Waiting for your annual performance review is the best way to ask for a raise; you can go into the performance review, if you have been doing an excellent job at work, knowing that it is likely you will be commended for the hard work you have done; when the performance review begins to wrap up, be prepared to present your case for a raise - not only letting your boss know that you would like a raise, but also letting them know how much you feel you deserve.
On the other hand, if there is not a performance review upcoming for you, or if you work at a company that does not conduct regular performance reviews, figuring out the right time to ask for a raise can be a bit more difficult. The main thing you should realize is that you should request a raise when you are in the setting of a formal meeting; with no performance review looming on the horizon, you should request a meeting with your boss, and in this meeting you can present a clear case as to why you deserve the raise you are requesting.
And one mistake a lot of people tend to make is that they are afraid to ask for a raise - but once you get past the fear of asking for a raise, you will also need to keep yourself poignantly aware of the fact that there is a right time and a wrong time to ask for a raise, and if you realize you are approaching this at a "wrong time," you should be ready to bail and wait for another opportunity!
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