Most women would love to earn more money, however they consistently get paid less than their desired salaries. People who voluntarily make less than their market potential are called “underearners.” If you’re an underearner, unless you have a trust fund, it’s nearly impossibly for you to be financial self-sufficient. The foundation of financial self-sufficiency is that your income meets your financial needs and goals.
This doesn’t mean that you must earn poverty-level wages to be underpaid. You could be making a fairly decent salary and still be an underearner. According to Barbara Stanny, author of Secrets of Six Figure Women, “What distinguishes and underearner is that she could bring in more, and geniunely wants to, but, for whatever reason, she doesn’t.”
Stanny says that nearly every woman can overcome underearning, “Admittedly there a number of careers, say kindergarten teacher or Christian missionary, where you are not going to make six figures or anywhere close to it, no matter how hard you try. Still, I found enough highly paid women who were once in low-paying jobs or worked in fields that aren’t normally high-paying to know this: We may not all make six figures, but there’s no reason why any ordinary woman can’t be making an above average salary if that’s what she wants.”
So what stops undearners from bringing in more cash? In a word fear. Many underpaid women are fearful that they don’t have the experience, education or skills to make more money. Others are afraid that if they become financially successful their relationships with their husbands, boyfriends, friends or relatives will be changed— for the worse. Lastly, some women, to put it bluntly, are afraid of hard work; they are comfortable with their jobs, despite being underpaid.
Jerrold Mundis, the author of the book, Earn What You Deserve defines underearning as: “to repeatedly gain less income than you need, or than would be beneficial, usually for no apparent reacon and despite your desire to do otherwise. According to Mundis, “Underearning grinds down our spirit and hopes.” He goes on to say that, “It exhausts us. It sucks the joy and pleasure out of our days. We come to live in fear that we’re going to run out of money, that we don’t have enough for the rent, the mortgage, our own tuition, or our children’s; that we’ll be caught in a squeeze, hauled into court, end up a bag lady.”
It’s easy to see the emotional toll that being an underearner can take on a woman. If your salary is not sufficient to cover your basic household expenses it’s easy to see how bills and getting money become your primary concern. Women, particularly those with children, have married or stayed in bad relationships (even abusive ones) because financially they weren’t able to care for themselves and their children.
Here are nine traits of women who are chronic underearners. See how many resonate with you.
1. Underearners have learned to tolerate low pay
Underearners frequently don’t envision themselves making a better salary or equate a high income with a lack of “freedom.”
2. Underearners undervalue their worth in the marketplace
In studies women consistently ”paid” themselves less than equally qualified men for completion of the same tasks .
3. Underearners give away too much.
Underearners consistently give provide services, information or time for free.
4. Underearners are poor negoitators
Underearners are frequently afraid to ask for a pay raise or to raise their fees.
5. Underearners show a disdain for money
Underearners frequently attach negative connotations to money and to people who have it.
6. Underearners think that it’s more spiritual to be poor
The sentiment of underearners is that ”It’s easier for a camel to go through the eye of a needle than for a rich man to go to heaven.” This notion negates the good deeds that money could be used for accomplish.
7. Underearner sabotage themselves
Underearners haven’t resolved their limiting beliefs about money, so they set up road blocks that prevent them from making more. Common themes are: job hopping, not completing projects, problems with co-workers, and procrastination.
8. Underearners put their needs last
Underearners frequently sacrifice their personal happiness and financial security to meet someone else’s needs (e.g. spouse, child, employer).
9. Underearners finances are disarray.
Women underearners are likely to be in debt; have meager savings; few, if any investments; and only a vague sense of theire actual monthly spending.
Financial self-sufficiency coaching is a way to address your underearning in a safe, supportive situation
As a way to introduce women to self-sufficiency coaching, I am running the ”Unlocking Your Cashflow” contest. Three winners will receive an hour long session with me. In our session I’ll help you to determine yor three (3) biggest “money blocks,” those beliefs or habits that are obstacles to you having more cash. I’ll then give you a personalized ”financial readiness” plan to get you on the road to self-sufficiency. Clink on this link to enter the “Unlocking Your Cashflow” contest. The deadline for entering is Friday, February 26, 2010 at 5pm (EST)
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Photo Credit: Seattle Municipal Archives
