During these crazy times, many people are feeling grateful to have jobs at all. Every time we turn around, there is a piece on the news about someone who has taken a job as a janitor because their corporate position was downsized. This is a scary thing to think about. When we find a penny, we pick it up.

 Still, I have been reading quite a bit about the concept of underearning lately, and I think it is especially important to address during a period of transition, like the one we are seeing now. 

image: dawnzy58 via flickr.

 We hear lots of tips about saving and assessing our spending. Many of us feel our problem is overspending. I certainly thought this was the case for me. I even talked about it in Bari's Level 1 course, sharing my concerns that I needed to cut back on my spending even more than I already had. Bari gently encouraged me to think about looking at expanding my income as a way to solve the issue.

 We rarely consider this is an option, do we? We are taught to keep spending inside our earning, and live within our means. But what if there was another way? What if we could let go of the fear that it's greedy to ask for more?

This week, I have been reading Secrets of Six Figure Women, a book I would have been scared to read in public, let alone blog about, a year or two ago. But I feel compelled to share it because I feel the information it relates is so valuable. Women still, on average, earn less than men. We live, on average, seven years longer. Hmmm. Looks like we have serious motivation to figure this equation out.

As we look at our money and think about what we want it to do for us, it's also important to be honest about what we want to have a fantastic life. Many of us don't need to be billionaires to feel like total successes, we just need to have what it takes to support the experiences and lifestyle that we dream of.  As Tim Ferriss pointed out in 4 Hour Work Week, most of us aren't hung up on a number, but rather want to have the experiences and choices a higher number could provide. 

Some of this comes as a relief to realize- we don't meet to make 20 million dollars to live a great life. We may not need 1 million, even if our dreams are big. But there is another piece- can I really make enough to have what I want? Am I able to do that?

 So what does that mean for how you approach your finances?

What I have learned from my research is that it's important to create a vision of what you want your life to look like. What is your ideal budget for your best life? Do you get a massage every week? Want to put more in savings or your retirement fund? Do you dream of traveling with friends or your sweetie more often? Where do you go? And what will that cost? Put everything in there. Everything. Want to eat at the Four Seasons once a month? Take a course? Great! Put it in. The number might scare you, but it's important to know what it is.

Many of us feel bad about dreaming these things up, but the way to make them happen is to get specific and plan them out. By saving and marrying your values and your dreams with your bookkeeping and financial planning, you may be closer to the life you've always wanted than you thought. You may even want to cut some expenses out if they don't serve your vision. Check out my blog on luxurious budgeting to learn more on this topic. 

When you have laid out your plan, look at the gap between what you are earning  now and what you'd need to earn to cover everything, perhaps with some more left over for additional saving and unexpected costs.

What would you have to do to earn that? Who would you have to be? How would it feel to ask for a salary that would cover this life if you are job hunting? How would it feel to ask for a raise in your current job knowing this is the life you would be creating? And if you are an entrepreneur, how would it feel to set your prices and fees with this plan in mind?

It's easier to do if you know why you are doing it. 

Many other blocks and material come up when looking into these issues. I highly recommend getting support. Financial coaching and classes can be an amazing resource for this work. I can speak from personal experience here: support has been the difference between make a breakthrough and staying stuck and scared. 

In addition to Conscious Bookkeeping's amazing array of services, I recommend the following reading and programs:

Secrets of Six Figure Women and Overcoming Underearning, by Barbara Stanny

Earn What You Deserve and Making Peace with Money, by Jerrold Mundis

 When You Can't Afford a Financial Planner: Article, by Rick Kahler

Break the Underearning Cycle, from the Women's Earning Institute