Breaking Barriers: It’s Taboo to Talk Money
From the outside looking in, this is a personal finance blog written by a CRNA. As the author on the inside looking out, it's a series of difficult, uncomfortable, forbidden, taboo blog posts. Even factual posts such as retirement calculations and tax advantage to count maximums all have an element of my finances and experiences. And it's awkward to put yourself out there. But I shall persevere like no one reads this. Thanks to those of you that take the time to read and share with others.
Pay Transparency
Lately, many articles regarding salary transparency have appeared on my suggested pages. Millennials and Gen Z are all about salary transparency. At least compared to boomers and especially to the greatest generation.
Transparency is a double-edged sword. Okay, I am applying to XYZ anesthesia gig and I know what everyone makes. Cool. I am either satisfied with that number or I pass on the job. Knowing wages ahead of time acts as an efficient rule-out if you prioritize in that way.
Transparency makes negotiations difficult and short lived. I had contracts where I added up their values and hourly rates. Similar to this spreadsheet. And you bet I took the final numbers with me to negotiate my current position. Doing this resulted in the job I wanted for the money I wanted. Total compensation increased $110,000 over three years plus the beeper rate was increased to a market value. And the employer was able to fill an undesirable position. Win-win.
I don't know what anyone else makes at my facility and I'm okay with that. The numbers ended up where I needed them based on my other job offers and aspirations. I assume my partners negotiated their contract as well. This job setup doesn't allow for PTO, sick leave, or benefit negotiations. Pretty much down to sign on, relocation, and salary.
This would not have been possible without some degree of transparency i.e., the job post. And my willingness to relocate to anywhere in the country for the right position is a strong negotiating point. Negotiating deserves it’s own post, this is more about transparency.
The Drawbacks
Transparency minimizes pay raises. This is most applicable to big corporations. If a company increases compensation for one member, everyone will know and demand a pay increase. This turns into a “rising tide lifts all boats” scenario. Good for employees, very costly for the company. And it's not enough to do the “0- 5% performance-based raise.” Decide for yourself if pay transparency is a good thing.
Apply this to the “experience” variable. New grad vs veteran. How about cardiovascular or pediatric specialists? Perhaps block proficiency. Independent vs ACT model? Transparency means a new grad won't make what any of the aforementioned CRNAs would make. Big groups have clearly defined stair step wage increases. No negotiating. Take it or leave it.
Equal Work for Equal Pay
Interesting. That was the actual point I brought up during negotiations. And yes, I was on the new grad side of things. If I'm taking the same cases, call, and responsibility, why should I be paid less? The common parry is experience. However, the billing department and insurance companies do not differentiate based on experience.
Experience is incredibly valuable, but the cards must be played appropriately for it to manifest as higher compensation.
Family Discussions
This is huge. Your spouse needs to be involved in financial talks. The good, the bad, and the ugly. If money talks only happen during turbulent times, they will forever be associated with tension and less than cordial conversation.
I mentioned my wife and I have transitioned from quarterly financial meetings to monthly. We are really liking the monthly analysis. We feel more in tune to where our dollars are going and can make changes more quickly.
We review all the receipts and credit card statements. Utilities, discretionary spending, and investments. We look at recent and upcoming major expenses. It's good to be informed.
Every month we open our net worth spreadsheet and update the numbers. Is everything where we expect it to be? How have market returns influenced the accounts? As I said in the accumulation phase post, the market only moves our accounts a few thousand dollars per month, not tens or hundreds of thousands. Most of our gains are predictable as they closely resemble our contributions.
Candidates for conversation
Find your battle buddy. As previously mentioned, your spouse should act as a safe place for all things finance. If not, you are probably in the norm. Sad. Money fights and divorce run together like rocuronium and an endotracheal tube. One precedes the other. If you are in the rocuronium phase nearing intervention, seek professional help.
It's uncomfortable for me to speak specifics with family members other than my wife. Sure, if solicited, I disclose aspects of my financial plan such as where I spend money each month and which index funds to go with. I keep earnings in hiding.
Even hints at the details are reserved for those making similar money. Family and friends know my wife and I are a CRNA/ NP duo. People assume we make good money. They don't know just how good “good” really is.
Due to a conservative upbringing, my family, generally, is not hurting for money. Wealthy by saving, not earning or investing. Far from lavish but doing well compared to the average bear.
Friends and coworkers are in a similar place in my book. My friends have an array of backgrounds, careers, and spending habits. They don't need to know the specifics, but personal finance discussions are not unheard of.
I enjoy hearing what others are doing. Are they looking to spend a lot on housing? Where have they had success? What do they feel is a good financial plan going forward?
One couple is traveling extensively. Road trip here. Destination wedding there. Weekend away because they can. Big experience people.
Others lay low. Take the boat out. Cruise the river. Be one with nature and such. Throw extra income towards the house. A stash set aside for the newborn.
Nothing inherently wrong with either of these. I learn from the financial decisions of others. Again, I didn't invent everything on this blog. I read, learn, study, and experiment with what works for me and those I coach.
Dangers of Talking Finance
Someone making $25 per hour can't comprehend a CRNA income of nearly $200,000 let alone a high paying CRNA job or locum wages.
Recently we were asked to join a two-week trip abroad. First off, my current position is moderately flexible with a few months’ notice. Too small of a group to accommodate last minute two-week absences.
Secondly, working callback weeks are paid at locum wages where I have an 8 hour guarantee plus call. Let's use the nice round number of $10,000 for a week of locum coverage. Two weeks abroad equates to two weeks of missed wages -- $20,000. Plus my wife's missed wages, but no locums for her so just time away. Plus spending $10,000 for my wife and I to go abroad. That's a minimum of a $30,000 opportunity cost. Plus, we would owe favors for someone trading weeks to cover.
I'm not saying an opportunity cost of $30,000 is too much. Family and friends are absolutely worth my time off and considered priceless. I'm saying the couple who asked us to join them doesn't know how expensive our time away is
Someone working a standard job likely has PTO and may not have the opportunity to pick up work during their PTO days. Or they are not a work-a-holic like me.
That $25 per hour employee grosses $1000 per week. Many CRNAs make 4-figures in a shift. Let alone a locum shift. It's incredibly difficult to explain opportunity cost of this magnitude when this degree of disparity exists.
Similarly, I fail to grasp what the big C-Suite folks make. I mean, $10 million annually. Nope, I can't picture it. I can do the math, but that doesn't really do it justice. Imagine the opportunity cost of their family vacation. That's where buying time becomes so important.
The take home is take care who you share details with. Only hurt feelings and envy would come from sharing too much. Gloating my not be the intention, but interpretation is difficult to control. You may become despised over sharing too much.
Side Tangent
Not one person is more valuable than another, but the value we each bring to the marketplace varies. A high income is no excuse to treat people poorly or look down on someone. Net worth does not equal self-worth.
Financial Struggles
It's rough to be on this end as well. You find out a CRNA coworker just paid off their Grad PLUS loans. Maybe they started the conversation by saying how relieved they were to have FINALLY made that last payment. Maybe it was their last mortgage payment. Or they just set a retirement date in the near future.
This person is your age or even younger. They are reaching these financial milestones before you. It might be embarrassing to disclose aspects of your financial situation. You may feel judged or inferior. Maybe frustrated. Internal dialogue -- “We have the same job, work the same hours, and make the same money. How are they able to do this?”
Note the examples are universal signs of financial progress. I didn't say they bought a new car or house but rather paid something off—the difference is huge. Be happy for them. It’s not a race against anyone except yourself.
It's natural to hide your financial struggles. Everyone who is self-made will relate to their previous and struggles. Remember, Mo Money, Mo Problems. Even the best laid plans and intentions go South. Appreciate the effort. Remain consistent and results will follow.
Besides, with social media allowing for infinite leverage, there are more 20-year-old millionaires than ever so we can either quietly sulk behind the monitor or keep on keeping on.
Take Home
There is absolutely value in breaking the taboos of talking money. It’s most important to be open with those close to you. Share your successes and failures with your battle buddy. Everyone has different priorities. Some want to live life largely. Great. Others have an affinity for shiny things. Great. Experiences and travel. Great. Some, financial independence and FU money. Great. You do you.
