You might be surprised to learn how many people make more money than you do in professions that you wouldn’t have anticipated earning more than yours. It’s true that individual earning can vary from person to person even when they are in the same professions as you.
Learning about the fact that your colleague earns more than you, can result in jealousy and insecurity. But, it can also help you determine the factors that can influence how much money a person earns. The knowledge can help you improve your career choices and even assist you in making more money. The article will list some of the possible factors that help people make more money than others.
Here are the factors that may influence how much a person earns:
1. Location
Location can greatly influence how much money people in different professions make. Part of this is because the cost of living is different in different areas. For instance, people who work in the city tend to make more money that people who work in more rural areas simply because expenses tend to be higher in urban areas than they are in rural ones.
For example, while many people would probably be under the impression that a sales manager makes more than a garbage truck operator, a garbage man in Newport Beach actually earns more annually than a sales manager does simply because that area pays garbage men more than some other areas do.
2. Demand
Demand is another crucial element that can determine how much money a person makes. For instance, while it might seem like a minor league baseball player would make more money than a hot dog vendor, come to find out a hot dog vendor can earn 10 times as much as the star of the show. This is because there is a high demand for concessions at baseball games and other such sporting events.
Some jobs like software developers are more in demand since the whole world is no getting technically advanced. This can make some of the other traditional job profiles less popular and hence less pay.
3. Experience
Experience plays an important role in how much you earn. A person with ten years of experience will earn more money than someone how has just entered the industry. This is true for some job sectors where the promotion and increment in the salary are determined by how many years of experience the person has. If some people are making more money than even when they are younger, they must have more experience. This is one of the factors that influence why people make more money than others.
4. Education
Education plays an important role in the way you earn your money. Higher education means more knowledge and expertise in the field. This is also one of the reasons why some people earn more money than others. The quality of education matters too. For example, a person from Harvard University will be preferred over another college graduate in many big companies. So the education level and the quality of education can be a factor for the disparity in the income of two people in the same field.
5. Growth in Technology
Advancement in technology has also created economic equality. Almost every industry is going through a rapid technical advancement, so they need people who can help them with it. They are definitely getting more than who have less technical skills. This has become one of the important reasons why some people especially the younger ones are earning more than older people. Technical skills are one of the important factors that determine your pay scale. Upgrading your technical skills can help you earn more or create more opportunities.
6. Personal Reasons
Some people have inherited wealth which enables them to invest more to earn more. This could be one of the reasons why some people are earning more than others. Another factor is that some people are better at saving, which leaves them with more capital for investments. Some people are also more hardworking and talented than others. The focus is another important factor that can influence how much you earn. Some people are more determined and work harder than others. Patience is another factor. Young people are more restless than older ones and want to earn more in less time.
The Bottom-Line
How much money people earn in their professions can be as diverse as the professions themselves are. Generally, though, a career for which there is a high demand that is in the right location will earn more than some careers that people traditionally view as high-earning careers. When selecting a career that earns a lot of money, therefore, you might want to take into consideration your location as well as what’s in demand there.