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5 Salary Negotiation Tips That Actually Work (Not The Stuff Everyone Tells You)


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What’s Poppin’,​
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This is the Master Money Newsletter, where you'll find out fun facts, such as the fact that there are more millionaires than people with six-packs. Trust me, you can do this.

Here’s what we have on deck today:

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πŸ“— Read: 5 Salary Negotiation Tips That Actually Work

πŸŽ™οΈ Listen: The 7 Biggest Mistakes People Make in Retirement (And How to Avoid them!)​

5 Salary Negotiation Tips That Actually Work (Not The Stuff Everyone Tells You)

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Here's something that will make you uncomfortable: You're probably leaving $5,000 to $15,000 on the table every year because you're bad at negotiating your salary.

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Not because you're not worth it. Not because your boss is evil. But because you're using negotiation advice that sounds good in theory but falls apart when you're sitting across from someone who controls your paycheck.

Let's fix that with tactics that actually work in the real world.

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Tip 1: Never Accept The First Offer (Even When It's Good)

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This sounds obvious, but here's why most people mess it up: they get excited when the offer is higher than expected and immediately say yes.

Big mistake. The first offer is almost never their best offer. Companies typically lowball by 10 to 20% expecting negotiation. When you accept immediately, you're leaving that buffer on the table.

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Even if the offer exceeds your expectations, respond with: "I'm excited about this opportunity. Let me review everything and get back to you tomorrow." This creates space to negotiate without seeming ungrateful.

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Then ask for 10 to 15% more than their initial offer. The worst they can say is no, and they'll usually meet you somewhere in the middle.

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Tip 2: Research Your Market Value (But Do It Right)

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Everyone says "know your worth," but most people research it wrong. They look at generic salary websites that give ranges so wide they're useless.

Instead, get specific. Find people with your exact job title, in your city, at companies of similar size. Use LinkedIn, Glassdoor, and salary.com, but also network with people in your industry.

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The key is having three numbers: the low end of the range, the market rate, and the high end for exceptional performers. You want to position yourself in the top third of that range.

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But here's the secret: don't lead with salary data. Use it as backup when they push back. "Based on my research, people with my experience and track record typically earn between X and Y. Given my performance on the ABC project, I believe I'm in the upper part of that range."

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Tip 3: Negotiate The Whole Package (Not Just Base Salary)

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Most people focus only on base salary, but total compensation has way more moving parts. If they can't budge on salary, negotiate everything else.

Ask about signing bonuses, extra vacation days, flexible work arrangements, professional development budgets, stock options, earlier performance reviews, or a better job title that helps your career long term.

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Sometimes a company has strict salary bands but can be flexible on everything else. I know someone who negotiated an extra week of vacation (worth $2,000), a $3,000 professional development budget, and the ability to work from home two days a week. Total value: way more than a small salary bump.

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The phrase that works: "I understand there might be constraints on the base salary. What flexibility do we have with the overall package?"

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Tip 4: Use Leverage (But Don't Lie About It)

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Leverage is having other options. It's the difference between "I'd like more money" and "I have another offer for 20% more, but I'd prefer to stay here if we can make the numbers work."

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The strongest leverage is another job offer. But you can also use internal promotions, competing opportunities, or even just the general job market if you have in demand skills.

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Here's what not to do: lie about having offers you don't have. It's risky and unnecessary. Instead, build real leverage by always being open to opportunities, even when you're happy at your current job.

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If you don't have another offer, create urgency another way: "I'm excited about this role and would love to move forward quickly. When could we finalize the details?"

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Tip 5: Know When To Walk Away (And Actually Do It)

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This is the hardest part and where most negotiations fail. You have to be genuinely willing to walk away from a bad deal.

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If they won't meet your minimum requirements after negotiation, say: "I appreciate the offer, but I don't think we can make the numbers work. If anything changes, please let me know."

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Then actually walk away. Don't keep negotiating. Don't accept a bad deal because you're afraid. Often, they'll come back with a better offer once they realize you're serious.

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But this only works if you mean it. If you're bluffing and they call your bluff, you've lost all credibility.

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What Most People Get Wrong

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The biggest mistake in salary negotiation is treating it like a confrontation instead of a collaboration. You're not trying to squeeze every penny out of a reluctant employer. You're trying to find a compensation package that makes both sides happy.

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Frame it as solving a problem together: "I'm really excited about this role and want to make this work. Here's what I need to feel good about the package..."

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Also, don't negotiate over email. Do it on a phone call or in person where you can read their reactions and adjust your approach in real time.

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The Timing That Matters

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Never negotiate during the interview process unless they bring up money first. Wait until you have a written offer. Then you have leverage because they've already decided they want you.

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The best time to negotiate your salary is right after you've received an offer, or during your annual review when you have a year of performance to point to.

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What Actually Happens

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Here's the reality: most managers expect negotiation and have room built into their initial offers. They're not offended when you ask for more, they're surprised when you don't.

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The people who consistently earn more aren't necessarily better at their jobs. They're better at asking for what they're worth and negotiating compensation that reflects their value.

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Salary negotiation isn't about being aggressive or pushy. It's about being professional, prepared, and confident in your value. Do the research, know your worth, and ask for it clearly.

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Your future self will thank you for every dollar you negotiate now, because salary increases compound over your entire career.

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Master Money

I teach you how to master your money in less than 5 minutes per week. I am the host of The Personal Finance Podcast with 400K downloads monthly and the Founder of Master Money.

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