Do you know how much your annual income increases each year? Does it even matter? For me, knowing that bit of information is a pivotal aspect of my financial success. Knowing how much you made one year compared to the previous can help you quickly gauge if you’re properly handling your money. If you earned 10% more this year but only have a 3% increase in savings where did the other 7% go? It is amazing how many people don’t know their monthly nut or the basics of personal finance. Did you have a huge unexpected expense pop up or is lifestyle inflation creeping in? If saving for the future is important to you, then keeping this number in mind could greatly help you on your journey.
When I chose the goal of increasing our income 10%, I had no idea what previous years had been like for us. I also didn’t know what a reasonable income increase should be. What I did know was that my husband wouldn’t be getting a raise anytime soon. With things the way they are now his base pay isn’t moving. He can earn more by teaching martial arts classes outside of the school, so there is a little room for income growth there. My pet sitting business, on the other hand, has tons of room for growth and this is where I plan on increasing our income the most.
For most of the year, I’ve unintentionally ignored this goal. August was the first time I’ve even checked the progress on this goal, so I was scared when I sad down and did some calculations for the last few years. This is what I came up with:
- A 10% increase would be approximately $4000.
- We had a measly 3% income increase in 2010.
- In 2011, we saw a phenomenal 10.34% income increase.
- We have successfully added all new income into our savings for the last 2 years.
- As of today, we have earned 7.04% more this year than last year!
I am very excited that I am completely on track for accomplishing this goal. The added income has mainly come from my pet sitting and a radio show project my husband picked up. Some rough calculations estimate that we may just hit the 12% mark!
I contribute my success in this goal mostly to having a business I am passionate about. I love caring for animals and most of the time it doesn’t even feel like work. Because of this I am able to take on more business without feeling stressed and stretched thin. If my plan had been to make more money doing something I was indifferent about and had ignored it till August I’m sure I wouldn’t have succeeded this year.
Readers: Do you know what your income is this year compared to previous years? If so, is that money being utilized to help achieve your goals?