Increasing your income isn’t as difficult or as far-fetched as most people think it is, and with a little ingenuity, you can learn how to have more money on a regular basis.
If you make more money this year, what are you going to do with it? Will you pay off debt, increase savings or take a vacation? Will you plump up your retirement account in your goal to reach early retirement?
Before you read the rest of this post, I’m going to ask you to think about that for a moment, because when the extra money starts showing up in your bank account, you don’t want it to disappear on lattes and drive-thru runs.
Instead, set a purpose for the extra money you’ll earn this year before you earn it, and be prepared to put that extra cash where it most benefits your goals and dreams.
Before You Make More Money, Change Your Mindset
A large part of making more money is changing your mindset. Get rid of your tunnel vision in thinking that your job is your only source of income. I want you to start thinking in terms of multiple sources of income.
Having multiple sources of income ensures that if one source of income goes, you’ve still got other income to help meet your needs and expenses. I would also encourage you to start thinking about passive vs. active sources of income. ‘
Active sources of income come from work you do, whether it be your main job, side hustles, or whatever. Passive income comes from work you’ve already done that continues to pay off. Think book royalties or dividend-paying stocks.
Before you start making extra money, start thinking wide road instead of the narrow road, and look for other sources of income that can work in your life aside from your main income source or job.
1. Get a Side Hustle
Side hustling (working side jobs to increase income), is, in my humble opinion, a terrific option for making more money, simply because side hustling can be whatever you want it to be. For me, my side hustles include freelance writing, virtual assisting and copy-editing work, all of which pays much more than I’d make working at the local big box store, and all from the comfort of my own home.
Your side hustle can be whatever you want it to be. What are your talents? Can you paint well? Paint rooms or houses for people. Are you great at math and very patient? Start a math tutoring biz on the side.
Determine your talents and interests, and find a way to use those talents to make extra cash for yourself.
2. Spend Less
Although spending less doesn’t necessarily mean making more, it will absolutely put more money in your pocket.
Cutting your cable could mean an extra $1200 or more in your pocket this year, as could cutting down on eating out. We saved over $700 last year simply by switching insurance companies. Scrutinize your budget and see where you could spend less, and put the money you “make” toward your designated goal that we talked about earlier.
3. Ask For a Raise
If you’ve been doing above par work at your job, and your current salary is at or below what others in the industry are making, don’t be afraid to ask for a raise.
Go to your boss, prepared with your performance record and your salary research. Don’t act in a threatening way, simply say “Here’s what I’ve done so far in going above and beyond for the company. What else do I need to do to get a raise?”
By working to partner with your boss, you make a raise beneficial to both yourself and to your company.
4. Sell Your Stuff
How much stuff do you have laying around the house/garage/in a storage facility that you never even look at anymore? Let it benefit someone else and put a few dollars in your pocket and sell it. Most people have hundreds of dollars worth of stuff they never use hanging around the house. Put it to good use by selling it and using it to make more money this year.
I encourage you to make this the year that you broaden your horizons in terms of finding ways to make more money. The possibilities are endless, so dream big!
What is your number one financial goal this year?