The Secret Psychology of Successful Negotiators, with Matt Schultz - Afford Anything | Make Smart Money Choices

Summary

Afford Anything Podcast Summary

Episode: The Secret Psychology of Successful Negotiators
Host: Paula Pant
Guest: Matt Schultz
Release Date: November 29, 2024

Introduction to Negotiation Power

Paula Pant opens the episode by highlighting the underestimated power of asking questions in everyday financial decisions. She introduces Matt Schultz, author of Ask Questions, Save Money, Make More, who elaborates on how simple questioning can lead to significant financial gains both at work and in personal life.

Maximizing Earnings at Work

Timestamp: [01:00] – [03:00]

Matt Schultz emphasizes that employees can increase their income without changing jobs by meticulously tracking their weekly accomplishments. He advises creating a "laundry list" of daily tasks and exceptional contributions to present during performance reviews or promotion discussions.

“Taking notes really make a difference. ... it allows you to better understand your own value and kind of key yourself up to present yourself well.”
– Matt Schultz [02:30]

The Reluctance to Ask for More

Timestamp: [03:00] – [05:27]

Despite its potential, many avoid asking for more due to fear of rejection or intimidation. Matt reveals that 90% of people who request credit card fee reductions succeed, debunking the myth that such asks are rarely fruitful.

“90% of people who ask get that waived. ... you're going in a position of power because they want you to stick around.”
– Matt Schultz [05:22]

Practical Negotiation Strategies

Timestamp: [05:56] – [09:53]

Schultz outlines strategies such as open-ended questions to facilitate more productive negotiations. Instead of asking yes/no questions, framing inquiries to encourage dialogue increases the likelihood of favorable outcomes.

“Make sure that you're asking open ended questions. ... It’s a way of starting a conversation rather than just asking a yes or no question.”
– Matt Schultz [10:00]

Negotiating Major Financial Decisions: Mortgages

Timestamp: [11:52] – [15:22]

Applying negotiation principles to significant purchases like mortgages, Schultz advises comparison shopping and leveraging multiple quotes to secure better rates and lower fees. Even minor rate reductions can result in substantial savings over the life of a loan.

“A quarter point rate cut on a $360,000 mortgage is $20,000 over the life of the loan.”
– Paula Pant [15:00]

Building Rapport in Negotiations

Timestamp: [17:12] – [23:34]

The importance of building a positive relationship with the person you're negotiating with cannot be overstated. Being personable and respectful can significantly influence the negotiation's success.

“Don't be a jerk. ... People like to help people that they like.”
– Matt Schultz [23:10]

Negotiating Compensation and Benefits

Timestamp: [29:45] – [37:09]

Schultz underscores the broader scope of negotiations beyond salary, including benefits like tuition reimbursement, mentoring, and remote work options. He recommends preparing by identifying what matters most and anticipating potential counteroffers.

“If you are nervous about thinking through things on the fly, ... it's a really helpful thing.”
– Matt Schultz [32:50]

Identifying Red Flags in Employment Negotiations

Timestamp: [38:09] – [42:14]

Recognizing when an employer is unresponsive to reasonable requests can illuminate underlying issues within the company, such as lack of growth opportunities or poor management practices. Schultz advises using these signs to evaluate long-term fit.

“They always say that people don't leave companies, they leave bosses. ... That can certainly be a red flag that it's time for you to go.”
– Matt Schultz [40:43]

Effective Negotiation in Personal Relationships

Timestamp: [53:37] – [62:49]

Negotiation principles apply to personal relationships as well. Schultz suggests approaching sensitive topics like money with thoughtfulness, setting appropriate timing, and ensuring the conversation remains constructive.

“This is not even so much about negotiation, but just these are what I'm hearing you outline are principles of how to have constructive money conversations.”
– Paula Pant [55:49]

Key Takeaways

Timestamp: [73:48] – [77:27]

Matt Schultz distills the conversation into three essential lessons:

Your Power as a Consumer:
“Banks and other businesses want to keep your business ... You're going in a position of power because they want you to stick around.”
– Matt Schultz [74:16]
Track Your Achievements:
“Keep track of your wins, even the small ones. ... when it's time to talk about a raise or a promotion.”
– Matt Schultz [75:27]
Create Win-Win Situations:
“Make it a win win. ... it's good for the company and making me better makes the company better.”
– Matt Schultz [76:27]

Conclusion

Paula Pant wraps up by reinforcing the episode's core message: Never underestimate your power when it comes to your money. By adopting effective negotiation strategies, tracking personal achievements, and fostering mutually beneficial relationships, individuals can make smarter financial and professional choices.

This episode serves as a comprehensive guide for anyone looking to enhance their negotiation skills, whether in the workplace, financial dealings, or personal relationships. Matt Schultz's insights provide actionable strategies to empower listeners to advocate effectively for their financial well-being.

Transcript

Paula Pant (0:00)

Sometimes just by asking questions, we can make a lot more money or save a lot more money, but oftentimes we are afraid to ask. So today we are speaking with Matt Schultz, the author of the book Ask Questions, Save Money, make more on how you can use the power of asking questions to make more money at work or to save more money in the things that you buy in your day to day life. Welcome to the Afford Anything podcast, the show that understands you can aff anything, but not everything. Every choice carries a trade off and that applies not just to your money, but your time, your focus, your energy, any limited resource. This show covers five pillars, Financial psychology, increasing your income, investing, real estate, and entrepreneurship. It's double I fire. I'm your host, Paula Pant. I trained in economic reporting at Columbia and I help you focus on what matters.

Matt Schultz (0:58)

Hello Matt.

Matt Schultz (0:59)

Hi. Thanks for having me.

Paula Pant (1:00)

Thank you so much for being here. Let's start with the primary category where people can really make the most money by asking for more. And that is at work. Most of the people who are listening to this right now currently have a job and are not imminently about to switch jobs. Can they make more money despite the fact that they're not negotiating for a new salary?

Matt Schultz (1:22)

Yeah, they absolutely can't. The stuff that we're talking about that you need to do isn't really complicated. It can take a little bit of time, but a lot of it is just about taking notes of what you do on a day to day basis. One of the job experts I talked to was saying that if you once a week take the time to note down all the things that you've done during that period, you can kind of build up this laundry list of things that you can then present to your supervisor the next time it comes up for promotion. Or if you're just like, I haven't had a job review in two years, it's time I'm bringing this up. It's really simple stuff like your basic job duties, but then it's also things that you did that you went a little bit above and beyond on, or you helped out somebody who needed help, or you made some sort of big sale or whatever the case might be for your job, making those notes really make a difference. Because one of the things we always struggle with when we are kind of hyping ourselves in a promotion and that sort of thing is we forget what we've done. So just the simple task of making notes can allow you to better understand your own value and kind of better key yourself up to present yourself well.

Paula Pant (3:00)

Let'S actually take a step back. Asking for more money, whether it's in the context of work or whether it's in the context of trying to save on credit card fees on items that you're buying at the store. Asking is one of the most powerful levers that we have. Why do so few people do it?