About this Video

• Video Title: This One Move Could Earn You $1 Million More
• Channel: Erin Talks Money
• Speakers: Aaron
• Duration: 00:11:39

Introduction

This video discusses the importance of negotiating salary increases and the significant long-term financial benefits it can yield. The speaker uses statistics to highlight how many workers never ask for raises, leading to substantial lost earnings over a career. The video also touches upon side hustles, retirement insecurity, and the value of employer-matched 401k contributions.

Key Takeaways

• Many workers forgo significant income: A substantial percentage of workers never negotiate salary increases, potentially leaving millions of dollars on the table over their careers.
• Negotiating raises has a massive impact: Even small, consistent salary increases compound significantly over time, resulting in substantially higher lifetime earnings. The video provides examples illustrating potential million-dollar differences in total earnings between those who actively negotiate and those who don't.
• Side hustles are common but may not be the best solution: While many workers use side hustles to supplement income, maximizing earnings at the primary job through negotiation should be prioritized first.
• Retirement insecurity is widespread: Many workers feel insecure about their retirement savings, despite saving for retirement. Stagnant wages and rising costs contribute to this feeling.
• Employer-matched 401k plans are valuable: The video emphasizes the significant long-term impact of employer-matched 401k contributions, showcasing how they can substantially increase retirement savings.

1. According to the video, 38% of workers have never asked for a raise.

2. The video uses the hypothetical example of Alex and Taylor. Alex starts with a salary of $45,000 and receives a 1% annual increase. Taylor negotiates a $5,000 higher starting salary ($50,000) with a 1% annual increase, but also negotiates a 4% pay increase every 3 years. By retirement, Taylor earns over $121,000 annually, while Alex earns just over $70,000. Taylor's total earnings exceeded Alex's by over a million dollars.

3. 78% of survey respondents said they either already have a side hustle or would consider starting one to boost their income.

4. 42% of workers feel very insecure about their ability to retire.