4 Ways How To Increase Your Income
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Are you happy with the salary you have? If not, you aren’t the only one who feels that way. As reported by CNBC, a survey from Gartner revealed that almost 70% of workers were unhappy with their salaries. Many of them felt that they didn’t receive the right amount of pay for the work they get. However, if that is the case, what could they do to fix it?
The simple answer is to learn how to increase your income. Sounds easy, right? Well, there’s a big difference between simple and easy.Getting more money can take a while before you can reap the benefits. Many people think that switching jobs is the way to go, but that’s not always a guarantee. If you want to get more income, you need to do it right. Here are four effective ways to increase your income as early as now!
In what ways can I increase my income?
1. Ask for a raise.
The first and most straightforward answer is to approach your boss and ask for a raise. That said, it’s still not the easiest solution. Anyone could walk in and ask for a better salary. The real test is to prove to your employers that the work you do supports that. If you give just the bare minimum and show no initiative, they’ll not bat an eyelash. If you work hard and take on extra responsibilities, especially in a job you like, then they’ll carefully consider your request.
The pros
When asking how to increase your income, a salary raise could be the most efficient solution. Compared to the other options, this one has you already working at a job. Whether you enjoy or appreciate the work you do, a salary raise will only make things easier. Plus, if you have a 401K plan, a salary raise will make it easier to build those funds up!
The cons
There are two main issues you have to consider when asking for a raise: timing and credibility. For timing, it can range from the latest projects you’ve covered to the current office atmosphere. Sometimes, you can deserve a raise but circumstances make that hard to do. Other times, you might not have had enough tenure to justify a good raise. For instance, if your company is going through new management, it probably isn’t the best time to ask for better pay.
For credibility, the main concern will be your performance and workplace behavior. Demanding better income isn’t the same as proving your worth to the company. You can be a longtime employee but if you don’t do any meaningful work, you’re practically a benchwarmer. If you do have something to hang your hat on, like securing a lucrative deal or finishing a big project, then you can push the idea forward. Keep in mind that you aren’t guaranteed to get a raise the first time around.
Prepare yourself mentally for the chance that they’ll say no, just to be safe.
2. Start a side hustle.
Asking for a raise or getting a promotion can be done through your main job. However, a side hustle can teach you how to increase your income without risking your career. Having a separate business can give you more chances to earn money and develop your talents. It’s also a good platform to explore business ideas, in case you plan to start your own later.
For example, a recent survey by LendingTree showed that over 40% of Americans have gone into side hustles, a jump from the 13% rate in 2020. Moreover, 68% of them said that the extra money has helped pay the bills. These stats could be a sign that side hustles are going to become more important as the years go by, especially when dealing with inflation.
The pros
While a side hustle could make you more money, you might be wondering why it’d be better. Simply put, a side hustle is more than a second job. It can also be a great way to explore your skillset or expand your talents. To make it easier, consider making a side hustle that uses your favorite hobbies or existing work skills. For example, a content marketer can freelance as a blog writer. While both jobs use their writing skills, the blog can allow them more freedom and expression than a regular marketing job would.
Another reason to explore a side hustle is how it can help your future career. In many cases, maintaining a side hustle shows your responsibility and mindset in management. It can also be a good way to transition from your existing job to a new career path or trajectory. Plus, you could also use your assets at home to make work easier, like how an office worker can use their car to act as an Uber driver on the off-days.
The cons
If you want to learn how to increase your income, a side hustle is a great start. If you want to do it without losing time, however, you’re in trouble. A side hustle isn’t a passive phase you can simply watch grow from afar. Any business you take, whether a lemonade stand or an online store, has to be monitored. In other words, you’re going to lose a lot more time in making these side hustles work. This is not ideal if you have other plans, such as starting a family.
In addition, side hustles can sometimes harm your workplace activities. An accountant that also runs a coffee shop might feel exhausted by the next monring. If they’re not careful, their accounting skills could be badly affected. So, if you’re planning to run a side hustle, make sure you have enough time to do it and enough time to rest. Otherwise, you’ll only be tiring yourself out.
3. Build passive income streams.
Compared to side hustles, passive income streams are more relaxing. Think of them as the seeds that a farmer would plant. If you give them enough time and attention, much of which can be done in your spare time, they’ll grow into something profitable. Whereas side hustles are an active way of learning how to increase your income, these passive jobs can be both stress-free and lucrative!
The pros
Unlike a side hustle or a second job, passive income streams can happen at your leisure. They take less time to start and can slowly build your money as the days go by. Plus, they come with most of the benefits a side hustle has. So, you can still explore your passion projects and skills without spending as much time managing them.
One example of a good passive income stream is renting. If you have a spare room in your house, you could make it an Airbnb for any incoming guests. With the right approach, you can be paid a good amount without spending beyond your usual bills. Better yet, all the planning and expense can be automatically made and finished through apps like Storgage.
The cons
A passive income stream may not be as tiring as a side hustle. However, that doesn’t mean it will be any easier. Passive income can take time to build and grow a profit. Even if you secure a good deal for your Airbnb or ad space on your car, it won’t boost your savings right away. Plus, they can still cost as much as a regular side hustle, depending on what stream you use.
4. Start your own business.
So far, understanding how to increase your income included better pay at your main job and growing a side job. This time, however, is all about owning your job. People who start a business typically have two reasons why: they want to explore their own talents and they want to be in control of their salaries. Whereas working for a corporation binds you to their rules, running your own business means you get to decide. Whether you start an art class or a real estate agency, you handle all the income and expenses. In other words, you become the boss of your own job.
The pros
Aside from gaining control over your own work, starting a business can be a great solution for the community. Many people get into business because they see an answer that hasn’t been approached. For example, someone might start a new coffee shop that allows pets when there aren’t any in town. Not only does that answer a problem, but it also gives your local area an option.
Furthermore, starting your own business gives you independence and control. According to Cox Business, 66% of business owners started out because they wanted to be in control of their own work and finances. It makes sense, given that being the boss lets you dictate the hours and workload you have. Plus, you get to choose your field of specialization. If bakers desire their own bakeries, writers imagine their own books, and entrepreneurs envision their own companies, then you might share that ambition, too!
The cons
Of all the options on how to increase your income, starting a business could be the most gratifying. It gives you the chance to decide your own work and learn how to be a business owner with your own eyes. That said, it’s also going to be the most challenging.
If a side hustle will take plenty of hours to run, imagine the added stress of funding and building everything from scratch. Unlike a side hustle, a business cannot be done within a week. It could take years of planning and preparation to pull off. You’d need a good business plan, a healthy budget, and a lot of patience. Don’t start imagining a cafe full of 200 patrons when you haven’t even got one yet. Take it a step at a time, or else you’ll find yourself disappointed at every turn.
If you want to start out carefully, don’t rush into starting a business either. You can start by sampling your talents to friends or family. Then, you can go further and turn it into a side hustle. Once you build a good business plan and get enough funds, that’s when you start making the job your own. You can even access seminars and lessons about small business administration and its requirements, including licenses and contracts.
What can I do once I have a higher income?
Whether getting a better salary or starting your own business, it’s important to know which path you want to take. Knowing how to increase your income is the first step to building your finances. That said, it also helps if you have a plan for the extra income. Here are some ways you can use your extra cash to grow your investments!
Update your financial plans.
When you find that you have leftover money from a budget or a bonus from your main job, it’s time to update your plans. A financial plan covers the expenses and gains that you have over time. Some can cover your monthly net profits. Others can be a roadmap for your future investments, like a house or a car. So, whenever you have extra money, always make sure to update your plan. That way, you will know how to increase your income and plan its purpose ahead of time.
Make more investments.
After you learn how to increase your income, it’s a good idea to focus on what investments you can make. Thanks to the way digital technology has evolved, there are plenty of options to invest online. For example, you can get started on the stock market with apps like Robinhood or eToro. You could also explore financial columns to find options like bonds and mutual funds. In addition, the extra money can be a good way to clear out any debts or bills. For example, if you have an outstanding student loan, a bonus can help you pay it off ASAP.
Another investment you can make is your side hustle or business plans. That’s right. If you play your cards well, you can use bonus cash from a salary or side hustle to build a better business for yourself. Many successful companies and businesses started out as side hustles or sideline gigs for their owners. With an added bonus and the knowledge of how to increase your income, you can quickly make that fantasy into a reality.
Celebrate.
This may seem obvious, but earning more cash is often a good reason to pat yourself in the back. Celebrating your success is a good way to boost your mood and make your money worthwhile. How you celebrate it is up to you. For example, I actually enjoy rewarding myself with the investments I make. However, you can choose how you want to enjoy yourself, whether that’s a planned vacation or a new car. Just remember to consider your financial plans before you spend your money. That way, all that time learning how to increase your income won’t go to waste.
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Being successful as a person can both be learned and taught, but you must have the willingness to overcome obstacles and create habits that will make you more successful . I will give you the systems that will do both.
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