Am I Making Enough Money? And how to make sure that you do

It is essential to reevaluate your worth every now and then to see if you are making enough for the degree of talent or productivity that you offer. This is especially the case if you have started feeling frustrated at work or are struggling to make ends meet. The more value you offer, the more you should get paid, so if you have been getting better at your work, but your pay stays the same, perhaps it is time to ask yourself whether you are making enough.

Some of the best ways to check whether you are making enough are by checking your performance over a period, the overall performance of the company and whether or not you can pay your bills without worrying about money.

This article outlines 11 things to consider while deciding whether you are earning enough money. Read on for more!

1.  The bills to be paid

Are you struggling to pay your bills despite earning consistent pay? You should be able to pay essential bills like water, electricity, and the Internet. It could indicate that you are either living above your means or not getting paid enough.

Take a look at your expenses and see what has changed recently. Maybe you have been spending more on purchases, or you have new bills to pay. Your earnings should be enough to help with the current accounts and leave enough to take on a few more without needing you to reprioritize which bills to pay.

On the other, if you have been spending more and not running into problems, it is a good indicator that you are earning enough, at least, to sustain your current lifestyle.

2.  Overusing your credit card

While credit cards can be a huge help when you want to buy something with no available cash, they can also indicate that something needs to be corrected. If you find yourself using it much more and struggling to pay the monthly credit statement, it is time to reevaluate and see if you’re making enough.

Generally, it is advisable to spend less than 30% of your credit limit. If you need to make more, you can use more credit to cover basic expenses like food and health care. Your earnings should be enough to care for these needs without too much pressure to use credit.

3.  Emergency fund

Do you have a reasonable amount set aside for use during emergencies? This should be well-calculated to help deal with tough times like job loss or emergency treatment. If you do, do you find yourself digging into it too often for emergencies? Is it easy to replace the amount you take out when you get paid?

An emergency fund is essential for clear reasons, and if you can’t maintain one simply because you need the money, maybe you need to earn more. You are living paycheck to paycheck, which means that you will need to take out some debt in case of an emergency (for instance, losing your job).

4.  Debt accumulation

Getting in debt is pretty standard, as almost everyone owes someone else. It is, however, unhealthy when you start struggling to pay back. It is especially tough when you can’t pay your current debts or can only pay the minimum amounts but keep taking out more for basic needs like food and housing.

If you have good money management skills, you should be able to plan your debt strategically. This allows you to list all your debt and pay it in order of priority. This means you need to make enough to take care of your debt without foregoing other needs or taking out more debt.

5.  Savings

Your savings should allow enough to set aside some amount for savings. Savings are important because they help you have some backup money for a rainy day and help you grow capital for your investment goals.

If you barely have enough to save after paying bills, debts, expenses, and your essential purchases, it is time to do something about your earnings. Living paycheck to paycheck means that you are not making enough.

6.  Company growth

Some people are content with maintaining the same wage regardless of the growth in their companies over time. In some cases, it is almost considered normal for only management, especially the upper level, to get pay raises only.

If you are worried that you may be underpaid, research the average pay for people in your position and use a reliable online calculator to see if you are being paid fairly. You can also reassess your current responsibilities and the benefits you and your fellow employees are offered.

Typically, employers determine your pay by factors such as your educational background, previous work experience, training, and accomplishments. Such factors determine how much value you add to the company and contribute to its success.

It is, however, important to remember that employees are a significant part of the growth of any company, as they contribute to the productivity and workflow that channels this growth. Your employer should update your pay to reflect this growth if the company has recorded a significant financial improvement. Take the initiative and ask for a raise yourself – sometimes all the employers are waiting for is for you to ask!

7.  Worry about money

Do you catch yourself calculating your anticipated spending down to the last cent? Are you wondering how you’ll buy your groceries if you pay for gas instead? If you constantly worry about money, maybe you need to earn more. You should not always be trying to figure out how to pay for things you need. If you find that your financial situation is contributing to your stress or anxiety, start planning on how to increase your income.

8.  Financial goals

Besides regular savings, anyone with an excellent financial plan has various financial goals. Such may include:

  • Purchasing electronic equipment.
  • Saving up for a vacation.
  • Having enough for a wardrobe change.
  • Having enough for a new computer.

Your earnings should not restrict you so much that you only have the exact amount required for bills. There should be enough left to direct toward your financial goals.

9.  Paying for essentials

It is normal for anyone to find themselves needing to cut out some expenses to save money for something else once in a while. If you find that you are foregoing a lot of basic needs or that you can’t cut off any at all, it means that you only have money for the essentials. It means that you are already stressed over money and that your overall life quality is reduced. If this is the case, it would be best to find an alternative source of income.

10. Debt to income ratio

As discussed above, debt is a standard part of most people’s lives, and it can help sort out money issues if you can pay it back as per the agreed terms. Your debt-to-income ratio refers to the amount of your income that goes into paying debts. Lenders will often refer to this ratio when assessing whether or not to offer you credit.

If you are spending a significant part of your earnings on debts, consider boosting your income so that you have more left over for your other budget items. For instance, your mortgage payments should be at most 28% of your net income.

11. Regular expense re-prioritization

As discussed above, you shouldn’t worry about which bills to pay or which expenses to forego if you are earning enough money. It’s okay to change the order in which expenses need to be met first, then when you’re a little short on cash. Still, if you’re doing it constantly, there is probably a budget problem—for instance, having to choose between buying gas or allergy medication.

In conclusion

In conclusion, if you find yourself wondering if you’re making enough, you probably aren’t. If you have a good plan and budget in place, yet you’re still struggling to make ends meet, you should reevaluate your value. You should also check to make sure that your employer is paying you a rate or wage proportional to your contribution to your company’s success. It is, after all, the employees who make the company.

Remember that you are the only one who knows your true potential, and it is your responsibility to ensure you get paid enough for it. If you need to make more, take the necessary steps to increase your income.

About the author

finanz4u editor


This article was provided by, a website where you can read up on various ways to make money, save money and increase your income.

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