Women Say They Need More Money: How To Ask for a Raise — and Use It Wisely
Written by
Laura Bogart
Edited by
Chris Cluff
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While there have been undeniable advancements in women’s financial freedom over the past several decades — e.g., women weren’t allowed to own credit cards in their own names until 1974 — there are still gaps in equality. According to a Fidelity Investments study for Women’s History Month, the majority of women surveyed said “stress” was the No. 1 word they used to describe their emotions around money.
Part of the stress is that women feel they simply don’t have enough money to really save or invest in the way they’d like to. In a recent GOBankingRates survey, 40% of women said their biggest roadblock for trying to save money is making more money.
Yet many women aren’t sure how to negotiate for a raise at work. To help women feel more confident about asking for a salary increase and learn how they can use the extra money effectively, GOBankingRates talked to some expert career coaches and financial advisors.
Know Your Worth
You’re well aware of the long hours you put in every day and the powerful contributions you make to your company’s projects. But do you know what your market value is? Making sure you’re paid fairly for your work means knowing what other people in your industry and position might make.
When Kelly Roehm, founder of The Resume Realist, coaches women in financial advocacy at work, she encourages them to research their market value by looking at salary surveys, industry benchmarks and comparable job listings to identify relevant market ranges.
She said resources such as Payscale, Glassdoor, Indeed and Salary Transparency Street can help you compile a diverse cluster of market data for your profession, industry and experience level.
Sing Your Own Praises
Roehm also tells her clients to log their accomplishments, successes and wins on the job.
“In my coaching practice, I recommend everyone maintain a ‘Wins + Impact’ journal to keep track of what you’ve done, what you’ve learned and who has benefited from your work,” she said.
You should also come to the negotiating table able to quantify your impact with tangible data about the value you bring to your organization.
“Having examples and a well-crafted value proposition are valuable tools in presenting a compelling business case,” she said.
Ask for What You Want
This may seem like a simple piece of advice; but, for many women who grow up in a culture that encourages them to be unfailingly “polite,” asking directly for a specific salary might seem daunting.
However, Laura Redfern, CFP, CeFT with Shadowridge Asset Management, LLC and author of “Peaceful Prosperity: Taking the Fear Out of Finance,” said getting a raise involves overcoming your fear and stating what you want.
“Don’t assume a boss can read your mind once you’ve presented your information,” she said. “It may feel intimidating but remember ‘specific is terrific.'”
Invest in Yourself
So, you’ve put together your business case, shown your value, asked for the salary you deserve and gotten your raise. Congratulations. But you don’t want to rest on your laurels — now is the time to plant a new seed to grow your wealth even more.
According to Eva Chan, career advisor and senior digital PR writer at Resume Genius, using your extra income to invest further in your professional development is a great place to start.
“By allocating funds towards relevant courses, certifications, workshops or conferences, women can expand their skill set and increase their value within the team,” she said. “This move will eventually open doors to higher-level roles or even make them a magnet for other employers that offer better compensation.”
Boost Your Retirement
While you’re excited about your new raise, you can also start working toward the day you no longer have to worry about the workforce.
For Elizabeth Pennington, CFP, senior associate at Fearless Finance, putting additional money in retirement accounts is one of the best things you can do with that fuller paycheck. Pennington suggested that it’s easy to be lured into increased spending as your paycheck goes up. Saving more money helps you avoid “lifestyle creep.”
“Make sure that the first thing you do with that extra money is adjust your retirement contributions so you’re still on target as a percent of your income,” she said. “If you can save more of that extra money, that makes it easier to make progress.”
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