Kara Nesvig grew up on a sugar beet farm in rural North Dakota and did her first professional interview with Steven Tyler at age 14. She has written for publications including Teen Vogue, Allure and Wit & Delight. She lives in an adorable 1920s house in St. Paul with her husband, their Cavalier King Charles Spaniel Dandelion and many, many pairs of shoes. Kara is a voracious reader, Britney Spears superfan and copywriter — in that order.
And though it may be tempting to simply scroll right past these big-picture economics headlines, they can — and do — have a very real impact on your own personal finances. Inflation, in particular, is something everyone feels (though to varying degrees of severity) when you go to the grocery store, fill up the car with gas, or pay the latest utility bill, for instance.
Inflation, aka rising prices, cuts into the buying power of your paycheck. Even though you’re getting paid the same amount each pay period, that money is actually becoming less valuable as prices rise. Because goods and services are getting more expensive, you can’t buy as much stuff with the same amount of cash.
So here’s your public service announcement: It’s time to ask for a raise at work.
Call it an inflation raise, a cost-of-living adjustment, or just a good old-fashioned “it’s-time-to-pay-me-more-because-I’m-worth-it” increase, but the important point here is that you need to earn more money to keep up with rising prices.
“If your paycheck isn’t keeping up with inflation, you are making less money than you did the year before,” says Lindsey Bell, chief markets and money strategist at Ally. “That means you have less money to spend, save, and invest. The longer this persists, the further behind you will fall in reaching your money goals. And if we’re honest, most goals in life are tied to money, so this is a big deal.”
Asking for an inflation raise is a lot like asking for any other type of raise. First, do some research on the going market rate for your job role. Check websites like PayScale, Indeed, and Glassdoor. Ask around to friends, acquaintances, and other people in your professional network to see if they’ll divulge a pay range for a similar position at their company — and offer to share yours in return, suggests Bell. It also can’t hurt to reach out to recruiters to find out what other companies in your industry are offering for the same job.
As you contemplate exactly how much more money to ask for, get up to speed on the latest inflation numbers. But don’t let the inflation rate alone determine the amount you ask for — if you do, that’s a “sure-fire way to get the minimum market-based adjustment,” says Tim Toterhi, a career coach and human resources consultant.
Instead, come up with a number that reflects your value to the business, Toterhi advises. “You want to be the go-to person employers need to retain — and happily pay a premium to do so,” he says.
Next, draft some talking points about the value you bring to your team. Though inflation may be the catalyst for having the conversation, you want to be sure the message stays focused on your positive contributions and performance, says Bell. If you can tie your contributions directly to monetary gains or other benefits to the company, also point that out.
It can also be helpful to use a little shameless flattery. Let your supervisor know exactly how much you appreciate her and why, and throw in a few complimentary remarks about the company as a whole, too. “Everyone likes to have their back patted,” says Bell. “Make them feel good about your commitment to being there for the long haul, helping to make it easier for them to invest in you.”
Consider the timing of your ask, too. If your company offers pay adjustments or promotions at a very specific time of the year, then you may want to wait and have an inflation raise conversation around that time. But you can drop hints and sprinkle parts of the raise conversation into regular check-ins with your boss so that she’s not surprised when the time comes. “Signaling something like this is coming will help develop trust and transparency and will likely lead to a more productive conversation when it does happen,” says Bell.
When you do finally have the discussion, have a contingency plan in your figurative back pocket. If your boss says no to a pay raise, you can always counter by asking for other perks, says Sarah Doody, the founder and CEO of Career Strategy Lab. “Brainstorm a list of things you could ask for that would help offset your expenses or help you develop yourself professionally,” she says. “Some examples include more vacation, health, or wellness benefits; a more flexible work schedule; a stipend to help cover childcare; or even for the company to cover more of your health insurance premiums.”
And, if all else fails, remember that you can help yourself reach your financial goals via other means. If you don’t have a budget, create one and start eliminating unnecessary expenses ASAP. Get a second job or turn a hobby into a side hustle. Sell items you no longer use on Craigslist, Facebook Marketplace, Nextdoor, and other platforms.
Or, make a drastic change and get a new job at a company that is willing to pay you more, suggests Bell. “We know from employment data that job switchers are getting paid more than those that have been loyal to companies over the past year,” she says.
Lauren Wellbank is a freelance writer with more than a decade of experience in the mortgage industry. Her writing has also appeared on HuffPost, Washington Post, Martha Stewart Living, and more. When she’s not writing she can be found spending time with her growing family in the Lehigh Valley area of Pennsylvania.
Kristen is a Washington, D.C.-based freelance writer and homebody. She specializes in home and lifestyle content, and loves helping others live their best lives at home and beyond. Romanticizing her life since 1987, you can probably find her sipping on iced coffee, crushing a Crossfit workout, designing her next dream space, or blasting Taylor Swift.
At times it feels like you need a detailed map to make your way through this wacky housing market. Luckily, we have just that — in the form of Danetha Doe, chief economist at real estate site Clever and creator of Money & Mimosas, a resource for building wealth while staying socially and environmentally responsible. Doe shared her best tips and advice for buying or selling a home today. Here’s what she wants you to know.
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What once was a seller’s market, stuffed full of intense competition for housing, is actually finally starting to even out.
“The homebuying market is shifting from being a seller’s market to being a more balanced market between sellers and buyers,” Doe says. “The increase in interest rates has caused some buyers to slow down or opt out of their purchases, leading to homes staying on the market longer and sellers cutting their listing prices.”
That means you might be able to find a house in your price range (!). If the interest rate is high, consider still purchasing but refinancing when it goes down.
Interest rates will continue to rise.
Speaking of interest rates, you’re not about to get much relief. Doe thinks there’s another increase on the horizon.
“I anticipate we’ll see another increase in mortgage rates before the end of the year because inflation is still high,” she says. “The Federal Reserve has made it clear that reducing inflation is a top priority and therefore, will likely increase interest rates again in order to reduce inflation.”
At least it’s good for people with high yield savings accounts.
Tax credits and rebates are available.
Before you buy or sell your home, be sure you’re looking into all the programs available to you, Doe says. That means both federal and local programs, which may be able to cut down the cost of your home or provide tax credits.
“For example, as a buyer, check out down payment assistance programs that offer loans at low or zero interest to help you cover the down payment costs,” Doe says. “Sellers, pay attention to the Inflation Reduction Act and see if there are tax credits or rebates you can take advantage of before you sell your home.”
Don’t base your decisions on the market.
And finally, in what Doe says is probably her most important piece of advice, make sure you’re doing what’s right for you at this particular time — whether that’s selling a home, buying a home, or putting a home sale or purchase on hold for now.
“[Don’t] get caught up in the frenzy,” she says. “You should buy, or sell, a home if it makes sense for you. If you make financial decisions based on the market, you will stress yourself out. Instead, make your decisions based on your personal economy and financial goals.”
