If you want to take some stress off your finances, one of the best things you can do is give yourself a raise.
And I don’t mean just asking your boss for more money (although that’s always an option).
I mean finding ways to increase the amount of money you save, invest, and have left over at the end of each month.
From squeezing more margin out of the money you already earn to finding ways to generate more of those sweet simoleons, here are some of the best ways to give yourself a raise.
What does it mean to give yourself a raise?
Giving yourself a raise simply means finding ways to earn more money each month or keeping more of the money you already earn. This could mean making more money at your current job, lowering your monthly expenses, or both..
With that in mind, let’s dive into all the different ways you can effectively ‘give yourself a raise’.
1: Stop overpaying your taxes
Did you know that if you get a tax refund every year, you’re actually costing yourself money?
By overpaying your taxes, you’re essentially putting a portion of your hard-earned money into an interest-free savings account for the entire year.
At the very least, you’re costing yourself a financial margin and putting unnecessary strain on your financial life.
At most, you’re costing yourself thousands of dollars in compound interest that you could otherwise earn if you invested that money in long-term investments.
So the more significant your tax refund, the more money you will lose.
With that in mind, if you’re looking for one of the fastest and easiest ways to get a raise, make sure you don’t overpay taxes.
Also, you need to make sure you take advantage of as many deductions as possible.
By taking this two-pronged approach, you can easily squeeze some extra money out of your monthly paycheck.
2: Make a budget (and stick to it)
If you don’t know where your money is going, saving it is hard enough.
Beyond that, personal finances can get pretty stressful when you’re not sure where you stand throughout your pay cycle.
Living on a written budget is the most effective way to control your finances and start saving more money.
With that said, creating a budget is only the first step.
If you want to give yourself a raise, you have to live within your budget. That means saying ‘no’ to all those not-so-cheap spending opportunities you come across throughout the month.
It also means keeping track of your daily or weekly expenses (at the very least) and living within your predetermined budget categories.
Budgeting may not be the most exciting way to “give yourself a raise,” but it is one of the most efficient and effective.
3: eliminate debt
If you currently have a lot of debt, from car payments to credit card balances, one of the best ways to give yourself a raise is to pay it off. And the faster you do it, the bigger your increase, especially for high-interest debt.
Not only do you have to pay interest on the money you owe, but debt limits your monthly cash flow and puts unnecessary strain on your finances.
Think of it this way; If you have a 5-year, $25,000 car loan with an interest rate of 4.5%, it will cost you $466 per month. So the moment you pay that down, you essentially give yourself a yearly raise of $5,592.
I don’t know about you, but I’ll take a raise like that any day of the week!
4: Meal plan to save money on food
If you’re like most people, food is one of your biggest monthly expenses.
Whether it’s at the grocery store or restaurants, it’s easy to let food spending get out of hand.
Fortunately, you can save quite a bit of money by planning your meals. And I don’t mean just planning your dinners.
If you want to squeeze your food budget for all it’s worth, you need to plan out each of your meals and snacks for the week.
In other words, if you plan to eat it, you should include it in your meal plan.
Ninja Meal Planning Tip: If you want to take your meal planning to the next level, we recommend shopping around at multiple grocery stores to get the best price on each item. This little technique saves my wife and I hundreds of dollars a year.
5: Negotiate a higher salary
It may seem like a bit of a no-brainer, but one of the best ways to give yourself a raise is to negotiate a higher salary (or hourly rate) with your current employer.
Even a 5% pay raise can add up over time.
For example, if you make $50,000 a year and get a 5% raise, that means an extra $2,500 in your pocket each year, or $208 each month before taxes.
Combine a decent pay raise with a few other tips in this post, and you just might find yourself with a nice increase in financial margin.
6: Get a higher paying job
Finding a new job can be an overwhelming process.
You have to put together your resume, apply for open positions, go through an interview process, take a job, learn new systems, navigate a new culture, and make new friends.
That said, if your current employer isn’t willing to pay you a decent wage, going through the trouble of finding a new job can result in a big payday, making it all worth it!
I have seen people double their salary by opening up to new job opportunities. So while it may seem daunting, if your goal is to get a raise, a new job may be the best way to achieve it.
7: Invest in assets that produce money
Another great way to get a raise is to invest in assets that produce monthly cash flow.
This could be anything from dividend stocks to small, relatively passive companies.
For example, my wife and I recently launched the idea of āāstarting a vending machine business. Not only is it relatively cheap to get into, but if you’re careful, you can earn some nice extra currency.
And the best part is that it doesn’t take much time.
Sure, we would have to maintain/clean the machines, fill them with snacks/drinks, and manage the finances of the company. But if we were to make sure to look for places relatively close to home, it wouldn’t require more than a part-time effort.
And that is only an example. If you get creative, there are all sorts of assets you could invest in that could provide you with extra cash flow every month.
8: Get rid of recurring monthly expenses
Beyond debt payments, cutting recurring monthly expenses out of your budget is one of the fastest ways to get a raise.
For example, if your monthly gym membership costs $40, getting rid of it would be like giving yourself a $480 annual raise.
If you spend $100 a month on streaming services, you could cut them out of your budget and save an extra $1,200 per year.
You get the idea.
The point is, if you’re looking for a great way to increase your financial margin, take those recurring monthly expenses and leave them like they’re hot.
9: Start a Niche Focused Blog
If you’ve ever looked for a way to earn an extra monthly income, you’ve probably considered starting a blog.
Who hasn’t, right?
Despite the strange stigma many people associate with this idea, blogging is a great way to earn extra money each month. I know because I do.
The fact that you are reading this blog post is proof of that!
And here’s the best part, you can start a blog about almost anything you want.
Are you passionate about tennis? Start a tennis blog.
Do you love camping with your children? Start a blog about it.
Is home organization your thing? Sit in your perfectly organized home office and start writing!
You don’t have to be an expert on a topic to start blogging about it. It’s better if you’re not. As long as you’re willing to do some research, curate tips, review products, and provide valuable answers to specific questions, you can be a successful blogger.
10: Independent
Of all the business ideas out there, being self-employed has to be one of the fastest in terms of turning a profit.
Assuming you have all the equipment you need, and depending on the freelance service you offer, you could start making money in as little as a day.
I am not saying that you will get rich overnight as a freelancer. But if your goal is to give yourself a raise, it’s a great option because it gives you full control over how much money you make.
To earn more money, simply accept more clients or offer premium services at higher prices.
The world of freelancing can be quite competitive, but if you can differentiate yourself, you can make a lot of money.
I have personally worked with freelancers earning thousands of dollars a month. Some of them do it full time now!
As long as you stick with it, improve your skills, deliver high-quality work, and take good care of your clients, freelancing can be quite lucrative.
11: Sell an eCourse
If you’re passionate about a particular subject and willing to teach it to others, creating and selling an online course could be one of the best ways to earn a raise.
I think this could be one of the most profitable ideas on this entire list.
Why?
Because selling an online course is incredibly scalable!
For one, you can use a platform like Teachable or Udemy to host and sell your course.
That means you don’t have to worry about setting up, managing, or hosting your course on your own website. Simply create your course, put up a compelling sales page, and post it for sale!
From there, all you have to do is generate interest in your course, and you could start making a lot of money in a very short period.
Seriously, I know people who make well over 6 figures. per month selling an online course!
If you’re going this route, I recommend creating an evergreen course; in other words, a course that will remain relevant for years to come.
By creating an evergreen course, you can reduce the number of course updates you need to make in the future. That way, you can focus on generating traffic and improving your conversion rate.
Bonus tip: If you decide to sell a course online, we highly recommend starting a niche-focused blog to drive traffic to it. This is a great way to build an audience of potential customers and consistently increase your sales over time.
final thoughts
There you go! Eleven of the best ways to give yourself a raise and take some pressure off your monthly finances.
Which of these ideas did you like the most?
Is there any other strategy that you recommend?
Be sure to leave your comments and ideas below!
