Increasing your income is one of the best ways to improve your finances as you have more funds to pay the bills, get out of debt and save for the future.
It can also be easier to make money than reduce expenses, as you can only cut so much. There are several ways to raise your income and have more money in your bank account each month.
I will show you some tactics I use to put more money in my wallet
How to Increase Your Income
Consider pursuing several of these strategies to earn more while you work and be more efficient with saving and spending.
1. Ask For a Raise
Asking for a raise may put butterflies in your stomach but it can be one of the easiest ways to increase your income. That’s because you can earn more at your day job instead of taking more aggressive actions such as a second job or switching employers.
It’s possible that your salary hasn’t kept pace with new hires and you don’t receive annual increases. Before asking, consider researching comparable salaries for your position and workload to have a firm idea of a competitive wage if the boss for your desired wage.
For instance, I have asked for a raise a couple of times during my career. One situation was when the people hired after me started at the same rate or higher than my current wage.
I (and another co-worker) went to the supervisor and explained the situation to get a raise.
Depending on the conversation and your boss’s expectations, you may need to take on additional responsibilities or adjust your work schedule.
Determine if these changes are worth a higher salary if another compromise is attainable.
2. Automate Your Savings
Getting into the habit of assigning a savings goal to the money left over after paying your monthly bills is an excellent way to increase your net worth.
Most banks have an automated savings feature where you can sweep a fixed dollar amount regularly so you don’t forget to transfer money.
You can set up several savings goals to save for different purposes and get the money out of your spending account.
Additionally, it’s possible to earn a high interest rate which is a valuable hidden benefit.
Speaking from personal experience, money that I left in my checking account began building and I became more likely to spend on expensive purchases. Instead, I made a savings plan to sweep $100 into a savings account with each twice-monthly paycheck.
Eventually, I increased the amount as I learned how little I needed to keep to cover my expenses and provide an extra financial cushion.
I also used money-saving apps to help make a plan to save more money each month.
3. Cut Expenses
Reducing your monthly expenses reduces the urgency of earning more just to make ends meet and accomplish your savings goals. I review my ongoing expenses regularly and look for ways to spend less on core expenses and discretionary spending.
There are many ways to spend less money to immediately increase your disposable income. You can pursue several simultaneously and start saving money right away while others can involve a gradual change of your spending habits.
Two easy starting points are canceling unused subscriptions and switching to cheaper alternatives for products you use regularly. Another is buying groceries to make meals instead of going to restaurants or ordering meal delivery kits.
After the first round of expense cutting, keep looking for other ways to reduce your spending.
Further, do your best to save up for planned purchases instead of borrowing money which brings another monthly payment and offsets your savings.
4. Earn Passive Income
Earning interest and dividends from savings and investments is free money that you don’t need to work for. There are multiple short-term and long-term passive income ideas you can pursue.
Your passive income earnings might seem small at first when you only invest small amounts of money at a time. Still, it’s extra money you can reinvest or use for an upcoming expense.
Additionally, your patience pays off as your opportunity to earn more compound interest grows as you invest new money month in and month out. Consider increasing your contributions by investing your pay raises or the savings from expense cuts.
Start by setting aside cash in a high-yield savings account and other short-term investments. Long-term assets can also play a part as you earn a higher yield by agreeing not to sell your shares for several years or decades.
When possible, consider tax-advantaged retirement accounts so you only pay taxes once on the balance. Not having to report taxable investment income yearly can help you have more money in retirement.
5. Get a Promotion
Sometimes, you need to move up the career ladder to make more money. As you gain professional experience, you can qualify for senior positions.
Depending on the situation, you may also consider jumping into management. Managers can receive a higher salary and more generous workplace benefits as a reward for accepting more responsibility.
Like any career move, weigh the benefits and drawbacks of having a more prestigious job title. Along with the immediate benefits, a job promotion may also help you escape the rat race as your new income and networking connections can lead to more opportunities down the road.
6. Make Money From a Hobby
A side hustle provides the ability to make money from one of your favorite hobbies or interests. This income stream usually has more flexibility than a traditional part-time job as you can set your working hours and decline assignments that need to be a better fit.
Monetizing a hobby can also be fun as you can get paid in your free time. For example, you may play games for money or provide a home improvement service.
In time, it’s possible to turn many hobbies into a full-time income stream if you have the time and desire. Otherwise, a primary advantage of a side hustle is that you can reduce your hours or stop when you need more free time or when you no longer need the extra cash.
7. Pay Off Debt Early
Getting out of debt fast requires upfront sacrifices that can require reducing monthly expenses or working more hours to afford extra payments. However, paying off high-interest debt early reduces your total expenses and gets rid of monthly payments sooner.
You might use the debt avalanche or debt snowball strategy to pay off one balance early. A debt payoff app can also help you make a plan and stick to it. Becoming debt-free provides peace of mind and reduces your monthly living costs.
For example, I made extra debt payments when I had limited income so I had more peace of mind when other expensive bills came up. After paying off my loans, I started saving and investing the money.
8. Sell Unwanted Items
Most of us have items that we no longer need or use and still have resale value.
I go through our house at least once a year and look for belongings to list on selling apps like Facebook Marketplace or eBay. The buyer spends less than buying new and I make a few dollars in the process.
These items can be the easiest to sell and make money:
- Sporting goods
Be sure to factor in shipping fees and platform fees when you need to mail a sold item. You may also consider selling an extra vehicle you no longer use to stop paying maintenance and insurance expenses.
In addition to decluttering your own closet, you may also flip items for a profit to earn recurring income. You may find undervalued products at thrift stores and yard sales that you can earn several dollars of profit.
9. Start a High-Paying Job
Your current job may not have much future income growth.
Learning high-income skills can provide a promising financial future as you will have an easier time earning more than the median wage and negotiating higher salaries during your career.
While no occupation is risk-free, a recession-proof job may also provide the income security you’re looking for to keep making money while the economy is bearish.
Even if you’re already underway in your working years, it’s a good idea to remain open to learning new skills.
Technology and business practices are constantly changing and possessing a skill with growing demand helps you stay ahead of the competition and earn a steady income.
10. Work a Part-Time Job
Sometimes, a part-time job is the best remedy for a lack of income. Most positions require working a shift and working in an office or retail location.
Several examples of lucrative part-time work include:
- Delivery jobs
- Office assistant
While you have less freedom than a gig economy job, you have predictable hours and pay. It’s also possible to earn a higher hourly wage due to the extra commitments.
Frequently Asked Questions
Here are several questions that can help you choose the best options to increase your income.
Your day job can be the best starting point as it’s a current income stream that you maximize by getting a pay raise, working overtime or seeking promotions. Another option is making money from home through micro-tasks and online freelancing as there are low costs and flexible hours.
You can make money fast by selling unwanted items or taking on a side hustle. Learning a high-income skill or freelancing on the side can also help you earn a competitive wage.
Freelance jobs, home improvement tasks and delivery side hustles are the easiest ways to make $100 in a day during your free time.
Implementing several of these ideas will help increase your income and boost your confidence as you come closer to achieving financial security.
Money is important for planning your short-term and long-term goals. Having a bigger paycheck or additional income can help you meet your financial needs.