Wondering how to make more money at your job? You might want to consider starting or joining a money club. Money clubs are groups of people who get together to discuss personal finance and financial goals. In this blog post, I'll explain how money clubs work and provide tips for starting your own club. Most importantly, learn how to leverage a money club to earn the salary you deserve.
What is a money club?
A money club is a group of people who meet to increase their financial literacy and reach their financial goals. As a group, the members discuss successes and failures with their finances and set new financial goals.
It's sort of like crowdsourcing personal finance information. It's also like having your very own financial support group. Being part of a money club is a great way to keep motivated and focused on your goals.
The groups encourage each other through monthly meetings and regular phone calls or texts. Money clubs meet at restaurants, in members' homes, or online using text messaging or web conferencing tools.
The money club that I belong to has tackled topics like salary negotiations, wills and estate planning, and retirement savings. We meet monthly for dinner at my house and have continued to meet on zoom during the COVID-19 pandemic. In addition, we continue our chats in a WhatsApp thread.
Women especially can benefit from money clubs
According to an article on Fidelity.com, women need to plan differently than men when it comes to money. This is because women tend to live longer, earn less money, and have higher expenses in retirement.
Unfortunately, women report less confidence than men when it comes to financial literacy. This is where a money club can really help.
As a group, women in money clubs can help each other understand the unique financial situations they face. Some of the issues include:
- The financial consequences of taking parental leave
- Understanding how the decision to become a stay-at-home parent might impact retirement savings
- Financially helping out a sick parent or relative
- Financial impact of divorce
Why would I want to start a money club?
There are several reasons why you might be interested in starting or joining a money club. They include:
- Start or continue your personal finance education
- Discuss financial successes and challenges
- Get support in paying off your debts
- Learn practical tips on how to budget and save money
- Get good ideas for earning money with side hustles
- Discover ways to increase your salary
- Share smart investment strategies
If earning more money from your job is one of your goals, then finding out what your coworkers are earning can be useful information. Such intel can help you calibrate your salary expectations when you speak with your supervisor or a recruiter.
The members of my money club do not work in the pharmaceutical industry, so I don't rely on them for industry-relevant intel. However, they help me strategize and practice my salary negotiations when I get job offers.
Note: Check out our workbook for financially assessing your job offer here.
Who should be in my money club?
Your money club should have at least 3-5 people who are committed to improving financial literacy and striving toward financial goals. If you're wondering who to invite to your money club, here are some people to consider:
- Friends who are interested in personal finance.
- Coworkers. These might be your work friends, with whom you have a close and friendly working relationship.
- Spouse or significant other. It will help if he or she is on board for this! Joining a money club might affect spending and saving habits in both of your lives, so it's important to be on the same page.
The important thing is to find people with whom you feel comfortable discussing money matters. For many people, money (particularly salary) is a taboo subject. Money issues can also be very intimidating or shameful.
Therefore, being open to sharing and providing honest feedback about money topics is a critical prerequisite for membership in a money club.
The women in my money club include friends from graduate school. We work in different industries. We also have varying personal situations now - single/married/cohabitating; kids/no kids; etc.
How do I get started?
Starting or joining a money club is easy. Here are a few things to keep in mind:
- Ask friends, family members, and coworkers if they have any interest in joining or starting a money club. You might be surprised by how many takers you have!
- Choose a time and place for your meetings. As a group, discuss the frequency of meetings and avenues of communication. Determine how agenda topics are selected.
Establish some ground rules for your money club. Some guidelines that you might consider include:
- Commitment to the money club.
- Confidentiality of private information shared within the money club.
- Be respectful of everyone's opinions and ideas.
- Keep the conversation on topic.
- Encourage an environment where all members feel comfortable sharing their thoughts or ideas.
- Hold each other accountable for the commitments you make during the meeting.
- Celebrate the wins (big and small)!
A money club is a good way to stay accountable for your financial goals. Many people find that participating in this type of group increases their motivation level when it comes to improving their financial well-being.
What are the ways a money club can help me earn more money at my job?
Now that you've started or joined a money club, it's time to leverage the money club to help you earn more money at your job. Here are ways that a money club can help you realize your full earning potential in your career:
- Practice asking for a raise
- Share intel on salaries and benefits
- Help assess job offers
- Strategize compensation negotiations
- Expand your personal and professional network to learn about different career opportunities
- Explore additional ways to leverage your professional skills to earn a side income (like physicians who consult for pharmaceutical companies)
I shared with my money club friends that I wanted to retire early. We assessed my retirement savings and determined that I would need to save more and save faster. To do that, I needed to earn more money from my job.
Therefore, I applied for new jobs that paid higher salaries. My money club friends helped me assess the benefits and disadvantages of my job offers. Plus, they increased my confidence to negotiate for what I wanted.
Last words
When people hear "money club," they might automatically think it's all about investing. Or they might think that a money club is only for wealthy people.
However, a money club is actually more like a book club, except without the books. Anyone can start or join a money club. Of course, some money clubs might choose and assign books to help club members increase their financial literacy.
A money club might help you improve your financial situation by providing a safe environment to discuss concerns and ideas about earning more money, saving more money, and investing.
If you're looking for ways to earn more money or if you want to share tips on how to save more money, then consider joining or starting a money club. Here are some additional resources: