How would you like to give yourself an annual raise of $1,000 or more EVERY year?
If it sounds impossible or like it’s not enough money to be worth the effort, you’re thinking about it all wrong. Earning an extra four figures each year starts with one simple action – changing your mindset about money. When you think about your income, do you see yourself as a passive recipient, at the whims or fortunes/misfortunes of your employer? If so, that mindset could be holding you back.
Put yourself in the drivers seat of your finances. When it comes to earning income, stop thinking of it as something other people have to give you and instead, think of it as something you control. Pick an amount of money you want to earn this year above what you learned last year; it could be $1,000; $2,000; $4,000 or more.
If you think those amounts aren’t significant, consider what earning an extra $8,000 per year could do for your finances. It could make a HUGE difference.
As a former ‘low-earner’ I know how hard it can be to make ends meet on a low income even when it seems like you’re doing everything right. That’s why my husband and I have opted to give ourselves raises each year by doing various different things. If you’re ready to do the same, here are four things you can do right now to start earning more money and giving yourself a four figure raise every year.
#1 – Ask For A raise
In all honesty, we all should be earning extra money each year (to keep up with inflation at the very least) so don’t be afraid to ask your employer for a raise if you’re not getting one.
According to a Jobvite study, only 29 percent of employees negotiated their salary at their current or most recent job while 48 percent still don’t feel comfortable with even asking for a raise.
It’s important to realize that the small level of discomfort or awkward silence you want to avoid could cost you well over 6-figures in income over the course of your career. Being willing to negotiate your salary or income is key especially if you’re looking for a least a 4-figure annual raise.
If you don’t know how to ask for a raise or increase your salary, here are some tips to get you started. If your boss says no, apply for promotions that interest you to boost your income, or start looking for a better-paying job elsewhere.
#2 – Spend $100 Less Each Month
Another way to give yourself a four-figure annual raise is to spend a little less each month. Cutting your expenses is one of the easiest ways to get your finances together because you can free up extra money quickly. In fact, here are 35+ ways to save money every month that can free up hundreds of dollars.
Back when I worked a traditional job, I cut my expenses by bringing my lunch to work instead of dining out. My old co-workers would go out for lunch almost every day and spend an average of $6-$8 per meal.
That adds up to about $30 -$40 per week just spent on lunches and over $1,000 per year.
If you cut or reduce other expenses like designer clothes and bags, an expensive gym membership (that you don’t use) and dining out, you can save even more money annually.
#3 – start Paying Off High-Interest Debt now
Do you know how much your debt is costing you each year or even every month? Depending on what type of debt you have and what your interest rate is, you could be throwing away thousands every year just on interest.
Back when I had a car loan, I was surprised when I ran the numbers and saw that $100 of my payment was going straight toward interest. After realizing that $1,200 was going down the drain each year, I focused on paying off my car loan two and a half years early and saved a ton of money as a result. It’s a powerful example of how paying off your debt faster can lead to positive financial benefits in your life.
This year, I’m more than happy to pay off the remainder of my student loan balance. My student loans have never been high-interest, but last year I looked at my statement and I still paid over $1,000 in interest for the year.
If you have similar student loans that are high-interest, SoFi may be able to help you refinance them into something lower. If you have other high-interest debt consumer debt you can save even more by refinancing or consolidating. Avant and Lending Club are both options that may be able to slash your current interest rates in half, or more.
Once you pay off your high interest debt, or negotiate it to lower interest rates, you can put the difference in what you have been paying in interest toward other financial goals or needs.
#4 – create a new income Stream of Income
If you’re not getting the raise you want at your main job, you may have to take things into your own hands and create an extra stream of income on the side to boost your earnings.
I worked two jobs in college while also raising my son, so I know finding ways to earn more money when you’re already exhaustingly busy can be difficult. However, the key to finding a promising side hustle is to find something you enjoy and are skilled at doing.
Look for flexible work that you can fit into your current work and life schedule. You can babysit, walk dogs, sell items online, drive for Uber or Lyft, write articles online, do virtual assistant work, tutor, test out websites, etc.
Here are 50+ other ways to make extra money if none of those options work for you.
When I first started taking side hustling seriously in 2015, I earned an extra $9,600 from side hustles alone that year. That’s a huge annual raise since I was earning less than $30,000 per year at my full-time job at the time.
Giving yourself a 4-figure raise each year is not only possible, it’s expected. Your expenses are likely to increase over time and your financial goals will change so having more money can make a big difference in the long run.
It helps that there are many different routes you can take when it comes to giving yourself an annual raise. Start with your employer, then cut expenses and identify a few extra earning opportunities that you’ll like and that fit with your level of motivation, skill set, schedule and earning requirements.
How do you earn extra money or spend less to net more money each month? Do you prefer to cut back or increase your income? How often do you negotiate a higher salary at your job?
The post How to Give Yourself a 4-Figure Annual Raise Every Year appeared first on Frugal Rules.
Source: Frugal Rules