I’ve turned down jobs that would pay me significantly more because there are things that money can’t buy. Right now, I work with friends doing what I want, and I make a perfectly comfortable living. I work from home, more-or-less set my own hours, and never miss a school play or basketball game for my kids.
But more than that, there’s a little bit of…hedging my bets. I could make a lot more money…but then my lifestyle will almost inevitably expand to that amount of money or at least more than it is now. If I’m at the absolute top of my earning potential, then when the shit hits the fan (a) I have a bigger target on my back for layoffs and (b) if I do lose my job my chances of finding something that pays close to what I was making is lower, meaning it would be a more stressful and bigger change than it might otherwise be.
I realize this doesn’t apply to everyone, but that’s my reasoning.
Expanding your lifestyle to consume all your income is not inevitable; that’s a choice you make.
You could instead chose to save the excess income as a cushion against those events you live in fear of.
That’s what I do most of the time. Just the old appliances I mentioned paid off when car got smashed, got screwed on liability, and no lawyer wanted the case. Bought best car savings could afford for cash.
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How has this not been submitted here previously? I’ve been referencing this article for probably 6 years and it was a year old when I first read it!
I’ve used the strategies presented the last time I changed jobs and got a 40% raise. I attribute half of that to going into management and the other half to negotiation. The company had originally allocated to the position what would have been a 20% raise for me.
I’m using the strategies now as I’m entering the negotiation stage of my current job hunt. All of the positions have asked for the “name a number or we cannot continue”, so I’ve given a $50,000 range. So far, offers have come in all on the lower end but some companies are increasing the TC with RSUs, bonus programs, etc.
I’m not done with the search yet – three more interviews this week – but patio11’s advice is rock solid when it comes to negotiation.
For submissions like this, the title should be trimmed after the pipe.