The best financial advice I know is “live on less than you earn and save the difference.” For too many, though, there’s nothing left over to save after paying the bills.
Basic living costs seem much higher these days. Housing can take an outsized bite of family income as rents and housing prices have risen. Factor in other big expenses like health insurance, childcare, and student loan repayment, and there may not be any money left to save at month’s end.
I propose a new chapter in the financial planning curriculum—ways to make more money. That wasn’t a core subject in my Certified Financial Planner program. The unstated assumption, I think, is that clients who consult with a CFP are already well-fixed.
To get started, I’ll pitch six ideas. It does feel like I’m stating the obvious, however. You probably have good ideas from your life. Please add them in comments—I look forward to reading them.
Here are mine:
- If still in school, know what your college major pays before you—or your child or grandchild—graduates. You can look up the average first-year earnings of many majors at specific colleges at a site called CollegeSimply. I learned from this site that at Purdue University, biology graduates earn $33,500 a year, on average, versus $69,200 for mechanical engineers. Try to major in something that pays.
- If you’re already in the workforce, continue your education by earning a professional designation or advanced degree. Many employers, like mine, will pay the full tuition for a job-related degree, including an MBA or CFP. For white collar workers, these degrees are the equivalent of belonging to a union.
- Job hop for a pay bump. I wrote about this once during the pandemic, when job seekers briefly held the upper hand in salary negotiations. A reader commented that this seemed disloyal to employers. If you agree, then ask your boss what it would take to be promoted.
- Teach what you know. Nearly half of all college faculty are adjuncts these days. The hours can be long, and the pay is so-so, but if you teach, you will be perceived as an authority in your field. You might gain job security in addition to a part-time paycheck.
- The world of side hustles is enormous. I’ve done freelance reporting and found it slightly rewarding, but every dollar counted at that moment. My sister contributed her pay from teaching exercise classes to her IRA. If you go this route, just try not to wear out your car delivering pizzas.
- Become a landlord. Rental income paid roughly half my mortgage from the time I bought a property with two houses on it in 1997. Yet it doesn’t take a second home to earn rental income. In October, I rented an Airbnb on the first floor of a charming artist’s home on Deer Island, Maine. In the summertime, she also rents out her barn and allows glamping—bougie camping—in her wooded backyard.
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Greg,
Thank you for the two articles this week. Both spurred enjoyable HD discussion.
Setting aside a small percentage of funds annually for education/skills improvement, etc. would be a worthy investment for any young person. Investing in yourself.
Getting the average college age student to focus on future earnings in order to determine their major is probably a stretch. The kids already in B School probably get this, but not so much for many others.
I totally agree with getting more education. A graduate degree and a couple of professional designations will pay long term dividends. Job hopping to increase earnings, especially in today’s job market, is more acceptable, but don’t abuse it as your reputations still has value.
Save early, invest and save often are the keys to wealth for most people – if you have the money to save. At a minimum, meet the employer match on your retirement account as you are just throwing free money away if you don’t make the match.
Buying rental property today is a bit harder as properties are far more expensive today than in the 90’s (and the 70’s when I bought my first property). It can be a good idea if you have the money AND are inclined to be a landlord. Just don’t over-leverage and don’t expect being a landlord to be effort-free.
I’ll leave side hustles to others to judge as I was wage slave my entire career and have no basis on which to judge one way or another. However, there are only so many hours in the day and there also has to be time for family, fun and friends.
Nice article, keep them coming. Always good to have ideas to help you in your job life. I look at it a little differently. Whatever you like best for a work life, go for it, then become the BEST at it, and your income will thrive. Work life is a 40 to 50 year issue, what every your passion and turns you on can lead to a great financial life. Just think Jonathan Clements!
With regards to a future career and employment, in addition to salaries expected in various fields, I would take a hard look at how AI might affect a career path and be sure to enter one whereby human judgment and effort is necessary. Interestingly, as a junior officer (JO) in the military, I served with another brand new JO with a philosophy degree from a liberal arts college in Maryland. He was a very good officer, went to flight training, and after his commitment was up became a major airline pilot. His philosophy degree became a means to enter Officer Candidate School and a gateway to an excellent career. My point is, if a person has a brain and initiative, a degree type need not limit their career.
I always think of my sister, who got a bachelor’s degree in history from a state university, never did graduate school. She got a job out of college with Charles Schwab in San Francisco, through a connection made at the ballroom dancing studio(!) where she trained. Worked for Schwab for nearly 30 years, first in their tax department, and later was trained at Schwab’s expense as a coder. Eventually she was laid off (the whole SF office was, and she had to train her replacements from India to get her severance), and she now works for a large shipping company in IT/logistics. She’s done very, very well with a humanities BA because she’s smart, her degree showed that she could read and write, and she knew someone who could put in a good word for her.
As for the dancing, she became national champion in her amateur category and represented the U.S. in worlds. She also met her husband through dancing—they were partners the final ten years of their dancing career.
In response to items 2 and 3 on your list, Greg, I would say “don’t forego opportunities already provided by your current employer”.
I finished my career in school administration leading the Human Resources department for a large school district. Each year, my staff and I would meet with our new teachers to review compensation, benefits, the employment contract, staff handbook essentials, etc. When talking with them about compensation, I would always ask “how many of you have had a job prior this one?” Very few had not previously been employed. My followup question was “how many of you got to determine your own level of pay?”, to which none could say “yes”.
I would then explain the salary schedule and how it provided financial incentives for both years of experience and also pursuit of advanced degrees, both of which were largely based on the teacher’s ability and initiative. In our case, experience provided a 4% bump in salary and gaining 9 hours towards an advanced degree was worth a 5% increase. Doing this the right way would provide 9% increases for those who stuck around and pursued additional education. The only caveat was that a person needed to achieve 9 hours toward the advanced degree within 5 years, or they would be bottomed out in that column and lose out on the experience-based salary increase.
It always surprised me when teachers who had not pursued advanced degrees suddenly became concerned that their salary increase was not what it had been in their earlier years. I would try to gently remind them of the need to work toward advanced degrees to avoid being “bottomed out” in the early columns of the salary schedule. For most, that got them moving towards advanced education. Others chose to look for another school district or different type of employment.
My suggestion to young people considering future career choices is to draw a Venn diagram with circles representing:
“Try to major in something that pays.”
My advice to youngsters has always been, “Major in something that people cannot live without. The money will follow.”
Don’t forget trade schools and the service industry. Electricians, plumbers, auto mechanics and resturanturs.
Roofers, painters, landscapers and truck drivers, to name a few.
America’s success story is still the same, AI or not. You know the drill, desire and hard work
One does not need an expensive diploma to become a millionaire.
Agreed! Education, healthcare, law enforcement, military are all going to be continually needed occupations.
Keying off of your best advice, I suggest people take half of salary increases and put it in some form of savings. Over time, this can really add up.
One side note. Bosses notice when their employees have side hustles. They can be annoying and interfere with their primary job. Be careful that it does not make you expendable.
When I got a pay boost, if it was under 4%, would add 1% to some automatic savings/investment account.
If it was over 4% I would add 2% to an account.
I increased my savings AND got to enjoy some extra pay.
Good advice on both counts.
I grew up in a different time and only did one of your suggestions. In 1975 I started a side hustle as it’s now called. It never paid much, but added a bit to income. I also worked every hour of overtime I could.
I began working after high school in 1961 and didn’t have a degree until 1978, a useless degree at that.
I worked with one employer nearly fifty years gradually but steadily increasing income. I outpaced all the folks I knew who job hopped.
I believe I did that by constantly adding value for my employer and equally important for my bosses by helping them be successful.
I’m told that these days my route to financial success is no longer available. I don’t know, maybe that’s correct, but I feel there is always opportunity and the ability to have patience and exercise prudent financial decisions.
Most of the potential for success, however defined, is within the individual.
Interesting. I graduated from HS in 1962 and did not get my 4 year BS in Accounting until 1977. I was fortunate that I started in IT in 1966 before most colleges had degree programs. I did not plan everything that happened for me but it worked out very well. I was blessed.
I’m curious what you mean by…
”Many employers, like mine, will pay the full tuition for a job-related degree, including an MBA or CFP. For white collar workers, these degrees are the equivalent of belonging to a union.”
When I worked in the financial-insurance industry my firm would pay for courses to earn a FLMI.
And then give you an automatic raise once you became a Fellow, Life Management Institute.
Regarding the advice to ‘major in something that pays,’ I’ve found that predicting employer demand is often a moving target. In 1979, I worked incredibly hard for a nuclear engineering degree, only to see the industry freeze overnight. I pivoted to chemical engineering, just in time for the 1980s oil recession.
In today’s era of AI and shifting geopolitics, the ‘safe’ bet of today can become the ‘frozen’ industry of tomorrow. We see this ‘frozen industry’ effect repeating right now: just two years ago, a coding degree was the ultimate ‘payday’ major, yet by late 2024 and throughout 2025, entry-level software roles have faced a massive chill.
I’ve found that the real key to income potential isn’t just picking the right major, but combining one deep technical competency with high-level people skills. Developing this combination creates a professional resilient enough to survive market volatility. The future economy may make many sharp turns, but these adaptable skills will fit any society to a T.
I agree that good people skills are important regardless of your vocation (unless you are a drill sergeant). Many people in technical fields lack good people skills.
“Good people skills” manifest differently in extroverts than introverts, but most would agree that manipulative ability is not a socially respected trait.
Well said. My son’s dream was to
work at NOAA or NCAR and is specializing in Climate data science. Getting a life lesson early on that he needs to apply his advanced STEM skills elsewhere!
#5, My helping family and friends with taxes, morphed into real business for me.
There is dignity, honor, and opportunity in all work. Learn to seize on those opportunities. And learn the right things to do with money once you have some.
4. … Nearly half of all college faculty are adjuncts … the pay is so-so ..
I did this in the early ’90s. The pay was ABYSMAL. Claude AI says it’s gotten only worse:
Estimated average $2500 per course at the time (over $5000 in today’s dollars) — whereas the current median is about $3700 per course.
While it might improve your standing and your job security, you won’t bring in much $$$.
Good article. Two comments: a) regarding #1, I’d suggest doing the analysis before selecting a major or vocation. The choice of major/vocation is a huge determinant in whether gainful employment is achieved. The BLS.GOV site has lots of statistics on occupational growth & compensation statistics that are useful for planning. Second comment; a variation on #3 is a willingness to relocate to where employment opportunities exist. Said another way, be prepared to go where the jobs are if career advancement is a priority.
I might be shifting the goalposts here and stating the obvious, but it’s worth emphasizing: make sure any savings you accumulate are earning the best possible returns, and minimize high-interest consumer debt as much as you can. Remember, every dollar you save on debt interest is equivalent to earning an extra dollar.
I am self-taught, and much of what I have learned is more relevant for those in a similar financial position as mine. As a CFP, your financial education is broader and deeper than mine, and you are in a better position to offer advice to a general audience.
In regards to your advice in paragraph number one, “Try to major in something that pays”, I would reframe this. It would be unfortunate if a student graduated and belatedly discovered limited job opportunities or earnings potential for their chosen major. On the other hand, had those who wished to pursue such a major investigated the matter beforehand and made an informed choice to proceed anyway, that would be appropriate. And this information is very relevant when deciding how much they will need to pay for their education.
I like your other suggestions.