The $1 million impact small decisions can have on your earning power

One small thing you can do this week could add up to serious wealth down the track. Here’s what you need to know.

We all want the “nice things” in life.

Whether it’s a home, the opportunity to travel, or maybe it’s just plain old financial security and the right to a decent retirement. They are reasonable expectations and not extravagant ones.

Yet, in an era of rising costs … these “nice things” seem increasingly out of reach, our grasp and worse, our dreams.

And for women, the reality isn’t just sobering; it’s the financial hangover that never quite wears off.

In Australia, the earnings gap between men and women is 21.8 per cent, meaning for every $1 a man makes, women earn 78 cents.

It doesn’t stop there. Over a lifetime, women earn a cool million dollars less than men.

So, how to boost your earnings?

MORE: How are Australian salary packages calculated?

It’s not about saving the pennies to reach the pounds, although there is an adage to that well-proffered advice.

Instead, opt in from a personal agency lens to make small and somewhat braver decisions. These small decisions have a compound effect on future decisions and your earning power.

Let’s start with not asking for a salary increase for five years

On an average salary of $98,217, and not receiving even minimum wage growth of 2.4 per cent, you are $36,511 behind. What if you stay on the same salary for 10 years, with zero increases (yes, this happens)? If you think it’s just a modest $2357 (based on a 2.4 per cent growth) a year, think again.

The real number is $139,450 – that’s earnings growth due to compounding. And that’s before considering inflation, which quietly erodes today’s $98,217 into something far less valuable a decade from now.

That small decision cost you a lot. Let’s be honest: was it a decision or an acquiescence? The difference isn’t just semantic; it’s financial. Recognise this distinction, and you are on the first step to claiming your power and making better decisions, the ones that can help you be a million dollars ahead.

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That small decision cost you a lot. Picture: iStock

Conversely, you ask for a 7 per cent increase in the next salary discussion

This time around, you do your research, understand your worth, return on investment (ROI), and present a strong voice when in discussions. The 7 per cent increase provides you with far more than extra cash.

The experience of evaluating and understanding your worth, advocating for yourself, and even practising the “pitch” is transformative. But it can’t stop there. One single instance isn’t enough.

Finding your voice needs practice. Continue the exercise of self-belief, understanding worth, and feeling confident to ask for what you deserve, at work and in life. There will be occasions when you won’t get what you asked for or what you believe is right. That’s normal. Learn from the experience for next time. These small but powerful decisions can change your earning trajectory.

Saying yes or no to a promotion/opportunity

Your boss offers you a promotion which comes with a $10,000 increase. You are excited and flattered, but self-doubt kicks in and you say no. You convince yourself that you and/or the family don’t need the pressure of the new role and you’ll “take it up next time”.

There might not be a next time, not in the real world of how workplaces and bosses work. The message you may be sending is “I don’t value my job, career and I’m not interested in development”. Or the very worst sort of message of being entitled and expecting opportunities to always be there for you.

That decision didn’t just cost you $10,000. It put you on the road to be a million dollars behind in lifetime earnings. The truth is, even if there is a next time, you likely won’t take the opportunity, not if self-doubt, acting as the “trickster” archetype that deceives and undermines, is behind your decision-making.

Roxanne Calder said women tackle workplace opportunities with far more self-doubt than men. Picture: Supplied

But it’s not easy

And that’s a fact. Women carry with them to the workplace deep-seated societal expectations and conditioning. Did I mention unconscious bias? That too.

Women tackle workplace opportunities with far more self-doubt than men. The lack of self-belief and conditioning of what we “should do” manifests in all workplace decisions. From putting their hand up for promotion (or even in meetings), asking for or taking on advancements, negotiating for better conditions, training, upskilling or just assistance, let alone self-promotion and advocacy. The disturbing part … most women are not even aware of it.

There is the higher pressure of caring responsibilities, often exacerbated by overwhelming feelings of guilt over “choosing” career/job/promotion/earning potential over family. I am not sure what is worse to hear, “I can’t”, or “I shouldn’t”. These big life issues and more can make even small decisions Everest-hard.

While we spoke of the nicer things in life, the harsher reality is the lack of earning power has far-reaching and serious societal ramifications. Women’s ability to earn is becoming increasingly important for all facets of security and stability; economic, emotional, psychological and physical. What might seem like a small step today can have a ripple effect, shaping future financial security.

Roxanne Calder, author of ‘Earning Power: Breaking Barriers and Building Wealth for Women’ (Wiley $34.95, available 26 February 2025), is the founder and managing director of EST10 – one of Sydney’s most successful recruitment agencies. For more information on how Roxanne can assist with your recruitment needs, visit www.est10.com.au.