Underearners can be hard to spot. The traits are not widely known. The term isn’t even in the dictionary.
An underearner is anyone who earns less than her potential despite her need or desire to do otherwise. Underearning:
* is rarely a conscious choice.
* never leads to a saner or more satisfying life.
* always involves self-denial—not just money, but also time, freedom, choices, joy, and self esteem.
Figuring out if the label fits can be tricky. Yet it’s critical to your success that you’re able to pinpoint the problem so that you can rise above it.
So I’m bringing you THE expert who literally wrote the book on the topic of Underearning (one of her books is titled Overcoming Underearning), Barbara Stanny herself with this week’s money tip.
[If you don’t know Barbara Stanny, you need to. Growing up, she never worried about money as she relied on her father (the “R” in H&R Block) and then let her husband ”take care” of everything. But it turned out her Prince Charming was a compulsive gambler. After they divorced, he left the country leaving her with three young daughters and over $1,000,000 in tax bills.
Barbara’s father wouldn’t lend her the money. She had to do something. And she did. Not only did Barbara become a high earner, but she wrote four financial books, and for 20 years has been teaching Overcoming Underearning courses. Clearly, she has learned the hard way and she really knows her stuff!)
MONEY TIP: All underearners, without question, share one common trait: A high tolerance for low pay. But don’t let the symptom fool you. “Low pay” is a relative term. You can make six figures and still be an underearner. Conversely, you can earn far less and not fit that category.
If you think you could be an underearner and are ready to step up and make more money, join Barbara for her upcoming teleclass next week. She wants to make this learning more available so she is hosting her first FREE teleclass on Underearning – and you have special access by registering here: http://bit.ly/OUCOYM)
Underearning is a condition of deprivation where your emotional and/or physical needs are not being met. However, underearning is not a life sentence. And no matter your gender, age, or occupation, Overcoming Underearning is a lot more in your control than you realize.
ACTION STEP: Review Barbara’s 10 Traits of an Underearner below. See if you can find what these characteristics all have in common. The resolution to the problem resides in the commonality of the qualities.
Trait #1: Underearners talk as if they’re trapped.
Underearners feel stuck, as if they have no control over their lives or their time. And they truly believe it. They justify, defend, or rationalize their situations with an array of excuses that block out their options with emotional blinders. They can’t see past where they stand. And when they do, they don’t like what they see.
Trait #2: Underearners give their power away.
No wonder underearners feel trapped. They’re constantly projecting their power ‘out there’. They blame other people or outside conditions for causing their problems. Or they wait, hoping someone or something will come in and save them. As long as you believe the locus of control lies outside of yourself, all attempts to overcome underearning will be half hearted or misdirected.
Trait #3: Underearners underestimate their value.
Underearners give away their time, knowledge, skills, experience for free or bargain prices because they don’t believe they’re worth more. Because they devalue themselves, underearners instinctively settle for less or seek their value by volunteering, in the job or outside of it. There’s nothing wrong with pro bono work—in fact it’s a wonderful gift to those in need—as long as it’s on top of an already satisfying, well-paying job.
Trait #4: Underearners crave comfort.
Change, even a dream-come-true, is rarely comfortable. Underearners will often unwittingly sabotage their success rather than endure the discomfort. Often, beneath the underearner’s inability to get ahead is a gaping emotional wound stemming from childhood trauma or more recent abuse. Underearning, like over spending, can be an unconscious attempt to numb the hurt. Financial tension becomes a perfect diversion from personal pain. But of course, as with all distractions, underearning never heals the ache. It only escalates it.
Trait #5: Underearners are self-saboteurs.
People who underestimate their worth tend to undermine their success. That’s why so many bright, talented people can’t seem to get ahead. They unconsciously do things that make achievement impossible, inadvertently getting caught in their own subtle traps. Many procrastinate, job hop, take on too much, become scattered and distracted. Or they cleverly justify overspending. Compulsive spending and chronic debting are like quicksand. Once you get sucked in, you’ll never make it to higher earnings until you start digging your way out.
Trait #6: Underearners are co-dependent.
People who don’t value themselves easily slip into codependence, putting everyone else’s needs before their own. While it may sound noble, taking care of others at your own expense is anything but admirable. Codependence creates victims. Attending to everyone else before taking care of yourself is a form of self-sabotage and has been known to destroy careers, if not lives.
Trait #7: Underearners live in financial chaos.
Underearners tend to live paycheck to paycheck, struggling to make ends meet, going from one financial crisis to another, racking up debt, working incessantly with no end in sight. This even applies to those who are making what sounds like good money. Perhaps the biggest fear underearners have about earning more is that they’ll have no life, that they’ll be working all the time. What an irony! No one works harder or longer hours than an underearner.
Trait #8: Underearners are vague about money and success
Underearners use the same methods to manage their money as they do to make most decisions: avoidance and delusion. They often have no idea how much money they have, how much they earn, how much they owe, or even how much they need. They operate by wishful thinking instead of strategizing and negotiating, as high earners do. And they are just as vague about why success eludes them.
Trait #9: Underearners are anti-wealth.
Underearners can be terrible snobs. They’re ambivalent or downright negative about money and/or people who have it. They dislike the wealthy, take great pride in living on a shoestring, believe there is virtue in being poor, and criticize those too focused on their finances. Others are actually ashamed to admit money even matters. And yet, no one thinks more about money than an underearner.
Train #10: Underearners are controlled by fear.
They’re afraid of success. They’re afraid of failing. They’re afraid of rejection, of being judged, of people liking them (or not) because of their money. They’re afraid of the responsibility of having more, and the possibility of losing it all. Some are afraid to even address their finances because “it’s so grim and pointless it’ll throw me into a tailspin,” according to one. It is the catch 22 for all underearners. I have to change but I’m afraid to change. Confronting your fear is your only way out.
THE GOOD NEWS
Did you figure out what these ten traits all have in common?
Every one of them is self-imposed. Every one is something we do to ourselves. Go back and re-read each trait. Can you see how every one is the result of a choice you made? That’s wonderful news. If you create the conditions for underearning to occur, you have the power to change them.
Barbara is hosting a special free call next week so you can Break the Cycle of Underearning where you can find out if you really are an Underearner (you might be surprised!), plus she’ll share:
* 3 techniques to start thinking like a high earner (Change your thinking, your behavior changes automatically).
* 4 simple, practical steps you can take right away to create higher earnings.
* A powerful exercise to get to the root of your Underearning.
It’s time to take charge of your finances and your life! No matter what your age, occupation, or economic bracket—Underearning is NOT a life sentence.
Once you join us for this special free teleclass, leave me a comment below with the underearning trait(s) that you resonate with and how this has been showing up for you. Let’s break the cycle of underearning — starting now.
FREE Teleclass—Break the Cycle of Underearning!
Hosted by Barbara Stanny, a wealth coach, coach trainer, and author, is a leading authority on women and money. Her books include: “Overcoming Underearning;” “Secrets of Six-Figure Women;” and “Prince Charming Isn’t Coming: How Women Get Smart About Money.”
Be sure to register for the call now – here are some of the highlights:
* Find out if you really are an Underearner. (You might be surprised!)
* 3 techniques to start thinking like a high earner (Change your thinking, your behavior changes automatically).
* 4 simple, practical steps you can take right away to create higher earnings.
* A powerful exercise to get to the root of your Underearning.
Overcoming it is a lot more in your control than you realize. It is NEVER too late to start. AND the rewards for your efforts will go far beyond your money.