Do you think you can get rich by asking your boss to increase your salary? Can annual salary increment really make your rich after several years?

Before answering this question, you need to think what you would actually call becoming “rich”. Will a duplex apartment, a country house, 3 or 4 luxury cars, and millions in the bank make you rich? Do you think these luxurious items can be purchased through salary hike only?

The answer definitely is a big “NO”. Raising salary or switching to a bigger company for a 30% to 40% hike will never make you rich. All your financial dreams will remain unfulfilled. Apart from the salary, you need to invest wisely and spend frugally. The word “rich” is very subjective. In reality, there is no upper slab for considering oneself as a rich person. According to a survey done in the year 2011 December, by Gallup, most Americans think earning a median income of $150,000 per annum would make them rich. Another 50% people say earning a minimum of $1 million in investments and savings would make them rich. For the most Americans, if earning $150,000 a year was the target, then they can easily forget about achieving the dream of country house and luxury cars. So, the secret of being rich lies not in the salary, but in savings, wise spending and investments.

A salary is basically a lifestyle indicator. In spite of getting promotions and raise, people do not find their financial position better. With a salary hike, the quality of life gets a raise, which indicates that people develop the tendency to spend more. It is a proven fact that the spending keeps on increasing with the salaried income, nobody can build wealth and become rich with a salary hike. However, there is no need to compromise with the lifestyle and save more to build up wealth. Instead, one can use several methods to make money and become rich.

Some of these methods are as follows:

  • Upgrade your skills: You need to upgrade your skills and knowledge to generate a separate source of income. You will be able to generate wealth by having multiple source of income or by venturing into business, retaining your regular job. For upgrading your knowledge you can join an online course from a recognized institute.
  • Enhance your role in the company: You need to ask yourself, what additional roles in your company can make you understand the business strategies better. You can volunteer to take up these new responsibilities and implement that newly acquired knowledge in your business.
  • Make wise investments: You need to make proper investments in stocks, mutual funds or such others so that after 5, 10 or 15 years you get a good return. These investments cannot make you rich overnight but would definitely let you sleep peacefully.
  • Remain Debt free: You should not spend beyond your limit. Remaining debt free is a basic step to become wealthy.

So, in conclusion it can be said that a fat salary does not make your rich and cannot make you happy. You need to think whether the salary your are earning is able to guarantee good health services in case you or your family members become ill, whether you can enjoy quality time with your near and dear ones, are you living a debt free life, and whether you can accomplish your dreams. Salary cannot make you rich, but you need to earn as much as you can and save properly so that your financial ambitions get fulfilled.