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Rianka R. Dorsainvil, CFP
Published on July 29, 2022

How To Grow Your Income To Beat Inflation In 2022

Whether or not we’re going into a recession is still in question, but that doesn’t negate the fact that we’re all feeling the pinch of inflation. Many Americans who do not have a robust cash reserves may be wondering how to make ends meet as the cost of living continues to rise. 

While reviewing your budget is a good idea, it may not be the only answer. Sometimes, you simply need to increase your income to avoid living from check to check. Even if you’re in a comfortable place financially, it’s never a bad idea to put yourself in a position to earn more. Here are a few ways to get ahead of the curve and increase your earnings in the midst of rising inflation. 

Develop In-Demand Skills 

As the world continues to evolve, some skills are becoming more valuable than others. Glassdoor conducted a 2022 survey to find out the most recurring skill requirements in job posts on their site. As you can imagine, in a tech-forward world, technical skills are hot in the market. Not to worry if tech isn’t your thing, management-related skills are also in demand.

Here are a few high demand skills you could consider working to develop: 

  • Project management 
  • Account management 
  • Business planning
  • Contract administration 
  • Statistical modeling 
  • Usability testing 
  • Machine learning 

Work Towards a Pay Rise 

Changing jobs for higher pay isn’t always the best option, especially if you enjoy your workplace. In previous years, the average pay rise was around 3%, but 2022 saw an increase of 4.8% according to a survey conducted by compensation consulting firm Pearl Meyer. With a shortage in the labor market and companies desperate to retain top talent, some employers are more willing to go the extra mile. 

Do some digging to find out what the protocol is at your place of employment when it comes to pay rises. Have a figure in mind in terms of how much you’re going to ask for and do your market research beforehand.  

Prepare for your discussion and include tangible results—examples include how you’ve added value to the company or how you’ve increased revenue. Once you’ve developed a strong position, start the discussion about higher pay. The worst that will happen is that your employer says no, and the best thing that could happen is that they say yes. 

What if you don’t have a solid stance for a payrise? Speak to your manager about your development areas and what you need to improve the odds of getting paid more. You can then develop a strategy for working towards achieving your plan. 

Monetize Your Knowledge 

Sometimes, we undermine our own expertise and don’t realize our knowledge may be valuable to others. Keep in mind that someone is aspiring to be where you are now, which means you have knowledge that could potentially be monetized. Whether you’re a marketing genius, creative powerhouse, or an accounting whiz, think about how to deliver the knowledge to people who need it. Some ideas include offering consulting services to businesses or individuals. According to Indeed, the average base salary of a freelance consultant in the U.S. is $42.21 per hour. Other ways to monetize your knowledge include providing one-to-one coaching for people who want to develop the skills you have or creating a course people can buy and learn from. 

Consider Switching Industries 

If you’ve been itching to change industries or try something new, now could be a good time. Some industries pay more than others, so not only could you end up giving yourself a new challenge, you may also take home more money in the process. The U.S. Bureau of Labor statistics says some of the jobs with the highest median annual pay in 2021 were: 

  • Family medical physicians, anesthesiologist, orthodontists, psychiatrist: $208,000
  • Chief executives: $179,520
  • Computer and information systems managers: $159,010
  • Architectural and engineering managers: $152,350
  • Judges and hearing officers: $145,840

Get a Certification From a Community College 

A certification can help you improve your pay on your current path or aid you if you decide pivoting is a better move. Consider cutting costs by attending a community college so you level up with less debt. Depending on the type of certification you receive, you could save thousands of dollars by getting certified at your community college versus a university or more expensive institution.

Inflation does not have to leave you financially defeated, especially if you’re intentional about taking control of your finances. Think of creative and practical ways to create another stream of income whether it’s one of the suggestions above or an idea you come up with on your own.

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About Rianka R. Dorsainvil
Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.

As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.

Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.