Focus on What You Can Control (part 3)

It makes the world go round. It’s the root of all evil. It’s always sought after. The more you have, the more you want. Obviously, I’m talking about money here.

If you’re not focused on money, you must have more of it than you know what to do with. The world really does revolve around money - we all care about our salaries, we care about our rent, we care about our interest rates. Businesses care about profits. Investors care about returns. I don’t have to tell you about that though. You’re surrounded by it everywhere you look.

So much about the topic of money is out of your control, but gaining (or maintaining) control is crucial for long-term success. Maximizing your pay, budgeting, and knowing what to do with all that newly attained money are all within your control - at least, somewhat. Let’s talk about some of what that looks like.

During a salary negotiation, you can focus on maximizing what you get from an employer. This doesn’t mean you can (or should) get locked into “making $50,000 a year” - but, instead, you should understand the chips you’re able to place on the table and levers you’re able to pull to maximize your offer. This can be considering fringe benefits to be a part of your pay, asking the questions about 401(k) matching and stock plans, while also being realistic about the complete picture of a job offer. It’s also about knowing the company’s stance on things like signing bonuses, moving packages, and any other ways that they might be able to “enhance” their offer.

It’s extremely unlikely that you’re going to be able to come right out of college and make a six-figure salary (and for many people, a six-figure salary may never happen at all). That’s most likely outside of your control unless you’ve got some connections you can tap into. Setting yourself up with realistic expectations is equally as important as the outcome of maximizing your income. Feeling good about the offer you ultimately sign will set you up for success and make you happy to work there long enough to make a significant impact and continue to grow even beyond this initial job offer.

When it comes down to budgeting and what to do with your money, you have a lot of control. You’re not likely to have to need to buy a new video game console or front-row tickets to a concert. There are trade-offs you’ll have to make if you make those decisions, and that’s okay - but you have to remember that you have control over those decisions. Similarly, you have a lot of control over how you think about a budget. It can be a “diet for my spending” or it can be a “plan for financial success.”

Sure, you may have made the right decisions about putting money in savings or retirement plans. But when the economy tanks due to bad banking practices or a pandemic, your temporary balances might be showing a hit - and it’s important not to freak out and sell into a really down market. That’s the way to lose control over something you had control over. Making a decision to act is squarely within your realm of control.

On any given day, your balances might be up or down - but don’t fall into the trap of selling as a Chicken Little “sky is falling” market. Markets are cyclical, and it’s important to understand that there’s not a straight line to financial stability and retirement. Time is the only thing that moves in one direction, and nothing is guaranteed. You can protect yourself by having some variability in your holdings. Working with a professional to establish a strong, resilient plan can really help to build your financial success on a really strong foundational plan.

Each of these topics justify a much deeper dive because of their importance to longer term success, and over time we will make a point to dig into each of them in The Blog. In my book, Earning What You Deserve: The Guide for Building Long-term Success Starting From Graduation Day (Amazon), we spend a chapter digging into analyzing the different strengths and gaps between a couple of job offers and their associated benefits. What becomes extremely evident is that there’s more to a salary than simply “what you make” - and this plays a significant role in your financial picture.

Control what you can control, don’t make decisions that hurt your chances for success and if you do, don’t make the same mistakes more than once. You can feel financially strong at every salary, and you simply have to focus on what you can control.