- In 2010 I increased my yearly income by 41.8%
I made up my own rule where I should increase my income by 5% each year and so far I have been successful in 3 of the last 4 years. From 2010-2013 I increased my income by a total of 84.3%. Over the last 4 years the average increase in my income was 21.075%. It was very easy actually because all I did was find a job that would pay me a higher wage. Some of the jobs I didn't like along the way but I made it and now I am in a better place financially because of it. My expectations for 2014 was to simply increase my income by another 5% compared to 2013. I am expected to shatter this expectation by the end of the year for a few reasons. The main one being I currently work a full time, and part time job. Secondly I am now earning dividends and interest as passive income. So this year I technically don't need to look for new employment in order to better myself, however I would like to earn the same amount in one full time (40 Hour) job. What would my yearly income be if I increase it by 5% for the next 7 years?
If I follow my rule of increasing my annual income by 5% each year, I will be making $48,631 by the year 2021. Is this a realistic goal? It is if I continue to stay motivated and not get too comfortable in my current situation. Let's not forget, the more you make the more they (IRS) take. So what are some other ways I can increase my income by 5% each year?
- I could ask my current employers for a raise.
- Invest in stocks that pay quarterly/annual dividends.
- Save more money and earn more interest in savings and cd accounts.
- Find another part time job.
- Buy investment property in order to receive rental income.
- Work overtime.
These are a few of the options that I have in order to meet my goal every year. I know friends and family who continue to make the same amount each year and that is because employers are not offering wage increases. One of my employers hasn't issued a raise in 4 years but that didn't effect me because I still earned more. I worked overtime, found a part time job, and started investing in stocks that pay dividends. I am not saying that my strategy would work for everyone, but I do see it as an option to get you out of debt. I read somewhere that you need to treat debt like your hair is on fire! Another great quote that will stick with me forever. Do you have student loans, a mortgage, credit balances, car loans, and personal loans? Then maybe applying this rule isn't such a bad idea to your situation. After all we need to take control of our own finances and everyone is in a different situation.
What do you think about this approach? Are there other ways to increase your annual income? Do you have any other ideas or thoughts you want to add?