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How To Prepare For a Salary Negotiation

How To Prepare For a Salary Negotiation
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How much should you receive for your services and your skills? What is the right value for you? How much are you worth as a professional? This should be your line of thinking when you are scheduled to go to the negotiating table with a future employer.

In short, when you are applying for a job and getting ready for an interview, you also need to prepare for a salary negotiation. It’s a given: after the initial interview, and perhaps after a series of tests, the future employer will start discussing salaries. That will come when they are considering hiring you.

When you and the prospective employer have reached this phase, you must be ready and prepared. Even prior to preparing for the initial interview, you must clarify some points in your head and let these points sink into your system.

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8 points to clarify before going to the negotiating table.

1. If you’re presently employed, how much are you currently receiving?

Your ultimate aim here is to decide how much your ideal salary is, and if worse comes to worst, what is acceptable. If you think your present pay is lower than the prevailing salary rate, go out and do your due diligence.

Contact people who are in the know. You can also get information from job agencies and government institutions dealing with job placements, but the best option is to research and contact the officers in the company you want to work for who may be able to give you their figures.

2. If you’re not presently employed, how much was your last salary?

Go dig out your employment records from your past employers. Review your salaries when occupying specific positions. If you find them and you have a bit more time, get certifications that you worked there, and get proof that you got paid a certain amount.

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3. Gather your credentials.

You must take stock of the skills, training, seminars, experiences, and achievements gained or undertaken during past employment. These, and many other considerations, constitute a comprehensive basis for your worth as an employee — and your value as a member of a company.

4. Find out prevailing salary ranges.

Do your research to find out the prevailing market value of a worker with your experience and skills. This  was mentioned in point 1, but if this is your first job you will find this information will help you a lot to negotiate a fair salary.

5. Dig deeper: how much are other companies paying?

It would also be beneficial to dig further to find out how much most of the companies hiring in your field are willing to give as a salary for similar positions. In the middle of your negotiations you can casually mention these figures. That way the prospective employer knows that you are aware of the current rates and benefits attached to the offer. (Intimidate a little. That will help, promise!)

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Some companies, for instance, pay a lower base salary, but they compensate for this with more benefits; or they offer training and education opportunities. One company that hired me offered medical benefits, paid holiday and vacation leave, plus yearly rice, medicine, and clothing allowances.

When you prepare to negotiate, it’s in your best interest to study these aspects.

6. What does your position entail?

You need to know how hard it is to do the job at hand. Find out its nitty gritty: the tasks involved, the risks, every small detail about it. Additionally, ask these questions: Will you need to have long commutes? Will you need to relocate? Do you need to take the night shift? These are all details you have to know. From the interviewer’s answers, and their implications, you can come up with a reasonable figure. These details can also be used as bargaining chips to raise your salary.

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7. Allow the employer to bring up the subject of salary.

A wise negotiation tactic you can apply is to let the person interviewing you give a salary range prior to offering up an amount. Don’t bring it up yourself. That way you’re playing within the employer’s budget and not shooting too far out of the court, which might cause them to not consider you anymore.

8. Psych yourself up.

Negotiating about money is stressful. You have to prepare your mental faculties, your body, and your spirit. You need to have a restful interlude — at least two to three days before the appointment. Have enough quality sleep, eat healthy meals, and go for long walks. This will relax you and cool you down prior to gearing up for the big day.

And…you’re ready for the kill! If you have covered these eight points, you can walk to the negotiating table with confidence.

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More by this author

Anthony Dejolde

TV/Radio personality who educates his audience on entrepreneurship, productivity, and leadership.

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There
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Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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