Negotiate your salary

I recently read an article on AARP's web site about the reality of salary negotiation. Interestingly enough, many people do not take advantage of this huge opportunity (including myself when I got my first full-time position). In fact, according to the article, "Almost two-thirds of men negotiate their salary or benefits when they apply for a job. But fewer than 10% of women do."

Why is it so important? It greatly affects future earnings.

Typically, people receive raises based on a percentage of their salary. So, the more money you have to begin with, the more money you will earn with each raise. For example, let's say that I fail to negotiate my salary and start my job earning $30,000/year with a 4% annual raise. After 10 years, I'll be making $44,407. On the other hand, let's say I completed my salary research on Salary.com and rileyguide.com and found that with my experience and education, the average salary for others with the same credentials was $35,000. If my $5,000 negotiation was accepted, I would be making $51,808 after 10 years. That's a $7,400 difference!!!!

Isn't that vacation to Hawaii looking nice right now?

Source:
http://www.aarp.org/money/careers/findingajob/interviews/a2004-06-10-negotiate.html