The Key to Making More Money—
---Is to Change Jobs Every Two Years . . . Stay at the current job and you'll earn 50% less over your lifetime!
I joke about this (well, it's not REALLY joking) from time to time on the Morning Show. My father, God rest his soul, used to tell me, "you's need to goda ("go to" for the rest of us) General Foods and get in der (again translated "there" for the rest of us) and getta (you know how this works by now) job. Yous stay der turdy yers, and yous will gettagood retirement." My Pops worked for the good folks at General Foods for 37 1/2 years. And they WERE very good to him in his working years AND into his retirement.
But did I listen? Oh, HEAVENS NO!! Sometimes (often times) I look back and think I may have made a terrible mistake. But did I?
A new study found that people who stay at the same job make 50% LESS in their lifetime than people who switch jobs every two years. The thinking is that If you stay at the same job, you get raises that barely keep up with inflation. But if you switch it's to make more. Which means you get bigger jumps in salary than people who are actually loyal.
Now, in my checkered work history (housekeeper, factory worker, mailroom clerk, announcer, court clerk, car salesman, funeral pare-planner, call center operator and back again to radio) I usually change jobs about every five years. The people at Forbes say I should have changed SOONER. In this economy, I don't know (or dunno, if you talk like my Dad). Let's see what the Forbes study found.
The main reason is that if you stay at the same job, you get raises that barely help you keep up with inflation. The average raise in 2014 is 3% . . . and inflation is 2.1%. That means your "real" raise is less than 1%.
But if you jump to another job, it's probably because they're offering to pay you over 3% more than what you make now. So if you keep jumping from job to job, you're actually getting bigger jumps in your salary than staying loyal.
Now this is interesting stuff. But, as "they" like to say, I wouldn't quit the day job.