This blog is part two of a two-part blog post! Click here to read part 1.
In the previous blog, we focused on evaluating your core income source and any side hustles. Based on your evaluation, let\’s take a closer look at your income sources regarding the market value and the financial snapshot matrix to figure out where you score and whether you need to make any changes.
Financial Snapshot Matrix
| Snapshot | Excellent | Very Good | Good | Fair | Poor | Insufficient |
| Income | 25%+ Above | 15% Above | At | 5% Below | 15%+ Below | Unemployed |
A: Excellent: If you\’re operating in the \”excellent\” column, you are most likely paid well above market value––25% or more. This might be because of your experience, education, core competencies you have, or what you bring to the table.
*Now, these scores aren\’t necessarily a reason to stay in or leave a position. But it\’s vital for you to know where you stand in the competitive market that you operate within.
B: Very Good: If you\’re operating in the \”very good\” column, you are most likely paid above market, but not by much. Based on your analysis, this rate may be to the tune of 15% or more.
C: Good: If you\’re operating in the \”good\” column, you are most likely paid at market value in your field. Most companies do their research and extend an offer letter and a benefits package based on what other companies are paying. There is nothing wrong with being at-market. This is most likely where most people generally fall. But you will want to begin looking at additional income sources if you want to stay put. Also, look at your competitive analysis for your position and look at where you fall in this mix.
Nonetheless, operating in this column is a good place to be.
D: Fair: If you\’re operating in the \”fair\” column, you are most likely paid slightly below market. If there is high job satisfaction and if you are in a secure job in the way of automation, you may consider providing the market analysis to request a raise based on meeting or exceeding performance indicators.
Make sure that you are not asking for a raise unless you are ready to lean further into your position. If you plan to leave that position or change industries, you might want to be mindful of the timing.
E: Poor: If you\’re operating in the \”poor\” column, you are likely paid well below market value. At this point, consider whether the company is in the position to pay you at market value and what that differential would look like if you asked for a raise or took the set of skills you\’ve acquired elsewhere. Unfortunately, this can often happen for employees who have been in a specific role or department of their employers for some time. Organizations can move slowly to keep up with inflation, much less the job market outside their four walls.
You will also want to determine if you are possibly being paid lower than market value because of your education level, experience, something intangible, or something else that you need to evaluate and improve.
Knowing the reason for your low pay will help you determine whether it makes sense to ask for a raise or whether it is time to move on.
F: Insufficient: If you\’re operating in the \”insufficient\” column, you are either unemployed or are working in a position where your skill set does not match your employment level. You may be underemployed or simply in another career field that you didn\’t train in altogether.
In building margin into your finances, one of the best ways to do so is evaluating how well you do on the offense side––gaining new ground through your primary role, purchasing a franchise, buying a rental property, or starting a business of some kind. You will also want to look at secondary sources of income. Again, this may look like evaluating dividends from your investments, any side-hustles you may have, online stores that you dabble with, or any lessons you provide.
My call to action comes down to rating yourself based on these six columns and figuring out whether you\’re paid well below or above market value from an income standpoint. Then, figure out how much you\’re making in the job you\’re in and determine whether it\’s bringing the fulfillment you want in a career field where you\’re spending most of your time.
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