Thursday, 7 July 2011

Asking For A Lot Of Money


Most people dream of creating a lot of money. The question is: what does it mean? 

The truth is that money is very subjective. Certainly billions of pounds is a lot of money, and there are only a handful of billionaires in the world. Millions of pounds – is that a lot? Of total wealth, no; a significant minority of the population are millionaires when considering total assets they leave to their heirs, largely due to the revaluation of real property. However, if one was to make a million pounds a year, that person who would be one of the highest paid in the world. 

Personal opinion plays an important role in determining the money a person can expect to make. The reason for this is that the two factors that most affect earnings - level of skill demonstrated, and the payment received by an employer - is highly dependent on the individual. While skill is partly based on individual trust and partially dependent on innate ability, the sum of money that a person requires an employer to give is only based on the individual. 

Of course, the two are related. We cannot have a minimum level of skill and have a high salary. However, many people still have an excellent skill level will pay relatively little compared to their peers. Why? 

The truth is that probably they did not ask - or if they did ask, they did so in a way that implied they didn't deserve what they wanted. In many cases, the boss knows what he or she can afford, but will be happy to pay less, if an employee agrees. 

Of course, the boss does not tell the employee what he or she can afford to pay. But dealing with that is relatively easy in the Information Age: salary guidelines for pay for a given location and position are online. The real challenge is not to ask for a high degree of work compensation, but feel that you deserve the high compensation that you may have. 

To do this, one must understand the relative value of money. We have established that being a billionaire is really remarkable, and the accumulation of a million pounds over a lifetime is not, but making a million pounds a year is a great achievement.