Chances are you have experienced being turned down for a raise. It can be really disappointing but don’t let it get you down. We have the ability to take control over our money and how much we make. So if your job says no to giving you more money that’s okay because there are an infinite amount of other ways for you to give yourself a raise. These are the steps I practice to take control of my money and to generate more money when I would like a raise.
Find Your Why
Why do you want a raise? Do you want to pay off your debt? Save more? Buy a house? Go on your dream vacation? Get clear on your why, write it down and display it somewhere that you can see everyday. I have my why written on my vision board that is posted on the wall near my desk in my bedroom. Seeing your why everyday can help to keep you motivated.
Set Your Money Goal
How much money do you need to fund your why? For example if you would like a raise in order to go on a dream vacation in a year then calculate how much the vacation will cost. Let’s say it will be $5,000. Divide that by 12 for 12 months. That means you need to find a way to add about $420 a month for a year to your vacation/raise fund.
Create a Budget
Now that we have our why and our goal money amount, it’s time to create a budget. You need to make sure your basics are covered. List out all your expenses. There will be some obvious ones you will know off the top of your head like rent, phone bill and food. But, also take a look at your debit and credit card statements to check for expenses you have forgotten about. Like random subscriptions and Ubers. If you have any accounts that are not caught up make a plan to get current with all bills. The next tip can help you with this as well.
Cut Out the Excess
In some cases just cutting out the excess from your budget will save you enough money that you can use to give yourself a raise. Some places to look to cut are, unnecessary subscriptions, cable, excessive Ubers and eating out. You may even consider getting a roommate or selling your car if you realize you don’t use it enough to keep it. Try also calling your bill companies to see if you can negotiate a lower price. A couple years ago I called my mobile phone company and was able to get my bill dropped from around $120 to around $80! I also embarked on a journey to become a minimalist primarily to declutter and save money. You can read more about my minimalism journey here!
Create a Side Hustle
Consider starting a side hustle or getting a part time job. The money you make from working on the side can be used to give yourself a raise. Whenever I am looking to make some extra money I sell my old clothes at Buffalo Exchange. I believe the highest amount I made there in one day was $80. You can also try driving for Uber/Lyft, Postmates or Instacart. One of my favorite things to do is to pick up consulting work or part time jobs on the side that align with my full time profession, IT. I usually find I can earn more because of my experience. I have made anywhere from $40 to $60 for simple things like virus removals, fresh OS installs and software installations.
Take a Class, Go to a Conference
The more valuable your skill-set is the more money you can make. In the same breath, it’s sometimes not what you know but who you know. So, consider taking a class and building up your skill-set. Attend a conference relating to your profession so you can pick up some new skills and meet new people in your industry. If your budget is tight you can learn a lot on Youtube and there are sometimes free conferences that you can attend. Meeting new people and gaining more skills can open the door to more consulting projects that you can do on the side of your full-time job. This leads to more money that can be used to give yourself a raise.
Cut Your Debt and Build Your Savings
I have noticed that a lot of people would like raises so that they can save more and or pay off debt. I hear that! The more money you have sometimes the easier it is to hit some of your financial goals. After you have cut off the excess from your budget and started working your side jobs, you can use that money to pay off debt and build your savings. The good old Dave Ramsey plan suggests, first saving $1,000 dollars as an emergency fund. Second, paying off all your debt except your home from smallest to largest. Third, saving 3-6 months of expenses to add to your $1,000 emergency fund. I follow the Dave Ramsey plan and so far in one year I have paid about $7,000 extra towards my student loans.
Have a Longterm Lucrative Career Plan
You have control of your money but at some point you may find yourself not being able to cut out anything else from your budget and not having anymore time to give to driving Uber on the side. So, ultimately you need to figure out a career/ business plan that is going to help you earn more money. That may mean you decide to purchase a rental property for passive income from having tenants. Maybe you start an online business. If you are working a help desk job or entry level tech job, look into other areas of tech that earn higher incomes. Choose something you want to do that can make you more money in the long term, come up with a plan to get there and take action.
Ceray’s Final Thoughts
Try not to feel stuck when your employer says no to your raise request. Remember, you have control over your money and you can give yourself a raise.You can start building great money habits at any salary. To me it’s all about solidifying basic control and management of your money in conjunction with figuring out how to earn more money.
I’m a big Dave Ramsey fan and his book, The Total Money Makeover, really change my money mindset for the best. Within a year of reading his book I paid $7,000 extra on my student loans and increased my networth by about $17,000.
I highly recommend purchasing and reading his book The Total Money Makeover.