Learning how to make more money is a growing need in the world we live in. Each year work is changing to focus on the individual more and more.
Forbes found employees have never had a chance to have a unique voice inside and outside of their companies. Those who are embracing that change are the ones getting promoted and moving along in their careers.
People are becoming their own little companies as the focus shifts from the company having responsibility for you to the individual having to take on that responsibility. The good news, it means you get more freedom and can shape your career to suit you. The bad news, you have to be bold to embrace the change and tackle opportunities to boost your career.
One of the most important aspects of a company is figuring out how to make more money. That is where we are developing our little companies today.
Why you Need to Boost your Earnings Potential
As someone who is very into personal finance, I love trying to cut personal expenses and maximize my savings rate each month. However, there is only so much you can save.
On a recent Afford Anything Podcast, the hosts Paula Pant and Joe Saul-Sehy talked about how you can only save so much money. Saving 50% of your income on $50,000 is amazing. However, saving 50% of $150,000 is more money saved and easier to accomplish.
You can only save so much. However, your earning potential is theoretically unlimited.
Need help managing your finances so you can start to hit a 50% savings rate? Check-out some of the popular financial guides below:
- What is Financial Independence, Retire Early
- 9 Tips to Manage Your Personal Finances
- How to Develop Multiple Income Streams
Looking for Lasting Impact
When you are learning how to make more money, starting with where you already are or picking up extra work sounds a little pedestrian. I am not going to tell you to become a research participant, sell all your possession, or wrap your car in advertising. Those are all valid forms of income.
However, they are only temporary. What boosting your earnings potential means is:
- First, getting paid the compensation you deserve in your day-to-day work
- Then, taking on extra work to supplement your day job
- And finally, staying ahead of industry trends
With the below strategies, you can permanently boost your income.
Benefits of Boosting Your Earnings Potential
Boosting your earnings potential does require having some uncomfortable conversations and taking on extra work. Why even bother with learning how to make more money this way?
1. Increases your Happiness
There has been an explosion of research studying happiness. Just to highlight one, the researchers found that those who make over $75,000 are happier than those who make less than that. The main reason,
“High incomes don’t bring you happiness, but they do bring you a life you think is better.”
Daniel Kahneman and Angus Deaton
The author explains that people earning this much can pay for emergencies, pay for things/experiences that bring them joy, pay for gifts, and while all saving some money. Those behaviors lead to them living a more satisfying life.
2. Reduces Stress
In the same study, people who made less felt stressed about money more than double the amount than those who were earning more than $3,000 a month. 50% compared to 25% of those higher earners.
That makes sense when we are struggling to survive – every day can feel like an exhausting problem. However, once we have the money to take care of the problem, it doesn’t seem like such a big deal.
3. Increases Freedom
People who have more money have more freedom to do things they want in their life. Even outside of vacations or nice clothes – they can be riskier. They could interview at another competitor because they don’t “need” their current job, and they can take more personal liberty (in moderation) with taking time off of work because again, they don’t fully need it to make their living.
How to Boost Your Earnings Potential in Your Primary Job
Sometimes boosting your earning potential means asking for pay that better reflects your skills and matches the market. Think of when you were hired for your current full-time job. Are you the same person you were then? Or have your skills, and value you provide to the organization increased? Do you feel that you have been adequately compensated for that growth in skills, knowledge, or experience?
It is okay if the answer is no! That is why we are going to work on getting you to the level that is fair for you and your employer.
1. Ask for a raise
A study by Payscale (which also includes a “how to ask for a raise guide”) found that only 1 out of 3 people in a study of 160,000 asked for a raise. That means 105,600 people never even humored the conversation with their manager.
The same study found that of the about 50,000 people who asked for a raise, 1 out of 3 did get turned down. However, 2 out of 3 received a raise. Also, for those who got turned down – it opened the case for a conversation with their boss about what they need to do to get there next time. The study ends there with exact numbers, but it does say that several of those who were turned down reported back that they did get a raise in the following months.
Asking for a raise is a great way for learning how to make more money. Plus, you can hear from your boss what skills or experience you need to develop to get on the right track.
2. Seek the next promotion
Depending on how your company and industry operates – there could be a clear path to the top. Or, if it is less clear – you might have to finagle your way to your next promotion.
Take two minutes. What is the next step you want in your career? Visualize that role for yourself. What can you do to get there? What skills do you need to develop, who do you need to talk to, and can you increase your chances by joining a committee or taking on extra work?
Need help finding that dream career? Check-out our guide on how to find your dream career here!
3. Explore other Companies
Even if you love your company, what are similar companies in your industry offering? Look at smaller firms and even the big players. Taking time to research and have more information is never a bad thing.
You could find peers doing your same job are earning 15% more in a similar company, or that there might even be a role at another company that interests you more than your current role.
By taking the time to explore, you can broaden your career horizons and understand your industry and the marketplace better.
4. Look into other Industries
Think of your current skill set and what else those skills could be used for. For instance, if you are a teacher you could get into being a professional coach or training employees in large organizations if that is something you’d like to do.
Outside of Work: How to Boost Earning Potential
1. Start a side hustle
When looking about how to make more money, a common piece of advice is to start a side hustle. Forbes found that 35% of the available American workforce has a side hustle.
A side hustle is a type of employment undertaken in addition to one’s full-time job.
There are tons of ways to make extra money with side hustling. You could start a blog, make videos, create art, develop a board game, sell mint leaves in bulk, or even make candy hearts that generate six-figures every year.
What is important when picking a side hustle is choosing something that interests you, that complements your life, and is something people will pay you for.
Need help picking your side hustle? Check-out some of our guides below:
- 9 Questions to Find Your Best Side Hustle
- How to Pick the Perfect Side Hustle for You
- How to Pick Your Project
2. Work in the Gig Economy
Investopedia defines the gig economy as
In a gig economy, temporary, flexible jobs are commonplace and companies tend to hire independent contractors and freelancers instead of full-time employees. A gig economy undermines the traditional economy of full-time workers who rarely change positions and instead focus on a lifetime career.
Investopedia
Websites like Fiverr, Upwork, and Freelancer all help pair freelancers to companies/individuals that need someone to do a specific task. Such as proof-reading a book, designing a cover for a book, creating a logo, developing a training kit, conduct a workshop and the list goes on.
If there is a deliverable, someone will probably pay you for it. Think of your skillset. Is there something you can do outside of your job that other companies would pay for?
If there is no non-compete, it doesn’t hurt to look. Working in the gig economy is like working a side hustle, but instead, you are the product and offering your skills to those who are interested.
Staying Ahead
The world is changing more every year. For instance, as of 2021, every day we create roughly 2.5 quintillion bytes of data. The number of data has doubled every year. That statistic has remained the same since the 1970s.
The world is getting faster and faster. It helps to stay ahead of the curve or else we might remain behind.
1. Develop New Skills
Where is your industry going? What skills do you need to stay relevant? Resume Genius states that technology skills, communication skills, data analysis, and project management skills will be needed in most jobs in the future.
Those are just generic examples too. The industry is moving there anyway – you might as well ride the wave of the new skills to a promotion and being a thought-leader.
Need help motivating yourself to achieve those new skills? Check-out our guide on how to develop a growth mindset.
2. Get ahead of Trends in your Industry
Much like the above, how exactly is your industry changing? Is there a shift to virtual work? That requires new skills to work effectively. Is your industry relying more on the Internet of Things (IoT) or AI to do mundane tasks? Is creative thinking being pushed by the executives in your industry?
Start reading about your company and the industry at least once a week. You will be surprised at how much you can pick-up and re-tool your day-to-day activities to go with the industry.
3. Develop your Network
The best way to know what skills you need and share your thoughts is to talk with your network. Who do you know that you can talk to these items about? Or, better yet – you can invite people and make a peer-group network to talk about all these trends!
Key Take-Aways
- Learning how to make more money begins with boosting your earning potential
- You can boost your earning potential by asking for more money at your day job, developing relevant skills, starting a side hustle, and staying ahead of your industry.
- Boosting your earnings potential requires work but can lead to a happier, fuller, and more freedom-filled life.
Action Item
Take one of the above categories and see what you can do to boost your income this month. Can you talk about a raise or look into starting a side hustle? Think about which of the above strategies works the best for your circumstances and make a point to have done at least one proactive step this month towards boosting your income!
