Much of the time we find that our clients who are struggling to make all of their expenses and save money on a monthly basis simply need to make more money. This may sound like a no-brainer, but it is important to recognize your worth!
There are only so many ways you can reduce your expenses and cost cut. Sometimes, people are in debt simply because they do not earn enough to maintain their quality of life. So, how do you figure out what you have to earn to get financially fit and live your best life?
Calculate your target salary
Here’s how:
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Expenses + Debt Payments/Savings Goals = Total Net Income
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Total Net Income Need / .65 = Total Gross Income
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Total Gross Income x 12 = Target Annual Salary
Example:
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$2,500 + $750 = $3,250
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$3,250 / .65 = $5,000
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$5,000 x 12 = $60,000 – This person would need to earn $60,000 a year to maintain their lifestyle
Doing the math and figuring out exactly what you need to make will make it tremendously easier to ask for the raise, apply for the new higher paying job, or charge a higher freelancer rate.
Research salaries in your industry
Now you might say “okay, so how can I make more money?” Side hustles are a great place to start! You also can start by researching your industry. What are other professionals in the industry making? Is it comparable to your salary? Glassdoor and Payscale are great places to start. It also helps to look into the credentials required for most jobs in your field. Do you have more? This is another way to see if you are making what you are “worth” within your industry! Use this as leverage next time you ask for a raise!
Reflect on your past work experience
There are a few important questions to ask yourself when figuring out your target salary should be. How long have you worked in the industry? Do you have a well developed resume? Check out these salary negotiation success stories to get some inspiration!
Don’t be afraid to talk to others about money
We know it can be awkward to talk about salaries with friends, family, and coworkers, but one of our biggest passions is easing the taboo around money. We want these conversations to become easier and more natural! Talking with your peers is the best way to learn what the norm is in your industry and open the dialogue for more money conversations down the road.
