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Some of you may have gotten your first salaried position, and now you’re on cloud nine because you’re finally making decent money.
While it’s true that a salary does give you a more stable income, it can trap you in a career that you may not like or prevent you from pursuing your dreams.
When on salary, your pay doesn’t vary based on the number of hours you work. You may get a yearly raise, but it’s usually just a cost of living increase, not a significant amount.
This means you’re not being rewarded for working hard and putting in extra hours. You may even feel you’re being penalized because you’re not getting paid more for overtime.
In this article, I’ll share the six salary traps you want to avoid to help you find personal growth and happiness.
Table of Contents
1) A salary creates a false sense of achievement
If you had your own business, you would constantly strive to grow and make more money. But with a salary, you’re just getting a set amount of money every month, no matter how many hours you put in.
This can lead to a false sense of achievement, where you feel like you’re doing well because you’re making a good salary. In reality, you’re not progressing because your income is capped.
It doesn’t matter if you fail to deliver one month over the other when you’re a salaried employee because you still get paid the same amount. The result is complacency which makes it easy to become lazy.
Doing enough to get by and collecting your paycheck without any real effort.
Think about that for a minute; how many people do you know that have a job they don’t like and are just “getting by”?
They’re probably making a good salary but not truly happy. They are not doing anything that adds value to the company they work for.
2) A salary makes it hard to take risks
When you have a salaried job, you tend to be more risk-averse because you don’t want to lose your steady income.
Unfortunately, this can make it hard to take chances and try new things, preventing you from growing both personally and professionally.
If you’re an entrepreneur, you’re used to taking risks. It’s part of the territory. If you’re used to a steady paycheck, it can be hard to take the plunge and start your own business.
You may also find it challenging to make significant changes in your career, like going back to school or taking a new job in a different field.
Related Content: Understand Lifestyle Creep and How to Avoid it!
3) Personal growth is more challenging
Personal growth is essential, but it can be hard to achieve when you’re stuck in a salaried job.
You may find yourself in a comfortable routine and not challenged to do anything new or different. Over time, you can become stagnant and even bored with your job.
If you want to grow, it’s crucial to challenge yourself regularly. You must push yourself out of your comfort zone and try new things.
Doing this can be hard when you’re on salary because you don’t want to rock the boat. But if you’re not growing, you’re just staying the same.
Nobody plans to end up old and regretful, wishing more risks had taken more chances when they were younger. Growth is essential, both professionally and personally. But it can be hard to achieve when you’re trapped in a salary.
4) Motivation lost to push further in industry
You may not feel motivated to push further in your industry when you’re on salary. After all, what’s the point?
You’re already making a good income, so why bother trying to make more money or advance your career?
This is a dangerous mindset to have because it can lead to complacency. You may not keep up with the latest trends or developments in your field. Over time, this can make you less marketable and even obsolete.
Being obsolete is a threat to your long-term financial stability. Unfortunately, that’s what happened to many people in the manufacturing industry when jobs started being outsourced overseas. They became complacent and didn’t bother improving themselves, so they lost their jobs.
5) A salary may stop you from being self-reliant
Many of you reading this want to own your own business someday or become self-employed. Having a salary has the potential to hinder you from making this happen.
Taking the plunge and going out on your own when you have a steady income coming in is difficult for many people.
Many will continue to live an ordinary life with their ordinary family and slightly above-average salary.
Of course, there’s nothing wrong with having a family and living an ordinary life. Remember that if you want to achieve something extraordinary, you need to be willing to work hard and take risks.
My wife and I love investing in real estate on the side and first started as college students. This has been an excellent side hustle where we’ve received rental income and built our net worth. I wrote a specific article sharing how we made $250K in 4 Years From Real Estate As College Students.
Other excellent ways to become self-reliant are saving up an emergency fund and living below your means.
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6) Short-term success hinders long-term results
In the moment, you may be feeling pretty good about your salary. Be careful, however, not to let short-term success hinder your long-term future.
A salary is a trap that can prevent you from achieving your full potential.
So if you’re not happy with your current situation, don’t be afraid to make a change.
You may have to take a pay cut in the short term, but it will be worth it in the long run. Your future self will thank you for it. Make sure to follow your dreams and take the plunge to start a side business or side hustle.
In Conclusion
A salary is like a sugar high. It feels great at the moment, but eventually, it wears off, and you’re left feeling worse than before.
If you fall into the trap of thinking that a salary is a key to happiness, you’ll never be truly happy.
True happiness comes from being successful in your own right, not from someone else’s success. It comes from the freedom and flexibility to do what you want.
So don’t let a salary trap you into a life of mediocrity. Instead, pursue your passions and dreams, and don’t let anything stand in your way!
Please comment below and let us know your experiences with the salary trap.
Disclaimer:
We hope the information in this article provides valuable insights to every reader but we, the Biesingers, are not financial advisors. When making your personal finance decisions, research multiple sources and/or receive advice from a licensed professional. As always, we wish you the best in your pursuit of financial independence!
