By early Summer of 2016, I graduated with a Master's Degree and managed to find a new job (more like begged for it-more on that in a later post) in the nonprofit sector that paid more than what I was making as a teacher assistant and offered actual benefits. During this time in my life I was just happy to have gainful employment before graduating with more student loan debts as it is a common fear to have creditors after you for repayment. Thanks alot student loans! Unlike some undergraduates, I started my entry in the workforce with less stability working part-time in education, not by choice, but because that is how those systems are set-up as many school districts don't offer paraprofessionals full-time employment because offering insurance and benefits is costly. So "finally" I thought I was getting somewhere in my early adult life and would have a better standard of living for myself and my family.
In 2016, I accepted a common entry salary of $35,000 dollars at my first job in the nonprofit sector. I thought originally not too bad. This was more than the $11 dollars I made per hour as a teacher assistant with no additional benefits. Unbeknownst to me I didn't think about negotiating the salary at all. Even if I did even think to ask for more money, I clearly remember before I accepted the position I had to meet with the Executive Director who told me herself that she could not offer me more than $35,000 dollars as she acknowledged that I had a Master's Degree. I blissfully accepted the position because out of the 6-7 organizations I applied to I only got 1 interview (the job I was accepting). So I was over feeling deflated, and desperation took over. I felt the salary was decent especially since I had minimal applicable work experience to bring to the table to justify more money. Like a giddy kid, I was looking at the brightside of how my life would be less struggle and more comfortable. Haha I was so wrong.
Due to lack of experience working full-time and understanding how benefits work, I didn't realize employers actually took a portion of employees' paychecks for said benefits. Yes, this sounds funny since I should have been so educated and worldly to know these things. Well as many students will tell you the public and private education systems do not prepare youth about the actual real world even though they warn you that it is hard in the real world. NO KIDDING. So here I was thinking that I would be getting about $1,200 dollars (I factored in taxes sorta) and would be living the "good life" especially since my partner and our family were living in a rental property owned by my partner's family so rent and utilities was $500 and I didn't pay because I was the low earner of the two.
As I started my new job, I realized that I was making more money per paycheck by $200 compared to my previous job. I was not prepared for the other shoe to drop when I finally seemed to be getting ahead. Going backwards, I was on state benefits for medical and received subsidized childcare because I was partially employed. I was so happy to drop Medicaid for employer-sponsored health insurance, even though it was high deductible, but I was not prepared for my childcare subsidy to be adjusted. I became a full-time employee for the first time in my life in May 2016. I went from paying $30 dollars in daycare every 2 weeks, so roughly $60 monthly. Factor in gainful employment, I saw daycare costs increase to $180 every 2 weeks on 8/5/16 and increase again to $187 on 9/16/16 to be paid every 2 weeks, bringing my monthly childcare costs to $374 dollars monthly. Essentially, I was making $400 dollars more a month working full-time but daycare costs were eating into my additional profits because the State saw I was earning more money and my subsidy was inevitably terminated. Luckily, I didn't feel the sting of paying more for childcare until August which was roughly 2 months after I started my job. I was mindful about saving and noticed that I was putting away $350-$450 dollars per paycheck which greatly helped absorb the shock of paying for childcare. Ahh.....the lessons we learn upon reflection.
Takeaway One: Negotiate, Negotiate, Negotiate!
Before I graduated from Graduate School, I researched what I could to understand the median salary for the position I was applying for at the different organizations. Even though I only obtained 1 interview for the 6-7 organizations I applied at, I could have at minimum asked for $1,000 dollars more to show I valued myself and believed how valuable I am as an employee. The worst case would have been a "No, I cannot increase the salary to that amount." But I would (and anyone in that situation) would have to know to walk away if there is no compromise.
Takeaway Two: Understand taxes and changes in expenses
My first job did help boost my income by $400 dollars a month as well as provide insurance. It is more helpful to be prepared to know how much taxes affect gross wages. Taxes and insurance typically account for .38%, give or take depending on state and benefits. Understanding the basic tax and benefit deductions would have helped ground my expectations. I also did not think about the supplemental support I was receiving that would be impacted. Although I knew I would no longer be eligible for Medicaid due to income, I didn't think about other benefits I was receiving, such as childcare, that would be eliminated. This information alone would have given me the urge to negotiate for more money because my expenses would increase.
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