Finding ways to boost your income takes planning and effort, but it can lead to greater financial stability and peace of mind. To increase your income over the next three years, you need to focus on your skillset and earning your income rather than what is in your portfolio. This means not just relying on your current job but also exploring additional income streams.
The journey starts with understanding where you are today. Assess your current strengths and weakness and identify potential areas for growth. Whether it’s negotiating a raise, developing new skills, or starting a side hustle, building another source of income can significantly elevate your financial position.
Your investments can generate income however, I am going to avoid going over them because income growth through investments is a lot lower than if you were to increase your income that you earn through working. You will be able to buy more assets faster if you focus on increasing your earned income first.
Understanding Your Financial Starting Point
To effectively increase your income over the next 3 years, I believe you should understand your current skillset and what changes you need to make to get you from Point A to Point B. This includes evaluating your current earnings from your W-2 and what else you do and how you provide value at work.
Know Your Starting Point
Begin by reviewing your current salary and any additional earnings. List all sources of income such as:
- Base Salary: Your regular paycheck.
- Bonuses: Any performance-based or annual bonuses.
- Side Income: Earnings from freelancing or part-time jobs.
Calculate your annual gross income, this helps you see your starting point and it will help you recognize the growth you are making when increasing your income. Next identify the value you provide in order to earn the income you are currently making. Create a list of what you want professionally and financially. Here are a few questions to consider:
- What income level are you aiming for next?
- Do you enjoy your current work responsibilities?
- What does it take to get to the next level in your current role?
- Is there any professional certification you need?
- Does the job market pay the same for the work that you do?
Strategies to Increase Your Income
Increasing your income over the next three years can be achieved through effective negotiation and continuous self-improvement. By focusing on strategic approaches, you can position yourself for higher pay and better job opportunities.
Negotiating for a Salary Increase
To successfully negotiate a salary increase, start by researching the average pay for your role. Understanding the industry standards helps you set realistic goals. Use resources like salary surveys or websites that publish salary data specific to your profession.
Prepare a list of your accomplishments and quantify them. For instance, if you improved a process by a certain percentage or that you saved a large sum of money for your firm, recording that is a great way to show the value you are creating. Highlighting your direct effect can affirm your request for a raise.
Timing is also crucial. Aim to discuss salary increases during performance reviews or after completing a big project. Be clear about the percentage increase you’re seeking and back it up with your years of experience and how it’s aligned with market trends.
Lastly, practice your negotiation skills. Role-play with a friend or mentor to gain confidence. The key is to remain professional and composed, focusing on how your work benefits the company.
Education and Skill Development
Investing in your education and skill development is another robust strategy for income growth. Pursue advanced certification in your field to enhance your expertise and stand out in the job market. For example, IT professionals might consider certifications in cybersecurity, cloud computing, or data analytics.
Attend workshops, webinars, and industry conferences to keep up with the latest trends. These events offer not just knowledge but also networking opportunities that can lead to job offers with higher pay. I personal use Eventbrite to find local professional socials and workshops.
By continually updating your skills, you make yourself more valuable to employers. This not only increases your chances of earning a raise in salary but also opens doors to higher-paying positions in your industry.
Expand Your Network
Networking is a bit less direct, but it will help you if you are looking for a job change. It is a powerful tool for career growth overall and can help you increase your income through higher-paying opportunities in your network. By building a strong professional network, you gain access to valuable insights, job opportunities, and connections that can help you advance in your career.
Networking allows you to tap into this hidden job market by getting to know key people in your industry who can offer guidance, mentorship, or introductions to decision-makers.
However, effective networking takes time and effort. Building meaningful relationships doesn’t happen overnight, and it’s essential to approach networking as a two-way street. Networking is not just about seeking opportunities for yourself but also providing value to others; offering support, advice, or connections when needed.
By being genuinely interested in helping others and maintaining consistent communication, you build trust and goodwill, which can lead to long-term career benefits. Over time, these reciprocal relationships can open doors to new roles, promotions, and salary increases. Patience and a willingness to contribute to your network are key to making networking a successful part of your career growth strategy.
Build a Business to Increase Your Income
Building a business around your current strengths and skill set is another great way to increase your income while maintaining the security of your full-time job. By leveraging the expertise and knowledge you already possess, you can create a side business with no learning curve. Whether you’re skilled in marketing, finance, design, or project management, there’s likely a market for freelance services in your field. This approach not only provides an additional stream of income but also allows you to build your brand and reputation.
Starting a business on the side requires careful time management and clear boundaries between your full-time job and your entrepreneurial efforts. To avoid burnout, it’s important to focus on small, manageable steps that align with your strengths. For example, if you’re a financial controller, offering budget planning services on weekends could be a natural extension of your skills.
The goal is to grow your side business organically while refining your offering and understanding your customer base. Over time, as your business becomes more profitable, you can decide whether to scale it further or keep it as a supplementary income stream. If you do this, definitely ensure that you are not competing with your W-2 job or using sensitive company information for your independent venture.
Concluding Thoughts
Increasing your income over the next three years requires purposeful actions and consistent effort. You will not be done in 2 weeks; it will take time, and you may hear “No” along the way, but it will all be worth it as you keep on going. You may even successfully experience all of the different ways to increase your income and double or triple your income over the next 3 years.
So here is to you, I hope you work towards increasing your income with the strategies here. With your success, you can continue to fortify your financial future by getting $100K invested in assets.