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.
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.
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.