According to simple, failing to negotiate your starting salary can result in over $600,000 in lost income by age 62, and that number balloons to over $5 million across a full career when you consider raises and compounding growth over time.
Here’s the Math:
· $5,000 Negotiation at 22 Years Old x 40 Year Career = $200,000
o If that $5,000 is invested every year with a 5% return, it’s worth over $600,000 by age 62
· Negotiate once every 5 years across your 40 year career, with escalating value to match your career position ($5k, $8k, $10k, $12k, $15k, $15k, $18k, $20k) = $2.77 Million
o If you invest each negotiation every year with a 5% return, it’s worth over $5.1 Million by age 62
Read More