I more than doubled my income in a 3 year stretch by providing more value at work (most of which came from making myself replaceable), and by developing and growing my side income from sources that include investing and blogging.
This post will discuss two additional strategies for increasing your compensation package at work, and will also discuss investing and blogging for side income.
Other than being great at your job, making yourself replaceable, and otherwise providing a ton of value at work, you can also use the strategy of offer-leveraging to increase your compensation from your day job.
I see offer-leveraging used regularly in my industry and in others. This is when you go interview at other companies and receive an offer with a better compensation package than you currently have, and then take that back to your current employer.
The idea is that if your current employer values you enough, he will try to match or beat the offer to get you to stay. If he doesn’t, then you’ve got a better offer in hand and you can leave with a clean conscience knowing that you gave your current employer an opportunity to keep you.
If you try this strategy, you have to be ready to switch jobs, so it isn’t for the faint of heart. However, if you’ve hit a wall and feel undervalued and underappreciated, you may be perfectly fine with this approach because you’re ready to leave anyway.
Although it depends on the industry you’re in, your current employer will often try to match because it is a greater expense to hire and train someone new than give you a raise to match what the competition is offering. So long as you are professional and courteous throughout the process, you should be able to preserve your work relationships.
Whether you leave or stay, you will be providing your current employer with important market information for their use in future compensation and hiring decisions. You are helping the market clear!
Job-hopping can be a consequence of your offer-leveraging efforts not working out as planned, or a strategy in and of itself. There are people who are in the habit of switching jobs every 2-4 years, and by the time they’ve done this 3 or 4 times, they are making significantly more than their peers who have stuck it out with the same employer during that same time period.
Job-hopping isn’t for everyone, but if you like change and you are willing to pick up and leave at the drop of a hat filled with a bigger compensation package, then it might be for you. Changing jobs frequently and being successful at it will require good interview and resume-writing skills.
This approach will make you develop those skills, which is an added benefit, because interviewing and resumes are weak points for most people, so you will be building these important skill sets by sticking with this strategy.
A significant part of my own journey in doubling my income was investing. While I was still figuring out how to provide more value at work, I began an aggressive campaign of accumulating income-producing investments.
By the end of my efforts, I had, at the peak of my income investment portfolio, passive income of between $36,000 and $40,000 a year. I’ve since scaled down to about $24,000 a year, lightening up on some of the income holdings over time.
Once you are saving, accumulating good assets at attractive prices will become an important part of your income and wealth-building strategy. My investing approach has evolved significantly over the last few years, and I am now less inclined to invest in income-producing assets unless they are of a certain type and extremely well-priced.
In retrospect I would have focused on market ETFs such as VTI and I would have been less concerned with income and more focused on long-term capital gains. Still, the assets I accumulated have done well for me.
4. Blogging and Other Side Ventures
You can also start a side gig such as blogging. The barriers to entry are extremely low, and you’ll learn a lot along the way.
You can be off to the races and writing your own posts in minutes by signing up with bluehost and downloading WordPress. My blogging income paid for over 3 years of hosting in under 2 weeks after I first launched my blog, and I’m very far from being an expert.
Blogging will enable you to provide value to others by sharing your unique experiences or talents. You will also be investing in yourself as you learn about the web and business.
All of that and more while earning a bit of money on the side if you choose to monetize your site by, for example, promoting products that have benefited you and that you believe will benefit others.
You can also offer your services on the side, or try to create intellectual property.
Blogging, offering services, and creating IP seem to be the best bet right now as public asset prices are at multi-year highs more or less across the board.
Whatever you choose, focus on providing value to others, and you will succeed in increasing your income and building more wealth.