Wednesday, June 27, 2012
48 Days: Income
Today we are talking about income! That one of the reasons that we work, to make money. There isn't a whole lot to talk about today but let's get started.
One of the things people hate doing is negotiating their salary. They are scared of going too high or too low. If they go to high they think they might lose the opportunity because the employer will think you're crazy for asking that much. If you go to low you could lose out on the money they were willing to pay you. When you get to the point where you are discussing your salary they have already decided that they want you. If you make an offer that doesn't fit what they were thinking they will probably just tell you a different amount and you can debate about it from there. They won't give you up just because you made a bad offer, they should work with you to come to an agreement that works for both of you.
You shouldn't think about past salaries, experience, or degrees. This is a whole new job, what you did in the past doesn't matter. What matters is that you can do what you need to do at the new job and you will be paid fairly for it. If you made $20,000 at your old job, it doesn't mean you can't work an $80,000 position. It all depends on what you are doing now, not what you used to do.
1. Is negotiating on a price uncomfortable for you? Describe 3 things for which you negotiated the purchase price.
Yes, Even after learning all these things I still don't like the idea of talking about how much money I should make. I haven't had many opportunities to do this, but at a flea market I negotiated the price over a few things, I got a lower price for buying a couple things instead of them individually.
2. Have you negotiated your income in the past?
So far my jobs have had set hourly wages, you can negotiate a bit after you have been there awhile but it's highly unlikely they will give you more than your yearly raise.
3. Do you realize that in changing companies you may be able to increase your income by 40 to 50% though that is unlikely to happen while moving up in one company?
Yes, a company will only give you small increases over time but if you start at a new company you don't have any salary to go by so you can make much more.
4. What are the guidelines for how much is reasonable? What is fair? Is it always reasonable to ask for more?
There is a general guideline that companies go by, you should make the company 3-5 times more than your salary. You should know what your job is and about how much you should make for your job, you wouldn't ask to get paid a $100,000 salary if you worked at a fast food restaurant, unless you are management.
5. Read Matthew 20:1-15. How does this parable fit what you've learned?
“For the kingdom of heaven is like a landowner who went out early in the morning to hire workers for his vineyard. He agreed to pay them a denarius for the day and sent them into his vineyard. “About nine in the morning he went out and saw others standing in the marketplace doing nothing. He told them, You also go and work in my vineyard, and I will pay you whatever is right. So they went.“He went out again about noon and about three in the afternoon and did the same thing. About five in the afternoon he went out and found still others standing around. He asked them, Why have you been standing here all day long doing nothing?“Because no one has hired us, they answered.“He said to them, You also go and work in my vineyard. “When evening came, the owner of the vineyard said to his foreman, Call the workers and pay them their wages, beginning with the last ones hired and going on to the first. “The workers who were hired about five in the afternoon came and each received a denarius. So when those came who were hired first, they expected to receive more. But each one of them also received a denarius. When they received it, they began to grumble against the landowner. These who were hired last worked only one hour, they said, and you have made them equal to us who have borne the burden of the work and the heat of the day. “But he answered one of them, I am not being unfair to you, friend. Didn’t you agree to work for a denarius? Take your pay and go. I want to give the one who was hired last the same as I gave you. Don’t I have the right to do what I want with my own money? Or are you envious because I am generous?
This goes along with what I have been talking about with previous conditions not effecting what you should make. You have to figure out what you will be happy making or else you might end up like the first workers and making the same as the people who came later.
6. What would you do if you tripled your current income? What could you offer that would merit that?
I would probably buy a house, get married, and do some other fun things. I'm not sure what the second part is saying?