Grow & Protect Income
You can only cut expenses so much, but your income potential is unlimited. Step 5 focuses on actively increasing your earning power while protecting your foundation with appropriate insurance policies.
The ROI of Negotiation
Failing to negotiate your starting salary or annual raises can cost you hundreds of thousands of dollars over a career, due to the compounding nature of percentage-based raises. Always do market research, document your specific value-add to the company, and ask for a 10-15% bump when taking a new role.
Skill Stacking
In your 20s, invest heavily in "skill stacking." Combining two adjacent skills (e.g., graphic design + basic coding, or marketing + data analytics) makes you a rare commodity in the job market, significantly boosting your value.
Protecting the Asset (You)
As you build wealth, you need to protect it. Make sure you have:
- Renter's Insurance: Cheap and essential to cover theft or apartment damage.
- Disability Insurance: Often provided by employers; it pays a portion of your salary if you become too sick or injured to work. You are your most valuable asset.
- Term Life Insurance: Only necessary if you have dependents (a spouse or children) who rely on your income. (Never buy Whole Life insurance; it's a terrible investment product sold as insurance).
Action Sheet
Download the checklist for this step. Check off items as you complete them to stay on track.