Financial planning is really about… suggesting a client ask for a raise

The more income a person has, the better off they will be. There is no concept in finance more simple than that. Unfortunately, for most people there only a few ways to increase their income.

One of these is to receive more money for the work that they are already doing. Many clients over the years have been pleasantly surprised when they ask for a raise and the request is successful. At worst, most employers who say “no” will be open to a renegotiation of work tasks such that they will pay the staff member more if the staff member takes on more responsibility.

The trick, for want of a better word, is for the person doing the asking to consider the request from their employer’s point of view. Many people ask for a raise ‘because they need more money.’ This is not really the employer’s problem, and so the pay rise does not solve anything for the employer. The most successful employees are the ones who solve their employer’s problem.

You can read some tips on asking for a payrise at the CareerOne website. The Women and Super website Has some good information as well.

Adviser tip – here is how you might suggest it

Can you see these paragraphs in your next SOA:

Done well, many people find that asking for a raise is a simple way to improve their cash flow. We recommend that you discuss the potential for a raise with your employer.

Many people are nervous about making such a request. While we can’t guarantee that your employer will say yes, there a couple of things that you should keep in mind. Firstly, having someone say no does not hurt. As long as you are polite, the worst that can is you get a negative response. Secondly, when asking for the raise, do not simply tell your employer that you want or need more money. Instead, try to point out the benefits that you have brought to the workplace, over and above the standard for a person in your position.

You can read more about asking for a pay rise by reading this article from the Career One website or this article from the Women and Super website.

The Dover Group