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This is a paid advertisement. On

2:06

this episode of the Personal

2:08

Finance Podcast, the step-by-step guide

2:10

to negotiating your salary. What's

2:30

up everybody and welcome to

2:33

the Personal Finance Podcast. I'm

2:35

your host Andrew, founder of

2:37

MasterMoney.co. And today on the

2:39

Personal Finance Podcast, we're going to be

2:41

going through the step-by-step guide on how

2:43

to negotiate your salary. If you guys

2:45

have any questions, make sure to hit

2:48

us up on Instagram, TikTok, Twitter, at

2:50

MasterMoney.co and follow us on Spotify, Apple

2:52

Podcasts, or whatever podcast player you love

2:54

listening to this podcast on. And if

2:56

you want to help out the show,

2:58

consider leaving a five-star rating and review

3:00

on Apple Podcasts, Spotify, or your favorite podcast

3:03

player. I cannot thank you guys enough for

3:05

leaving those five-star ratings and reviews. They truly

3:07

mean the world to us and they are

3:09

something that can really massively, massively help out

3:11

the show. Now today we're going to be

3:13

diving into the step-by-step guide on how to

3:16

negotiate your salary at your job. In

3:18

a separate episode, we're going to be

3:20

talking through how to negotiate a new

3:22

job offer salary, because these are two

3:24

separate things that you need to do.

3:27

And so we're going to talk through both of these today. Now

3:30

at the top of the show, we also have written

3:32

a free ebook for you

3:34

guys. If you go to MasterMoney.co/resources, we

3:37

have a free ebook called finally get that raise.

3:39

And that's going to actually walk you through some

3:41

of these steps that we're going to be talking

3:43

through today. In addition, it also gives you the

3:46

scripts to talk through some of these situations with

3:48

your boss now, and, or if you want to

3:50

go out and negotiate your salary, you

3:52

can also do that as well. Now we talked

3:55

through this on a very early episode of the

3:57

Personal Finance Podcast. One of the first episodes that

3:59

we ever had. But there are some

4:01

things that we are adding in. And when

4:03

we talked through that first episode, and when

4:06

we wrote this e-book, we had so many

4:08

of you write in over the course of

4:10

the last couple of years saying, it is

4:13

absolutely amazing how well this step-by-step system works.

4:15

And I am so thrilled because increasing your

4:17

income is the most powerful thing you can

4:19

do in order to build wealth. And

4:22

you're gonna see exactly why that is as we go

4:24

through this episode. But one of the most important

4:26

things, and one of the biggest levers that you can

4:28

pull in order to make a major impact on

4:30

your personal wealth is learning how to increase

4:32

your income. And this system is going to

4:34

help you do that. I'm gonna grab your

4:36

hand, and I'm gonna walk you step-by-step on

4:38

exactly how to do this. So you don't have

4:40

to worry about it whatsoever. All you

4:43

do is follow the system, create some

4:45

scripts, do a little research on salaries in different

4:47

companies, and you're gonna be able to knock this

4:49

out of the park. And this is not a

4:51

really quick way to ask for a raise. You're

4:54

not gonna get a raise tomorrow by going through

4:56

this system. This is a six-month system. Why is

4:58

it a six-month system? You'll see exactly why

5:00

as we go through this episode. Now the amazing

5:02

thing about this is most people actually don't ask

5:04

for more money at their job. They sit there

5:07

and they take whatever their boss will give them,

5:09

which is like a 2% raise or a 3%

5:11

raise. In

5:13

fact, 58% of

5:16

young professionals do not negotiate

5:18

higher pay. However, 87% of

5:21

those who do negotiate higher pay

5:23

are usually at least successful in

5:25

some additional compensation. So

5:28

87% of people who actually will negotiate are

5:30

87% more successful. And

5:33

according to Pew Research, women are less

5:35

likely to ask for more pay than

5:37

men are. So 61% of women do

5:39

not ask for higher pay, and 58%

5:41

of men did not ask for higher

5:43

pay. And of those who did ask

5:45

for higher pay, they were successful, again,

5:47

87% of the time. Now

5:50

here's a very interesting statistic because they looked at

5:53

who asked for higher pay by age, and it's

5:55

very interesting. So age 18 through 29, 46% did

5:57

not. feel

6:00

comfortable asking for higher pay and

6:02

32% were satisfied with the

6:04

pay that was offered of

6:07

age 30 to 49, 37% did not feel comfortable asking for higher pay, of age 50 to 64,

6:09

34% were

6:14

not comfortable asking for higher pay and 65 plus

6:17

19% were not comfortable asking

6:19

for higher pay. So part of this is experience

6:21

and understanding negotiation. Part of this is as we

6:23

age, we probably get a little grumpier at our

6:25

day job and we just want more money for

6:27

the time that we are putting in and the

6:29

time that we have actually put in at this

6:31

job and the value that we provide and so

6:33

we kind of understand that part of it as

6:35

well and it's really important to ask for more.

6:37

I want you to know this at the top

6:40

of the show, we are always here as wealth

6:42

builders gonna ask for more every single time because

6:44

it is not your job to say no, it

6:46

is your employer's job to say no to you.

6:49

So even if you're an introvert, we're always gonna

6:51

ask for more pay every single time

6:53

we have some sort of job review and we're gonna

6:55

try to do that every time. Now if your company

6:57

is struggling, we'll talk through that. We'll talk through exactly

6:59

what you need to do when you

7:01

go through that process. Now how much do you

7:04

ask for when you go through this range? Well

7:06

they did a little study at LinkedIn and

7:08

LinkedIn said the most successful range was anywhere from

7:10

5 to 10% in increased pay.

7:12

I want you guys to get more than that but of

7:14

those who asked for 5 to 10% more, 70%

7:18

of those people who asked for that in that

7:20

range were usually successful in getting that. So I

7:22

think this is something where I think

7:24

this is something where that gives you like the bottom

7:26

of what you should be asking for. Typically companies right

7:29

now are gonna want to give you one, two, three

7:31

percent increases. That's not how we're gonna do it here.

7:33

We're gonna try to get more money than that because

7:35

one, two to three percent doesn't even keep up with

7:37

inflation and that's what I really want you to understand

7:40

here on why you can't afford to do this. Think

7:42

about this over the last couple of years. Inflation since

7:45

2020 has caused prices to grow about 20%, okay? So

7:47

prices have

7:50

grown 20% over the course of the last year. If you

7:52

got a 2% raise every single year or

7:54

you got a 3% raise every single

7:57

year, you just took a pay cut because

7:59

the prices of living are significantly

8:01

higher and the amount of money that

8:03

you make is lower than the

8:06

pace of those prices increasing. So groceries are going

8:08

to go up 20% and then all of a

8:10

sudden you are making 12% more over the

8:13

course of the last four years. That is

8:15

a problem. This is why we have to get

8:17

this system into place. Otherwise inflation is going to

8:19

eat away at your buying power. We want to

8:21

at least bare minimum. We want to

8:23

maintain our buying power. So if you are looking

8:25

for a bare minimum amount to ask for, at

8:28

least make it the inflation rate

8:30

so that you know, hey, at least my buying

8:32

power is staying the same over time. We want

8:34

way more than that but we are just talking

8:37

through bare minimum if you are trying to think

8:39

through in your head. How much do I ask for that is where

8:41

you want your bare minimum to be is at

8:43

least at that minimum inflation rate. Really

8:45

important to understand because inflation will eat

8:47

away at your buying power. This is

8:49

why we invest our money. We invest

8:51

our money so it can grow over

8:54

time. So inflation does not eat away

8:56

because investing usually outpace inflation. And so

8:58

that is a really important thing

9:00

we have to do is we have to allow

9:02

our money to continue to grow. We have to invest

9:04

our dollars so we can outpace inflation. We have

9:06

to ask for more money at our job and try

9:09

to get increases every single year so that we can

9:11

outpace inflation. This is the only

9:13

way that you can build wealth in a sustainable way.

9:15

So you have to have these skills in place. Now,

9:17

why is it so important to have these skills? Let's

9:20

talk about that next. So

9:23

what most people do is they sit on their hand

9:25

and they wait for their yearly review and they wait

9:27

for their job to say, hey, you got a raise.

9:29

You got a 2 to 3 percent raise and you're

9:31

going to sit on your hands and you're going to

9:33

let somebody else dictate how much money they're going to

9:35

pay you every single year. Instead, what

9:37

we're going to do here as wealth

9:39

builders is we are going to focus

9:41

on the things that we can control

9:43

and what can we control the way

9:45

that we negotiate our pay, the output

9:47

that we actually give towards this company

9:49

in order to earn that pay. And

9:51

we're going to focus on this framework,

9:53

this system that's going to allow us to

9:55

make more money. There are things that are

9:57

in our control. There are things that are outside

9:59

of it. our control. Let's look at some things that

10:02

are outside of our control. A, if a company is

10:04

struggling and they cannot pay us more, well that's not

10:06

really our problem, is it? That is the

10:08

company's problem. And so when it comes to this, this

10:10

may be one reason why we want to leave at

10:12

some point in time, if a company is struggling and

10:14

they cannot pay us more money, you're putting the same

10:16

amount of time in day in and day out for

10:18

your 8 to 5 job. And so

10:21

you need to make sure that you are

10:23

being compensated correctly for that 8 to 5

10:25

job. And so this is why this is

10:27

so incredibly important to learn this system. Now

10:29

what we're not going to do is we're

10:31

not going to sit on our hands because

10:33

negotiating your pay and earning more money can

10:36

cost you a million dollars if you

10:38

do not want to do that. Now introverts,

10:40

listen to me here. I'm an introvert. I

10:42

feel your pain. You don't want to get

10:44

into any confrontational conversation whatsoever. You don't want

10:46

to get into a conversation that's difficult and

10:48

hard because you don't even want to talk

10:50

to people in general. It's two people out

10:52

there in the first place and now you

10:54

got to go talk to somebody and ask

10:56

them for more money and have this incredibly

10:58

uncomfortable conversation. I get it. But

11:01

what if I told you that having this

11:03

conversation every couple of years would earn you

11:05

an additional million dollars over the course of

11:07

your lifetime and earnings? Imagine if you could

11:09

take that extra million dollars and invest those dollars.

11:12

That is how powerful this can be over

11:14

time. So there was a study

11:17

done and it was posted in Business Insider.

11:19

And if you've been listening to this podcast

11:21

for a long time, you've heard me talk

11:23

about this study. But it's just a very

11:25

simple thing that just kind of shows the

11:27

math behind all of this. And when we

11:29

talked through the math behind all of this,

11:31

there was a study with employee A and

11:33

employee B. And employee A negotiates a $5,000

11:35

higher salary than employee B. And employee A

11:38

can earn an additional million dollars over their

11:40

career due to the compounding effect of the

11:42

salary and increases. This is not even investing

11:44

these dollars. This is just the compounding effect

11:46

of this increase in salary over time.

11:48

So employee A is Kira and employee

11:51

B is Dave. So Kira negotiates for

11:53

a slightly higher raise every three years

11:55

while Dave does not. And Kira ends

11:57

up earning six figures while Dave... Dave

12:00

earns slightly less. And

12:03

Kira ends up earning significantly more than Dave over

12:05

this time frame. So here is a comparison of

12:07

their salaries over that time frame. So the first

12:09

year, Dave is going to make $45,000 and Kira is

12:12

going to make $50,000. In

12:14

year two, Dave makes $46,350 and Kira makes $51,500. That's

12:19

a 3% increase. In year five,

12:22

Dave is making $50,000 and Kira

12:24

is making $57,915. This

12:27

is just by negotiating every couple of years. In

12:29

year 30, Dave is making $106,000 and Kira is making $152,569. And

12:38

over the course of that 30

12:40

years, Kira makes over a million

12:42

dollars more because she decided to

12:44

negotiate just a small amount. So she

12:46

negotiated up front $5,000 in additional salary

12:48

and then negotiates every couple of

12:50

years an increase. This my

12:52

friends, and we'll link that study up down below in the show notes.

12:55

This my friends makes a massive,

12:58

massive difference. Why? Because

13:00

if you do this negotiation properly and if you

13:02

take those extra dollars and you start to invest

13:04

those extra dollars, even if you invested 50% of

13:07

them and you compounded that over time, it is

13:09

going to have a massive result. In fact, let's

13:11

look at what that result would be. Let's just

13:13

say, for example, you only took 50% of

13:16

your increases over the course of 30 years.

13:20

And let's say that that contribution is

13:22

going to be an additional $500,000. So

13:27

we're going to do this over that timeframe and over

13:29

the course of 30 years. If

13:31

you did that and you invested that additional amount

13:33

at a 7% rate of return, you would

13:36

have $1.948 million. If

13:39

you did it at an 8% rate of return and you

13:41

invested those dollars, just 50% of those raise

13:43

increases. If you just asked for a little bit more

13:45

money, you'd have $2.3 million. If

13:48

you did it at a 9% rate of return, you'd

13:51

have $2.8 million. And

13:53

at a 10% rate of return, you have

13:55

$3.4 million in additional

13:57

retirement income just by deciding.

13:59

I'm gonna take 50% of these raise increases and I'm

14:01

actually gonna ask for a raise. This is

14:03

where it is so powerful how much more money

14:06

you can make if you actually follow systems like

14:08

this. And this is just for a small raise

14:10

increase every couple of years. Imagine if you master

14:12

this, you master the art of negotiation, this is

14:14

your Super Bowl every single year and you realize,

14:16

hey, I'm gonna try to earn more money every

14:19

time I do this. If I can't earn more

14:21

money, I'm gonna reference back to the job hopping

14:23

episode and I'm gonna see I can make more

14:25

money somewhere else. This is a world where you

14:27

can make a lot more money in the corporate

14:29

world if you move around and you learn

14:32

how to negotiate. These skills are so incredibly

14:34

valuable and you can see right here, invested,

14:36

the opportunity cost is millions and millions and

14:38

millions of dollars, multi-million dollars just to learn

14:40

how to do this stuff. That my friends

14:43

is what we talk about when we say

14:45

invest in yourself, that's exactly what we're talking

14:47

about is right here. Investing in yourself allows

14:49

you to become a very wealthy person but

14:51

you gotta have the skills to do it.

14:54

And let's give you some of those skills

14:56

today. So we're gonna dive into the step-by-step

14:58

guide here next. Now

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right, so here's what most people do. Most

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their yearly review. What does this do? What

19:30

this does is, A, this catches your

19:32

boss off guard, meaning that, A,

19:35

you're going to ask maybe for a little bit more money is what

19:37

they expect. You're asking for 20% more. You're making $100,000. You're asking for

19:39

an additional $20,000 per year. This

19:43

is going to catch your boss off guard. And they're

19:45

going to say, well, where did you even get this

19:47

number? What did you do to deserve

19:49

this? The company can't pay for this. Right now,

19:51

they can give those one-line answers very easily if

19:54

you just ask for this up front without doing

19:56

any preparation work and actually working with your boss.

19:58

to get this raise. And I'm gonna show you

20:00

how to work with your boss to get this

20:02

raise here. So most people just

20:05

go in cold turkey, they throw out some

20:07

random number because that's what they want. Or

20:09

that's what their friend over at Acme Widgets

20:11

gets. And so this is why we

20:14

really need to make sure that

20:16

we are instead preparing our boss to

20:19

know we're gonna be asking for a

20:21

raise. This is not some ambush. Instead

20:23

what we're gonna do is we're gonna

20:25

work in collaboration with our boss and

20:27

guess what? We're gonna get that raise.

20:29

Let me hear you say it with me. We're

20:32

gonna get that raise. And so this is something

20:34

where when we start this process, we are gonna

20:36

start this process six months out before our yearly

20:38

review. You heard me right, this is a six

20:40

month process. There's no get rich quick thing here.

20:42

We are gonna go through a process that actually

20:45

works so that you can make sure and you're

20:47

gonna know the day you walk into your boss's

20:49

office that you're gonna be getting a raise. And

20:51

if they don't give you a raise after this

20:53

process, then you maybe are gonna have to have

20:56

a conversation with them and or you're gonna have

20:58

to think through if you actually wanna stay at

21:00

that company. So we're gonna talk through that next.

21:02

So let's go through this process. Step one is

21:04

you're gonna identify the date of your yearly review.

21:07

So the first thing is you're gonna target those yearly

21:09

reviews, just look at when yours was last year and

21:11

try to figure out is it gonna be around the

21:13

same time, the same month and then we're gonna try

21:15

to do this process early. Now if your yearly review

21:17

is eight, 10 months out, even better because if you

21:19

just had one, you can go

21:21

back and have this conversation with your boss that

21:24

we're gonna talk about where you can have more

21:26

time to really make this stuff work. And the

21:28

more time you have, the better off you're gonna

21:30

be because you can really become a very

21:32

high performer and show your stuff to your

21:34

boss. Now, this is not a one-time conversation

21:36

that you're gonna have upfront, but it's crucial

21:39

to figure out when exactly this date is

21:41

gonna be so that you can develop this

21:43

plan and you can build out this plan

21:45

that we're gonna be talking through today. So

21:47

step two is what I want you to

21:50

do is I want you to set up

21:52

a calendar invite with your boss and

21:55

I want you to sit down at least six months before

21:57

your yearly review. If it's eight months,

21:59

good. If it's 10 months, fine. But

22:01

six months before your yearly review, I

22:04

want you to sit down with your boss, and I want

22:06

you guys to have a conversation. And

22:08

this is something I want you to

22:10

do in collaboration. If they ask, what

22:12

is this about? I want to say,

22:14

I want to collaborate and figure out

22:16

a way that we can work together

22:18

so that I can increase, A, the

22:20

productivity of this team, B, increase revenue

22:22

for this company, C, increase revenue

22:24

for this department, or increase productivity for this

22:26

department to make this department the best it

22:29

can possibly be. And so we're gonna have

22:31

this conversation, we're gonna sit down and see

22:33

if we can do that. Now, before you

22:35

go into the meeting, I want you to

22:38

identify some of the areas that you

22:40

think that you can improve within the

22:42

company. So say, for example, you work

22:44

in finance, okay? The reason why I'm talking

22:47

about finance is because your boy used to

22:49

work in finance, and so he knows a

22:51

lot about those departments. And so in finance,

22:53

there's a number of different things that you

22:55

can do here. You can figure out ways

22:58

to increase revenue within the company. You can

23:00

figure out ways to reduce and mitigate risk

23:02

within the company. You can figure out ways

23:04

to increase productivity within the company by reducing

23:06

certain expenses. And lastly, you guessed

23:08

it, you can reduce expenses. And so of

23:11

those four things, when you have this conversation

23:13

with your boss, figure out

23:15

which of those areas you want to improve, or if you want

23:17

to improve all of those areas because you want to be the

23:19

high performer, you can absolutely do that. And I want you to

23:21

have a list of stuff that you want to be doing. And

23:24

I want this to be impressive stuff that you're putting together here.

23:26

Do it on work time if you want to, but put this

23:28

together in a doc or a sheet so that you have something

23:30

to reference and I want you to practice through some of this

23:32

stuff. Now, I want

23:34

you to identify those areas, and then I want you to

23:37

have a conversation with your boss when you go to that

23:39

initial meeting. So when you go to that initial meeting, step

23:41

four, I want you to ask your boss what you need

23:43

to accomplish to get to the next level. This is the

23:45

conversation you're having. Say, I want to do

23:47

everything I possibly can to get to the next level, and

23:50

I want to either be able to earn more money

23:52

and or I want to get promoted at some point

23:54

in time here within this company. And

23:57

so I want to know what I need to do to get a promotion or raise. Now, I have

23:59

a- a script for this in the e-book that we

24:01

talked about. So if you go to mastermoney.co/resources, you'll

24:04

see the e-book and the script in there. I'm

24:06

actually gonna read it out loud here on the

24:08

podcast, but the script in there is gonna help

24:10

you put together some sort of script that you

24:12

can actually ask this with. So, thank you again

24:14

for meeting with me, and then you put your

24:16

boss's name. My goal is to bring as

24:18

much value to the company as possible. Buy,

24:21

and you say a specific date. That date is gonna be

24:23

the month of your yearly review. So if you know when

24:25

your yearly review is gonna be, it's gonna be in that

24:27

month. Which areas do you see that

24:29

I need to improve on? So first, you're asking

24:31

this question, why? Because you wanna know what they

24:34

think you need to improve on. This is really,

24:36

really important. So they're gonna be like, is this

24:38

a yearly review? No, I wanna know what you

24:40

think I need to improve on, because you can

24:42

guess all day long on what you think you

24:44

need to improve on, but it's really important to

24:46

note that you need to know what your boss

24:48

thinks you need to improve on. Very important stuff

24:50

here. So, that's the first question is, what areas

24:52

do you see that I need to improve on?

24:54

The next question is, they're gonna answer, you're gonna

24:57

write this stuff down. Everything

24:59

they say, you're gonna be writing it down. And if you don't write this

25:01

down, you're gonna screw up the whole

25:03

plan. So I wanna make sure that you know

25:05

exactly what they say. Next, what areas do you

25:07

see we, as a company, need to improve on?

25:10

Meaning that you're gonna get all of the things

25:12

that we think we, as a company, need to

25:14

improve on, and then you're gonna say, well, I

25:16

wanna grow with this company and show how valuable

25:18

of an asset I am. With your expertise and

25:20

guidance, I know I can help in maximizing the

25:23

company's mission and core values. So you're gonna take

25:25

these items that they give you. And so, you

25:27

wanna say, hey, I wanna earn more money, and

25:29

I wanna get to the next level. Are these

25:31

the items that I need to be accomplishing in

25:33

order to do so? Then, they will say yes. So

25:36

you have this conversation with your boss. You're

25:39

setting the expectations. You're setting the bar now.

25:41

And setting the bar is the most important

25:43

thing because now nobody is surprised when we

25:45

have this next conversation, which we're gonna have

25:47

a conversation about compensation coming up. And so

25:49

when we have this next conversation, it's gonna

25:51

be really important to note that once you

25:53

have this set up and you set the

25:55

bar, then what I

25:57

want you to do is start accomplishing some of this stuff. working

26:00

on some of this stuff and showing that you're working on

26:02

some of this stuff because now we're going to

26:04

go to three months before your yearly review. And so

26:06

now you have this list of things that you need to do

26:08

and you need to knock these things out of the park over

26:11

and over and over again. Maybe it's stepping up and leading more

26:13

meetings. Maybe it's stepping up and increasing

26:15

productivity within your department. Maybe it's becoming a

26:17

team lead within that department and really showing

26:19

your stuff. You're going to be the boss's

26:21

pet here and you're going to play the

26:23

game. You're going to play the politics game

26:25

as well. Hey, I know how annoying corporate

26:27

politics are. I absolutely hate them but they

26:29

are absolutely necessary in order to get

26:31

ahead in your career. They are absolutely necessary

26:33

and they are absolutely necessary in order to

26:35

get ahead in the blue collar environment as

26:38

well. You need to play the politics

26:40

game and in order to do that, you've got to build

26:42

up that skill. It's a skill. It's

26:44

a muscle. It's a networking skill that you need to put into place.

26:46

Now what I want you to do is I want you

26:48

to start preparing the numbers that you're going to be

26:51

asking for. Now there are three numbers that I want

26:53

you to bring to this meeting. It's not just coming

26:55

up with one single number. I want three numbers. Number

26:58

one is your want number. The real number that

27:00

you actually want, the number that you

27:02

think that you can actually most likely

27:04

get to. Your want

27:06

number. For example, maybe you're

27:08

making 50 grand right now. You think you should be making

27:11

65,000 bucks. If

27:13

you think you should be making 65,000 bucks, that's

27:15

your want number. Number two, the second number I

27:17

want you to have is your wish number. This

27:20

is the number you really think you deserve. You're not

27:22

sure if you can get it but you think you

27:24

deserve this number. Maybe it's

27:26

75 grand in this example. You

27:29

got your want number and you got your wish

27:31

number. Lastly, number three, I want you to come

27:33

up with a dream number. This dream number is

27:35

going to be fun to play around with as

27:37

we start to have these conversations because this dream

27:39

number is something that may be a little bit

27:42

higher. It's really high end on the spectrum of

27:44

what you really want and what the average is

27:46

out there. Maybe you look across the

27:48

board and you go to Glassdoor or some of these other places and

27:50

you figure out, hey, people in this line of work,

27:52

they're making 70 to $90,000 per year.

27:56

Put $90,000 as your dream number, maybe 95. Let's

27:59

bump it up a little bit. and see if we can

28:01

get a little bit above the top end of the range.

28:03

And so that's your dream number right there, is the number

28:05

that you have in place. Now before you

28:07

wrap this up and you get these numbers put together,

28:09

when you would get that initial meeting with your boss

28:11

and you have all of those ideas into place and

28:13

what you're going to be doing, you start to execute

28:15

those ideas, right after that meeting, I want you to

28:17

give a follow-up to your boss and say, hey, I'm

28:20

going to be doing this, this, this, this, and this.

28:22

And I want you to put it in writing. I

28:24

want you to put it in an email and immediately

28:26

after that meeting, you send that off to your boss

28:28

because we need a paper trail with a lot of

28:30

this stuff. Your boss is super, super busy. They're going

28:32

to be doing a ton of different things. And the

28:34

last thing you want to do is have them forget

28:36

the meeting that you had three months ago when

28:38

you set up this next meeting, because this is

28:40

really, really important. So make sure when you have

28:43

the initial meeting, you also ensure that you send

28:45

out an email to your boss. Then what we're

28:47

going to do is we're going to set up

28:49

the three month review meeting and we're going to

28:51

do that next. All

28:54

right. So we had the initial conversation with our

28:56

boss. We had this initial conversation. We identified the

28:58

things that we are going to be doing and

29:00

we identified the things that are going to bring

29:02

the most value to this department. And we followed

29:04

up with them with an email and said, here's

29:06

all the things I'm going to be doing so

29:08

that I can get to the next level. And

29:10

we are both on the same page on this.

29:12

We sent that follow-up email and we set

29:15

this whole thing up. Now, what we're going to do is

29:17

we're going to set up another meeting and in this meeting,

29:19

we're going to say, hey, I want to set up another

29:21

meeting to make sure I'm on track. I've been doing this

29:23

stuff for the last three months. I want to make sure

29:25

I'm on track and doing the correct things as we go

29:27

through this process. This meeting is absolutely crucial because what we're

29:29

going to be doing is, hey, we're going to take those

29:32

numbers that we set up. We have our want number, our

29:34

wish number, and our dream number. And we're going

29:36

to have this available to our boss. And this

29:38

is going to be the check-in to make sure we're on

29:40

track to make that jump to the next level. Okay. So

29:43

I want you to prepare a list of your accomplishments

29:45

that you have had since the last meeting, because in

29:47

those three months, you're working hard, you're putting together all

29:49

this stuff, and you have this list of accomplishments that

29:51

you have accomplished over the course of the last three

29:54

months. And then what we're going to do is we're

29:56

going to discuss expected pay increases over the course Of

29:59

the next 12 months. Now the reason why

30:01

we're doing twelve months is because this

30:03

is shies away. Be. Automatic

30:05

response of people have a we just don't have

30:07

the budget right now. Well guess what, You're gonna

30:09

have the budget the next twelve months otherwise I'm

30:11

not staying here Is what you're saying in the

30:14

back to your head sport you're really doing is

30:16

say hey I'm putting this together I'm doing all

30:18

of these things I expect you at least are

30:20

more money and so that's what would I do.

30:22

So here's what you can say is based on

30:24

the market or you can say based on the

30:26

goals I have sat for myself I would expect

30:28

to be in the blank to blank range in

30:30

the next twelve months Now when we set up

30:33

this range this is really important to understand. These

30:35

you want the bottom number to be more

30:37

than your want number meeting. I want you

30:39

to make it a couple grand more than

30:41

your want number. Trying to help say for

30:43

example, your want number is seventy five grand

30:45

and your dream number is ninety grand of.

30:47

It's nice to be within the confines of

30:49

a reasonable compensation. It cannot be something where

30:51

you're just making these numbers up street ago

30:53

and glass door you to go and somebody

30:55

that a website and make sure you do

30:57

your research in order to ensure you know

31:00

what the pay rangers are for this exact

31:02

job and you can look at other companies

31:04

in your area. Because it is very

31:06

specific to your location. so you

31:08

live in Florida. You. Need

31:10

to look at the pay ranges with in Florida

31:13

you don't need to be looking at the pay

31:15

ranges in New York or California. I had employees

31:17

come to me with pay rangers in New York

31:19

or California and say hey this is how much

31:21

people make in New York and California and I

31:23

look at them and I say well how much

31:25

they make in Florida where we live and they

31:27

have no idea to get my shirts with into

31:30

location that you're actually looking at Okay so that's

31:32

step one. And. When you have a

31:34

number set up and you have this range

31:36

set up you're gonna say hey, I expect

31:38

my salary in this is a big range.

31:40

The don't utilize arrange like this. Arrange me

31:43

to be like within a ten thousand dollar

31:45

a break but my salary to be eighty

31:47

to ninety thousand dollars per year within the

31:49

next twelve months by composting all these things

31:51

by what makes your I'm on track in

31:53

doing these things. Here's the conversation we had

31:55

three weeks. Go. Here's a list of things

31:58

we put together and here's exactly what I've

32:00

been doing over the course. The last room

32:02

Am I on pace in? Am I on

32:04

track based on your expectations And then you

32:06

sit there and you wait and you listen

32:08

and you take notes and you see what

32:11

they're saying because what this is doing is

32:13

reminding them. Hey, we had this conversation three

32:15

minutes ago. You. Said I need to be doing these

32:17

things to get to the next lol to make more money. Now.

32:20

I've been doing this the last three months now.

32:22

I'm asking I want to be within this pay

32:24

range Am I on track to be with him?

32:26

His parents gets to the conversations were be having.

32:28

They're gonna give you feedback you take that be

32:30

back and utilize that be back to ensure that

32:32

where you need to be say next one month

32:34

before usually review your to check back in again.

32:37

And this is a quick check and make the a

32:39

fifteen minute meeting bitterness a half years. All the things

32:41

I've been doing over the course the last few months

32:43

I just want a checking to make sure I am

32:45

on track. This. Is to

32:47

ensure. That. They remember again the

32:49

conversations it's even have. the more frequently you

32:51

remind them the better off it's going to

32:54

be for you and your boss. And so

32:56

having this conversation being opened with these conversations

32:58

about your expectations in what you are looking

33:00

for his gimme Really really important. So it's

33:02

one month before you really review, you're gonna

33:04

check back in again, you to touch base

33:06

again to use a corporate term and then

33:09

you're going to have this conversation going forward

33:11

just to make sure you're doing the right

33:13

thing. You don't have a compensation conversation during

33:15

this time you just have a conversation of

33:17

am I on track accomplishing. These goals that

33:19

we set up five months ago. Then Lastly,

33:21

it's time for the Eula review. And when

33:24

the You Review Day is here? That.

33:26

Is where we're going to go in. And. We're

33:28

in a have a conversation about all

33:30

this stuff and there should be no

33:32

surprises here. If your boss act surprised

33:34

they're bluffing because you just had multiple

33:36

conversations with them. and you already

33:39

talked about compensation months ago and services something

33:41

where we have seen so many people just

33:43

walk into their you the review relaxed and

33:45

they get a pay increase of they want

33:47

because actually followed this systems that you're going

33:49

to get a good indication as if they're

33:51

going to actually pay you more know it

33:53

they're not willing to pay you more than

33:55

this is where you have a separate conversation

33:57

with you your family in everybody else saying

33:59

to yourself Am I going to stay at this company? Because

34:02

if I did all of these things, I

34:04

am increasing productivity. I am increasing revenue. I

34:06

am accomplishing every single one of my goals.

34:08

And if you do those successfully and they

34:10

said you did it successfully along these lines

34:12

and then they don't pay you more, guess

34:14

what? We may need to change a scenery.

34:16

And so that's where we have to have

34:18

that conversation. Now, there are other things that

34:20

you can also negotiate, including like flexible hours

34:23

and flexible compensation. And when we talk about

34:25

negotiating a salary offer at a new job,

34:27

we'll talk through some of that stuff as

34:29

well and we'll dive deeper into that. But

34:32

you can also negotiate other things. You can

34:34

negotiate more vacation time, more flexible hours, working

34:36

from home, all that stuff can be added

34:38

into this equation. But it's

34:40

really important to make sure you both know, you've had

34:43

enough conversations that this is going to be happening. And

34:45

so you anticipate and expect this to happen. And so

34:47

when we've talked to people and people have done this

34:49

system, I used to do this system all the time,

34:52

then we know we walk in there and

34:54

it should be an easy conversation. And a lot of

34:56

times your yearly reviews are much shorter. You don't have

34:58

to sit in there for an hour because you've already

35:00

done the grunt work up front. And so

35:02

this is a beautiful, beautiful way to be able

35:04

to work towards getting that risk. Now what if

35:06

you don't get the risk? First of

35:08

all, if you don't get the raise, the conversation then

35:11

becomes, hey, I accomplished all of these things. So when

35:13

can I anticipate earning more money? And so you leave

35:15

it open ended that way. And

35:17

then you continue this system. If you want to stay

35:19

at that job, if you love your employer, you love

35:21

where you're working, then continue on having this conversation and

35:24

keep this moving forward. If you could start

35:26

to have this conversation for a year

35:28

and a half, two years, and still nothing is

35:30

happening, then we're going to have to have a

35:33

real look at what's going on. But if you

35:35

love where you are, keep continuing doing this exact

35:37

system. You can start to do it every six

35:39

months over and over and over again, and make

35:41

sure you have this conversation. And

35:43

if they do not pay you more, that's a real problem. Now,

35:46

if you're shy, use our scripts in the ebook

35:48

to make you more comfortable. And we're

35:50

going to develop even more scripts on some of this

35:52

stuff. We have some cool stuff on negotiation coming out.

35:55

And So we're going to be developing more

35:57

scripts on this stuff. And So stay tuned

35:59

for that because I want you to be

36:01

able to. practice in. One thing I want

36:03

you do is if you're really shy, make

36:05

sure you practice with other people. It's really,

36:07

really helpful when you practice for other people

36:09

to ensure that you are actually on the

36:11

right track. Now there are some things that

36:13

you can never say when you're actually talking

36:15

about paying your negotiating your pace. Number one

36:17

is don't ever talk about another colleague or

36:19

persons pay if you know how much somebody

36:21

else makes. don't ever bring that up and

36:23

these negotiations at not a thing that you

36:25

wanted the whatsoever It is towns or productive

36:27

for your goal, your goal is to show

36:29

your value. Show all things that you're

36:32

doing and how you can earn this

36:34

company more money or increase productivity. Next.

36:36

Thing is don't this you personally this is not

36:39

about. Asking for a solely for your

36:41

benefit instead. What you're going to show is

36:43

how you perform. It benefits the company. so

36:45

you're showing the benefits to the company, your

36:47

sword, the benefits to your boss. And really,

36:49

if your boss is a person who really

36:51

likes to look good, you're gonna show as

36:53

many benefits to the in their favor as

36:55

you possibly can. Because. That is

36:57

what the department of their do you wanna make

36:59

a book or to try to make him look

37:01

good? Use psychology in this equation to see how

37:03

your boss react to different ways that you propose

37:05

this. Don't give an ultimatum is another one. meaning

37:08

I don't want you go in there and say

37:10

hey, you do me this race otherwise I'm leaving.

37:12

That is not the way to do this whatsoever.

37:14

Instead, you want to work in a collaborative way.

37:16

This is a collaboration. This is not some sort

37:18

of face off as you have with your boss.

37:20

is a collaboration. Were you in your boss or

37:22

working together? Get you a raise Because your boss's

37:25

the person that has to go up. To bat

37:27

to their boss. The actually ask for that raise

37:29

where they have to go after batter each arts

37:31

to actually ask for that race. And so this

37:33

is why it is so important to make sure

37:35

that person going up to bat for you is

37:37

on your side by you. Do that by making

37:39

them look good in an apartment look at. So

37:41

that's how you make sure that person is going

37:43

up to bat for you as a making sure

37:46

that you can do this ineffective we communicate your

37:48

skills. Really really important stuff here. I know you

37:50

guys can do this. I know you guys nasa

37:52

this rate. I know it's slightly uncomfortable, but the

37:54

more you practice this in, the more conversations that

37:56

you have. made you want to taken on a year

37:58

long us that it off for a year because you

38:00

have a year until your yearly review. Fantastic,

38:03

stretch this thing out if you want to, start getting

38:05

comfortable having these conversations. The more you have these conversations,

38:07

the better you're going to be at it. Maybe the

38:10

first time you don't get the largest raise that you

38:12

wanted, but as you get better at this, this is

38:14

a skill you can develop, you're gonna be constantly doing

38:16

this. This is playing the game, my friends. This is

38:18

how you play the game to earn more money and

38:20

do the exact things that are going to allow you

38:22

to earn more money or allow you to get that

38:25

promotion. You're gonna figure out exactly what you need to

38:27

be doing instead of just trying to guess in your

38:29

brain what you're gonna be doing. I know how it

38:31

is. You're sitting in that office or you're sitting

38:33

in your cubicle or you're on the job site and

38:35

you're saying to yourself, I don't know what I need to

38:37

be doing next, I don't know what the boss thinks

38:39

of me, I don't know what I need to be doing.

38:41

All of a sudden the anxiety sets in. What if

38:43

you just knew? Well, this is going to allow you

38:45

to know exactly what's going on and stay in communication. This

38:48

is healthy communication with your boss and that's what we

38:50

are looking to do here as we

38:52

want to increase the amount of money that we are

38:54

going to be making. And so I'm so glad that

38:56

you all are here and I'm so excited to see

38:58

you guys go through this system and see how this

39:00

works for you. If you guys have any questions, please

39:02

make sure to reach out to us and we will

39:05

help you in any way we can because that's the

39:07

entire goal of this podcast is to bring you as

39:09

much value as we possibly can. This episode could earn

39:11

you millions of dollars or more over the course of

39:13

your career for a free podcast episode. How amazing is

39:15

that? And that is why I am so excited for

39:18

you guys to test this out. So please, please, please,

39:20

if you could, share this episode with a friend who

39:22

you know wants to earn more money as well. And

39:24

I cannot wait to see the results you guys did.

39:26

I'll see you on the next episode. Everyone's

39:43

heard the saying, you have to spend money to make

39:45

money, but everything in life from

39:47

travel to starting a business is expensive,

39:50

which is why I want to tell you

39:52

about a new podcast I love that will

39:54

teach you all the tactics, tricks, and tips

39:56

you need to upgrade your life, money, and

39:58

even travel, all while spending. less and

40:00

saving more. It's called All the Hacks

40:02

and it's a top-ranked show hosted by

40:05

my good friend Chris Hutchins, a

40:07

financial optimizer, an entrepreneur who's racked

40:09

up millions of points and he sold

40:11

two companies. And if you want to

40:14

rethink the way you're spending money, you

40:16

have to check out the episode 91

40:18

with Bill Perkins and why you should

40:21

be optimizing for net fulfillment and not

40:23

net worth and striving to die with

40:25

zero. All the hacks has something for

40:28

everyone and I'm sure you'll find a new tactic

40:30

that you can apply to your own

40:32

life, whether it's a money hack that

40:34

increases your net worth or a routine

40:36

change that boosts your productivity. So check

40:38

out All the Hacks. That's All the

40:40

Hacks on Apple Podcasts, Spotify, or wherever

40:42

you listen to podcasts. Your wallet will

40:44

thank you later.