Four Tips on How to Increase Your Income (so you can invest more!)Apr 16, 2023
We have only two options to increase our monthly investing amounts. Cut our expenses or EARN more.
Last week I talked about being strict and aware with your spending, so this week I'm going to talk about the other side. How do we earn more?
I'm sure you've been told - get a side hustle, drive an uber, walk dogs, but sometimes, you've got enough work on your plate and adding more is not ideal or an option.
So how do you do maximize your earnings in your current job?
Over the course of a couple decades in the corporate world, I took my annual salary from $32,000 in 1998 to over $200,000++ by 2020 when I left the corporate world, and my net worth followed.
Here are my top four tips to increase your income:
1. Have a growth mentality and seek out roles that align
I was very committed to growing and advancing my career as an accountant. So I chose companies and roles that were committed to employee advancement, and that could demonstrate to me that there was a path forward and upwards. I did not stay in one job or job title for more than 4 years.
Remember when you are interviewing for a role, YOU are interviewing the company as well, to ensure it's the right fit for you. Not just the other way around.
When you start these conversations with your superiors right from the start (ie the interviewing process) about how you advance and grow, they are easy to have. You should be having career development conversations at least twice a year, with more informal conversations more frequently.
Complacency is the kiss of death and the robber of growth!
2. Move jobs
I know everybody loves to be loyal, and changing jobs is stressful. But I will tell you, the easiest and fastest way to get a raise and/or a promotion is to change jobs. And there are stats to back up that employees that move around more than those that don't, make more money over the span of their careers (significantly more actually).
The other added benefits of moving around is that you become very nimble - always listening for good opportunities and well practiced at interviewing. Plus when you move around, you are exposed to new skills, company cultures, new colleagues, great bosses, and this generally makes you a better more well-rounded employee. So if things are starting to stagnate, it's time to get out there!
3. Get comfortable asking for more money
Women are notoriously terrible at this, and men do it unapologetically. It is part of the reason why there is a gender wage gap. Women tend to underestimate their value and abilities, which translates to less money, and it's simply not true! We are as capable as men, we just aren't naturally as confident or over-confident, and this translates to less money.
Everytime I went into a salary negotiation for a new job, or for a new role in my company - I took a deep breath and gave myself a serious pep talk. I also called one of my closest friends who worked in a male-dominated cut throat industry and she always helped me get my talking points together. If you don't ask, you don't get - simple as that.
4. Track your success
Your boss likely has several other employees, and he/she is not necessarily going to recall at review time all the things you did to advance the company or your achievements for the department you work in. You need to write these down, big and small - all year long, so that when you are having these conversations about raises and promotions - you have data to back it up.
I hope at least one of these is helpful and inspires you to work at increasing your income, so that you can increase your investing contributions and bring financial freedom even closer!
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Much love, gratitude and money xx