- Perform exceptionally well at your current employer and be rewarded with an appropriate raise.
- Always be looking for another employment opportunity that includes higher pay.
- Pick up a second job or acquire a passive income stream to supplement your current income.
The recent inflation rise has caused many individuals and families to reevaluate their monthly budgets. Of course, cutting or eliminating expenses is the first step toward achieving an adequate budget. But what if you have already done that to the fullest extent? Sometimes finding ways to increase your income may be easier than reducing already thin expenses.
Ask For a Raise
For starters, the simplest way to increase your income is to receive a raise from your current employer. We firmly believe everyone’s pay should at least be indexed for inflation. Otherwise, you will be able to afford less and less every year. If you are performing exceptionally well at your job, especially compared to your peers, it is essential for your efforts to be rewarded. However, sometimes an employer may not know a problem until they are informed about it. It may be up to the employee to begin the conversation regarding a potential raise.
Consider Higher-Paying Positions
Knowing your value is the best way to approach an employer for a raise. This may be easy to do among co-workers, but this may not help much if they are not receiving appropriate raises. The easiest way to know your value is to look for your exact or similar position at a competitor and determine how much they are paid. Sometimes this is posted directly on job recruitment boards, sometimes, you need to contact the company directly for more info, and sometimes that info is not provided unless you apply for the position.
Continuing to look for additional employment opportunities is something everyone should practice from time to time, even if they are fully satisfied with their job. Knowing how much a competitor would pay you is significant leverage when speaking with your employer about a raise. (It is also cheaper to keep employees than hire new ones, so they are likely willing to pay to keep their existing employee base.)
Pursue Side Work
Another way to increase your income is to pick up a second job. This could also be along the line of picking up additional hours or shifts at your current employer. You could consider another job during your off hours if overtime is unavailable. Things such as Uber, DoorDash, etc., are very flexible and allow you to determine your own schedule There has been a considerable shift towards a Work-From-Home lifestyle, and many people are finding jobs that are more convenient for them. Sales reps, call centers, etc., provide additional work opportunities with flexible hours.
We have also seen an increase in those finding work through creative arts such as music, drawing/painting, graphic design, content creation, etc. Fiverr is an example of a website that allows freelance workers to post their skills and potentially receive commissions for their work.
Create a Passive Income
Lastly, one of the most impactful ways to increase your income is to acquire a source of passive income. Passive income refers to compensation earned without having to spend your time on it. These options include rental properties, investment dividends, and business ownership. There are certainly other options to consider, but these are some of the most common. Unfortunately, they also require a financial commitment before you can receive the income. This route may not be suitable for everyone, but it is a great potential wealth accumulation tool.
Speak With a Trusted Advisor
If you have any questions about bout increasing your income, your investment portfolio, taxes, retirement planning, our 401(k)-recommendation service, or anything else, please call our office at (586) 226-2100.
Please feel free to forward this commentary to a friend, family member, or co-worker. Also, if you have had any changes to your income, job, family, health insurance, risk tolerance, or overall financial situation, please give us a call so we can discuss it. We hope you learned something today. If you have any feedback or suggestions, we would love to hear them.
Zachary A. Bachner, CFP®
with contributions from Robert Wink, Kenneth Wink, James Wink and James Baldwin
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