If you’re fortunate enough to be making a regular income it’s important to factor particular decisions into your salary every day. From salary negotiations to your pension scheme, here are 5 mistakes to stop making with your salary.
- Not Doing Your Research
If you decide to start looking for a new job it’s important to research what the market rate is currently. It is very easy to base your salary expectations on your personal preference however you could be selling yourself short or aiming too high. Do some research on salary statistics for the job role you are interested in and also find out how much it pays to have that position in a specific location. You may get more money if you take a job in central London instead of a job on the outskirts. Also, it may be worth doing research on the company and how long they have been in business and their current financial situation. This can give you a great idea of if there is scope to negotiate your salary. - Not Asking For More Money At The Start
A new job can be very exciting however it is very easy to forget to negotiate your salary or feel as if it is too early to be making requests. However, if you bring particular skills to a role that is in demand then negotiating is important. The only way to make your earning potential your reality is to believe that you are worthy of making such requests.
The best way to approach asking for more money initially may be to show evidence of the facts. Apart from the qualifications and experience you hold, it is important to show your selling skills. The beginning of a new role is the time to demonstrate that you have more skills than what is required. If the notion of requesting money makes you nervous, be sure to write down what you’re going to say and practice the conversation you’re going to have in advance while thinking of any questions that may come up in the process. Being prepared just shows the hiring manager that you’ve done your homework. - Not Joining Your Pension Scheme
You may not see the point of a pension scheme when you are young, however, it’s vital to think of your circumstances and wealth in the long run. When starting a new job, the easiest option is to agree into automatic enrolment as opposed to saying no as a way to keep more of your money. The biggest benefit of being part of a pension scheme is that the contributions are tax efficient meaning that pension money is taken from your salary before tax is deducted. Some employers also amplify the value of your pension by adding to it so it’s definitely worth thinking about speaking to your HR department if you haven’t already.
- Not Saving For A Rainy Day
It’s one thing to save for a house or to save for a big holiday but it’s another thing to take out of those savings because an unfortunate event has occurred. The best way to prepare for a rainy day is to discipline yourself enough to put away a minimum of 5% per month so you know that when the unexpected happens, you already have a cushion of money available. There is only so many times we can be annoyed at an impromptu expense before we accept that a rainy day fund is needed. - Non-monetary Perks
Whilst all the other factors are important, there are some ways you can get more for your salary without being paid more. Asking for a few additional days paid holiday if a salary increase is rejected may not seem like a big deal to your boss but may make a real difference to you and your leisure time. Request to work on particular projects or even create new projects so that when it’s time for you to talk performance review you may be in a position to talk about receiving a bonus.
This post was written by Bola.
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