Paycheck Not Keeping Up? 4 Ways To Get Ahead as Costs Keep Rising
Working harder isn't translating into greater financial security for many Americans.
A recent MyPerfectResume survey found that 62% of workers say extra effort at work has led to little or no financial progress, while 80% report at least one affordability challenge. When raises fail to keep pace with rising costs, it's important to look beyond your primary paycheck for ways to improve your financial situation. Here's how to break the cycle and get ahead if your income isn't cutting it.
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Ask For the Pay You Deserve
The survey found that 4 in 10 workers (40%) are feeling underpaid at work and say their income doesn’t reflect their education, skills and experience. In these cases, it's worth making a case for why you should get a raise, and if your employer isn't receptive, consider looking for a new job that will pay you what you are worth.
Monetize Skills You Already Have
Depending on your skill set, you may be able to utilize the knowledge and ability you currently have to earn more money outside of your 9-to-5.
"That could be [through] freelance or consulting work, tutoring, teaching or project-based work related to your experience," said Dr. Jasmine Escalera, career expert at MyPerfectResume. "You don't necessarily need to build an entirely new skill set to earn more outside of your primary role. You may already know something someone else is willing to pay for."
Choose a Side Hustle That Fits Your Schedule
You can also take on a second job or side hustle that has nothing to do with your regular job. This is becoming increasingly common, with 29% of U.S. workers saying they have taken on a second job or side hustle to keep up financially.
"However, workers should be thoughtful about the type of additional work they take on," Escalera said. "If you’re already working full time, you don't want your secondary income to come at the expense of your well-being or make it harder to perform in your primary role."
According to a separate MyPerfectResume survey, 21% of workers who took on secondary work reported a decline in their health, 20% said they had less time for family or hobbies, and 15% suffered increased burnout.
"Looking for a second job or side hustle that gives you more control over your schedule may make it easier to manage with your primary job," Escalera said.
Find Hidden Room in Your Budget
Escalera said that it's also worth taking a fresh look at where your money is going.
"This doesn't mean assuming that struggling financially simply means you have to spend less," she said. "According to [the report], workers face affordability challenges with everyday necessities, so there may be a limit to what someone can realistically cut. But reviewing expenses can help you see where you can create additional breathing room."
Doing an audit of where your money actually goes can help you spot categories where you may be overspending, such as groceries, utilities or subscriptions.
While many Americans can't simply budget their way out of rising living costs, combining income growth strategies with smarter spending decisions can help create the financial breathing room needed to move ahead.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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