Here are 7 Ways to Increase Your Income and Wealth by 20% Annually

For as much as the personal finance space talks about debt reduction and/or now financial trauma, it definitely avoids talking about the NEED to increase your INCOME. Bringing in income is a massive component of building sustainable wealth and increasing your happiness.

There are but so many expenses to cut until you are living like a 15th-century monk. Beyond establishing financial discipline and developing SMART+ER goals, you will need money. Bills aren’t paid on aspirations alone. Forget what social media says, you still need real currency backed by reality.

Over the last five years, my wife and I were able to travel more while scaling up our net worth. How? We simply out-earn the average American household by 150 percent. Keep reading to learn how you can do the same.

Income and Wealth (Never Versus)

Specifically, over the last three years, my wife and I were able to boost our net worth by nearly 219 percent. That’s an additional $500,000 in net assets, minus our liabilities during the pandemic.

I can lie to you and tell you that I have secrets or funnel you into an e-marking scheme but the truth is, it was all the income. While the average American home’s Burn Rate (i.e. Expenses divided by Gross Income) peaked north of 70 percent, we are hovering around 32 percent.

How is that possible?

Increasing our income since 2012, created a sustainable approach to building wealth in our lifetime. Turns out, your real wealth is always complemented by your increase in income. Additionally, as you continue to add assets to your inventory; they will also make more money for you. It’s a powerful combo.

While paying down high-interest credit card balances can improve your cash flow, it’s not against the rule to mix and match all possible options. This creates the best possible cash flow scenario. But where do you start?

Like a lot of Americans, in your twenties, you will likely start making around $30,000-$40,000 entry-level. On top of that, you will likely have as much as $40,000 in undergraduate student loans.

It’s definitely not how social media portrays it however even ZipRecruiter pegs it at $33,318 as of May 2023.

However, worry not, I started at $23,000 in 2012. My wife started at $39,000, granted she is a lot smarter than me. As of 2023, we bring in $127,000 and $100,000 respectively. That’s a boost of a +20 percent average increase per year over a 10-year period.

It wasn’t until the 2023 tax season that I noticed that our TNFG household jumped into the top 10 percent of Black earners and the top 6% of wealthy Black households. Even as average non-social media famous people, we are making $250,000 per year in income which includes 90 percent of our salary from 9-5 jobs and an extra 5% from our rental property.

Sustainable Increase in Income is Measured in Real-Time

How you generate income either from direct labor to more passive para-social funnels, can help you scale through social classes quickly.

Once I stepped back and recognize the power of social mobility in America, it became clearer how to navigate. Powers of scale are measured in inequality, that inequality creates opportunity. However, you shouldn’t only keep an eye on the door of opportunity. You have to consider windows, cracks, and vents.

This is also a reason why we are inundated by ads from people recommending us to sign up for mentoring or follow their content. The working class with access to new discretionary income, are prime targets. Consumerism has modified our appetites to BUY as a source of joy. This creates an unhealthy perception that social capital is real capital.

And that’s nearly 90 percent of the problem. The best part is that you are also 90 percent of the solution.

1. Every Job Earns Only Two Years of Your Time

Gone are the days of working for one company for 40 years. The benefits of a fully funded pension are gone. The best bet now is to use the economies of time to your advantage.

Whatever entry salary you start from, remember one thing. If they don’t promote you in two years, you need to look for an exit. When I was working for $23,000, I was actively seeking the next opportunity. In six months, I was making $32,000. And eight months from then, I took a job making $64,000. That’s an increase of over 178 percent in under two years. If I started in my position or took the next role over 10 years, I would have capped at $48,000.

It really pays to move. There is a remarkably strong relationship between job switching and nominal wage growth.

“From April 2020 to March 2021, some 51% of job switchers saw an increase in real earnings over the same months the previous year. On the other hand, among workers who did not change employers, the share reporting an increase in real earnings decreased from 54% over the 2020-21 period to 47% over the 2021-22 period. Put another way, the median worker who changed employers saw real gains in earnings in both periods, while the median worker who stayed in place saw a loss during April 2021 to March 2022 period.” Pew Research Center, Report July 28, 2022

2. Active Personal Review and Accountability

As you have likely experienced in your current gig, the pandemic forced many of us to think about and contribute to the organization differently. And, as Altimare says, most of us transitioned into more visible roles where our achievements were highlighted. If you haven’t taken the time to quantify and catalog your performance, now is the time to do so, so you can use this information to set your intentions and goals for 2021.

Then, Altimare says to set up a meeting to discuss these with your supervisor. “Now is the time to take the good work you’ve done, illustrate it for your leadership team and leverage it for an increase in salary today – and set yourself up for an increase in 12 months,” she continues. “The 10 percent range may be aggressive depending on furloughs, lay-offs, or salary increases that you’re company may be experiencing, so come with a range that makes sense for you and the organization.”

3. Update your resume to increase your Income

Switching jobs is just part of the story, you have to update your resume to see the income potential. So when was the last time you updated your resume? Or your Linkedin?

Americans stated that the new desired minimum salary is $73,000 a year, according to a recent survey from the Federal Reserve Bank of New York. Unfortunately, the 2021 median salary was $69,717 a year. It’s a bit short of the dream. Since most of us aren’t Nepo-Babies, we have to calibrate our education and experiences to real money. The best way to do that is on the resume.

When searching for a new position, relevant information from skills, experiences, and qualifications earn you higher pay on average. In the past, I reviewed resumes from Doctors, Lawyers, and even Teachers. The sheer amount of grammatical mistakes tells me that you really don’t pay attention to details. I highly recommend that you review your resume quarterly or even semi-annually.

4. Boosting Your Income with Additional Work

The pandemic introduced the world to remote work. What was once relegated to international workers, is now socially accepted. You can literally pick up an extra job making $50,000 or more online while at work.

About 79% of remote employees are working two jobs without skipping a bit. In 2020, my wife made an extra $40,000. There is a possibility to really boost your output if you can truly multitask. However, sometimes, this creates additional work on the weekend. I’d still argue that it’s better than working at a fast food establishment or retail.

If you have idle hours, plus up your youth by maximizing your skills or even committing to your hobbies. You can always access the passive gig economy such as YouTube, Streams, etc. Just make room for the additional taxes.

5. Build a Better Brand with Quality Shares

Too many people waste their time on social media. While this isn’t an indictment on the dog memes (or other things), you do need to establish who you are online.

By branding our capabilities, my wife and I were able to grab an additional $55,000 in 2020 through event planning or financial literacy consulting. If people don’t know what you do or who you are, it’s hard to recommend you for new work.

Do more with your social media profile. No, you don’t have to become an influencer or guru but you do need to have a professional identity. Try to share things that are relevant to your industry, especially on Linkedin. It will help you start knowledgeable about your field which will add to your resume vocabulary.

6. Never assume that your work speaks for itself

Speaking of that, your boss doesn’t know what you are doing. Don’t assume that they do. Most people are focused on their own work, lives, and families. They are almost no clue what you are doing weekly, quarterly, or annually.

The dreaded annual performance reviews, when conducted properly, can be a valuable feedback loop and a key driver for one’s professional growth. However, when a performance evaluation is poorly handled by either the manager and/or the employee, it can result in damaged professional relationships, decreased productivity, and low morale in the workplace.” TopResume.com, March 2023

Fix the loop by keeping tabs on yourself by performing accountability reviews at least monthly. By staying abreast of your progress, you will be able to speak to what you bring to the table, especially for negotiations.

7. Quick, Pivot and Learn Something New

Most people stay stagnant post-graduation. If you want to earn big bucks, pivot and learn a new in-demand skill.

The best way to market yourself in 2023 is to pivot toward tech. Healthcare is still the highest-paying sector in the US. According to the U.S. Bureau of Labor Statistics (BLS), employment in healthcare occupations is projected to grow 13% from 2021 to 2031. Most of the salaries range north of $160,000.

Although Tech took some hits in 2023, there is still plenty of room to make over six figures. Even a Human Resource representative working for a tech company can pocket over $110,000 per year with additional benefits and compensation.

All this to say that, you have to move where the money is. This also doesn’t mean that blue-collar work is dead. You can make over $60,000 per year in starting salary. There are graphic designers pulling $58,825 per year even in the shadow of AI. If you want to increase your income, you have to mix and match along the way.

Big warning. In the end, no matter how much you make, you still have to manage it. Financial literacy ends up being one of the most lucrative subject matters that you can’t afford to avoid. Check out how my wife and I are managing our income (below). We are definitely doing more with every dollar earned.

About Author