April is National Financial Literacy Month, which was created to to highlight the importance of financial literacy and teach everyone how to establish and maintain healthy financial habits.
It’s all too easy to avoid asking for a raise, as it’s often a daunting experience. Nonetheless, you need to develop this skill and know when it makes sense to take a stand.
It’s unfortunate that we don’t always receive the salary we deserve. Sure, everyone wants a raise and thinks one is deserved. However, asking for a raise at the right or wrong time can influence the outcome. Here are some ways to tell when it’s the right time to ask for a raise, and how to do it.
Job sites show you to be underpaid. There are hundreds of ads on job sites like Monster, Indeed, and ZipRecruiter that include salary ranges. You should be able to find the going salary for your job description, education, years of experience, and location. If you’re more than 5 percent below the median salary, you have ammunition to ask for a raise.
The company is doing much better than you are. It’s a great feeling when your company suddenly experiences accelerated growth and higher profits. However, it’s also frustrating if your salary isn’t benefiting from the good times, especially if you’ve been with the company for a long time. Finding out that some of your peers have recently received raises should motivate you to request more salary as well.
Unrewarded for increased responsibilities. If you’ve been given more responsibility or if you’re taking on multiple roles, it’s a good time to request a raise. While it’s great to climb the ladder, it’s only fair you be recognized salary-wise for your accomplishments.
Ask for a raise the right way. When seeking a raise, share your goals, demonstrate your accomplishments, and explain how you add value to your team. State why you think you deserve a raise, maintain an earnest but even tone, and anticipate questions. You might want to rehearse a few times before sitting down with your boss.
What will you do with your raise when you get it? Receiving a raise is the perfect occasion for you to review your finances, including your investment and retirement plans. Please call or email our office, and we can work out how to build your wealth, short and long term.