Have you ever looked at someone in your field and asked yourself how they’re making so much more than you? Maybe you've even Googled “What is earning potential?” or wondered if you're missing out on a higher salary. The truth is, your earning potential—or how much you could be making—isn't set in stone. It's not just about what job you have, but about a mix of factors.
Some people are out there maximizing their wage potential, while others are unknowingly leaving money on the table. If you’re looking to boost your earning potential, this article will share practical advice to help you determine what you should be earning—and how to get there.
What is earning potential?
Your earning potential is the highest amount of money you could make in your career, based on factors like your skills, experience, education, industry, and location. Unlike your salary, which is what you’re currently earning, wage potential looks at what’s possible for you over time.
Think of it this way: Your salary is like the money in your wallet right now, while your earning potential is like the total amount you could earn. Earning potential can be broken down into two types.
- Short-term earning potential is how much you could be making in the next few months or years. It depends on things like raises, promotions, bonuses, or switching jobs.
- Long-term earning potential is the big picture—your future earnings potential over the course of your career. This is influenced by your education, professional growth, industry demand, and major career moves.
For example, a software developer fresh out of college might start with a $138,110 salary, the annual mean wage according to the Bureau of Labor Statistics (BLS). However, their future earning potential could be in the high six figures with the right experience and skills. On the other hand, someone in a lower-growth industry might have a harder time significantly increasing their earning power over time.
Factors that influence your earning potential
If earning potential were a video game, some people would start with power-ups—degrees, connections, or high-paying industries—while others would have to grind a bit more to level up. The good news? No matter where you start, you can increase your earning power by understanding what influences it and making strategic moves.
Here are the key factors that determine how much money you could be making:
Education and qualifications
In many fields, a degree or certification can be the difference between an entry-level salary and a six-figure one. But you don’t just need a diploma—you need the right one for your field.
- Degrees: Higher education often leads to higher future earning potential, but some degrees pay off more than others (think STEM fields vs. some liberal arts majors).
- Certifications: In certain careers, a specialized certification—like a CPA for accountants or a PMP for project managers—can significantly boost wage potential.
- Continuous learning: Staying updated with industry trends, taking online courses, learning other languages or in-demand skills (like coding or digital marketing) can make you more valuable in the job market.
Work experience and skills
Employers don’t just pay for years on the job—they pay for special skills that really add value to their companies.
- Transferable skills: Communication, leadership, and problem-solving are useful in almost any job and can help you transition into higher-paying roles.
- Specialized skills: The more rare and in-demand your skill set, the higher your earning power. Think data science, cybersecurity, or advanced AI expertise.
- Career progression: Moving up the ladder (instead of staying in the same role for years) is one of the fastest ways to increase your earning potential.
Industry and job market trends
Some industries naturally offer higher wage potential, while others have lower ceilings.
- High-earning industries: Tech, finance, law, and medicine tend to have strong future earning potential.
- Growing fields: Jobs in renewable energy and health services are on the rise, according to the BLS—and salaries are rising with them.
- Stagnant or declining industries: If demand is shrinking, like telephone and switchboard operators or word processors, salaries might not grow as fast, no matter how experienced you are.
Location and cost of living
Where you live plays a huge role in how much you can earn—and how much of that paycheck actually stays in your pocket.
- High-paying cities: Places like San Francisco and New York offer higher salaries, but also come with a higher cost of living.
- Remote work opportunities: Despite nearly 40% of workers having received a return-to-office mandate in the last two years, according to a TopResume survey from January 2025, many companies are still hiring remote workers. This means you might be able to get a big-city salary while living in a more affordable area.
- State and local taxes: Two people with the same job could have very different future earnings potential based on where they live and how much of their income goes to taxes.
Networking and personal brand
This might be the most underrated factor in increasing your earning potential. Who you know—and how you present yourself—can open doors to better jobs and higher salaries.
- Networking: Building relationships with industry professionals can lead to job opportunities and insider salary tips.
- Personal brand: A strong online presence (like posting regularly on LinkedIn or having an industry blog) can position you as an expert in your field, attracting better job offers.
- Mentorship: Having a mentor can help you navigate career moves that maximize your wage potential.
How to determine your earning potential
Ever wonder if you’re getting paid what you’re worth—or if there’s a bigger paycheck out there waiting for you? Figuring out your earning potential isn’t about guessing—it’s about using the right tools, doing a little research, and considering all the factors that influence your income.
Here’s how you can get a clearer picture of what you could be making:
Use salary comparison tools
Gone are the days of relying on word-of-mouth or gut feelings to assess your wage potential. Today, there are plenty of salary tools that give you real-time data on what people in your field (and with your experience) are earning.
- PayScale: This platform collects salary data from millions of users and provides personalized salary reports. By entering details like your job title, experience level, education, location, and industry, you’ll get an estimate of what professionals with similar backgrounds are earning. It also offers a pay comparison feature, so you can see whether you’re being paid fairly compared to others in your field.
- Salary.com: This site provides detailed salary ranges for different job titles across industries. It’s especially useful if you want to see how salaries differ by experience level (entry, mid, senior) or if you want insight into additional benefits like bonuses, commissions, and profit-sharing. It also includes tools for negotiating salaries, which can be helpful when asking for a raise or considering a job offer.
- Bureau of Labor Statistics (BLS): This is a U.S. government database that tracks average wages across different occupations, industries, and geographic locations. Unlike other salary tools, which rely on user-submitted data, BLS sources its information from official employment surveys and economic reports. It’s a great resource for understanding national and regional pay trends, job growth projections, and which careers are expected to be in high demand.
- LinkedIn: Many companies list salary ranges in their job descriptions. Searching for roles in your industry and location can give you an idea of what employers are offering. Some professionals share salary insights in their profiles or posts, especially in industries where pay transparency is a growing trend.
- Glassdoor: Known for company reviews, Glassdoor also provides salary reports based on employee submissions. You can search salaries by job title, company, and location, and get insights into bonuses, stock options, and benefits. It’s especially helpful if you’re considering a specific employer and want to see how they compare to competitors.
Factor in freelancing or side gigs
Your earning power isn’t just limited to your 9-to-5 job. If you have a skill that’s in demand, freelancing or a side hustle can boost your total income and even lead to a career shift.
- Freelance platforms: Upwork, Fiverr, and Toptal let you see what others charge for similar work.
- Consulting or coaching: If you have expertise in a field, companies might pay for your insights.
- Monetizing hobbies: Skills like writing, photography, or coding can turn into lucrative side gigs.
Many people underestimate how much they can make outside a traditional job, but these extra income streams can significantly impact your future earning potential.
Inflation and economic trends
A salary that felt generous a few years ago might not stretch as far today. Inflation, demand for certain skills, and economic shifts all play a role in wage potential.
- Inflation adjustments: If your salary hasn’t increased over time, you might actually be earning less when adjusted for inflation.
- Recession-proof industries: Some jobs hold steady even in economic downturns, while others are more vulnerable to layoffs.
- Tech-driven shifts: Emerging industries like artificial intelligence (AI), renewable energy, and cybersecurity are creating new high-paying jobs, while automation is replacing some lower-paying ones.
How to increase your earning potential
There are plenty of ways to increase your earning potential and the key is to focus on skills, strategy, and smart career moves.
Invest in skill development and continuous learning
The more you expand your skill set, the more opportunities you create for higher-paying roles. Whether through formal education or self-guided learning, staying updated on industry trends and acquiring new skills can make a huge difference in your career trajectory.
You don’t need expensive courses to upskill. There are plenty of affordable or even free online platforms where you can learn at your own pace. For example:
- Coursera: Offers university-level courses from institutions like Yale and Stanford
- Udemy: Affordable, self-paced courses on thousands of professional skills
- LinkedIn Learning: Career-focused training, often linked to certifications and badges
Read this next: 12 Free Online Courses With Certificates to Boost Your Resume
Make strategic career moves and negotiate your salary
One of the fastest ways to increase your wage potential is through strategic career moves and salary negotiation. Knowing when and how to ask for a raise can significantly impact your earning power.
The best moments to ask for a raise include after achieving a major milestone, during your performance reviews, or when you’ve taken on additional responsibilities. To make a strong case, come prepared with market data, a list of your contributions, and a confident yet professional pitch.
If you find yourself stuck in a role with limited earning opportunities, it may be time to consider transitioning to higher-paying roles or industries. Research industries experiencing salary growth and see how your current skills could transfer. Moving into a growing field can be a game-changer for your earning potential, especially if your current job has plateaued in terms of salary.
Lastly, internal vs. external job offers can also play a significant role in increasing your earnings. Statistically, employees who change companies every few years tend to see higher salary increases compared to those who stay in the same role for extended periods. If you love your company, leverage internal negotiation to earn more. If you're not satisfied, an external job offer can be used as leverage to boost your salary at your current company—or to negotiate a better package elsewhere.
Read this next: The Ultimate Guide to Getting That Raise You Deserve
Consider alternative income streams
Relying on a single paycheck can limit your future earning potential. Many professionals build extra income streams to grow their financial security. For instance, if you have a marketable skill (writing, graphic design, IT, coaching), freelancing can provide an extra income source.
You should also consider investing in stocks, real estate, or digital products (e-books, online courses, templates). These passive sources can generate income with less daily effort. If you have industry knowledge, another great idea is to create paid coaching programs, webinars, or a YouTube channel to turn your expertise into earnings.
Read this next: How to Make Extra Income While Working Full-Time
FAQs
What is considered a “good” earning potential?
A “good” earning potential is typically relative to your career goals, industry, and location. Generally, it’s considered a good earning potential if your salary aligns with the average for your job title and industry and allows for financial stability, growth, and future opportunities. It also depends on how much you can earn in the future as you gain experience and develop your skills.
How can you estimate your future earning potential?
You can estimate your future earning potential by researching salary data through tools like PayScale, Salary.com, or Glassdoor. Consider factors like industry trends, your qualifications, work experience, and the demand for your role. Speaking with mentors or industry professionals can also give you insights into what to expect as you progress in your career.
What’s the best way to switch to a higher-paying career?
The best way to switch to a higher-paying career is by researching industries with higher earning potential, and then evaluating your transferable skills. It may require additional education or certifications, but you can also build experience through side-projects, networking, and internships. Be sure to position your current skills in a way that shows how they can be valuable in your new field.
Read this next: 15 High-Paying Jobs That Are Great for Career Changers
Can soft skills impact your earning potential?
Absolutely. Soft skills, like communication, leadership, problem-solving, and emotional intelligence, can significantly impact your earning potential. While technical skills are important, strong soft skills often set people apart in leadership roles, client-facing jobs, or management positions. They can be a key factor in your ability to advance and earn more over time.
How does the gender or racial wage gap affect earning power?
The gender and racial wage gaps are important factors that still affect earning power. Studies show that, on average, women and minority groups tend to earn less than their counterparts for similar roles. This disparity can influence an individual's overall earning potential. However, understanding these gaps and advocating for equal pay, networking, and continuing to develop skills can help mitigate these challenges and increase earning power over time.