Cut your coat according to your cloth!

Earlier this week, I was reminded of a discussion I had with my manager early in my career as a fresh graduate. I needed a salary increase. In ignorance and innocently, I took my budget to my line manager to prove that this was not a frivolous ask but a real need 😃😃😃. My manager was gracious enough to explain to me in detail how salaries were determined. I still remember a particular phrase that he used. His exact words were.”You have to cut your coat according to your cloth” Today, I would like to talk about this very important topic, especially for young professionals who are just starting out in their careers

First things first, your salary is not determined based on the needs and wants that you have as an individual. Whether you’re fresh out of university or a seasoned professional, there’s a method to the madness. Here are five key factors that influence salary decisions:

1. Experience & Skills
For fresh graduates, salary is based on potential rather than proven expertise. Employers look at your degree, internships, and soft skills. On the other hand, experienced hires command higher salaries because they bring specific skills and a track record of results to the table.

2. Industry & Market Benchmarks Salaries don’t exist in a vacuum. Employers benchmark against industry standards to determine what’s competitive. While fresh graduates typically earn entry-level pay, experienced hires can demand more based on market demand for their expertise.

3. Job Responsibilities & Impact
A fresh graduate’s role is often structured, with a focus on learning and supervised tasks. Experienced hires, however, are expected to hit the ground running, make decisions, and drive results—which justifies a higher salary.

4. Negotiation Power & Value Proposition
Let’s be real—fresh graduates have limited bargaining power. Most take what’s offered. But experienced hires? They come armed with achievements, industry connections, and negotiation skills, often securing better compensation.

5. Cost of Hiring & Retention
Training a fresh graduate takes time and resources, so employers offer a lower salary to offset those costs. Experienced professionals, however, are seen as an investment, with higher salaries reflecting their immediate value and ability to deliver results.

Now that we know how salaries are determined, my former manager ‘s  statement rings true. You have to live within your means! In an age where perfectly curated social media feeds dictate lifestyle choices, it’s tempting to believe that success is measured by material things such as designer clothing, exotic vacations, and luxury gadgets. If you can comfortably afford these, then by all means, enjoy the fruit of your labor. But do not be tempted to overspend your budget to keep up with the Jones by getting into unnecessary debt.

The Cost of Keeping Up
If you are a young professionals do not  fall into the trap of overspending to meet societal expectations. Real success lies in financial independence and not fleeting appearances. Breaking free from this cycle requires a shift in mindset, the realization that true wealth is peace of mind, not possessions.

Credit cards, borrowing from loan sharks, and buy-now-pay-later schemes are often fuelled by instant gratification culture, which can create a dangerous illusion of affluence. While it may feel empowering to swipe now and think later, the long-term consequences are not cute. Debt accumulates faster than you think, and before long, it can steal your peace and joy. Living within your means isn’t about deprivation. It’s the foundation to a limitless future. It ensures that you remain in control of your finances rather than being controlled by them.

Practical Ways to Live Within Your Means

1. Create a Realistic Budget: Track your income and expenses meticulously. Allocate funds for essentials, savings, and a modest portion for discretionary spending.

2. Automate Savings: Set up automatic transfers to savings and investment accounts to ensure you’re consistently building a financial cushion before spending on non-essentials.

3. Avoid Lifestyle Inflation: Resist the urge to upgrade your lifestyle with every pay raise. Instead, channel extra income into debt repayment or investments.

4. Embrace Delayed Gratification: Practice waiting before making major purchases. This often leads to more thoughtful spending and fewer regrets.

5. Learn to Say No: Decline invitations or expenses that don’t align with your financial goals. True friends will respect your priorities.

On the flip side It is possible to also be grossly underpaid that no matter how lean you make your budget,  you struggle to keep your head above water. In this instance you don’t take your budget to your manager like someone we all know 😃😃😃. Raising the discussion with your employer requires strategy. Here’s how to approach it, whether you’re a fresh graduate or an experienced professional:

As a Fresh Graduate
Your negotiation power is limited, but you can still make a case for better pay. Here are three things to do:

1. Highlight Your Growth & Contributions
Even as a fresh graduate, you’re learning fast. Show how you’ve added value beyond your job description—whether it’s taking on extra responsibilities, improving processes, or exceeding expectations.

2. Research & Present Market Data
Use industry salary benchmarks to show that your current pay is below market standards. Be respectful but firm:
“Based on industry reports and similar roles, the average salary is X. Given my contributions, I’d love to discuss aligning my compensation more fairly.”

3. Express Long-Term Commitment (with Conditions)
Employers invest in employees who show commitment and potential. If you love the job but need better pay, express your intent to grow with the company while suggesting a timeline for a salary review:
“I see a future here and want to continue contributing. Can we revisit my salary in three months based on performance?”

As an Experienced Professional
You have more leverage, so your approach should be data-driven and results-oriented.

1. Present Clear Evidence of Your Impact
Go beyond job responsibilities, highlight measurable contributions:

Revenue growth: “Since joining, I’ve helped increase sales by X%.”

Efficiency improvements: “I streamlined processes, reducing costs by Y%.”

Leadership contributions: “I’ve mentored junior staff, improving team productivity.”


Make it clear that you’re delivering beyond what you’re paid for.

2. Use Industry Salary Data & Competitor Comparisons
Show evidence that your salary is below market rate. You can mention recruiter insights or salary surveys, framing it professionally:
“Based on industry data and my expertise, the average salary for this role is X. I’d like to discuss an adjustment that reflects my contributions and market standards.”

3. Be Ready to Walk Away (or Have a Plan B)
If the company refuses to adjust your salary, be prepared to:

Negotiate non-monetary benefits (bonuses, stock options, training opportunities).

Let’s get back to my story. My manager asked me to go back and look at the results I had delivered in the period I had been with the company. I did this and I got a salary increase, but an important lesson in life.

To round up on this topic, cutting your coat according to your cloth is not a limitation but liberation. It frees you from the societal pressures of overspending and allows you to build a life rooted in financial freedom. As young professionals, redefining success on your terms, based on values, not valuables, will set the foundation for a fulfilling future. Remember, wealth isn’t what you spend. It’s what you save, invest, and how you live with integrity. So, wear the coat that fits your cloth proudly. It is tailored for your unique journey

Gratitude: it was a busy beginning week to February. I am grateful to the small steps of progress and ticking off some to dos on my list.

Gratefully