Hello !
If you are not familiar with the term, underearning is when someone's income is below their needs causing them to live in a state of lack in the areas of finances, time, health, joy, freedom, spirit and self-esteem. It is not to be confused with choosing to live simply or
working in a field that feeds your soul and provides enough income to meet your needs.
Most underearners are women. According to an article by the Institute for Women's Policy Research, on March 7, 2024, women are still under earning. The surprise is that this his happening not only in the jobs that have traditionally been held by men, but also in jobs typically held by women.
Based on that article, the five jobs with the worst pay equity:
- Financial Managers, where women only earn 71% of what men earn
- Retail Salesperson—72%
- Education and Childcare Administrators—79%
- Administrative Assistants—80%
- Managers—81%
Cashiers have the smallest gender wage gap, where women earn 98% of what men earn.
Although inequity in
pay, is partially a societal issue, a significant part of the problem lies with women themselves. In her book Secrets of Six Figure Women, Barbara Stanny Huson, names nine traits of women who under earn. Those traits are:
- Willing to accept low pay
- They don't know their worth
- Willing to work for free
- Terrible negotiators
- Dislike rich people
- Believe it is honorable to live with less
- Self-sabotage by under performing at
work or having issues with co-workers
- Put other people's needs first at the expense of their own needs
- Out of control finances
Do you see yourself in any of the above traits? You are not alone! Fortunately, they are not permanent traits. Each of us has the power to transform those traits into something that serves us better. Let's dive into the first reason listed above.
Women are willing to accept low pay
Women tend to take jobs in the care industry or other jobs that are typically thought of as "pink collar jobs" or "women's work" (teaching, nursing, child care, secretarial, etc...). Women often accept low paying positions such as secretaries and clerks. They assume that is the best they can do and
they never question what else might be possible for them. In my early work life, I was that woman. How about you?
Some women avoid higher paying jobs because they think they will be required to work long hours with no free time. Yet, many low-earning women have no free time as it is. They work at low paying jobs 40 hours or more a week, plus commute time, and they are barely able to make ends meet. Let's not forget,
that many of these same women when their work day is through, are taking care of children, helping them with homework, cooking and cleaning the house. Some are also caring for their aging parents. Add financial stress on top of that and it's a ticking time bomb, just waiting to explode!
The first step on the path to stop underearning, is to believe that you are capable of earning more money. A woman has to be able to
see herself earning more money. Imagining how her life would be if she earned $25,000, $50,000, $100,000 or more than she earns today. How would that change your life?
Moving past underearning requires that you also have to be willing to do some exploration of the messages you received in childhood around money. Did you hear "money doesn't grow on trees" when you were growing up? Did your family discuss money?
Did your mom work outside of the home? If so, what kind of job did she have? My mom was a librarian at the local high school. There were very few discussions about money or finances in my family. When I was unsure about my career path when I graduated from high school, my dad suggested I become a secretary. Even then, I knew I didn't want to do that, but guess what I ended up doing in my early career.
In addition, you will need to get rid of the beliefs about money and what you think you are worth. Those beliefs may no longer serve you and it is possible that those ideas never served you.
Underearners live with unconscious beliefs that are directly related to messages they received during childhood about money and what amount of money was possible for them to earn. How much you value yourself
and what you think you deserve financially were ideas that were ingrained in you growing up.
If you think you might be an underearner and you would like to create a future that is better in every conceivable way, I'm here to help. Together, we will uncover the beliefs that are holding you back from earning more money so you can overcome them and begin to earn more.
To schedule a complimentary coaching call with me, hit "reply". I will reach out to schedule a call with you. You can also email me with any questions you have.
