How to Increase Your Income

When looking for ways to build their wealth, many people focus primarily on saving money. But it is often worth taking a look at your income as well. While savings potential is always limited, there are no fixed limits on how much income you can earn – at least in theory.

In this guide, moneyland.ch lists different methods for raising the amount of money you earn.

Negotiate your salary

Do you ever feel like you are not being paid enough? If you have not yet received a raise after years of working for the same employer, then you have a reasonably good chance of getting a raise. But because salary increases are not automatic, you will usually have to take the first step.

In order to come to the negotiating table prepared, you should first research the market salaries currently being offered for people with your job-role and qualifications. The Swiss federal government and a number of other service providers have salary calculators that you can use to compare average salaries for your role and industry sector.

You should present your case with confidence, listing the reasons why – from your point of view – you are worth more than your current salary. Clearly list your successes and the value you bring to the company. In every case, it is important that your claim to a higher salary is well grounded, as having unrealistic expectations is counterproductive. 

Increase your work hours

If you are able to devote more time to work more than you currently do, then increasing your work hours is an obvious way to increase your income. Check whether your employer is willing to increase your work hours and increase your salary to match. An increase in work hours and salary will also positively impact your pension fund. Pay attention to the maximum work hours as defined by Swiss labor laws.

Change employers

In addition to contributing to your personal development and opening new doors, changing employers also often pays off financially. In many cases, changing jobs is the easiest way to substantially increase your salary. The reason: In many companies, your salary tends to stagnate rather than keep up with the market. But employers looking for new employees have to offer salaries that are competitive in the current market, and those may be much higher than your current pay.

It is important to understand, though, that whether or not you can increase your income by changing jobs depends a lot on your specific situation. If you are looking for work after being laid off, your negotiating position may be weaker than it would be if you changed jobs of your own accord.

Current demand for your specific skills also plays a role. The more employers need people with your qualifications at a given point in time, the more money you can expect to get. But if, on the other hand, the employment market is glutted with jobseekers with your skills set, your chances of upping your income by changing jobs will be small.

Other factors that play a role in determining your salary include your age, your industry sector, and the region in which you live and work.

Expand your skills set

Some people mistakenly believe that education ends after completing an apprenticeship or getting a degree. But adding to your education can often result in career upgrades. Continuing education can, for example, help you get better positions within your current company or industry sector. It can also open up entirely new career paths, such as a move to a different profession. In many cases, the better qualified you are, the more you can expect to be paid.

Continuing education is offered by numerous companies and educational institutions, both in person and online. While courses often cost money, many employers contribute towards these costs, or offer their own courses for employees. A good first step is to find out whether your employer offers opportunities for continuing education. 

Not all continuing education costs money. Massive Open Online Courses (MOOCs), for example, provide a way to increase your skills set almost free of charge. Typically, you pay a small fee for the certificate of completion. You can find detailed information in the guide to Swiss MOOCs. 

Get a side job

Getting a side job is a relatively easy way to earn extra income. There are many part-time jobs that can be done in the evening or on Saturdays. Working on the side on a self-employed basis is another way to earn supplemental income. For example, if you have a good working knowledge of programming, you can turn that knowledge into income by finding customers who need work done. There are also many side jobs you can do that do not require special skills. You can get some ideas in the guide to earning extra money on the side.

Important: Taking on side jobs is only worth it if they do not interfere with your main employment.

Build up passive income

Earning income on the side without having to work for it may sound like a fantasy, but it is a reality for many. Passive income is income that you earn regardless of whether or not you work. Examples include the interest you earn on bank account balances, dividends you receive from shares you own, and rent you earn from renting out property you own.

In reality, earning a substantial amount of income on a passive basis is only possible if you are very wealthy. Assuming a dividend rate of 3 percent, you would need to have 2.4 million francs worth of stocks to receive a passive income of 80,000 francs per year. Investing in real estate also requires a large amount of capital.

But do not let that put you off, because building up even a small passive income will still improve your overall earnings. Over time, you will become less dependant on salaries for your income. Important: If building your wealth is more important to you than earning income, then it is advisable to reinvest dividends and interest rather than using them for income.

Sell things you no longer need

Do you own stuff that you no longer need? If so, then selling your unneeded goods is another way to earn extra income. You can sell second-hand items on platforms like Ricardo and Tutti, or at flea markets. In addition to earning extra income, selling unwanted items also helps to free up space.

More on this topic:
Extra money in Switzerland: Ideas for side gigs
Simple habits to help you build wealth
How to get rich