5 Steps To Take Now If Your Salary Isn’t Enough To Achieve Your Financial Dreams

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According to a recent survey from Resume Now, 73% of employees are struggling with financial stress as they can’t afford anything beyond their basic living costs to get by. On a similar note, another study from Zety revealed that 36% of workers feel either hopeless, anxious, or frustrated about being able to afford life goals on their current salary. 

When asked about specific life goals, the Zety survey found that employees are most concerned about the following financial dreams:

• Starting or expanding a family: 50%
• Saving up enough for retirement: 40%
• Buying a house: 37%
• Pursuing further education: 27%
• Going on vacations: 26%

While these are all significant financial dreams, the good news is that there are many ways you can work on accomplishing at least one of these at a time. Here are the five steps to take right now if your salary isn’t enough to achieve your financial dreams.

Step 1: Focus on One Financial Dream at a Time 

“Most people struggle because they try to take on too much at once,” said R Persichitte, CFP and affiliate professor at Metropolitan State University of Denver. “If your savings are spread between five different goals, you’ll have to wait longer to achieve them.” 

With life getting more expensive in the last few years, it’s essential that you try to focus on one significant financial milestone at a time since it’s challenging to try to do everything at once. Persichitte elaborated, “If you’re delaying goals, sit down and think of your most important thing. Focus as much attention as you can on that one goal.” 

You don’t want to overwhelm yourself by trying to work on multiple goals simultaneously because they could feel completely out of reach. Even though you may want to start a family and purchase a new home this year, you may have to accept that you can only focus on one at a time.

When you narrow down your focus, you improve your chances of at least achieving one dream at a time. Over time, you can start to tackle the other financial milestones on your bucket list. This means that you’ll want to decide what your number one priority will be so that you can dedicate all of your resources and energy to making it happen. 

Step 2: Review Your Career Options

“If your current job doesn’t hold promise for advancement, it’s time to weigh your options,” said Melanie Musson, a finance expert with Clearsurance. If your current salary isn’t satisfactory compared to your achievements, you’ll want to honestly assess how you could change this. 

Here are a few questions to ask yourself about your current career:

• Could you make more money in the same field but at a different company? 
• Could you change your career?
• Could you upgrade your skills to improve your resume? 
• Does your employer pay for education or training? 

Since 27% of respondents wanted to pursue higher education, you could start by looking into what types of financial assistance your employer offers. The main objective should be to find ways to upgrade your current salary so you’re not limited to your income. 

Step 3: Review Your Current Budget for Adjustments 

“Feeling the squeeze on income is a time to take a multi-faceted approach, and often the best first step is a careful review of your existing budget,” said Dennis Shirshikov, a financial educator and chief of staff at Fullmind. “A great way to work around this is to maintain a type of zero-based budgeting, where you assign every dollar a purpose and spot where you spend money you really don’t need to spend, then instead, redirect those funds into a savings fund; many people do very well with apps that tell you about hidden costs and reallocation opportunities.”

While there are various budgeting methods out there, you’ll want to start by adjusting your financial plan and ensuring that you have a money management system you can stick with to start working on your dreams. 

“Budgeting can go a long way in helping you achieve the financial goals you made. The average American wastes far more money than they realize every month,” said Musson.

Minor expenses, such as coffee or subscription services that you forgot about, could add up to hundreds of dollars per month. By reviewing your budget, you’ll be able to create a realistic plan that will allow you to think about your financial goals. For example, when you crunch the numbers, you may determine that you could have additional funds for an annual vacation by cutting out a few subscriptions. 

Step 4: Find Ways To Increase Your Income 

Shirshikov noted that earning more through side jobs or consulting in your field could help you increase your income to have more money to achieve your financial dreams. 

These are the most common ways that you can increase your income to have more money towards your financial dreams:

• Start a side hustle. You could use this time to start that Etsy side hustle or grow your social media page that you’ve been putting off. 
• Look into the gig economy. You can list your spare bedroom on Airbnb or deliver food on the weekends to bring in some extra cash. 
• Invest your money. If you want to accelerate your savings for a downpayment, you could start by investing in growth stocks or finding a high-interest savings account to ensure your money’s working for you. 

Step 5: Set Realistic Goals

It makes sense that 37% of respondents stated that buying a home feels financially out of reach because housing prices have skyrocketed in the last few years. A 2024 report from The Washington Post noted that home prices increased 54% from 2019 to 2024. You may want to set realistic goals based on your current salary so that you don’t set yourself up for disappointment. This means you’ll have to decide if you could realistically afford a home in your desired location or would be better off allocating those savings towards a higher education. 

“One caveat, remember that some goals will naturally take a long time like retirement, so don’t forget about them,” said Persichitte.

As you focus on setting realistic financial goals, you’ll want to also be realistic about your timeline. While you may not be able to travel, purchase a home, and save enough for retirement this year, you could slowly chip away at these dreams over time.

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