Building your finances is continuous. As you work your way by cutting expenses, you look at different ways you can increase your income. It becomes fun, as you realize that you have more control that you thought with money. Take for instance your job. Some people feel like they are stuck, waiting to get a raise. You, though, have started to develop the confidence to reach for more. You decide you want to increase your net worth and a raise may be the way to go. How do you know if you’re getting paid fairly for your work? When you should you consider looking at other opportunities? Is there some net income calculator that can spit out a definitive answer?
There are ways to figure out for yourself if you should ask for a raise or seek more compensation at another company.
Look at Net Income and Work From There
After taxes, health insurance, retirement, and other expenses are taken out, see what your monthly net pay is for your job. It may not be enough and you may be tempted to hurt yourself in the long term by cutting out some necessary expenses.
For example, some people pass on health insurance or 401(k) participation that their job offer because their net pay after taxes is too low to cover their monthly budget. Instead you should think about being at a job where you can cover your bills and have something set aside for your health and retirement.
Compare Your Salary
Don’t just wonder if you’re making about average for your position. Find out by using resources such as Payscale.com. It’s a handy tool that allows you to research what others are getting paid for similar positions. You can narrow it and see average salaries based on location, education, and type of company. Taking the guesswork out, helps you evaluate your salary more objectively.
Look at Other Companies
Once you discovered what average pay is for your industry and position, it’s time to see how other employees like (or dislike their job). It may not be worth the extra pay to be stress out and overworked. One site I recommend for looking around is Glassdoors.com. Besides giving salaries for certain jobs, you can also get inside reviews from people who work or have worked at these companies.
If you decide that moving to another company is not for you, then review some tips on getting a promotion. It can help boost your confidence as you take a more active role with your finances.
Thoughts on Evaluating Salary
How did you know when it was time to ask for a raise? When did you realize it was better to move on? What tools did you use?