How to make more money

You may have some ambitious plans for building your retirement nest egg, making a big purchase such as a second home or doing some ambitious travel. Conventional wisdom says in order to sock away more money, you need to cut back your expenses.

While that is certainly true and will help, there’s the other option we often forget when we have an established career – you can make more money.

If you are already working hard, that might seem tricky. But there are some fairly easy ways to bump up your pay. Here are some ideas on how to do it:

Negotiate a raise – If you want to make more money in your current job, ask for it – you may be pleasantly surprised. However, you need to be prepared before you request a raise. Have a specific amount going in and base your request on research by finding out what others in your field are paid and what accomplishments you have had.

Quit your job – One nearly surefire way to get a salary boost is to switch jobs. According to a Wharton School study, you can get an 18 to 20 per cent increase in pay by taking a new job, versus what you’d get through an internal promotion. Switching jobs can be a good way to increase your salary, but make sure that you plan this carefully, so you don’t find yourself un-employed.

The best way to land that lucrative new gig is to tap your network outside your current workplace. One study found that employee referrals generate 40 per cent of new hires.

Upgrade your skills – Professional development can lead to new skills or give you a piece of paper to confirm your excellence in existing ones – both might lead to a pay hike over time. Some new certifications can take years to complete, but many employers help foot the bill. Also, consider taking management and leadership courses.

Get connected – Joining an industry organization can get you access to those professional development opportunities and connect you to networking events that could lead to a new, better-paying job. Volunteering with a professional group, meanwhile, looks great on a resume and can help develop new hard and soft skills.

Learn another language – Being multilingual will increase your earning power by an average of two per cent, depending on the language you learn. That may not sound like a lot, but over the long term, factoring in compound interest, that one-time raise could add up to six figures over a lifetime. As a bonus, such skills can lead to on-the-job travel.

When you earn more, you can do more with your money. So it’s a good idea to make earning more part of your financial plan. Plans to up your salary may not be as predictable as cutting expenses. You may be qualified for a new, higher paying job, but it may not come along at the perfect time. But long-term career thinking should lead to more dollars down the road.

This article is written by or on behalf of an outsourced columnist and does not necessarily reflect the views of Castanet.