Barefoot Investor: How to convince your boss to give you a pay rise
Just because we’re facing a recession, doesn’t mean you should be selling yourself short when it comes to getting a pay rise — you never know when that spare cash could come in handy, writes the Barefoot Investor.
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The Simpsons is now 32 years old … and it’s starting to show its age:
You know the opening credits where Homer hears the hometime whistle at the power plant?
That’s actually a throwback to the 19th century, when very few people owned watches, so factories used whistles to signal to workers the start and end of their shift.
In other words, Homer got paid to belt uranium sticks until the whistle blew, at which point he’d race out of the joint so fast he’d end up running over his son each night.
These days, of course, our bosses don’t have whistles … or even a workplace!
And yet you and I know people who think they can still get by simply showing up and whistling away the time.
Well, that may have worked 32 years ago in cartoon land, but it won’t cut it in the era of COVID.
For the first time in a generation we’re facing a recession, and most businesses will be looking to cut the fat.
Scary thought, right?
Well, let me introduce you to one person who I guarantee won’t get D’oh’d!
Her name is Melanie, and she wrote me the following message last year … before COVID:
Hi Scott,
In the ‘Grow’ chapter of your book, you advise people who are preparing for their annual performance review to narrow their position description down to three fundamental tasks, and then write ambitious goals to work on for the next 12 months.
Well, I actually did it, and not only was my boss impressed that I had prepared for the review, but he decided to give me a pay rise right now because of the contributions I had made to date!
Before reading your book, I would never have had the confidence to take control like this. I’m off to celebrate — now I can afford a $15 bottle of wine!
- Melanie
I know what you’re thinking.
You’re thinking, “That was last year. Now I’m not looking for a raise … I just want to keep my job.”
Agreed.
But if you want to keep your donuts, you need to do exactly what Melanie did:
Decide on three ambitious work-related goals, tell your boss about them, then set a diary reminder to do one small thing each day that gets you towards those goals within the year.
Simple, right?
Sure. But not easy. That’s why few, if any, employees ever do it.
And that is exactly the point: it’ll make you stand out in a very good way. And if things go nuclear at your workplace in the next 12 to 18 months, you’ll be in a stronger position than your co-workers — all in the time it takes to watch an episode of The Simpsons.
Toot! Toot!
Tread Your Own Path!
READERS WRITE
YOU NEED TO KNOW THE TRUTH ABOUT OPRAH WINFREY
TANYA WRITES: I have been a fan of yours for a long time, but you lost me with your column last week.
Great story about Chuck Feeney, the billionaire who gave away all his money, but to reference Bill Gates, and also Oprah Winfrey, shows that you are right in with the mainstream media. (Scott writes: At this point Tanya makes a great deal of unfounded accusations about a number of politicians and famous people, all of which I have kept out).
I am just an average person, but I knew shortly after this whole plan-demic started that something was not adding up and that is when I started researching. Trump is the only president of America who is trying to drain the swamp and (Scott writes: again, Tanya makes some pretty wild conspiracy claims I won’t go into as they’ve been debunked).
BAREFOOT REPLIES:
Look, I didn’t like Windows 8 any more than anyone else, but what you’ve written is ‘person randomly shouting on the train’ wild.
And yet, judging by the cacophony of conspiracy emails I got this week, the train is chock-full of shouty people.
To be honest, I wasn’t ready for the craziness unleashed by last week’s column on a humble businessman called Chuck Feeney donating his fortune. Apparently, when one (even briefly) mentions Donald Trump and Bill Gates it rings an alarm in some people’s heads that makes them write furiously about conspiracy theories.
The only thing crazier than my inbox this week was the US election.
Oh, and have you heard the latest conspiracy? Oprah Winfrey will run for president in 2024.
Ridiculous, right?
As if a TV celebrity could ever be president.
MUM MAKES 400% ON SHARE MARKET
ANNA WRITES: You’ve made it no secret you are not a fan of AfterPay. I, however, am a massive fan. It has helped me to budget bigger (and smaller) purchases, Christmas presents and (now) essentials for our first baby. I love AfterPay so much that, when the coronavirus hit the share market earlier this year, my partner and I decided to enter the share market — and AfterPay shares were the first thing we bought.
Those shares have increased by around 400% over the last six months, in comparison to a 20%‒60% increase for the other shares we purchased. I’m surprised, I’m elated, but I’m confused. Why have they increased so greatly? When will it stop?
BAREFOOT REPLIES:
Hee-haw, now that is an epic story. Good on you!
Now let me zoom out and give you some perspective:
Over the last 50 years, the Aussie share market has returned an average of 9.5% per annum, including dividends. In other words, rookie, you’ve made out like a bandit!
Now to your questions:
The sharemarket has rebounded so strongly for a few reasons: First, because interest rates are as low as they have ever been in history, and that has forced many investors to take on more risk (most can’t pay for their sausages on the interest they earn from cash or fixed interest).
Second, because we’ve seen an unprecedented amount of financial support: trillions of dollars have been printed to help prop up ailing businesses and consumers.
Third, and most importantly, because shares were panic-sold on the way down … and then hot stocks like Afterpay ricocheted right back up. And it went up like a slingshot … or maybe a shotgun. AfterPay is up a staggering 1,000% since March, despite the fact that it’s never turned a profit.
What happens from here?
I honestly have no idea … and that’s kind of the point.
When you’re investing in the stock market, you’re giving up control of the outcome, at least for the short term.
All I can do is point you to the 50-year return of 9.5% per year and tell you I’d be very happy if I achieved that over the next 50.
MY ‘FREE’ LAND COST ME $140 GRAND
JAMIE WRITES: My brother and I — both in our sixties — did a land swap, with no money changing hands. The aim was to facilitate generational change (when we eventually die).
Now I have now been hit with a $140,000 capital gains tax bill! Is there anything I can do about it, even though I received no money at all?
BAREFOOT REPLIES:
No, you’re screwed.
Had you spoken to your accountant beforehand, they would have explained that (a) the ATO data-matches everything, (b) capital gains tax (CGT) is triggered when an asset changes hands, and (c) they’ll want their money regardless of whether or not money changed hands.
Yet there is something you can do: talk to your accountant to see if they can arrange a payment plan with the ATO.
DON’T GET DISTRACTED BY LOSING INTEREST
THE EASY WAY YOU CAN PICK ETHICAL INVESTMENTS
Information and opinions provided in this column are general in nature and have been prepared for educational purposes only. Always seek personal financial advice tailored to your specific needs before making financial and investment decisions.
If you have a money question, go to barefootinvestor.com and #askbarefoot.
The Barefoot Investor for Families: The Only Kids’ Money Guide You’ll Ever Need (HarperCollins) RRP $29.99
Originally published as Barefoot Investor: How to convince your boss to give you a pay rise
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