opportunity cost in your engineering career

How much money you lose by not making decisions

Are you doing a job that you enjoy?

Do you get the salary you want?

Many engineers enjoy their job. Some even love their work.
They are constantly developing new things and always face new challenges, great.

After a few years, however, many engineers realize that they haven’t received a salary increase for a very long time. Meanwhile their private costs increased. They have to pay off a house and feed a family.
But they still make the same money as they did 8 years ago.

This is the first time they realize that they maybe lost a lot of many money the years passing by.
How much money do you guess?

Let’s make the calculation, assuming normally a raise every 3 years.
So that means you missed at least two salary increases in the last 8 years.
One raise is usually around 2-5%. Let’s assume 3%.

You start with $3.500 a month. Which is also more on the minimum level.
After 3 years you get your first salary increase of 3% -> means $105 a month.
Now you making (12*$105) 1.260$ more each year till you get the next raise.

Opportunity costs for the first 3 years after salary increase: $1.260 * 3 = $3.780

After another 3 years you get your second increase of 4%.
Monthly income is $3.605. Increase of 4% -> means $144 a month.
Now you making (12*$144) $1.728 more each year till you get the next raise.

Opportunity costs for the next 3 years after salary increase: $1.728 * 3 = $5.184

-> That means you lost already (opportunity cost) $3.780 + $5.184 = $8.964

Opportunity cost is something you should always consider.
Because you are always loosing money, if you are making no decision or making the wrong decision!

This example does not include any salary negotiation, promotions or a new job which is always reflected in a higher salary.

You can easily make a much higher salary increase if you are:

  • not afraid to ask for more money
  • not afraid to negotiate with your manager
  • learning people skills
  • not afraid to take more responsibility and new functions
  • not afraid to leave the company for a better job and career perspective

So there are always a lot of different options and roads you can go.

You just have to take action and not sit and wait till a miracle happens for you.
So, take action and let’s talk to find out how we can help you right now in your position!

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