and living in the same area what their compensation is. Researching online at Salary.com and Glassdoor.com are also good resources for figuring out what you’re actually worth.
Success Folder – You’re good at your job, right? Sure you are! People love you! Use it! Each time you receive praise from a client or a boss, save proof of this to your success folder. If it’s an email, save it. A voicemail or verbal compliment, transcribe it. These things can add up and next time you have a review you have tangible evidence of the positive impact you have had by doing your job the best way you know how.
Come Up With Your Own Number – Some companies will offer a standard bump, or your manager may say to you offhand what they are planning on giving you as a pay raise this year. Don’t let that be the final word. Request a sit down and illustrate why you deserve the raise you do. It’s easy to be passive, make sure you are active!
Practice Negotiating – Sitting down with the big BossMan or BossWoman can be stressful. We’ve all been there. It feels like you’re being pulled into the principal’s office for something you’ve done wrong. So, in order to get over these jitters find someone who knows something about business and management and practice with them. They can tell you how you are coming off and what you may be doing wrong.
These are easy, zero sacrifice ways of making your financial dreams easier to obtain. They may seem stressful, but keep in mind…no one has ever been fired for asking for a reasonable raise, especially when you have the data to back it up!