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Little Raise, Big Difference Comments

  • By MP Dunleavey
  • September 21, 2010

show me the money

It takes guts to ask for more money. It's uncomfortable. But once you look at the impact a single raise can have on your Bigger Financial Picture—you'll decide that asking for more money, whenever you can, is a big shiny priority.

You'll look at the numbers and say, "OMG, if one single raise can make that much difference, what on earth am I waiting for?!"

"What if I charged X% more for my services!"

"What if I looked for a higher paying job!"

Here's the equation:
If you and a friend were both offered salaries of $25,000 at age 22, but she pushed for a bump to $30,000, by age 65 she would be earning more, of course, about $107,000 compared to about $89,000 for you.

That's roughly an $18,000 difference. So?

Let's assume your smart pal took advantage of having a little extra in her paycheck, and banked the $5,000 each year until age 65, in a retirement or other account earning about 3% (nuthin' fancy, just enough to cover inflation).

She would have $784,000 more than you would.



This data is from the book, "Women Don't Ask," by Linda Babcock and Sarah Laschever.
 

Raise your voice. What did you think after seeing the numbers?

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