Three Ways to Fatten Your Paycheck

It's easy to find budgeting advice, including all those stories that imply skipping your daily latte -- and putting that $3 a day into your 401(k) -- will put you on the road to millions. And in truth, budgeting is a good idea. But what if you're brown-bagging your lunch, drinking that sludgy office coffee and investing every penny you can, but still not making sufficient progress toward your financial goals?

In that case, you need to find a way to make more money. That can be tricky these days; in fact, right now most Americans are making less money than they did back in 2000. Since then, real, or inflation-adjusted, household income has declined by 2%, according to the U.S. Census Bureau.

Don't despair. Via a three-part series, we'll look at three ways to give your income a boost.

The first approach is the most obvious: Increase your take-home pay. There are three ways to do that. Get a raise (perhaps accompanied by a promotion), move to a new employer or change careers.

Get a Raise
"Prove to your employer that the firm can't afford not to give you a pay hike," says Patti Wilson, founder of Monte Sereno, Calif.-based Career Company. "Clearly define your contribution to the organization. Why is it worth the company's while to keep you and help you grow?"

Be prepared to show exactly how your responsibilities have grown. Robin Ryan, a Seattle career counselor and author of 60 Seconds & You're Hired, recommends comparing your original job description with your current duties. "Get it all down on a piece of paper," she suggests. "Employers need to see that kind of evidence."

The evidence can also help you land a promotion, which should increase your salary. Identify the job you want, then be prepared to show that you understand what it will require of you, and that you have the experience to do the job well. As a starting point, volunteer to assume some of the duties that the new position requires, whether that's interviewing job candidates or supervising a project.

At some point, you'll probably need to come out and ask outright for the raise or the promotion. Before you schedule that meeting with the boss, make sure you know what you're worth. Check websites such as Salary.com, Jobstar.org, professional associations and networking groups to see what the going rate is for your position or for the one you're after.

When the time comes to ask for a raise -- ideally, after you've accomplished something important -- bring all your evidence to the table and make the best case possible.

Move to a New Employer
According to Ryan, the biggest salary jumps -- 20% to 30% -- always come with a change of companies, because a new hire has more leverage than an employee. So look at your own skills and accomplishments and determine where they'd be most valuable. Consider competitors and related industries, as well as different industries where your skills may transfer. Research potential jobs and their salaries online or at the library, using sites such as careerbuilder.com or jobstar.org, and then talk with two or three people who actually work for the company or do a similar job.

Once you have some interviews lined up, prepare thoroughly. Ryan recommends rehearsing a 60-second "sell" based on your top-five selling points. Combine your background, accomplishments and skills into a verbal business card that's a handy answer to many typical interview questions. For example, you might mention your years in the field, your computer expertise, unique skills and specific accomplishments, as well as the revenue you'll generate.

Once you've gotten a job offer, look for ways to boost it. Know what you should be paid in the marketplace, never tell them what you're currently making and always ask for at least a bit more than they offer. "It can be as simple as saying, 'I was expecting the offer to be a little higher than that,'" Ryan explains.

Change Careers Entirely
A total career change often involves an initial pay cut, according to Wilson. "People come to me and say they want to make more money," she says. "But a career change is more than that. It's got to be a passion. If you follow that passion, you'll grow in that new career and your paycheck will grow, too."

If you're thinking about a major switch, research the companies or fields that you're considering. As with a job search, look at sites such as jobstar.org and careerbuilder.com for industry guides that may answer your questions: Is this field growing? Can it be lucrative? What training or credentials do you need? What are the key skills? Then network. Talk to people in the field about the reality of their jobs, challenges and career paths.

If you find an opportunity that fits you, look for ways to make the move a transition rather than starting over. For example, if you have management, software or sales skills in one industry, you can likely use them to land a well-paying job in another field.