Why Talking Money in Your 20's Matters More Than You Think

Early career life has never been more challenging. With the advances of AI, there are fewer and fewer entry-level roles and everyone is trying to navigate the new normal of a workplace with AI. So the idea of also asking for more money when you are still in your first job? It probably doesn't give you the warm and fuzzies. But here’s why it seriously matters—especially in your 20s.

A raise now isn’t just a nominal bump in your comp. It can literally change your financial destiny. A $5,000 raise in your early 20s, invested wisely, could turn into six figures more by your 40s. That’s compounding magic your future self will thank you for. But that is just the half of it. All of your future negotiations and pay raises will be based on your first (or current) salary. So making sure that you set yourself up for success later, means getting paid what you're worth TODAY. And yet, so many early-career professionals shy away from negotiation, thinking it’s something reserved for senior execs or Type A personalities who live for power suits and executive assistants.

But that’s not true. Negotiation isn’t a showdown or an ultimatum—it’s a conversation. And like any conversation, it can be learned, practiced, fine-tuned and approached with confidence. So if you’ve ever thought, “I hate talking about money,” or “I’ll just wait until they notice how hard I’m working,” this guide is for you. Let’s break down the steps and help you show up to that raise conversation like the well-prepared, high-potential professional you are.

Part 1: Understand Your Value—Even If You’re Early in Your Career

Negotiating a raise isn’t about asking for a favor—it’s about demonstrating value. And that starts with getting clear on what you bring to the table. Even if you’re new to the workforce, you have wins, insights, and intangible contributions that matter. And if you don't have any big wins in your corner yet, then now is the perfect time to start building that win list.

Build Your Value Portfolio

Think of this like your personal highlight reel—a running list of your most impactful moments on the job. Your Value Portfolio might include projects you led, problems you solved, or bottlenecks you eliminated and savings for the company that you uncovered and fought for. And don’t forget to quantify when you can: increased engagement by 25%, shortened response time by 40%, saved 10 hours a week through automation. Numbers make your story stronger. Always have a number to attach to your narrative.

Feedback matters, too. Did a manager shout you out on Slack? Did a client say you made their day? Screenshot it. Save it. Keep a folder full of these. These are receipts that prove you’re not just working hard—you’re making an impact. They also make for a nice pick-me-up if you are ever having a rough day in the future.

Make the Invisible Visible

Not all value shows up in dashboards or KPIs. Maybe you’re the person who keeps meetings on track, who onboards new teammates like a champ, or who maintains team morale when deadlines loom. Early-career professionals often contribute in subtle, powerful ways. Don’t discount the emotional intelligence, communication skills, and teamwork you bring.

Definitely don't assume that the powers above will magically discern all of the great work that you've done and the value that you've driven. NO! Executives and managers are busy. They have a hard time keeping track of their own schedule, you are responsible for making your story clear to everyone.

Set a recurring calendar event once a month and quarter: 20 minutes to update your LinkedIn profile. When it comes time to ask for a raise, you won’t be guessing—you’ll be ready.

Part 2: Do the Homework Before the Ask

You wouldn’t walk into a presentation without knowing the topic and being prepared. So the same goes for your compensation conversation. It pays—literally—to prepare. So set aside some time to plan your research and build your pitch.

Benchmark Your Market Rate

You can think about the value that you drive at a company as an absolute figure that is the result of your work and efforts, but you should also use marketplace data to know what the standard going rate is for skills like yours. Use tools like Glassdoor, Levels.fyi, and Payscale to research compensation ranges for your job title, location, and experience level. Also spend some time reviewing similar roles on LinkedIn and see what they list for compensation ranges, though you should treat these figures with a dose of skepticism. Sometimes companies alter these comp ranges to draw in more candidates or offer specific compensation tied to a geographic region.

Bring that data to the conversation. You’re not being greedy—you’re being informed.

Understand the Timing

Even if you’re ready to talk compensation, your company might not be. Many organizations have budgeting and review cycles that dictate when raises happen, or they have dedicated periods for evaluating comp changes. Aim to start the conversation before those windows open, not during or after.

Also consider your manager’s workload. If they’re buried in quarterly reports or prepping for a board meeting, it might not be the moment to talk money. Be strategic—and respectful—about timing.

Draft an Impact Case

This is where all your prep comes together. Instead of saying, “I deserve a raise,” approach it like this, “Here’s the impact I’ve made and how it aligns with the team’s goals.”

Frame your achievements through the lens of business outcomes. What problems did you solve? What opportunities did you create? What is the value that you drove for the organization? This isn’t just about your effort—it’s about your effect.

Part 3: The Raise Conversation Game Plan

Alright. You’ve done the work. You’ve got your pitch, your market data, and your timing strategy. Now it’s time to actually make your move and have the conversation.

Script It—But Make It Natural

You don’t need a corporate monologue. Just speak with clarity and respect.

Here is one example:

“Hey [Awesome Manager], I really value being part of this team. Over the past [X months], I’ve taken on [projects or responsibilities] and contributed [specific results]. Based on that impact and market data, I’d love to revisit my compensation and explore whether there’s room for adjustment.”

Nerves Are Normal—Don’t Let Them Win

Yes, asking for more money can feel awkward. That’s normal. But discomfort isn’t a red flag—it’s just a signal that you’re doing something brave. Keep going!

To manage nerves:

• Visualize the conversation going well.
• Practice with a trusted friend or mentor.
• Dump your fears onto paper—it helps take away their power.
  

You don’t need to be fearless. You just need to be prepared. Courage isn't the absence of fear, it is acting in spite of fear. You will find that navigating a corporate career will give you many opportunities to build your courage.

Be Ready for Different Responses

You might hear:

• “It’s not in the budget.”
• “Let’s revisit next quarter.”
• “We need to see more results first.”
  

Don’t panic. These aren’t rejections—they’re just parts of a longer conversation.

Try this:

“Totally understand. Can we map out some goals or a timeline that would make this possible in the near future?”

And if your manager says yes? Amazing. Ask what your next level looks like so you can keep growing and driving a bigger and bigger impact for the firm.

Part 4: Mindset Shifts: Talking Money ≠ Being Money-Hungry

One of the biggest roadblocks to negotiation? The belief that asking for more is selfish, rude, or greedy. It’s not. It’s professional. Everyone works for some kind of compensation, if you weren't being paid, you probably wouldn't work! So talking compensation isn't rude, it is just part of business as usual.

Rewrite the Story

You’re not begging or demanding. You’re not rocking the boat, issuing an ultimatum or forcing a conflict. You’re simply aligning your compensation with your contributions. Negotiation isn’t just about money—it’s about being seen, valued, and supported.

And good managers respect people who advocate for themselves. They get it, they were in your shoes once and they are probably want to see you take more initiative. It shows maturity, confidence, and long-term thinking.

Recognize Social Conditioning

Many of us grew up with internal scripts like:

• “Just be grateful.”
• “Don’t be difficult.”
• “If you work hard, you'll get ahead."
  

These mindsets are especially common for women, nonbinary professionals, and people from cultures that prize humility or deference.

But here’s the truth: Self-advocacy is not selfish. It’s essential. So don't fall victim to the "nice-girl" or "nice-guy" syndrome. Advocate for yourself or no one else will.

Need help sorting through the internal noise? Career Compass AI includes mindset coaching modules to help you unpack and rewrite these mental narratives.

Part 5: What Happens After You Ask

You did it. You asked. Good job. Pat on the back. Now what?

Always Follow Up

Send a thank-you email within 24 hours. Keep it brief, positive, and forward-looking. Reaffirm your enthusiasm and summarize the agreed next steps. It’s a small move with a big professional payoff and you can never go wrong with sending a follow up thank you note.

Turn Any Answer Into a Plan

• If it’s a Yes: Awesome. Ask what comes next. What are the expectations at this new level?
• If it’s a Not Yet: Get clear on what would change the answer to Yes. Specific goals? Certain projects? What is the timeline for the next check in?
• If it’s a No with Budget Constraints: Ask about other forms of recognition—a title change, a professional development stipend, or a shot at a stretch assignment.
  

A raise isn’t always the only win on the table. Think outside the box and ask yourself what would move your career or life forward and make that ask.

The Raise Readiness Formula

Want the winning recipe? Here it is:

(Value Created + Timing Awareness + Confident Framing) = Prime Raise Ask

Most people just focus on “doing good work.” That’s foundational. But pairing your results with the right timing and clear communication? That’s what sets you apart.

Conclusion: Own Your Worth—One Ask at a Time

If you’ve made it this far, you’re not just curious about asking for a raise. You’re ready to take ownership of your financial future.

Negotiating early in your career isn’t pushy. It’s smart. It sets the baseline for every role to come. So don’t wait for someone to tap you on the shoulder. Start building your case. Step into the conversation.

And if you need a sidekick? Career Compass AI offers tools and coaching, all tailored to your role, your goals, and your growth.

You’ve got this. Now go get that cheddar.