You may have some ambitious plans for building your nest egg or making a big purchase such as a second home. Conventional wisdom says to sock away more, you need to cut back your expenses. Then there’s the option we often forget when we have an established career: you can make more money.
If you’re already working hard, that might seem tricky. But there are some fairly easy ways to bump up your pay. Here’s how to do it.
Negotiate a raise
If you want to make more money in your current job, ask for it — you may be pleasantly surprised. However, job placement experts say you need to be prepared before you request a raise. Have a hard number going in. Base your request on research by finding out what others in your field are paid. Make a list of your accomplishments and practice to get your pitch right.
Quit your job
One nearly surefire way to get a salary boost is to switch jobs. According to one study*, you can get an 18 per cent to 20 per cent increase in pay by taking a new job, versus what you’d get through an internal promotion.
Upgrade your skills
Professional development can lead to new skills or give you a piece of paper to confirm your excellence in existing ones—both might lead to a pay hike over time. Also, consider taking management and leadership courses.
Get connected
Joining an industry organization can get you access to those professional development opportunities and connect you to networking events that could lead to a new, better-paying jobs. Volunteering with a professional group, meanwhile, looks great on a resume and can help develop new hard and soft skills.
Learn another language
Being multilingual will increase your earning power by an average of 2 per cent**, depending on the language you learn. That may not sound like a lot, but over the long term, factoring in compound interest, that one-time raise could add up to six figures over a lifetime. As a bonus, such skills can lead to on-the-job travel.
When you earn more, you can do more with your money. So, it makes sense that earning more should also be a part of your financial plan. Put it all together in a financial and career plan that works for you. A good place to start is by talking to your professional advisor.
*http://knowledge.wharton.upenn.edu/article/why-external-hires-get-paid-more-and-perform-worse-than-internal-staff/
**https://www.phil.frb.org/-/media/research-and-data/publications/working-papers/2002/wp02-16.pdf
This column, written and published by Investors Group Financial Services Inc. and Investors Group Securities Inc., presents general information only and is not a solicitation to buy or sell any investments. Contact your own adviser for specific advice about your circumstances.
