Here’s What You Should Do If Your Salary Increase Isn’t Enough
Written by
Kerra Bolton
Edited by
Jenna Klaverweiden
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A standard raise of 3% to 5% may not be enough to keep up with rising costs.
Between inflation, growing household needs and tariff concerns, some workers are finding that their budgets are still stretched thin. If your paycheck has gone up but your financial stress hasn’t decreased, it may be time to take a closer look at job opportunities, spending, savings and income strategy.
Here’s what you should do if your salary increase isn’t enough.
Also see the fastest ways to get a raise and increase your paycheck.
Evaluate Higher-Paying Roles
When a raise fails to keep up with inflation or increased financial responsibilities, it may signal a need to reevaluate employment options. Exploring roles that offer more competitive compensation can be a strategic move toward long-term financial stability.
Steven Lowell, a certified salary negotiation specialist and reverse recruiter at Find My Profession, said employees should also assess whether their current salary has kept up with the dollar’s value.
“Using things like inflation calculators can show you when you have stayed in a job so long that you are now being underpaid, compared to the offer accepted,” Lowell said.
Regularly monitoring the job market can help employees stay informed about salary trends and opportunities.
“Staying active in the job search, even though you do not have to, is a great way to stay on top of who is paying what,” Lowell said. “This way, you have an informed decision about whether or not it’s time to leave. It is smarter to have an offer in hand as leverage, rather than asking for a sympathetic raise, which never works.”
Align With Impact
Employees whose work directly contributes to company growth may be in a stronger position to negotiate future raises. Identifying and documenting how individual performance supports profitability can help build a compelling case for higher compensation.
“You should be able to tie your contribution to the amount of monetary value you are responsible for in the company,” Lowell said. “Data never lies, and it is a much easier discussion to have when your leverage is obvious.”
Budget as a Family
When income doesn’t fully meet rising expenses, it’s important to have open conversations with family members about necessary cost-cutting measures. Aligning on shared priorities can ease the burden and help ensure financial goals stay on track.
“Whenever it seems like the salary is not covering bills, conversations need to be had with your family about cutting costs around the house in those tiny ways that seem to add up,” Lowell said. “For example, subscriptions to streaming apps or using payment and food delivery apps that offer convenience come with a cost.”
Keep an Agile Mindset
Experts said one should be prepared to discuss with the family the possibility of moving or transferring to a city with a more affordable cost of living or hiring a financial advisor to help get one’s finances in order.
“For the long term, keeping an agile mindset, ready to move anywhere when the job market requires, at a moment’s notice,” Lowell said.
In extreme cases, Aaron Razon, a personal finance expert at Couponsnake, said individuals should consider alternative income sources.
“Given the fact that people should always see the opportunity in every situation, one long-term mindset that can potentially help individuals accelerate their financial goals is understanding the advantages of having multiple income streams,” Razon said. “By shifting from a single-income mindset to a multiple-income mindset, individuals would be able to increase their earning potential, reduce financial stress and increase their chances of achieving financial freedom.”
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