How to Give Yourself a Raise

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methods

1Managing Your Personal Finances

2Working on the Side

3Giving Yourself a Raise with Investments

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Getting a raise from your employer can be difficult. If you are working hard and showing initiative but are still unable to get a substantial raise from your employer, you may want to give yourself a raise. Alternately, if you currently work for yourself, it can be hard to get your clients to pay appropriately for your services in a way that accounts not only for inflation but also for your significant expertise. You can give yourself a raise by taking care of your finances, developing side gigs, and making smart investments.

Steps

Method 1

Method 1 of 3:

Managing Your Personal Finances

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   Revise your budget. Cut down on everything except for fixed expenses. Fixed expenses like your rent or car insurance may be hard to change, but other expenses like eating out or entertainment spending can be adjusted. See if you can trim nonessential expenses like these down by 5% or even 10%

   • If you are in the habit of eating out at lunchtime, try making yourself lunch before work.
   • If you spend a lot at your local pub, try inviting your friends over for drinks more of the time to save on alcohol.
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   Change your tax withholding. Get your current employer to adjust your tax withholding amount, and place the savings into a savings account or an investment portfolio. You will be giving yourself a raise equal to the amount of interest you make on this money during the year.Be warned that not withholding as much
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   Manage your debt. If you are currently in debt, the single best way to give yourself a raise is to get out of debt. The interest you are paying on your debt could be money in your pocket. If you can get out of debt, you will be giving yourself a raise equal to the amount of interest that you would otherwise be stuck paying.
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   Cut subscriptions. Review your monthly statement and look at all of your subscriptions. Looking carefully at all of your product and entertainment subscriptions such as cable or new subscriptions, consider cutting as many as possible. It is possible that you are spending a great deal of money on entertainment products that you no longer use. By cutting unnecessary subscriptions, you can give yourself a small raise every month.

   • If you are paying for cable, try cutting it. You can get lots of free entertainment online instead.
   • If you are paying for news, try cutting it. You can get lots of free news online.
   • If you are paying for a landline, try cutting it and using your mobile phone instead.
   • If you have a music service subscription, consider cutting it.
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   Save on your services. Look over your monthly statement and figure out how much you are spending on your monthly services such as your phone and internet bills. See if you can find the same service from a different company for less money. If you identify a cheaper version of the service, try phoning your current provider to see if they will match the price or switch your service provider.

   • If you decide to switch service provider, you should check to see whether your current provider will penalize you with service withdrawal charges.
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   Save on your vacation expenses. If you spend a lot on vacations, consider ways to save Try a stay-at-home vacation or staycation. Instead of spending a fortune on airplane tickets, stay at home for the holidays. The money you would have spent on the vacation will stay in your pocket as a small raise. On your staycation, you can go to a local museum, go see a show, or enjoy an afternoon with a favorite novel at your local café.

   • You might also consider using your airline miles to cut costs or consider traveling to places during their off-season to save money.
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   Cut your housing costs. If you are currently living on your own, you could save money on rent by getting a roommate or two. You will get to meet new people and save on rent, since it is cheaper to rent a shared apartment than rent one on your own. The money you save will be in your pocket at the end of each month. Depending on the city you live in, you could be giving yourself a raise of $500 to $1500 per month.

   • You might also consider simply downsizing to a smaller space or moving out to a location where the rent isn't as high.
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   Reduce transportation costs. Transportation can be another major way to save. You can save a lot of money by getting rid of your car if walking, biking or public transportation is a viable option where you are located.
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Method 2

Method 2 of 3:

Working on the Side

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   Transform your hobby into a gig. If you have a hobby such as gardening, playing video games, or writing, see if you can turn it into a side gig. Start by making a list of your current hobbies. Then, circle the hobbies that you think you might be able to transform into a side gig. Finally, think about how you would go about making money from your current hobby.

   • Make cool stuff and sell it online. If you like to knit or sew, you may as well sell your next hat or dress online. You can make lots of money selling your crafts online at websites such as Etsy.
   • If you play video games, you could work as a video game tester on weekends. On the low range, video game testers make in the neighborhood of $8 per hour. Higher paid positions are around $14 per hour.
   • If you are a writer, you could start writing articles in your spare time. You can make upwards of $50 per article by writing for a variety of online news and entertainment websites.
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   Start a new business. Draw on your entrepreneurial instincts and start a new business. You will be working for yourself, so you will have the opportunity to give yourself a raise. It is cheaper to start a small business in the service sector, as opposed to making products. Service businesses can be created with almost zero start-up capital. Consider your knowledge, experience and talents and whether you could start a small service business based on these talents. For example, perhaps you could start a small business with a focus on personal finances, writing and editing services, interior design, construction, or home and gardening work.

   • If you speak another language, you could offer classes at a local community center.
   • If you are a writer, you could offer creative writing workshops at your local library.
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   Get a part-time job. If you are currently employed during the weekdays, you could always give yourself a raise by working on the weekends. Look for part-time jobs that could meet your current scheduling and financial needs.
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Method 3

Method 3 of 3:

Giving Yourself a Raise with Investments

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   Buy a rental property. A rental property is a great investment that can generate a steady monthly cheque. It is a fairly reliable way of giving yourself a raise but also involves quite a bit of work, such as renovations, fixing appliances, and dealing with tenants. If you are a very busy person, you should first consider whether you will have the time to handle a rental property. However, if you have a little extra time on your hands and some money to invest, this can be an excellent way of giving yourself a raise.

   • The biggest mistake people make is buying a rental property with renovation costs that are too high, which will cut down on any extra income.
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   Flip a home. Buy a house, renovate it, and then sell it for a profit. You can make lots of money flipping homes, as shown on numerous home and renovation television shows. However, it is hard work and you can also lose money if you make a bad decision. Nonetheless, if you choose the right property, invest appropriately, and sell at the right time, you can give yourself a substantial raise.

   • You will need money, patience and a strong constitution. Flipping homes is hard work and involves significant financial risks.
   • Plan to buy and renovate the house for 70% of your final selling price.
   • You want to know the local real estate market, as well as local realtors and contractors.
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   Get a franchise. Invest your money in a franchise such as a sandwich shop, health food store or hair salon. You can make good money with a franchise. You should find a franchise that you can operate in your spare time and read the franchise agreement carefully. Although some franchises can be a full time job, other franchises require little effort and bring in a handsome pay cheque.
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   Make money with money. You can also give yourself a raise by improving the performance of your investment portfolio. Your investment portfolio should be highly diversified and include things like stock or bond mutual funds. Talk to an investment professional you trust to get more specific advice.
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