Just got back from a vacation in Hawaii where I unexpectedly received a job offer! While enjoying some mangoes and boogie boarding, I emailed a top executive at a wealth management firm. Surprisingly, he quickly set up a meeting over coffee. There, he asked me when I could start. I needed time to think since I’m based in San Francisco, so I wrote a blog post to sort through my thoughts.
If you ever get a job offer that seems too low, here are some steps to help you negotiate a better salary. I’ll be using these tips myself when I meet the executive again next week in Hawaii.
Tips on Negotiating a Higher Salary
Know your worth: Don’t rush to accept an offer out of desperation only to realize later you’re underpaid. Use websites like Salary.com or Glassdoor to get an idea of what you should be earning.
Understand the local market: For example, Hawaii often has lower salaries because it’s a desirable location. Know the typical salaries in the area to set realistic expectations.
Consider your expenses: If you’re relocating, factor in costs like housing, food, and taxes. For instance, living in Honolulu can be cheaper than San Francisco when you compare housing costs square foot by square foot.
Assess the total income: If you’re moving for personal reasons like being closer to family, consider what that’s worth to you. Add up all potential income streams from the job to see if it meets your financial needs.
Discuss salary last: Show your interest in the job itself rather than appearing money-focused. Wait for the employer to bring up the topic of salary.
Aim high when negotiating: If you’re offered $100,000 and know salaries range from $90,000 to $110,000, start by asking for $130,000, explaining why you’re worth that amount.
Never accept on the spot: Take your time to think over the offer. This can signal to your potential employer that you’re thoughtful and possibly considering other options, which might make you more desirable.
Final Tip on Job Changes
Get to know your potential new team. Spend time with your future manager and colleagues if possible—they’ll be a big part of your life if you accept the job.
I’m excited to see where this opportunity goes. Even if it doesn’t pan out, I’ll have made a great new contact and enjoyed some good food!
Recommendation
If you’re not satisfied with your job offers, consider starting your own online business. It’s cheaper than ever before—you can start with less than $4 a month for hosting. This can be a great way to build your brand, connect with others, and eventually make a substantial income online.
Starting my own blog, Financial Samurai, back in 2009 has been incredibly rewarding. It’s given me the freedom to invest in exciting areas like artificial intelligence and share my knowledge with others aiming for financial independence.
