Mid-week Lesson 4.43 Exercising Leverage

debt free financial educationIs one ability to alter agreements or arrangements to their advantage based on their worth or the value they create. To see someone’s potential and then to raise them up is an act of self determination and even daring to the order of free will. As a person who studies & pursues prosperity, honor, & discernment; I also seek out favorable negotiations to materialize more options to gain financial might. Leverage is the caliber to award benefactors, impose losses, or far greater the means to walk away from a bad deal.

There’s a prolific standup comedian that has made a significant impression on me beyond any on stage talent could. Someone who stood up for his convictions as an artist to speak controversial truths over the course of his career. Most notably when he left tens of millions and future rights on the table because of frustrations with the gatekeepers of Hollywood & traditional media by producing amoral content at the cost of his beliefs. I gotta admit; I can only hope I have the brass to stay true to my word when there’s that kind of price tag on the line. In a time when there’s so much make-believe and everything is accessible with ease many wish for positive change but want to have their cake and to eat it too. Whether it’s a social movement or a simple pay raise; you need to know when to fold your hand or how to deal with the inconvenience costs of “getting off the bus and walk”. Part of this concept is being able to count on your qualifications and recognize the other party’s deficiencies and playing your hand right. Many causes come and go because one person called the bluff of another during a negotiation. That’s why we love a good underdog story; when the favorite miscalculates the foresight of the longshot contender.

In an individual sense depending where you’re at in life having a backup plan can prove useful if unforeseen setbacks arise. However the way I look at it is having as many options as possible within my plan A has allowed me to stack my advantages to my favor. In a workplace setting, some themes I strive for are excellency and letting my work speak for itself. Though I have found out I’m only as good as the next guy until I become like the sun to the mighty oak tree. As I master my craft, I pride myself on being irreplaceable in how I serve others.  My financial security was born out of regularly exercising the leverage of knowing my worth and only when others fear losing what I’m able to offer.. Nonetheless at times it is a guessing game and occasionally you’ll take two steps forward and have to take three steps back. Having humility to see what will ultimately serve your interests best is a tricky thing. Now there are countless interactions with varying magnitudes that happen on the daily but where things go awry is failing to see if “you need them more than they need you”… So often we let our ego drive our decision making process and fail to look at the circumstances objectively.

Advantage points are the confidence or command to sway a certain outcome in your favor, sometimes called bargaining chips. I for one think there are too many misconceptions around the idea of striking a good deal or having a fair, agreeable trade. Remember if we must concede to terms of transaction then we are at a symbolic disadvantage from the git go. The power to walk away is the competence to neutralize any attachments or receive anything less than we should from limiting beliefs we have. But how does a lower class worker achieve the upper hand in negotiations? Career leverage is earned by developing & providing useful skills AND an exceptional attitude. It is not only being so good, an employer cannot afford to lose you without significant attention. It is also then the boldness to shop around in the employment marketplace and determine if you’re unnecessarily forfeiting opportunity. Again it stems from asking better questions and broadening the options at your disposal. But is it wise to assert your desire for a raise to an employer?  Remember in true private enterprise we are never paid an unfair salary; we will only be paid what we are willing to accept. Now if you don’t currently possess the gumption that a whole nother lesson. Mind you I worked diligently for many years like others won’t so that I can live the rest of my year like others can’t. Furthermore the choices I exercise today come from the reputation I’ve built of being kind and generous yet never splitting the difference in a negotiation.

Those that truly understand the art of negotiating will tell you that you never get what you deserve, but only what you have the leverage to perform. Similarly what they say about court; “it’s not what you know, it’s what you can prove”. The right price for a house- more than a buyer wants to pay and less than a seller wants to get. The right salary- more than an employer wants to pay and less than an employee wants to earn. That’s just the facts of an open & free society. And only the option to exercise your leverage allows you to get ahead financially. For in the realm of wealth creation having multiple streams of income unlocks the most potential. The moral of this lesson is that no one is going to work harder for you than you work for yourself. For I was unable to alter my financial outcomes until I saw that having options was the missing component in crafting the life I desire most.