Factors that Affect Your Ability to Make Money in 2024

Money is a basic need, everyone needs it to survive but if you are not making enough of it, it can cause major stress. Putting in your best isn’t enough to land you that job or make you more money. There are several factors that affect your ability to earn more which you should be aware of so that you can focus on building them up.

Typically, doing an audit of these factors during the start of the year is an ideal starting point to making sure you finish string when it's time to do that end-of-year financial checklist. As we start 2024, in this article we explore the four major factors that affect your ability to make more money. 

1. Your Network

Are you the kind to run out of an event before anyone spots you?  Do you avoid making eye contact as much as possible? Do you have very limited work relationships? Well, this might be hurting your chances of making more money.  No man is an island and to succeed, one needs a village. Networking is a great tool that can be used to advance your career or business or can be used to seek fame. Whether you admit it or not, your network is your net worth, business leaders understand this and they do everything they can to invest in their relationships. Building a strong network is one of the best things you can do to support your career advancement. Yet more often than not our networking efforts are not ineffective. You make friends and connections yet these people are not always in a position to help you or may not be willing to speak on your behalf. These networks end up being like that uncle that took your CV after graduation and five years later still hasn’t gotten back to you.

For you to network effectively, you need to move out of your comfort zone and pinpoint people who can help your career and not just the people you like. Networking is not about collecting business cards, it's about building solid relationships to support your career aspirations. Building such a network requires a lot of effort and intention, but it is crucial for your career advancement.  

Networking increases your visibility. When you stand out in both your expertise and the services you offer, it creates room for partnership which in turn builds a career.  You can build a professional support system. 

Additionally, you have to network proactively, the CEO of your dream company won’t come knocking on your door.  If you got fired today, how long would it take you to find another job? If you don’t have a network to fall back on, it might take you way longer to find your next job. Actively networking gives you the support you need by having a powerful connection of people who are willing to speak for you on an ongoing basis.

Networking might not come naturally for everyone, but here are some tips that might help the next time you put yourself out there. 

Do your research

If you are attending a networking event find out who the attendees will be. This might help you to narrow down who you will network with, what these people do and how you will make a valuable connection.

Communicate effectively 

These events are usually fast-paced and you might have a limited amount of time to make a good impression, so make sure you give this person your undivided attention, keep your devices away, listen carefully and ask relevant follow-up questions. If starting a conversation is hard, think of a simple icebreaker or conversation starter, it could be a compliment or a relevant topic in your industry.

Read Also: 7 Connections that Will Help You on Your Job Hunt After College

2. Your Skillset

If you are the kind of person that goes through job adverts, you may notice that some companies offer more in terms of salary while others have fixed lower salaries for the same position. What determines how much you make? Is it the industry you are in? Your employer? your customers?  the government, your skills, your experience or your network?

There are three things that determine how much you earn,

 How others value what you do

People who are paying you for your services assign a certain amount of value to your skill. The material remuneration you receive is based on your qualifications, expertise, and the value you bring to the client or company. Some people are more adept at persuading others that their contribution deserves to be valued higher than that of others, as a result, this value may be subjective.

How well you do what you do

How much money you make depends on the context of your work and how well you leverage your contribution. This doesn't mean that you earn more money than your colleague in a similar position in the same workplace if you do your job better than they do. You might be the best cook in town but if you work at a kibanda you may make less money than a cook at a five-star restaurant. A welder with short training might make more than a nurse with a degree, because of how their employer views how valuable the welder's contribution is hence paying him more.

We value human connections, customers tend to favour entrepreneurs they like especially if they feel they have a personal connection and if the price isn't that far from the competition.

How difficult it is to replace you

If there are a million people who can do your job just as well as you do it,  you have very low leverage in bargaining for a better salary. However, if you quit and it would take your employer a while to find someone even with half your qualifications and experience to do your job then your employer may pay you a very high remuneration.

How do you earn more money? Some might suggest furthering your education or doing something that no one else is doing but that's not always a guarantee for better pay. The greatest alternative is to develop mental flexibility so that you are prepared to  examine your premises and mindsets. Be prepared to adapt, update your expertise  and do new tasks using new skill combinations as the demands of the labor market change. In order to feel enthusiastic about what you are doing while still learning new things, you must also match your goals with your skill set. By doing this, you  infuse your work with passion, which is may boost productivity and get you a higher wage. 

Read Also: The 10 Most In-demand Skills for 2023

3. Your Health

This may sound obvious but your health affects your ability to make more money. Both physical and mental health affect your ability to make money. If you are a couch potato, you might be shortening your life span. Physical inactivity plays a direct role in the development and progression of chronic health conditions.  Noncommunicable diseases (NCDs) kill 38 million people each year. The major NCDs include heart diseases, Cancers, Diabetes, and Chronic Respiratory diseases.

By choosing to live healthier lives, you are adding more years to your life, a study showed that on average you live an additional 12 years if you incorporate physical activity into your lifestyle. Living longer gives you the chance to make more money. Incorporate simple habits like watching what you eat or going to the gym to help you stay healthy.

Apart from physical inactivity, depression and other mental health conditions are linked to greater rates of unemployment and disability. According to government statistics, 1 in every 4 Kenyans has suffered from a mental illness at one point in their lives. Poor mental health and stress can lower your productivity and increase stress levels, it might affect your work performance, ability to focus, time management, decision making and communication. 

To help you cope with stress at the workplace adopt behaviors that assist with dealing with stress and also consider seeking professional help.

Read Also: Affordable Ways to Take Care of Your Mental Health

4. Your  Mindset 

Your mind is a  powerful tool that can either make or break you. Your mind can talk you into doing something or talk you out of attempting to do something. Your mindset can ultimately limit you or take you to greater heights. The same is true about your mind and money. You are more likely to think negatively and destructively about money if you don't have enough money or have too much debt. Once a person adopts this way of thinking, it can have an impact on their money in ways they may not even be aware of. You can ruin your chances of earning more money or paying off debt if you constantly live in fear of not having enough money. You need to change your perspective since completely avoiding thinking about your finances can lead you to fall deeper into a financial hole. 

Whether you grew up thinking accumulating wealth is bad and the rich are evil or you can only survive on one stream of income or on short-term loans, these mindsets are all negative. One way to deal with your mindset about money is not shy away from it. Try to set time aside weekly to go through your spending habits, bills, and budget. Take note of the areas you need to work on.  Another way to deal with your mindset is by setting realistic goals.  It's crucial to set realistic and achievable goals and acknowledge each successful accomplishment no matter how small because your finances didn't get out of control overnight and neither will your progress happen suddenly.

Making more money takes more than just finding a successful way to make money. It requires you to shift your mindset. This kind of mindset shift includes your routines, daily habits, lifestyle, etc. 

Read Also: How an Abundance Mindset Can Make You Wealthy

Wrapping Up

There are several factors that affect your ability to make money, but luckily the majority of the factors are things you can work on to improve your income level.