Sense for ¢ents: Setting Realistic Income Goals

In 2012, the Bureau of Business & Economic Research reported that the average American grossed $42,639 a year. Furthermore, the average starting salary for 2013 college graduates is $45,327 (a 2.4% increase from that of the previous year). As a graduate of the class of 2010, the figures are less in our favor, with an average annual income of only $39,791. Yet, there are few who are fortunate enough to say that their income meets or exceeds that amount.

In addition to incomes, some of us may find difficulty in assessing where we should be financially at certain stages of our lives. Societal standards and projections through media flood our Instagram and Twitter timelines constantly. Often, this influences many to feel the need to create comparisons between their personal situations and the situations of others. Due to these standards and projections, we compose a mental timeline which tells us when we should have accomplished certain goals.

 The goal that generally receives the most attention is attaining a specific income level. I’ve noticed that many of my peers down themselves because of their inability to reach a specific level of income. At 25 I should have my own car, my own place and money to do what I want, right? Well that would be ideal, but is it realistic? Unfortunately, it isn’t always in today’s economy. While I encourage everyone to challenge themselves, it is important to do so in a way that does not have the potential to kill one’s spirit if expectations are not met. What should I expect of my financial progression? What are some realistic goals? How can I plan to reach them? These are very difficult questions to answer because not everyone has the same mindset or set of circumstances. I’ve personally decided to aim to live by my aunt’s rule of thumb. She’s always said that you should aim to earn a salary that is at least twice your age. So if your 20 years old, your goal should be to earn a $40,000 gross income annually. Not many of us can say that this is the case for our current situation; however, it’s an attainable goal that one can work towards.  

If that doesn’t work for you, below I’ve listed a few things to consider when trying to set these goals: 

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  Establish a base point- look at the average income level for your field of study at that specific point in time. As time changes, your goals should adapt. Someone who graduated in 2005 may have expected to start at a higher salary than someone who graduated in 2008, considering the economic downturn.
  
  

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  Make the best of the situation; Be creative - If you aren’t happy with your current income, find other ways to make money that will boost your resume as well as your income. Small businesses have become very popular. They’re easy to maintain and put extra cash in your pocket. There are 23 million small businesses in American which make up 54% of U.S. sales. Why not get in on some of the action! All it takes is an idea and dedication.
  
  

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  Be Patient- Money doesn’t equal happiness but let’s be real; it’s needed for most of the things that make us happy. So it’s understandable that one would become frustrated if things aren’t falling into place. But you must not let your frustration get the best of you. If you work hard and give it time, you will be rewarded.
  
  

There’s no hard and fast rule for determining what your income goal should be. It’s all food for thought.  So feel free to let me know what you think!

Be sure to check in next week. I’ll be sharing some tips on how to start and be successful with your own small business. Eventually, I plan to feature some prospering small businesses. If you are interested in being featured please contact me at Jaeblog1@gmail.com.