9 Ways to Increase Your Income
How to Increase Your Income
There is only so much you can cut back on in your budget. At some point, you need to look at ways to increase your income.
Most of us don’t have a lot of time though and really, it’s about working smarter, not harder right? No one wants to spend all their free time working a second or third job and not living life.
So how can you increase your income without it draining all your time?
Disclosure we do use affiliate links for products and services we use and recommend.
1. Ask for a Raise
Depending on the job you do, how long you have been there, the results you get and the financial state of the business you work for, you might be in a position to ask for a raise.
Do your research, learn about negotiations so you know how to approach it. There are ways to do this successfully and ways to really mess it up. Never Split The Difference is an excellent book to learn about negotiating.
Be confident, know your facts and use the right tactics. If you don’t get a raise, see if you can negotiate something beneficial to you such as more time off, increased benefits or similar and make sure you get it in writing.
However, if you can’t get anywhere with it at all, it might be time to change companies.
2. Switch Companies/Businesses
Too often companies offer better rates to new employees rather than rewarding current ones. Check the going rate for your job, including all the extra you do now compared to when you were hired.
Chances are, you could get paid more elsewhere. Years ago you were expected to stay with one company for life. Now, career hopping is expected although changing jobs every 6 months still doesn’t look great.
Compare your options, speak with recruitment agencies, update your LinkedIn profile and see what comes up. Do not quit until you have something else lined up and be sure you resign according to your contract.
Meaning, some have a non compete clause, some require 2 weeks notice, other places require 4. Go over your contract and know what you are required to do and your entitlements when you leave such as getting paid your vacation leave.
3. Change Careers
Some careers simply do not pay much and you might need to look into careers that pay more. Think about your skills and interests to see how you might be able to apply them in another career for a higher wage.
For example, Mr Aspiring Millionaire was previously a dive guide and tec diver doing exploration trips in the South Pacific. In Australia, he was able to retrain and move into commercial diving which pays much higher and has huge potential depending on how far he wants to take it.
As a writer, I have the option of writing ebooks to create passive income, do website and marketing copy, write books for other companies, articles for magazines etc. Setting up multiple sites has also increased my income.
Research careers you are interested in, what the pay is and what you need to do to transition. There are so many options out there now but also take into consideration careers that could become obsolete compared to those that will increase in demand.
4. Maximise Benefits
If changing jobs or careers isn’t an option right now, see if you can maximise your benefits. Read your work contract thoroughly and check all the benefits your employer offers, as well as everything you can claim on tax.
Some employers offer benefits such as health insurance, gym memberships, childcare assistance, meals, bonuses etc. Knowing what is on offer at yours means you can utilise it to save money.
Every career also has things you can claim on tax so make sure you know what you can claim and keep the evidence necessary for it. Check the tax department website as they have a lot of information about it.
5. Invest
Learn how to invest and start early. Investing is a long term game so it’s not about replacing your income or increasing it immediately. Instead, you are looking to the future to ensure you have ongoing income into retirement and beyond.
How you invest is up to you. Many people enjoy investing in the sharemarket, especially indexed funds or ETFs. Read The Simple Path to Wealth and Quit Like a Millionaire for more on this.
Be aware of your risk profile, what you are comfortable risking and don’t over-invest. Also, don’t invest anything you plan to need short term.
For example, if you are saving for a house deposit, don’t put that money into the share market as it can be volatile in the short term.
6. Get a Side Hustle
How much time you dedicate to a side hustle and what you choose to do is up to you. Some side hustles require little effort, others can be quite time consuming.
A few of our favourites have been writing, renting out a room, renting out the garage, reselling things, online work such as blogging, consulting and marketing.
For others we know, running an Etsy store, influencer work, setting up a business, dropshipping and photography have been great.
Research side hustles and look at what would work for your lifestyle. It might take a little experimenting until you find the right one for you but it can be worth it.
Make sure you track everything so if it becomes a business, you can claim things on your tax properly.
7. Own a Business
With a business, you need an exit plan and a way for it to be outsourced. Too many businesses are set up and rely solely on the owner, but what happens if the owner gets sick, injured or unable to work for a period of time? They can lose everything.
Look at owning a business but create a proper plan to ensure you are not working for your business, rather your business is working for you.
8. A Second Job
It’s not ideal but sometimes you have to do what you have to do. Our preference is anything else such as a side hustle or creating a business instead of a second job.
But if you need the consistent income, a second job might work. There are many businesses that require shift work such as hospitality, delivery drivers, aged care, disability etc. Most of those jobs are quite physically demanding though so it can be draining.
Doing a second job isn’t a long term solution so try to look for other options to increase your income when you can.
9. Passive Income Ideas
We shared 10 passive income ideas already, or ideas that are passive once set up. Our preference is to have multiple streams of income and not be the ones working on all of it.
Things such as books once written and promoted with a solid marketing plan, websites once outsourced, investments, real estate if you have good management etc can all be good passive income options.
Some such as real estate aren’t always that passive though. Do your research on which options are right for you and how you will manage if they aren’t passive at times or take a while to become passive.
How are you increasing your income?
How to Create Multiple Income Streams and Why You Need Them
How to Create Multiple Income Streams and 8 Income Stream Ideas
Life is no longer as easy as going to university, getting a job then retiring. Chances are, if you do go to university, you’ll leave with significant debt and it can be hard to get a job. That doesn’t mean you shouldn’t do it, it simply means make sure you have other options too.
It’s becoming increasingly common for people to do university, trade or other career and have a business or side hustles at the same time. The cost of living has risen so much, that most people feel they have no choice but to have multiple streams of income.
In our view, having multiple streams of income helps buffer you against adversity. If one income drops or you lose your job or anything along those lines, the other incomes help pull you through. Plus, why not make extra money with little to no effort if you can?
Disclosure, this post may contain affiliate links for products and services we use.
How to Create Multiple Streams of Income
We jump on any opportunity that can make us extra money without taking time away from our family or using a lot of time. With a clear view of the life we want, it’s been easy to see what works for us and say yes to the right opportunities, as well as no to the ones that don’t match our lifestyle.
Decide what you want to do, be open to ideas and experiment. That’s how simple it can be. Always do your research though and know what you are getting into.
As an example, Mr Aspiring Millionaire wanted to be a commercial diver from the moment he started diving years ago. For many, commercial diving is not a career they would choose due to the hours and risk.
Currently, he has done his third certification and has to work in the industry for a while before he can move to saturation diving. Saturation diving is the offshore oil rig style work. 4 weeks on and 4 weeks off.
For us, that is great as the pay is high and when he has 4 weeks off, we can travel anywhere as a family.
I, (Ms Aspiring Millionaire) have multiple streams of income which are predominantly online. As such, we have great incomes, the flexibility we want and one parent available for the kids at all times. With 5 kids, that’s important to us.
Why Have Multiple Income Streams
Relying on one income means if you lose that income e.g. get fired, you have no other money coming it. Multiple streams of income protect you against this plus they help you save and invest faster. If you are aiming for FIRE (Financial Independence Retire Early) like we are, multiple streams of income enable you to get there faster.
Wealthy people all have more than one income stream but they aren’t working for all of them. Owning businesses, investing, creating passive income streams is the aim. You can check out 10 passive income ideas here.
Income Stream Ideas
Here are some income streams you might want to include. Adding an income stream doesn’t always mean more time and effort put into something. Some of them can be pretty simple.
Careers/Occupations
The first obvious income stream for most is your chosen career, occupation or any form of employment. When it comes to a career, those pursuing FIRE (financial independence, retire early) typically look for high-income options.
As mentioned, Mr Aspiring Millionaire is a commercial diver. This is what he chose when we came to Australia and within a few years, he will earn thousands a day. The 3 courses to get to his current level were $25,000 plus accommodation and other expenses.
Our outlay was $30,000 all up and a few months study. After some experience in the field, he can then do the final level at the same cost of $30,000 for course and accommodation etc. That is when he will do offshore work at a few thousand a day, month on month off.
For myself, Ms Aspiring Millionaire, I have stuck to more flexible career options including blogging, writing, marketing, CEO of a marketing company, speaking etc. All of it has been done at the same time and around my kids.
Business
Even though many small businesses are done as side hustles, there are numerous entrepreneurs and business owners who focus solely on their business. My income has been from my own businesses instead of employment almost my entire working life.
If you choose to go the business path, ensure you are committed and set it up correctly. Get a lawyer and accountant so it is established legally. Read Profit First to learn a great way to set up your accounting.
Make sure you have insurance, know what you can and cannot claim on tax, your legal obligations and marketing.
Owning a business is not an easy taks but as you grow and outsource, it can be a great income. Once you can afford it, if the business is fully outsourced and managed by others, you will have an income stream rather than a job.
Our Businesses
With all our businesses and endeavours, the aim is for them to be fully outsourced and we simply collect money. Currently, we have a few small businesses we are growing. We saw some opportunities and took them.
One of our recent businesses has been quite different for us as it relies so heavily on others from the beginning. Usually, our businesses have been developed by us then outsourced. This one, we couldn’t do without others.
We have more businesses we want in the future and are currently restructing some of them to free up more of our time and money to invest elsewhere.
Side Hustles
Aside from a career and a business, there are numerous things you can do to make money on the side. Part of my challenge to double $2 until it is over $1,000,000 shows what I have done or am doing. Below are a selection of my favourite side hustles that are easy.
You don’t need thousands to set it up and you don’t need to spend a lot of time doing them.
Blogging
There is more to blogging than most assume but it is a business that can be done from anywhere and outsourced quickly if you know what you are doing. I’ve bought and sold websites over the years as well as created then sold my own and still have a portfolio of sites I make money from.
Read how to make money building and selling websites for more on this.
Airbnb
Paula Pant is one of many who use Airbnb with their rentals and make good money. We’ve used Airbnb both as guests and hosts. Being a guest gave us great ideas to improve ourselves as hosts.
How much you can make from Airbnb depends on the location, condition, what you include and local events. Check out this guide on how to make money with Airbnb.
Reselling
My $2 to $1,000,000 started with buying things to resell. It’s been easy to find items under $5 I can resell for $10, $20 or even $100. When I focus on reselling, I can make over $10,000 in a month.
How to Make Over $10,000 a Month Buying Things to Resell covers what to buy and resell, where to get it, how to photography and list it, postage and other tips. Only $9.95AUD.
Investing
More of a long term income plan than a current income option, investing is essential in our view. It requires minimal effort unless you want to research it all. Most choose to invest in indexed funds or similar which is pretty much set and forget instead of investing in individual companies.
It is lower risk and proivided you don’t freak out when the market ebbs and flows and you are doing it long term, statistically you’ll make money. Get professional advice and learn about your own risk tolerance as well as the risks involved with various investments.
We have a selection of investments for income in the future and to continue after we pass as well as side hustles for income now.
Books
Once written, if you outsource marketing, books can be a great side hustle. Authors don’t typically generate huge income from the book sales themselves, they do provide some income though.
I get royalties from a book I wrote 10 years ago, as well as income every month from eBooks I’ve written. Audiobooks are another great option. Essentially, you write one book, provide it in a variety of formats and you have 3 income streams from one piece of work.
How to create eBooks shares my experience and tips.
Other Side Hustles
There are so many side hustles available. I wanted to focus on ones that don’t require much effort. However, if you want to check out more side hustles, even if they require your time and effort, there are some great ones in the eBook 99 Side Hustles for Aussies plus most can be done by anyone, not just Aussies. Only $9.95.
What are you doing to have multiple income streams?
