Women and Money

What is different for women than men?

Did you know that nearly 85% of women don't negotiate their pay rate when offered a job?

Why?

1. Women are taught to appreciate being given any chance and don't want to "jeopardize" that by negotiating for higher pay. Pro tip - you don't always need to ask for an increase in pay - work from home, vacation time, increased 401K, HSA deposits, membership/training payment - are all alternatives if you're too uncomfortable asking for more money.

2. Women don't value themselves enough. So many women apologize for their "lack of experience" or "gap in employment" because they "took time off" to care for a family. Look at all the tasks you juggled and handled beautifully - list them out- use them. Here's a few: Budgeting, calendaring, intense social interactions (hey, the soccer sideline can get ugly), nutrition, food planning, exercising, learning new math, etc.

3. Bosses don't value women enough. You can deny it. But it doesn't make it untrue. I took public transportation for years and heard all the conversations men had about how they wouldn't hire women for a number of reasons. They would leave when they had kids. They were too emotional. They caused more issues for management with personality clashes. In law school we had well-known practitioners tell us we should "be good women, do what we do best and go get married and have kids." I've known many a woman with more experience and time in a job who gets paid less than the men. This doesn't change with a male or female boss, sadly.

Have you ever tried to negotiate as a woman when offered a job?

Naturally, as a freelancer I have. I did before entering the freelance world, too.

I VIVIDLY recall one job offer I received. It was with a small law firm. The owner acted like he was doing me a favor interviewing me, let alone offering me a job. I knew, if given the right incentive (by that I mean a reasonable % of profits), I would make his firm grow. But after he told me all the benefits (pay, health/dental, on-site gym, etc) he had his secretary call me and "correct" the offer. e.g., He said health and dental would be paid 100%. She changed it to 25%. I'd have to wait longer to get time off, the gym had a fee, etc. I still don't know if it was a tactic he used for everyone but it was very off-putting.

I responded with 1. The items in the written offer were what I expected but I also expected to make more from the clients I brought in and I expected to have my share increased yearly. He sent me to lunch with an associate that was very nice but who told me he wasn't paid enough, wished he could get more but the guy wasn't amenable to raises, and hoped if I started he would have to travel less. Well, I'm not going into a job knowing that. He counter-offered with insignificant changes and I declined with no regrets.

A few negotiating tips:

1. Know your and their power position.
2. If you can give in some areas to make them feel like they are getting one over on you, do that.
3. Be willing to walk away.

How to Increase Your Money

Unfortunately, that above image is NOT how to do it.

1. While increasing your number of clients and/or your charges can do it, I'm thinking more along the lines of what you can everyday to change your relationship with money.
2. Keep track of your income. This might seem like a no-brainer but I know many (male and female) that don't keep track. They don't get receipts, they don't write in a check book, their bills are paid automatically. I have a small notebook and I write down every purchase. I also have an app and I take pictures of receipts.
3. Budget for recurring yearly costs. If you know you pay $1,500 in yearly taxes, once a year and you aren't putting that money aside you are choosing to have to scramble for it when you have to "come up with it." $1,500 is $125 a month. Have $125 automatically transferred to an account you can't access easily and don't use it until you must pay that bill. Do the same for yearly homeowner association fees, Christmas spending, vacation, car expenses, etc.
4. Put aside at least as much as your company matches for your 401K. This is usually pre-tax (as long as you don't take it out too early) and it's "free" money so why not take advantage of that?
5. Educate yourself about finances and financial markets. I remember when a guy-friend asked me if I thought the stock market would reach 10,000 (yes, that long ago it was a BIG thing). Not only did I have an answer, I correctly told him the day it would happen. Just because you are a woman doesn't mean you shouldn't know. Get rid of the idea that money and finances aren't fun - they are. Also drop the idea that males are the experts - they aren't. Read a financial article daily.
6. Be grateful for what you have. Everyday. Everyday I write down any money I was able to make that day including money off (I am not a master couponer but I like to save money when I can.) People who are grateful for what they have, and treat it well, it grows.

Sometimes dealing with money is uncomfortable. It takes time. It can be discouraging and demoralizing. But, you know what's great? When you know exactly where you stand financially and, if you aren't where you want, work to improve that position and end up improving it.

What's your favorite way to keep track of your expenditures?

Any tips for negotiating a raise?