Tip 3: Understand your salary needs.
To calculate your salary needs and prepare for negotiation, you need to know your budget limitations.
To create a budget, you have to consider the following:
Your net income includes your salary and other investments.
Your savings includes money you set aside out of every paycheck toward your short-term savings (and long-term savings, if you can afford it).
Expenses are broken down by fixed expenses (including: rent, utilities, transportation [fuel/parking], internet, phone, student loan repayment, etc.) and variable expenses (entertainment, eating out, clothes, gifts, hobbies, crafts, gym membership, laundry/dry cleaning, personal care, pets, etc.).
Debt includes credit cards, mortgages, student loans, car payments, and any other major debts you owe.
Once you have a comprehensive list of what’s coming in and what’s going out, you can determine your amount of disposable income, which is the amount of money you can spend on fun or you can stash away for a rainy day. Choose wisely!
Your budget needs will be your baseline, and you want to prepare to negotiate only after you have received the job offer but before you have officially accepted the job offer.