🌟 Editor's Note
Welcome to another issue of Financial Freedom Insights. This newsletter is full of financial tips, insights, financial news, announcements, a special treat for those who make it to the bottom, and more!
🤖 AI Note
NONE of this newsletter was written using AI. It was written by humans for humans.
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💸 Your 10 Second Financial Freedom Tip of the Week
Make sure to always be setting aside money for Auto Maintenance. We know it will pop up, we just don’t know when. These bills can be expensive and can really put a wrench (pun intended) into your financial goals if you aren’t planning ahead for it!
📢 Announcements
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Haas Trade is great for getting your finances under control, Haas Trade Advisor’s is great for building off of that momentum and making sure your investing aligns with your financial goals!
📰 In the News
Are your finances affecting your health?
Recent studies show a link between financial stress and poorer physical health - article here
Consumer Sentiment still near record lows
US Consumer sentiment has slightly risen but still remains near records lows - article here
📈 Financial Freedom Insight
Is Your Job’s Total Pay Worse Than It Looks? Here’s How To Know and What To Do About It
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Financial Freedom Insight: Table of Contents
Consider Your Benefits, Not Just Your Salary. Are They Generous or Bare Bones?
Signs Your Pay Is Below a Fair Rate
You Haven’t Had a Decent Raise In Years
Your Value To the Company Is Growing, But Your Pay Is Not
How to Compare Two Job Offers
Test the Market to Find Your True Worth
If you’re reading this, you’re likely thinking that you deserve more compensation than you are receiving. You might well be right, but how can you confirm your suspicions? And if you do, what can you do about it? Look for another job or bring the matter up with your employer? Perhaps the answer is both.
Remember that your total compensation is not just the amount on your paycheck. There are other aspects to your salary – stock ownership plans, paid time off and sick days, the health plans you can access, retirement plans, profit sharing, gym memberships, wellness programs, tuition reimbursement, and student loan assistance.
Here’s how to know if your total pay is below what you deserve and what you can do if you want more.
Consider Your Benefits, Not Just Your Salary: Are They Generous or Bare Bones?
We tend to focus on a number when thinking about how much we get paid. But there’s a lot more to a compensation package than the amount going into your checking account each month.
Typically, if your salary seems low, your benefits may be stingier, with limited health coverage and few days off. Do some research into what other employers offer in your field. Check out their career pages as they often list available benefits, such as those listed below.
Health Insurance
Comprehensive medical, dental, and vision coverage—especially when the employer pays a large share of premiums—can be worth thousands per year. Access to mental health services and low deductibles make a big difference in real value.
Health Savings Accounts (HSAs and FSAs)
Some companies offer health savings accounts (HSAs) or flexible savings accounts (FSAs). These accounts can help you cover medical costs by saving money pre-tax for later use. An HSA is often coupled with a high-deductible healthcare plan. However, if you expect frequent doctor visits, regular prescriptions, or a planned procedure, a lower deductible with higher premiums is better.
Employer Retirement Contributions
Retirement probably seems a ways off, but your retirement plan can be gold, particularly if you get a generous match from your employer on a 401(k) plan. It’s basically free money. A 4 to 6% match can add tens of thousands (or more) over time thanks to compounding.
Profit-Sharing or Employee Stock Ownership Plans (ESOPs)
Some companies reward employees with company stock. These have vesting periods—example: a $10,000 ESOP with a five-year vesting schedule at 20% per year. After two full years, you’d be 40% vested and entitled to $4,000. Access to funds may be delayed after leaving the company.
The company may distribute a share of annual profits to employees. Payouts depend on performance and may come as retirement account contributions or bonuses. These are not guaranteed.
Flexible Work Arrangements
Flexible work arrangements, remote work, and hybrid schedules are increasingly important to employees. These benefits can reduce stress by saving commuting time and generally giving you more control over your life. Don’t underestimate this perk because it can be an indicator of a healthy organizational culture.
Paid Time Off (PTO)
Similar to a flexible work arrangement, vacation, sick leave, and parental leave are valuable. You can recharge and still get paid!
Bonuses and Profit-Sharing
Performance bonuses or company profit-sharing plans, such as an ESOP, can significantly boost total compensation if a company is successful. Companies that offer these types of benefits are typically vested in their employees’ well-being, and in turn, the employees are more motivated to be productive.
Life and Disability Insurance
You never know when you might need life or disability insurance. But when you do, these programs are more than worthwhile.
Childcare and Family Support
Childcare is one of the biggest expenses a family can face. If your company offers subsidized childcare, it can add thousands to your pay. Average childcare costs can exceed $15,000 per year per child. A subsidy of $200 a month can add close to $2,500 to your annual paycheck.
Education and Professional Development
Education costs are high. Does your employer offer upskilling or training? How about tuition reimbursement? These perks are valuable investments in you and your career that will boost your employability and future worth.
Wellness Perks
While less significant on the value scale, gym memberships and wellness programs can add up and show a commitment to employees’ well-being.
Alright, so these are factors to consider when assessing your overall compensation package. The question is, how does your salary and benefits compare with the market?
For this type of comparison, you can use a platform like Salary.com or even an AI platform like ChatGPT.
Signs Your Pay Is Below a Fair Rate
If you are feeling dissatisfied with your salary, you are probably seeing some indicators. Here are some red flags.
Your Salary Is Below the Market Comps
Have you checked your salary against other similar jobs on Glassdoor or Salary.com? These platforms and others like them can give you estimates of market comps by industry, region, and company size. Also visit the Bureau of Labor Statistics, which gives reliable estimates.
If you are considering confronting your employer to ask for a raise, document the job titles, locations, and salary ranges you find from at least three sources. That will strengthen your argument.
You Haven’t Had a Decent Raise In Years
If you accepted a low offer when you were first employed, then stayed with a company for many years, chances are you are only getting small percentage increases year after year.
Are you taking on increasing responsibilities without a corresponding increase in pay? Are newer or less experienced colleagues earning more for a similar role If your salary has not kept up with inflation or the increasing cost of living, this is another red flag.
Your Value to the Company Is Growing, But Your Pay Is Not
Another sign that you're underpaid is when you consistently deliver more value but are not recognized. This could mean that you're taking on extra responsibilities, leading projects, solving problems, or exceeding expectations.
Keep track of your achievements and contributions and quantify them in terms of impact, revenue, savings, or efficiency when you have a review. This will help you demonstrate your worth and justify your salary expectations. If you don’t have a yearly review, ask for one.
You could apply for another job to really find out your worth, but there are risks to using another job offer as leverage for a pay raise. Your employer might sense that your enthusiasm is waning if you are looking elsewhere, and that puts your current job at risk.
Should you decide to look for another Job, the next section shows how to compare two job offers, taking into account the full benefits package and the cost of living.
How To Compare Two Job Offers
One employer might offer you a salary that is thousands less than another. But when you factor in other benefits, it might be a better package in total.
To compare two offers practically, you need to do an apples-to-apples comparison. You can do that by setting a value on the benefits.
Example:
Lucky you!! You have been offered two different jobs, but which is the best one, compensation-wise? Below is a summary of the two offers, including each offer’s salary and benefits.
| Job 1 | Job 2 |
Salary | $72,000 | $66,000 |
Location | Phoenix, AZ | Nasvhille, TN |
401(k) Match % | 50% up to 6% | 100% up to 5% |
PTO | 14 days (112 hours) | 21 days (168 hours) |
Health Insurance | Premium: $225 a month | Premium: $140 a month |
HSA or FSA | No | Yes |
Student Loan Help | No | $250 a month |
Assumptions |
Assume both insurance plans are the same, that you like both of the locations equally, both jobs equally, and your income tax bracket rate is 22%. |
To compare apples to apples, convert each category into a yearly dollar amount. The table below shows the adjustments to make.
Note: NerdWallet has a very helpful cost-of-living calculator that you can use to compare two cities: https://www.nerdwallet.com/cost-of-living-calculator
| Adjustment |
Salary | No adjustments to make, make cost of living adjustment in the location row |
Location | Phoenix's cost of living is more expensive than Nashville's by 2%, so reduce the Phoenix salary by 2%. |
401(k) Match % | You intend to deposit enough money into your 401(k) to receive the maximum match by both companies. Job 1 401(k) match: = $72,000*(6%*50%) Job 2 401(k) match: = $66,000*5% |
PTO | Divide the salary by 52 (weeks), then divide by 5 (days) to get a dollar amount estimate of how much each day of PTO is worth. (If hourly, times wage by the PTO hours) |
Health Insurance | You save $85 a month in premiums for Job 2. Multiply that by 12 to get how much you will save a year. |
HSA or FSA |
You plan to save $200 each month into an HSA account. This saves you 22% of that $200, because money saved in an HSA is not subject to federal income tax. Times that by 12 to get a yearly number. |
Student Loan Help | This is like receiving $250 extra a month in your paycheck so times that by 12 to get a yearly number |
Now that we know how to adjust each category to get a dollar amount, the table below summarizes those adjustments to give a "Total Wage" for each job. Then, compare the two numbers to see which option is the best financial choice.
| Job 1 | Job 2 |
Salary | $72,000 | $66,000 |
Location | -$1,440 | $0 |
401(k) Match % | $2,160 | $3,300 |
PTO | $3,877 | $5,331 |
Health Insurance | $0 | $1,020 |
HSA or FSA | $0 | $528 |
Student Loan Help | $0 | $3,000 |
Total Wage | $76,597 | $79,179 |
The example shows that Job 2 is the better financial choice even though the salary is $6,000 less. The benefits add an extra $13,000 to the salary.
This is just an example, and you will make your own assumptions to get a realistic comparison. Lastly, money isn’t everything, and you might want to put a value on the enjoyment factor also. There’s nothing worse than accepting a job that you will hate.
Test the Market To Find Your Own True Worth
If you sense that you are not being paid a fair wage for your job, your instincts could be right. To confirm your suspicions, take an objective approach and compare your salary to market averages. Consider how much you value the benefits that you receive from your employer and incorporate those into your comparison.
Also, consider how valuable you are to your employer. If your skills are in demand, you will have a lot more negotiating power if you decide to talk to your employer about a raise. And if that still does not yield the results you want, put yourself on the open market. That really is the only way to find out for sure if your current total pay really is worse than you thought.
📙 Nathan Haas’s Scripture of the Week
Ecclesiastes 2:24 (ESV):
"There is nothing better for a person than that he should eat and drink and find enjoyment in his toil."
Thanks for reading!
Haas Trade Financial Freedom Insights
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Nathan Haas, Founder & CEO
Caroline Banton, Director of Writing & Editing
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