The School of Self-Mastery: Business, Money, Life

47: Are You An Underearner?

Listen

Description

Many people struggle with money, that's why we talk about it a lot. They yearn for the stability that it provides, but aren’t sure how to go about finding it. Barbara Stanny's book, Secrets of Six Figure Women, profiles six figure earners - who were serial underearners until they changed their mindset – often because something drastic happened (e.g. a divorce, bankruptcy, etc).

Stanny goes on outline the key traits of under earners, and since we talked to Barbara yesterday I thought it would be useful to share her insights here to start a discussion about an often-taboo topic – money. How much we’re making, or how little we’re making, and why.

But first: What is a serial underearner? According to Stanny:

“to repeatedly gain less income than you need, or than would be beneficial, usually for no apparent reason and despite your desire to do otherwise.” Simply put, an underearner is anyone who earns below her potential.

Underearners aren’t all poorly paid, however. You can make six figures and still fall into this under earner category. What distinguishes an underearner is that she/he should bring in more, and genuinely wants to, but for whatever reason, doesn’t… It’s estimated that one out of every three workers is an underearner, most of them women.

Stanny goes on to outline the characteristics of the typical underearner:

Underearners have a high tolerance for low pay.

Underearners are willing to work for free.

Underearners are lousy negotiators.

Underearners practice reverse snobbery.

Underearners believe in the nobility of poverty.

Underearners are subtle self-saboteurs.

Underearners are unequivocally codependent.

Underearners live in financial chaos.