As you progress in your career and continue saving for retirement, you will most likely face two challenges: First of all, inflation causes your living expenses to rise a little bit each year. Second, you may find it difficult to save enough for retirement as more of your money goes toward food, gas, college savings, and so on.
A logical solution to this problem is to earn more money. But obviously, there are only so many hours in the day, and who wants to take on a second job? Your best bet is to find a way to make more money in your current career. If you don't want to leave your job for a better one, you may have to learn how to ask your boss for a raise.
Timing is everything. In most industries, you can't expect a raise more often than once per year. So make sure your request is reasonable. If it is, take advantage of your work anniversary or an evaluation period. Keep in mind that the budget for raises may be decided several months before evaluations happen, so talk to your boss ahead of time to make sure you get a bigger slice of the pie.
Be straightforward. Start by reminding your boss that your skill level has improved and you have taken on increased responsibility in the company. Remember to mention any important accomplishments over the previous year.
Be realistic. Do some research so that you know how much money your company typically spends on raises each year. Also seek to discover what other companies pay employees of your skill level in the same position.
Gamble intelligently. With some managers, it might be smart to ask for a higher amount than you actually expect, knowing that a compromise is inevitable. With others, this might come off as a ridiculous or unrealistic expectation that does more harm to the conversation than good. Knowing your manager's personality and approach to business is key to deciding between these two options. A third option is not to mention a specific figure at all, and see what your boss offers you.
Don't make threats. Threatening to leave the company if you don't receive the salary you want can actually backfire. It makes you look disloyal and does not promote a team player image of your personality. Focus on your worth instead.
Once you receive that raise, remember not to spend all of it on lifestyle upgrades. Divert a portion of your raise into your retirement account. You won't miss the money, and you will thank yourself later.
14114 – 2015/2/13
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