To start investing, you need to save some extra money to put aside. But sometimes it’s not just about saving more – it’s about earning more!
In recent years, millenials have found themselves in the strange situation.
An overeducated and overqualified workforce has resulted in a very competitive jobs market, which means that the undergraduate degree that was enough to secure you a long-term job can do so no longer.
Now, there are more adults with college degrees competing for the same jobs and with similar circumstances than ever before.
What’s more, all of these newly qualified workers are in the same situation as each other. They all have student loans, credit card debt, expensive rent, and high living expenses to pay.
The younger working class now finds themselves paying more expenses and falling deper into debt than any generation before them – making significantly less money at the same time.
In such an uncertain atmosphere, most younger workers will eagerly accept any job offer put in front of them. But whether you’re accepting your very first job offer, switching to a new position, or asking for a raise – you should always try to negotiate a higher salary.
When approached strategically, the worst you can get is a ‘no’ – but there’s always the possibility that you will get a ‘yes’.
A higher salary will not only help in paying your living expenses, it will also allow you to pay off your debt faster and invest more for your retirement.
Here’s four quick tips to help you get that positive outcome:
1. Do Your Research
Don’t go into the negotiating room without an arsenal of information to back up your claim.
There’s no point in asking for a pay increase without some facts to show why you believe that you should be earning more. Spend some time on sites like Glassdoor and Payscale to get an idea of what others are making in your field.
If you’re going to ask for more than the average, make sure youvhave some good reasons as to why you deserve it. Have you taken on extra responsibilities in your role recently? Do you have a low absentee rate? If you’re joining a new company, do you have any additional skills that will benefit the company?
2. Let Them Make The First Offer
Before you start negotiating, let them make you an offer and get all the details of the package. The important things to consider are salary (obviously!), health insurance, vacation time, 401k contributions and other benefits. This will give you a good starting point from which to construct a counter-offer.
Your employer may try to get you to name your price beforehand – avoid this at all costs. You never know what they have in mind, and you could end up undercutting them if you make the first move.
Don’t be afraid to speak frankly. This is a business transaction after all, and you have the right to take some time to think about it and act in your best interest.
3. Give A Range And Ask For More
Don’t just go in there and tell them exactly what you want.
Negotiations are all about compromise. An employer’s first offer will always be less than they are willing to pay, so you should always ask for more than you expect and work towards a mutual agreement.
Show that you are flexible by giving a range that you are willing to negotiate within. If you think that it’s unlikely that you’ll get the salary you’re after right now, negotiate a pathway towards that salary in the future.
For example, if you ask for $50K and the final offer in $45K, you can ask that the contract include a 10% pay rise after the first year. Employers are much more open to this because it shows a desire to move up in the company and incentivises loyalty.
4. Don’t Just Focus On Salary
Salary may be the main incentive of a job, but there’s plenty of other ways to improve your situation. Perhaps the company cannot afford to offer you more money, so in that case, you can negotiate for other benefits like more vacation time, a company car, an expense account, or a 401k match.
Remember, a business needs good employees. Don’t act like you’re being done a favor when you get a job.
It’s a mutually beneficial agreement and you have every right to ensure your needs looked after. A higher salary will greatly improve your situation and lead to more money to invest in your future. If you don’t think the effort you put in at work deserves a pay-rise, today’s the day to start changing that.
Do you want to grow that extra bit of money into some significant long-wealth? Download Rubicoin’s free Invest app now and get your money working for you!