Day 2 : Your income – what your work is worth and how you can increase your income
Your income determines how much you can invest. And what you invest has an enormous impact on your future wealth in the long run…but women earn less than men. Women are more likely to work in lower-paying industries and fields. Fewer women occupy management positions, and women still receive less money than their colleagues with the same qualifications. All of this is wrapped up in the term “gender pay gap.” In Europe, women earn an average of about 15% less than men. This difference in income is apparent every month on a bank statement, but it also has long-term consequences. Those with low income also pay less into government pensions and private retirement plans and have less funds for real estate, stocks, or starting their own business. Parental leave also has a direct impact on women’s income and thus their financial status. What’s more, women tend to live longer than men, which means they need more money to be financially secure through the end-of-life period.
Small potatoes lead to…riches
It’s worthwhile to think about smaller amounts, too, as they have the power to grow into larger ones. For example, take those 300 euros a month that your colleague earns that you don’t. “300 euros a month…that’s not the end of the world,” you might think. But when you think about that over the course of a year, things start to look a little different. After all, 300 euros times 12 comes to 3600 euros. And what could become of those 3600 euros if you put them to work for you by investing wisely? Get in the habit of thinking about amounts in terms of a year. Or even a decade. Then those 300 euros will have already amounted to 36,000 euros – not even counting interest. A handsome sum.
You are worth your money!
Another factor is your attitude about your own abilities. Many women undersell themselves. Get informed about what is standard in your industry, and then get to work on your self-confidence. You’re not asking for a favor; you are entitled to fair compensation.
Many women find it really difficult to confidently state their salary demands or fee requirements. If this applies to you, you ought to work on this regularly from here on out. Get smart – but above all, work on having a good money mindset. You have a right to adequate pay. You’ve earned it…literally!
Salary negotiation is a wonderful opportunity to put your expectations out there all at once. And then you wait and see what happens. At worst, nothing changes. But there is a chance that you will come to an agreement. Maybe management comes back with a good counter offer.
Show up for your salary negotiation well prepared. Get the facts straight, and determine how far you want to go with possible counteroffers of equal, or maybe even greater, importance is going into the discussion with a good money mindset. You’re certainly good at what you do, you’re committed, you pour your life into your education and career – and that’s why you’re absolutely worthy of being paid well! Good luck!