$10k Challenge: Ask for a Raise

I'm on a quest to raise an additional $10k this year in income -- extra income outside my regular job. The numbers I ran show that making this amount and socking it away year after year can yield quite a sizeable next egg.

I've already suggested ways I'm working on this $10k including turning a hobby into an income, making money with credit cards and selling stuff you own. Today's suggested idea for those of you playing along: ask for a raise.

I've discussed this idea several times before (see How to Ask for a Raise and the links at the bottom of it for details), so I won't cover those details again. But I did want to bring up the topic again since it's a great way to earn extra income. Just consider the numbers: if you earn $40,000 a year and can get a 5% raise one-time, that's $2,000. And not only is that $2,000 you'll have this year, but it's an extra $2,000 you'll have year after year after year. That can go a long way to helping you earn $10,000 every year and becoming rich as a result!

Now let's say you make $75,000 a year. An extra 5% is looking real good at this level.

So think about asking for a raise this year. If you deserve it and if it's done in the right way, this can be some (relatively) easy money.

Comments

[Matt]

Better yet, switch jobs. 5% is optimistic at best for most employees who stay with their current employers, but downright puny compared to the salary increases that are available to people who change jobs.

I've never in my life failed to get at least a $5000/yr bump from one position to the next. A couple of times I've done way way better than that. But raises within a given job seldom do meaningfully more than keep pace with inflation...if they do that.

[Lazy Man and Money]

Excellent advice, but does this count as "extra income outside my regular job."

Also would you factor in inflation in your job raise. I figure if I don't get at least a 3.5-4% raise each year, I'm losing money. Thus getting a 5% raise would be only be about 1% towards my $10,000 goal with my bookkeeping. Depends on how you are counting things, I guess.

With switching jobs, keep in mind that there are other factors to consider. For example, are you 100% vested in the retirement plan/401k? Do you have pending stock options that would become ineligible when employment is terminated? There are other factors as well including health benefits, employer paid insurance, length of commute, etc.

[Brian]

Funny you should mention this. I just asked and received an extra 2500 a year. It only took 2 e-mails.

[her every cent counts]

Yea, I wish it were that easy. In these tough economic times, my company doesn't have the money to give out raises.

I agree that switching jobs is the best way to get a real "raise" if you're looking for extra cash. Either that or a major promotion within your company to a new role that gets paid better.

For me, I'm sticking it out for the experience and then will hopefully be able to get a better paying job.

[BS]

God! I want a raise so bad. I started with X amount 2 years ago. 2nd year got a 5000 dollar raise and recently they decided to do a 10% pay cutt. Now I'm back to where I started 2 years ago. They told us, it is going to be just for a few months but I'm debating if I should stick it out or go to a different company

[Financial Samurai]

I don't care, I'm asking for a large raise this year. Last year was so bad, that this year will hopefully make up for it.