Three Reasons You're Earning Less Than What You're Worth
Share
Recently, I began reflecting back to when I began my journey towards earning a 6-figure income in corporate America. I remember spending a lot of time in blame mode. First, I blamed the system for not paying teachers enough. When I left teaching to join the corporate world, I blamed my job for not paying me enough money and my boss for not offering me a raise when I was clearly performing above and beyond expectations.

Chances are if you’re dissatisfied with your income you’ve played the blame game too, perhaps with different contestants like your spouse, family, education, background, the economy, or whatever else comes to mind. Regardless of what or who you have been blaming, the truth is you have more control than you think when it comes to your earning potential. And more importantly you have exclusive control over how to make what you earn work for you instead of against you.

If you are stuck in a place of consistently underearning, being paid less than what you are worth from here are three reasons your income isn't where it should be:

1. You base your salary requirements on your current expenses instead of what your skills and experiences are worth. How do you answer the question, “What kind of salary are you looking for?” What are you you using to come up with that number. Just because your budget only requires $40,000 a year, doesn’t mean that should be the limit for your salary. Even in a tight job market, employers understand the value of top talent and are willing to pay competitively when they find it. Pay attention to the salary trends and make sure you are not selling yourself short.

2. You have no clearly defined financial plan. Wanting to make more money so you can have more things is not a financial plan. When people don’t have a clearly defined plan, it usually means that their job is their only source of short term and long term income. Your plan should provide for your needs, wants, and goals for now and for the future. Your plan should also include means for investing in others.

3. You are in conflict with how you feel about money and wealth. If you grew up in a home where there was myth and misinformation about how to acquire, manage and grow money, it can be a challenge to develop the habits of mind and wallet that lead to financial wealth. Until you address negative associations you have about money you will always find a way to sabotage the progress you make towards successfully reaching your financial goals. This includes any judgments you have about wealthy people as well.

Whether you earn six dollars an hour or one hundred thousand dollars a year, ultimately, it's how you think about money and your value that directly influence your earning potential. It's never to early or too late to makeover your money mindset and put yourself in a better position to earn what you deserve.