Ramit Sethi, the best-selling author of “I Will Teach You to Be Rich,” recently shared three salary myths in his newsletter, explaining that many people believe if they work hard, their company will reward them with promotions and raises. However, he explained that it doesn’t always happen.
Check Out: Here’s How To Use AI To Quickly Start a Side Gig, According to Codie Sanchez
Read More: 6 Things You Must Do When Your Savings Reach $50,000
Unfortunately, many people are not receiving the salaries they deserve. Even worse, sometimes individuals with far less experience earn the same amount of money as those who have been working for over a decade.
In the newsletter, Sethi detailed three salary myths, explaining why they hold people back while giving suggestions on how to overcome them.
Trending Now: Suze Orman’s Secret to a Wealthy Retirement–Have You Made This Money Move?
Myth No. 1: ‘Raises Don’t Happen That Often’
Sethi said in his newsletter that he surveyed 2,200 people about their salaries, and the results showed 91% of respondents received a raise in the last two years. However, many people are concerned about economic uncertainty and the potential for layoffs.
Resume Templates recently surveyed 1,000 managers in the U.S., asking about the potential for layoffs in 2025. Responses showed 45% of surveyed companies are likely to lay off workers this year. However, Bureau of Labor Statistics data signaled that wages and salaries have increased this year.
In other words, some economic sectors will experience layoffs, but others are growing, and wages are increasing overall. Sethi said if you haven’t gotten a raise recently, it’s important to understand why. It could be your company, your job sector or your performance.
I’m a Self-Made Millionaire: Here’s How I Use ChatGPT To Make a Lot of Money
Myth No. 2: ‘To Be Rich, I Can’t Have a Life Outside Work’
Sethi explained that the notion that people have to hustle to earn a good salary is outdated. In fact, based on his survey data, many people earn excellent salaries working 40 hours a week or less.
Sethi speaks often about what he calls the “rich life.” Everyone’s version of the rich life is different, but Sethi says people don’t have to work constantly to have one. He encourages his listeners to discover what makes their life rich, whether that’s time freedom, the ability to travel, or something else.
Myth No. 3: ‘If I Wait Long Enough, My Pay Will Go Up’
Sethi noted this is a common myth passed down by people’s parents. People believe that if they demonstrate loyalty to their company and work hard, their pay will increase. Unfortunately, this isn’t guaranteed.
If you’re among the group of workers experiencing pay stagnation, something needs to change, according to Sethi. He explained that, fortunately, people have the power to improve their salaries through networking, mastering job hopping and improving how they market their valuable skills. Sethi teaches this through several career-based educational programs available on his website.
More From GOBankingRates
-
6 Costco Products That Have the Most Customer Complaints
-
Mark Cuban Warns of ‘Red Rural Recession’ — 4 States That Could Get Hit Hard
-
How Middle-Class Earners Are Quietly Becoming Millionaires — and How You Can, Too
-
4 Low-Risk Ways To Build Your Savings in 2025
This article originally appeared on GOBankingRates.com: Ramit Sethi Debunks 3 Salary Myths Holding You Back From Building Wealth
