Step 5-Increase Your Income

How Income Affects Your Chances to Remain Debt-free

Human nature and the realities of life tend to lead most consumers to increase their lifestyle over time (called “lifestyle creep”) and the costs associated with it, often leading to an ever-increasing amount of consumer debt.

If your previous debt resulted from such lifestyle creep, you already understand how this works. Even if it didn’t, you want to build your defenses against future debt, including how to avoid lifestyle-related spending and its related debts.

What can employees do to increase their income potential, both before and after securing a permanent job?

Increasing Income Potential BEFORE Getting a Job

Prior to your job search, whether looking for your first job or twenty-first, the following list contains proven methods for increasing your potential income:

1. Earn a bachelor’s degree: A 2015 report in Demography found that a bachelor’s degree nearly doubles your expected lifetime earnings (86% increase for men and 124% for women).
2. Earn a technical certificate: As an alternative to a college degree, a certificate can also dramatically increase your potential income. Depending on the program, you might earn a skills-based certificate in four months to two years.
3. Complete online and community courses: While less valuable to a potential employer, any certificates of completion you earn, whether online or from a local community college or school district, will demonstrate to a potential employer your hunger and your drive to succeed. They might even be worth a few extra thousand dollars a year, especially if they are related to the position you apply for.

Increasing Your Income Potential AFTER Getting a Job

The following suggestions may increase your potential income BEFORE and AFTER getting a job. Many companies have established and automatic pay increases tied to additional certification and education levels.

Additionally, consider the following list of activities, behavior, and situations that will increase your value to your employer, leading to greater leverage when it comes time for a raise:

1. Long-term stability: The longer you stay with the company, the better the employer’s investment in you becomes.
2. Additional training: Stay aware of opportunities to acquire additional skills and knowledge related to your work, including courses offered by your employer, online and in-person training and continuing education programs through industry trade groups, and even training sessions offered by schools, colleges, and businesses.
3. Take the initiative: By taking the initiative to improve your company’s product or service, you show your commitment to the business.
4. Take responsibility: In general, the two positions that a company pays the most are leadership and sales. Watch for and express interest in opportunities to grow your leadership experience.
5. Become a subject matter expert: Take advantage of opportunities to speak at conferences, publish articles for industry journals, and be interviewed by traditional and social media. The more you can do to develop your reputation as an expert in your field, the more valuable you tend to be to the company.