How To Boost Your Salary From $60K to $100K in 5 Years or Less

Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Are you ready for a major salary upgrade? Let’s say that right now you’re earning $60,000 per year, but you’re committed to scoring a 67% pay increase in five years or less.
According to a recent GOBankingRates survey, 10.72% of people earn $50,000-$60,000 per year. About half that, 5.68% of people earn $60,000-$70,000 per year.
So, earning $40,000 per year more is a big deal. Whether you’re looking to pay off debt, save more money or upgrade your standard of living, there’s no shortage of things you can do with that kind of cash.
Obviously, you’re going to have to hustle to score a pay increase of this magnitude, but you may need a little help creating a roadmap to get there. Here are the steps you need to take to start earning the six-figure paycheck you want.
Look for a New Job Externally
“The key thing to remember is one of the best ways to not only increase your salary, but also to do it quickly, is to pursue external job opportunities,” said Vicki Salemi, career expert at Monster.
According to a recent Monster poll, 85% of respondents said their annual salary increase was less than 6%. Another 55% of respondents said they haven’t even had a raise in the past year.
If this sounds familiar, it might be necessary to leave your current employer to get a significant salary boost. For example, if you’re able to get a 20% pay raise at a new job, you’ll then be earning $72,000 per year, she noted.
If you’re afraid to get a new job, because this will mean you’ve had two employers within five years, she said there’s less of a stigma attached to that than in the past.
“They aren’t surprised if you have multiple employers every few years,” she said. “I would just be cognizant about not having, say, four employers within five years and moving around every few months –such as less than a year here, less than a year there, etc.,” she said.
Do Your Best Work
Danielle Sabrina, founder and CEO of public relations firm Society22, said you’ll need to make a great impression to work your way up to the salary you want.
“Significant boosts to your salary in a current role must be directly tied to measurable transformation that unlocks additional revenue, growth opportunity or savings for your company,” she said. “Present your employer a strategic road map of how you plan on transforming your position and specific initiatives you will accomplish with measurable goals that you will reach by certain days.”
If you’re able to achieve this, it will pay off. “Each milestone you reach will demonstrate to your employer that you’re a superstar player and key architect of the company’s future,” Sabrina said.
To score a $40,000 salary increase over a five-year period, Salemi agreed that you’ll need to put your best self forward. If you’re able to get a 5% annual pay increase over a two-year time span, she noted that you’ll be up to $72,000 the first year at your new company and $82,530 the second year.
“Be a diligent worker, a team player, acquire new skills and contacts in each role,” she said. “Remember if you’re stagnant, your skills may get stale and your salary may remain flat or have slow, small increases.”
She said to ask your boss if it’s possible to earn a performance-based bonus. “[Ask] whether they’re individual or team-based at year-end or throughout the year,” she said. “While you’re doing this, look for a new job externally.”
Know Your Worth
Before searching for a new job, you’ll need a realistic target range for a new salary.
“Research externally by asking former colleagues, a former boss or two, people in your network essentially and the local chapter of the national professional organization within your industry what someone with your skills [and/or] experiences and location would earn if they were to hire you,” Salemi said.
Of course, to keep up with your timeline of reaching a $100,000 salary over a five-year period, you’ll need to earn more than $82,530 per year, but knowing your worth will allow you to get a better sense of exactly how much to list as your salary requirements.
“Perhaps you’re currently being underpaid and your baseline should be $90k or higher,” she said. “Always know your worth.”
In many parts of the country, she said it’s illegal for companies to ask your current or former compensation, but that doesn’t make this step optional.
“It’s important for you to know what you should be earning now versus what you are currently earning, and then factor in a boost to your salary when you look externally,” she said. “So, this information is for you to keep in your back pocket.”
She said this will also allow you to know what salary would make you walk away from a job offer if it’s too low. For example, she said if your worth is close to $85,000-$90,000 per year, you’re almost at the finish line.
“[If] you land a new job that’s a 15% increase from that, that takes you to $97,750-$103,500 [per year],” she said. “And voila! You’ve surpassed six figures within five years.”
Increasing your paycheck by $40,000 in five years or less won’t be easy, but you can do it. When you encounter roadblocks or start to get discouraged, stay motivated by thinking about the six-figure salary you know you deserve.