Last updated on August 9, 2023
Your career plays a major role when it comes to achieving financial success.
It can have a huge impact on your income, your ability to save and invest, and your overall financial well-being.
And this is why it’s important to carefully choose your career goals while making smart financial decisions along the way.
In this guide, I’ll:
- Explore the key factors to consider when choosing a career
- Provide tips for increasing your chances when negotiating a higher salary
- Discuss strategies for saving and investing for your future
- Examine the importance of balancing financial and personal priorities
- And cover a range of other topics to help you succeed in your career and manage your finances
By the end of this guide, you’ll have the knowledge and tools you need to take control of your financial future.
So that you can pursue a career that excites you (and pays well too).
Let’s get started.
What you'll learn:
⓵ Choose the right career
❖ Align your skills with your career
When it comes to choosing a career, you should first consider your skills, interests, and values. Think about what you’re naturally good at and what excites you.
Because if you don’t like what you’re doing then (guess what?) you’ll end up quitting. So, it’s important to consider your long-term goals and values.
Do you want to make a difference in the world?
Do you want to work in a particular industry or location?
Take some time to answer these honestly. It’ll save you time (and money) down the line.
❖ Do your own research
Once you have a clear sense of your strengths, interests, and goals, it’s time to start researching career options.
There are many resources (depending on where you live) available to help you explore different jobs and industries. Options include career websites (like LinkedIn and Glassdoor), job boards, and professional associations.
Also, you can sit with a friend, family member, and professionals in your chosen field to get a sense of a particular career. First-hand experience is crucial and will help you make the right decision. Be careful to include opinions from several people before making a decision to avoid getting misled.
❖ Choose a career that suits your financial goals
When researching career options, it’s also important to consider salary potential. While money isn’t everything, it’s an important factor to consider when choosing a career.
You can use online salary calculators and salary surveys to understand the average pay for different jobs in your area. Keep in mind that salary can vary based on factors such as experience, education, and location.
For example, someone in the US might receive a different salary than someone doing exactly the same job in the EU. Sometimes, it’s not just about the gross pay, you see, taxes and other benefits come into play too.
❖ Consider additional training
Education and training can also help you advance your career even further. While it’s not always necessary to have a college degree to succeed in a particular field, some careers require specific educational or training requirements.
Consider the long-term financial benefits of investing in your education. And the personal fulfillment you may derive from learning new skills and advancing in your field too.
And yes, experience is much more important nowadays so if you learn a new skill try to apply it (even without getting paid) so that you can improve your cv.
❖ Not all industries are created equal
It’s also worth considering the potential for career advancement and job security in your chosen field.
While no career is completely immune to the risks of unemployment or downsizing (as we’ve seen recently), some industries and occupations are more stable. And offer more opportunities for advancement than others.
☞ All in all, the key to finding a career that pays well — and makes you happy at the same time — is to match your strengths, interests, and values with the needs and opportunities of the job market.
☞ It may take some trial and error to find the right fit. But by staying consistent and proactive you can seek out new opportunities. And thus, increase your chances of finding a career that you want to keep.
⓶ Negotiate a higher salary
Once you have landed a job, it’s important to think about your long-term financial goals. And how your salary can support them.
While it’s natural to want to negotiate a higher salary, it’s also important to be realistic and understand your worth in the job market. And to do that you need to be prepared.
❖ Be prepared
To prepare for salary negotiations, it’s important to do your research. Look up salary ranges for your industry and location and consider your level of experience and education. You can use this information to build a strong case for a higher salary.
❖ Be professional and respectful
When negotiating, it’s important to be professional and respectful. Instead of simply stating that you want more money, try to focus on the value you bring to the table.
And how your skills and experience make you an asset by increasing revenue or cutting costs. You can also discuss your long-term goals and how a higher salary would help you achieve them.
❖ Ask for more responsibilities
Don’t be afraid to ask for more responsibilities before asking for a raise though. This can prove your worth and make your increase in pay down the road much easier.
❖ Know your number
It’s also a good idea to have a specific number in mind when negotiating. Have a range in mind, with a target salary that you would be happy with and a minimum that you are willing to accept. This will help you stay focused and avoid getting caught up in the negotiation process.
❖ If you fail, try again
Keep in mind that salary negotiations are not always successful. Even if you don’t get the salary you want, try to stay positive and focus on the other benefits of the job. Remember: you can always negotiate for a higher salary in the future, or look for other opportunities that may offer better pay.
☞ At the end of the day, it’s up to you to decide if you want to keep your current job or not. If your current boss thinks you are not worth much more than what you already make then it might be time to seek other opportunities.
⓷ Save and invest for your future
Earning a good salary is not enough. You need to think about your long-term financial future and how you can save and invest to reach your goals (whatever those may be). No matter what stage of your career you are in, it’s never too early to start planning for retirement and other financial goals.
❖ Take advantage of employer plans
One of the best ways to save for your future is to take advantage of any employer-sponsored retirement plan such as a 401(k) or a pension (if they offer one). Some companies offer matching contributions, which can significantly boost your savings.
Even if your employer doesn’t offer a retirement plan, there are other options available, such as individual retirement accounts (IRAs) and other investment vehicles.
❖ Build your emergency fund
Also, it’s important to have an emergency fund to cover unexpected expenses. Aim to save enough money to cover at least six months’ worth (ideally 12) of living expenses, in case of a job loss, medical emergency, or anything else that will take you off your budget.
❖ Ask for help if needed
As you save and invest for your future, it’s important to consider your risk tolerance and investment goals. Some people are comfortable with taking on more risk in exchange for potentially higher returns, while others prefer a more conservative approach.
☞ It’s a good idea to learn how to do it yourself or consult with a financial advisor to help you make informed decisions. But never take any investment lightly as you risk losing your hard-earned money.
⓸ Balance financial and personal priorities
While it’s important to focus on advancing your career and earning a higher income, it’s also important to find time for doing the things you love outside your 9-5.
Work-life balance is important too. Some think that sacrificing your personal life to achieve financial success is ok. But it’s not. And you should never risk your health or skip family time. Life is so much more than our work.
There are many ways to achieve financial stability without sacrificing your personal goals and values.
For example, you might choose to work part-time or pursue a side hustle in order to have more time for personal pursuits. You might also consider scaling back your expenses or finding ways to earn more money in order to have more flexibility in your career.
☞ It’s important to remember that there is no one-size-fits-all approach to balancing financial and personal priorities. What works for one person may not work for another. The key is to find a balance that works for you and your exact needs.
⓹ Follow your passion
This one is easier said than done. But if you want to pursue a financially rewarding and fulfilling career, then you have to do what you love.
Because what you love doing is what you do best. you get the motivation to keep doing it even when things go sour. This keeps you sharp and always willing to improve your skills so that you can advance even further.
Some might argue that when one does what they love, they end up working longer hours and thus, sacrificing their personal life.
However, this should never be the case. even if you want to work extra hours because you really enjoy doing your job, you shouldn’t let it take so much time out of your life to miss family time.
☞ And remember: work-life balance is of great importance. So, you need to set time aside for personal goals and relationships outside of work.
☞ And finding a job that allows you to have a healthy balance should be your main goal (when it comes to your career) as this can be essential to your overall well-being.
⓺ Bonus tip
Another important consideration (that is usually left behind) is your health. Your physical and mental health can have a major impact on your ability to work and earn a living. Because if you can’t go to work you won’t be able to have earned income.
Take care of yourself by exercising, eating well, and getting regular check-ups (once a year is optimal). You may also want to consider purchasing a health insurance policy to protect yourself and your family in case of unexpected medical expenses.
Last but not least, it’s important to stay up-to-date with industry trends and continue learning and growing in your career. lifelong learning can help you stay competitive and increase your chances of career advancement.
And never be afraid to take on additional responsibilities or seek out professional development opportunities to enhance your skills and knowledge.
How to advance your career: 14 FAQ
❖ What is the best way to save money?
There are many ways to save money, but some effective strategies include setting a budget, reducing expenses, and investing in assets that generate passive income (if you can afford it).
❖ How can I make more money?
There are several ways to make more money, including:
1) Asking for a raise at your current job
2) Negotiating a higher salary when starting a new job
3) Starting a side hustle or a freelance business
4) Investing in assets that generate a passive income (depending on your skills and risk appetite)
❖ How can I build wealth?
Building wealth requires a long-term financial strategy that involves saving and investing in assets that generate passive income.
This can include things like stocks, real estate, or businesses. It’s also important to have a strong financial foundation by understanding how to manage money, avoid debt, and create a budget.
❖ How can I change careers?
Before trying to change your career, make sure to research and explore different options. This will help you find a career that aligns with your interests and skills.
You may need to gain additional education or training to qualify for certain roles, and it can be helpful to network and build connections in your desired industry too.
❖ How can I achieve financial independence?
Financial independence means having enough passive income or savings to cover your living expenses without relying on traditional employment.
To achieve financial independence, it’s important to save and invest wisely, reduce expenses, and potentially create multiple streams of income through investments or side hustles.
All this requires building a strong financial foundation and creating a plan for long-term financial stability first.
❖ How can I make more money in my current job or career?
To make more money in your current job or career, you can try to negotiate a higher salary or raise, or you can seek out additional responsibilities or opportunities for advancement within your company.
You can also take additional education and training to increase your value (to your current employer or to the job market in general).
❖ How can I find a better-paying job or career?
To find a job or career that pays better, you can research industries and companies that tend to offer higher salaries and consider specializing in a field that is in high demand.
You can also relocate to areas with a higher cost of living, where salaries tend to be higher. Or take a remote job while living in a less expensive city.
Networking and building relationships within your industry can also be helpful in finding better-paying job opportunities.
❖ How can I negotiate a higher salary or raise?
To negotiate a higher salary or raise, you need to know the average pay for your position and come prepared with specific examples of your accomplishments and the value you bring to the table.
Consider other forms of compensation too. Such as additional vacation days or benefits, working from home, health insurance, etc.
❖ How can I balance financial success with job satisfaction and work-life balance?
Finding a balance between financial success and job satisfaction can be a challenge, but it is possible with some planning and self-reflection.
Always get your priorities straight and make sure you are pursuing opportunities that align with your values and goals.
Never forget to set boundaries and make time for activities outside of your 9-5 that bring you joy and fulfillment.
❖ How can I invest my money to grow my wealth?
There are many ways to invest your money to grow your wealth, including stocks, bonds, mutual funds, real estate, and businesses.
It is important to do your research and consider the level of risk you are comfortable with before making any investment decisions.
Seeking the advice of a financial advisor or professional can also be helpful if you don’t want to invest the time to learn how to do it yourself.
❖ How can I make a career change without sacrificing my financial stability?
Making a career change can be a difficult decision. But it is possible to do so without sacrificing your financial stability.
Researching the earning potential and job prospects in your desired field can help you determine if a career change is feasible from a financial standpoint.
You can start by looking at salary data for your desired role or industry, as well as the job market in your area.
You may also want to consider the potential for advancement and long-term earning potential in your new field.
If you do decide to make a career change, there are steps you can take to minimize the risk. One option is to start your new career on a part-time or freelance basis while continuing to work in your current job.
This can allow you to build experience and income in your new field while still having a steady stream of income from your current job.
Another option is to save up a financial cushion before making the switch so that you can weather any dificcult times while you’re getting established in your new career.
❖ How can I plan for retirement and financial security in the future?
Planning for retirement and financial security in the future is important for everyone, regardless of their career path.
One key step is to start saving for retirement as early as possible, either through an employer-sponsored 401(k) plan or an individual retirement account (IRA).
The earlier you start saving, the more time your money has to grow, and the less you’ll need to save each month to reach your goals.
Always weight the risk and reward in all your investments and consider your risk apetite before investing any amount of your hard-earned cash.
❖ How can I reduce my debt and increase my savings?
Reducing debt and increasing savings can be challenging, but it’s an important step in achieving financial stability. One strategy is to focus on paying off high-interest debt first, such as credit card balances.
You can also try to negotiate lower interest rates on your debts or consider consolidating. To reduce debt and increase savings, you can start by creating a budget and identifying areas where you can cut expenses.
Find ways to save on fixed expenses, such as negotiating a lower rate on your mortgage or refinancing high-interest debt. You may also consider reducing or eliminating discretionary expenses, such as dining out too often or subscription services like Netflix, etc.
In addition, you can focus on increasing your income, either through negotiating a raise or finding starting a side hustle.
❖ How can I manage my personal finances and budget my money?
To better manage your personal finances and budget your money, you should track your spending and create a budget. This can help you understand where your money is going and identify areas where you can cut expenses.
You can also automate your savings by setting up automatic transfers from your checking to your savings account or investing in a retirement account. It is also a good idea to regularly review your budget and adjust it as needed based on changes in your income or expenses.
You may also consider seeking the advice of a financial professional, such as a financial planner or advisor, to help you develop a financial plan based on your exact needs.
By following the tips explained in this guide, you can increase your chances of finding a career that meets your needs (both financially and emotionally).
Remember to align your strengths, interests, and values with the needs of the job market, negotiate a fair salary, save and invest for your future, and find a balance between your financial and personal priorities.
With hard work and dedication, you can advance your career, increase your earned income, and achieve your financial goals. But it takes time. So be patient.