If you don’t take a 6% raise to match inflation you’re accepting a pay cut each year as your purchasing power falls. How much bread could you buy for your money today vs 5 or 10 years ago for example?
Gal I worked with was there for a decade, making $1 more than a new hire. You’re your own advocate, no one at your company is looking out for your welfare more than yourself.
Always, always, always, negotiate a COLA into your employment/salary agreements going forward if/when the option to do so is available.
It’s one of the most important things a person can do for themselves and their financial stability, and many companies out there do allow for them, and do offer them, but only if a person pushes for them generally (or if they just want to sweeten a deal).
As an example of why.
Let’s say you’re hired at $100,000 a year. Let’s say you never get a raise over the next 20 years. That means in that 20 years you’ll make $2,000,000.
To now let’s say you had an agreement with COLA included. Still taking that $100,000, no raise, and applying COLA using the past 20 years as the projection for the next 20 years, instead of $2,000,000 now at the end of that 20 years you would have made $2,611,916 instead.
And, the good thing about COLA is that they don’t compete with your normal opportunities for raises. They’re separate. You can still get raises.
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You should be getting a pay raise every year. If you’re not getting at least 3-5% every year then you’re getting a pay cut due to inflation.
Have you not negotiated one? Are you in a union?!
If you don’t take a 6% raise to match inflation you’re accepting a pay cut each year as your purchasing power falls. How much bread could you buy for your money today vs 5 or 10 years ago for example?
Gal I worked with was there for a decade, making $1 more than a new hire. You’re your own advocate, no one at your company is looking out for your welfare more than yourself.
Always, always, always, negotiate a COLA into your employment/salary agreements going forward if/when the option to do so is available.
It’s one of the most important things a person can do for themselves and their financial stability, and many companies out there do allow for them, and do offer them, but only if a person pushes for them generally (or if they just want to sweeten a deal).
As an example of why.
Let’s say you’re hired at $100,000 a year. Let’s say you never get a raise over the next 20 years. That means in that 20 years you’ll make $2,000,000.
To now let’s say you had an agreement with COLA included. Still taking that $100,000, no raise, and applying COLA using the past 20 years as the projection for the next 20 years, instead of $2,000,000 now at the end of that 20 years you would have made $2,611,916 instead.
And, the good thing about COLA is that they don’t compete with your normal opportunities for raises. They’re separate. You can still get raises.
Keep this in mind going forward.
Factor in COLA. If inflation goes up 5%? You need to be getting at least a 5% raise just to stay even.
I got a 5 cent raise this year.