Own Your Career

Chapter 2Don't Just Increase Your Earnings

In my second job after college I took a pay cut. I distinctly remember the phone call with the HR department:

“We can offer you a salary of $60,000 per year with the opportunity to earn up to a 10% bonus.”

My mind was scrambling to find the right response to this in an instant. “$60,000?” I thought. “That's less than what I'm earning right now!”

At that moment, all I could muster up was: “Can you guarantee the bonus?”

She said yes. In my mind that meant I was making $66,000 per year, and I was okay with that.

Why am I telling you this? Because during that conversation, I was looking at this job transition as an entirely transactional exchange. I had two years of work experience under my belt, so the way I thought about it, I should be making more money in my second job than in my first job.

This is a logical thought process: the more experience you have, the more you should earn. However, early in your career, which is where I was at this point in time, there is more to a job than just the salary.

Yes, you need to be getting paid a livable wage so you can pay your bills and save and do all the things. If you aren't being paid enough to comfortably live, you'll resent your job and your company even if it's providing you with valuable experience. On the other hand, you also need to be building human capital and making decisions that will help you increase your earning potential long-term, rather than a simple short-term gain.

In this ...