Investing is important. Cutting expenses helps. But for most people, increasing income dwarfs both in impact.
The Math of Earning More
"I spent years optimizing my budget to save an extra $200/month. Then I got a $15,000 raise. That's $1,250/month more—and it compounds every year."
| Strategy | Monthly Impact | Effort |
|---|---|---|
| Cancel subscriptions | $50-100 | Low |
| Switch to cheaper phone | $30-50 | Low |
| Get a 10% raise | $400-800 | Medium |
| Switch jobs | $800-2,000+ | High |
Earning more scales infinitely. Cutting costs has limits.
The Raise Roadmap
Getting Raises at Your Current Job
-
Track your wins
- Keep a "brag document" updated monthly
- Quantify impact: "Saved $50k" or "Increased efficiency 20%"
-
Time it right
- Ask during performance reviews
- Or after a major win
- Never when company is struggling
-
Know your number
- Research market rates (Glassdoor, Levels.fyi, LinkedIn)
- Ask for 10-20% above market if you're a strong performer
-
Make the ask
- Be direct: "I'd like to discuss a raise to $X"
- Present your evidence
- Be prepared to negotiate
See our Salary Negotiation Tactics lesson for scripts and strategies.
The Power of Job Hopping
| Tenure | Typical Raise |
|---|---|
| Staying at job | 2-4%/year |
| Switching jobs | 10-30%+ |
Watch Out
People who stay at the same company for 5+ years often earn 50% less than job hoppers in the same role.
When to job hop:
- Your skills have outpaced your salary
- No growth path at current company
- Market rate is significantly higher
- You've been there 2-3+ years without meaningful raises
When to stay:
- You're learning valuable skills
- Great work-life balance
- Clear path to promotion
- Happy with compensation
High-Value Skills
Skills that command pay:
| Skill Category | Examples |
|---|---|
| Technical | Coding, data science, cloud architecture |
| Leadership | Managing teams, strategy, P&L responsibility |
| Sales | Enterprise sales, negotiation |
| Specialized | Legal, medical, finance credentials |
The formula: Rare + In-demand = High pay
Side Income Synergy
Your career can fund side hustles that accelerate wealth:
| Career Skill | Side Income Option |
|---|---|
| Writing | Freelance content |
| Design | Contract projects |
| Coding | Freelance development |
| Finance | Consulting |
| Teaching | Online courses |
Our Building Side Income lesson covers how to get started.
The Career-Investing Connection
Higher income enables higher savings rates:
| Income | Save 20% | Save 50% |
|---|---|---|
| $50,000 | $10,000/year | $25,000/year |
| $100,000 | $20,000/year | $50,000/year |
| $150,000 | $30,000/year | $75,000/year |
The difference between $10,000 and $30,000 invested annually over 30 years? Over $2 million.
Career Investments Worth Making
| Investment | Cost | Potential Return |
|---|---|---|
| Certifications | $1-5k | $10-20k+ salary boost |
| Online courses | $200-2k | New skills, new roles |
| Conferences/networking | $500-2k | Relationships, opportunities |
| Coaching | $2-10k | Faster advancement |
Going Further
As your income grows, our Wealth tier covers:
- Equity compensation — Handling RSUs, options, and ESPP
- Self-employment taxes — If you go independent
- Building generational wealth — Long-term family impact
Quick Win
Update your resume and LinkedIn this week—even if you're not job hunting. Check your market rate on salary sites. Knowing your number is the first step to getting it.