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Helping You Live Richer

by Experts

Millions of Readers

If the cost of living is putting a pinch in your wallet and you’re waiting for the day that you get a raise to afford a bigger life, that’s just not realistic, financial experts say.

Raises are not guaranteed in many jobs, for one, but a raise is also not the best way to grow your wealth. Experts explained what you should do instead.

To grow your wealth, you need to first understand what you already have, according to Christopher Stroup, CFP and owner of Silicon Beach Financial. “Don’t wait for more income to start managing what you already earn. Track your cash flow, automate savings and reallocate spending toward your highest values,” he said.

He suggested that a well-structured financial plan creates a margin so when a raise does come, it accelerates progress instead of plugging holes.

Instead of waiting for your employer to close the gap, ask “What can I control now?” Stroup suggested.

“Tax strategies, side income and intentional debt management often offer quicker wins than waiting for a raise that may not come,” he said. Think of these as “levers” that create breathing room and “optionality,” even when costs are high.

If you do want to position yourself for a possible raise, Stroup suggested you do more than “just” your job, but also “quantify your impact.” This means translating results into revenue or savings for your company, and documenting everything you do so you can prove that.

“When it’s time for performance reviews, make your value impossible to ignore. Want a raise? Build a case as compelling as a startup pitch deck.”

Raises rarely change your life unless your habits change too, Stroup warned. If you inflate your lifestyle every time your paycheck grows, you’ll stay stuck.

“Instead, lock in the raise by automating extra income toward goals like debt reduction, investing or future business funding before it hits your checking account.”

Unfortunately, it’s no secret that the cost of living is on the rise, said Cynthia Campos Delgado, founder and financial advisor at Campos Wealth Management. But waiting around to see if you get a raise is a losing proposal.

“Figure out how to make yourself more valuable in your field now,” she urged. Whether that’s getting a certification, broadening your skill set or utilizing a hobby to become a part-time gig, “All of these can help increase your income and protect you from the rising cost of living.”

Also, a lot of people wait for a raise when they’re living in debt, which is a surefire way to not keep up with the cost of living.

“You need to consider whether your debt or income will actually be holding you back when the cost of living creeps up higher,” Delgado said. “Once you figure it out, you need to tweak your financial position. Reduce, eliminate and redirect your expenses.”

Another way people waste money while waiting for a magic raise to solve things is by spending in a way that doesn’t accord with your values.

Melissa Murphy Pavone, CFP and founder of Mindful Financial Partners, encourages people to take a step back and ask,“Are my financial choices aligned with my values?”

“Small, intentional shifts like tracking your spending, setting boundaries around lifestyle creep or renegotiating recurring expenses can have a big impact, even without more income,” she said.

While taking the necessary steps to position yourself for a raise are important, Pavone stressed, “don’t hinge your peace of mind on someone else’s timeline.”