Years ago, when I first encountered the term “underearning”, I used the definition of “earning less than you need”. While this is accurate (the pattern of earning less than you need is indeed underearning) it does not describe many women out there. This narrow definition seems to say that only women who “struggle” or are just getting by, fall into this frustrating pattern. But is it okay to go from surviving to thriving?!
I know countless savvy women who don’t see themselves as “strugglers” but they don’t see themselves as financially abundant either. They make decent money, as relative as that is. And they are really frustrated. Why? Because they know in their minds and their hearts that they could make more. They know, at some level, that they are earning less than their true potential.
Sometimes this is brought home to them by seeing men who do similar work to them, asking for and receiving far more. Sometimes they have female colleagues who just always seem to make more— money appears to flow easier for them. Oftentimes it is a gut feeling—these women know that the work they do is simply worth more. They get amazing results for their clients. But these results simply don’t translate into more money.
“Underearning” is simply the pattern of earning less than YOUR potential. It is about the pattern of chronically, but often silently, underselling yourself. (Many women do not consistently ask for the money that they truly deserve. This is the most obvious facet of underearning.)
Underearning knows no professional boundaries. It affects consultants, doctors, therapists and countless women who run their own businesses. Sometime when women are in professions that others think of as lucrative, such as the legal profession, they don’t see themselves as “underearners” because they know others don’t see them that way. But this just increases the sense of isolation and frustration! Just because you “should” be making a lot of money doesn’t mean you do! I know plenty of lawyers who work really, really hard and still don’t make enough to live the life they long to live. They offer a very valuable service and still many of them indeed earn below their potential.
This is truly a silent epidemic —countless amazing women earn far below their potential, and very few people call this what it is: underearning. Tons of experienced women are frustrated that their hard work is not yielding more money. These are women who are very good at what they do, but this work and skill does not necessarily bring them the level of financial abundance that they desire and deserve.
What about you?
Take a moment and look back over your career—look back over the last ten, twenty, thirty years… Do you see a pattern? Do you see a pattern of repeatedly earning below YOUR potential, or less than you could have earned? If there is a pattern, as opposed to a one time occurrence, than it is time to look deeper. It’s not about surviving. It’s about thriving.
Yes! This is powerful information, Mikelann. This did used to be me. When I finally examined the pattern, I realized I had resigned myself to just getting by. I used to pat myself on the back if I had over $50 left at the end of each month. No more. It’s simply not good enough. And, you’re right, it’s not about comparing to others but what I know in my heart to be my true potential. I hope everyone sees your message and is willing to ask themselves, “What do I truly want, and am I living into that potential or keeping it forever at bay?” Great stuff! Thanks!
Great as usual…I’m going to forward to a colleague I met with yesterday.
Great post – I have been struggling with this, especially in these tough economic times. I work with financial cooperatives (credit unions) and they are having a really tough year economically AND they don’t know how to negotiate prices. I have NEVER had a client negotiate my fee.
I know. I know – that means I don’t charge enough – BUT, what’s happening now is they just say “I can’t afford you.” sorry.
What to do?
The best information i have found exactly here. Keep going Thank you
Thanks Mikelann! This is great information especially as I am transitioning out of a corporate career into self-employment. I needed this reminder not to make my rates cheap starting out.
One lesson I learned years ago is that what you settle for as a salary when taking a new job often locks you into a salary range for a very long time. When I took my last job, I felt desperate to get the job and was willing to take anything. I gladly accepted what was offered to me even though it was low. Shortly after that a man was hired for $35,000 more, and much higher than anyone else doing that job because he demanded that kind of salary. He was a pretty arrogant person. I saw that on some level, the hiring partners were impressed with that arrogance and willing to pay for it. I was locked in the range I accepted. The man was fired 6 months later.
When I took my current job i was offered a salary. I politely told them I couldn’t take the position for that salary and asked for $20,000 more. They eventually offered me $15,000 more in salary and a $5000 signing bonus. This was even though the range for that job and title did not warrant it. Since then I have successfully requested increases beyond my band/grade by pointing out the amount of responsibility I have and the impact my work has on the organization.
I have learned a lot from working with men who seem to easily position themselves and point out their value – sometimes on a daily basis. I have often believed that my great work and value should speak for itself. It never seems to work out that way. Women need to speak up and express their value. It is scary but really pays off in the end.