Recently you have probably heard about the Great Resignation. People leaving their jobs for greener pastures–may it be starting their own business, pursuing a passion, or finding an opportunity to work from home. The pandemic has been the catalyst for many people to review their lives and really take a deep dive into what they want to do.
During this time there’s also been a lot of negativity towards the traditional job, especially on social media and mainstream news outlets. There’s still a lot of opportunity though and I strongly believe it’s possible to not only enjoy your work, but to also become wealthy with a traditional job. In this post I’m going to show you how.
What Is a Traditional Job?
For this post, a traditional job will be defined as a job or career where an employee goes to work and is paid hourly or salary. Normally there are benefits offered like medical, retirement, life insurance, etc. People refer to traditional jobs in many different ways including:
- Normal work
- W2 job
- Standard career
- Nine to Five
Advantages of a Traditional Job
There are many reasons someone would want to be in traditional work. Those include, but are not limited to:
- Consistent paycheck
- Benefits
- Regular schedule
- Less risk
In many lines of traditional employment, you go to work, work hard, and when you’re done for the day–you’re done. No work at home, no stressing about where the next customer is going to come from. In non-traditional work like starting your own business, there is the possibility that money won’t be coming in that week or month.
Disadvantages of a Traditional Job
Like anything in life, there are advantages and disadvantages to traditional work. Some of the advantages were listed above, this section will briefly address a few of the common disadvantages. Among them:
- Less flexibility
- Usually less autonomy than if you run your own company
- Structured work schedule
- Vulnerable to company restructuring and downsizing
This is just a short list, there are other disadvantages not included. For some, these disadvantages may be deal-breakers–for others they don’t really matter.
Types of Traditional Jobs
There are literally hundreds–maybe even thousands of traditional jobs. Creating a list of them would take, let’s just say–a really long time. Here are a few industries to use as examples:
- Healthcare
- Public service
- Law
- Education
- Real Estate
And within each of these industries are many more jobs. For example, healthcare is more than just doctors and nurses. There are CNA’s, clerical staff, hospital administrators, custodial crew, physician assistants, and many more. Almost every field is like this–opportunities are plentiful.
The Steps to Becoming Wealthy With a Traditional Job
Now that we’ve provided some background of traditional work in the last few headers, it’s time to move on to specific steps of how to become wealthy with a traditional job. This post isn’t designed to be a checklist of steps. Rather, take some or all of the steps and apply them to your situation. Then make it work for you.
Identify What You Are Good at & Pick a Line of Work
To begin this section, it’s important to ask yourself a few questions:
- What are you good at?
- Is there something that makes you especially unique?
- Are there specific skills you have?
- What skills are you interested in growing?
- Is there a type of career you can see yourself in for the next few years?
These questions will guide you towards a job choice. You don’t have to be in the same line of work the rest of your life, but it would help to pick a field you can see yourself doing for the next few years at least. Once you have the answers to these questions, it’s time to move on to the next step.
Complete the Necessary Education
This next step could take multiple years as in the case of a doctor. Or it could take a few days or weeks if you just need a certificate or two. Other jobs you might just be able to jump right into without any education.
Many career choices allow you to start working and obtain education throughout your career. Whatever education you need to get started, take action so you can start working.
Start with the Highest Salary Possible
If you want to become wealthy with a traditional job, starting salary matters. Starting salary is a foundation of your earnings. It doesn’t just matter for the present, but also for future earnings.
For example, here’s the difference between a $50,000 per year starting salary and a $60,000 per year starting salary assuming a five percent increase in pay over the next few years.
| $50,000 Starting Salary | $60,000 Starting Salary | |
| One Year and 5% Yearly Raise | $52,500 | $63,000 |
| Two Years and 5% Yearly Raise | $55,125 | $66,150 |
| Three Years and 5% Yearly Raise | $57,881 | $69,458 |
The salary was not only higher for year one, but also higher after year two and three. After year three, the employee who started at $60,000 was making $69,458 which is $11,577 higher than the employee who started at $50,000 ($57,881). That trend will continue unless this worker moves jobs.
How to Start with the Highest Salary Possible
There are many ways to start with the highest salary possible, these are a few:
- Education: Many jobs pay more based on education, find out what the education requirements are to earn more.
- Negotiation: The first offer isn’t necessarily the offer you need to take. Look at industry standards and objectively analyze your qualifications to determine if you should negotiate or not. For example, if you’re fresh out of college and land a job you’re not really qualified for through a connection, you probably don’t have a lot of negotiating power. However, if you are highly qualified and are being offered less than industry standard, you may have some room to negotiate.
- Network: The word many people dread: network. Try changing your paradigm about the word and instead look at it as an opportunity to provide value to others, ask questions, and ask interesting questions. Sounds much better to me than handing out business cards and quickly moving on to the next person.
- Interviewing with multiple employers in industry: Find a few employers to interview with. It’s a chance to get to know people and learn about different companies. This compare and contrast exercise will help you make a more informed decision based on multiple factors that are important to you.
For a comprehensive list of tips to negotiate salary, see this post from themuse.com.
Invest Immediately
Unless, someone is making an outrageously high salary, getting wealthy with a traditional job requires investing. And investing as soon as possible will greatly compound wealth-building opportunities. Assuming a ten percent rate of return, consider the following:
- $200 invested per month for 40-years equals $1,168,444
- $500 invested per month for 30-years equals $1,085,661
- $1,000 invested per month for 25-years equals $1,298,181
- $5,000 invested per month for 10-years equals $1,051,870
The sooner you begin investing, the better. Time is your investment ally–start early and build wealth. As you can see from the examples above, less money over time is required to reach around the same amount of money as higher contributions later in life.
And if you are reading this later in life and haven’t invested much or at all, don’t worry–there are ways to catch up. Start with this post I wrote about becoming a millionaire.
Pay Yourself First and Automate
The best and easiest way to invest is to pay yourself first by automating. This method has been advocated by the personal finance classic The Richest Man in Babylon as well as countless personal finance experts. I am also a huge proponent of this method and include it in my book Cash Uncomplicated.
Following the principle of paying yourself first will provide a great opportunity to become wealthy with a traditional job. The more you can invest the better. I recommend at least 10 percent of your monthly income, but strive for more. Personally, I began with 10 percent and continue to increase the percentage as my income grows.
Pay Yourself First and Automate: Examples
There are different ways of paying yourself first. Pay yourself first right when you get hired, after each pay raise, with commission increases, and other ways. Here are a few examples:
- Jane’s starting salary at a startup is $3,500 per month. She automatically has $350 transferred from her paycheck to an investment account at the start of the month before any bills or expenses are paid.
- Pete has been investing $300 per month for the past year. He gets a raise of $100 per month. He now invests $400 per month by transferring the money from his paycheck to an investment account at the start of each month.
- Marci has a base salary of $4,000 per month plus commission. She set up her investment account to automatically transfer $400 from her check to the account at the start of each month. Marci also set up her investment account to take 40 percent of all commissions before it even hits her checking account. She easily lives on 90 percent of her salary plus 60 percent of her commissions.
Related:
Keep it Simple: 4 Financial Habits You Can Start Today
Look for Opportunities to Make More
It sounds obvious, but as people get settled in their careers, time can pass by quickly. To become wealthy with a traditional job, look for opportunities to make more money. Here are a few simple ways to make more:
- Increase amount of education
- Get a promotion
- Move jobs
- Work overtime
For example, there are many jobs (especially in education and public service) where a higher level of education will allow you to make more money literally doing the same job. By higher level of education, I’m not talking about getting an advanced degree–I’m talking simply getting more units and moving up on the pay scale.
Related:
You Can Do It All: Make More Money, Be Frugal, and More
Be Willing to Move Companies
I’m not suggesting leaving a job or a company you love just to make a couple thousand more a year. However, be open to the possibility of switching companies, especially if there is significantly more opportunity for growth. Growth can come in the form or higher salary, better benefits, more opportunity for promotion, etc.
Consider the following example:
| Current Position | Average Other Companies in the Industry |
| $60,000 per year | $75,000 per year with bonuses |
| Opportunities to promote one level higher | Opportunities to promote several levels higher |
| Average benefits | Above average benefits |
| Two weeks-vacation per year | Four to five weeks-vacation per year |
An employee in this situation who enjoys their work doesn’t need to make a full-on sprint to leave their job, but would be wise to at least explore other opportunities since their current job offers less than other jobs in the industry.
Keep Growing
Becoming wealthy with a traditional job doesn’t mean finding the first available job after high school or college, staying there for 35 years, and watching TV every night and weekend waiting for retirement. Success in any endeavor is going to require some work.
Many people make the mistake of stopping learning once they finish formal education. The problem with doing this is there is still a lifetime of opportunity for growth and learning. Learning and growing can look many different ways, including:
- Reading extensively in a subject matter
- Listening to podcasts and other educational programs as you travel to and from work
- Joining clubs with growth-minded people
Related:
Financial Abundance Mindset: Plus 13 Ways to Get It
Be Exceptional
Just going to work and giving the minimum effort isn’t going to cut it. To become wealthy with a traditional job, you need to be exceptional. Arrive to work 15 minutes early, volunteer for extra projects, give your input, take on an extra client. These are just some of the things you can do–there are limitless opportunities to be exceptional.
Do a little more every day than required and you will find doors opening that you never knew existed. An authoritative book on the subject is So Good They Can’t Ignore You by Cal Newport.
Watch Who You Take Advice From
Seek out mentors and counselors wisely. Who you spend time with at work matters. Are you taking advice from someone who is a leader at work that others look up to, or someone who has just been with the company for a long time?
A lot of people like to give their advice. Make sure you are taking counsel from successful people who enjoy their job. Advice like: “It’s ok to come in late as long as it’s through the side door” or “Don’t work hard because this company will probably be out of business soon” is probably not going to land you the next promotion.
Side Hustles
Pursuing side hustles can be fun and profitable. If you’re someone who enjoys their job but wants learn more about other industries or make a little extra money, side hustles can be a great opportunity. With a side hustle, you can continue to build wealth with your traditional job while learning and earning in another field.
Many people continue this for years, some transition full time to the side hustle, others try multiple side hustles as fun little side projects. There are no rules or limitations with a side hustle and it’s not much risk because you still have your primary job.
Related:
Gig Work: 28 of the Best Jobs & Opportunities for 2021 and Beyond
I Need Money Now! How Anyone Can Make 500 Dollars Fast
Invest Consistently
Last, but definitely not least is to invest consistently. No matter what job you’re in, or how much you make–it’s critical to invest if you want to become wealthy with a traditional job.
It sounds simple, but just start investing. Increase your contributions and allow compounding to occur. It’s amazing what can happen over the course of 10, 20, 30 plus years. Becoming wealthy with a traditional job happens over time– rarely will it happen in the span of two or three years.
Final Thoughts
For many years I believed you could only get wealthy by starting your own business, winning the lottery, or getting lucky with a speculative investment. Education changed that mindset though, and fortunately I learned my thoughts were wrong.
It’s definitely possible to become wealthy with a traditional job. It likely won’t happen overnight, or even in the span of a couple years–but it will happen if you follow the right steps and stay consistent. A post like this is a good start–follow it up by talking with smart advisors, investing, and taking action.
How else can you become wealthy with a traditional job?
