Money certainly isn’t the most important thing in the world, but it can have a major impact on your well-being and your happiness. Uncontrolled debt and other money worries can affect your physical and mental health but taking control of your finances and generating extra income can improve your situation and give you peace of mind.
If you want to increase your income and maximize your earning power, take a look at these nine ways to achieve your goal:
1. Ask for a Raise
If you’re currently employed, asking for a salary increase can be the easiest and most effective way to boost your income. Many people feel unsure about whether to approach their manager about a potential raise, but you shouldn’t hesitate to do so if you feel you’re entitled to a better remuneration package.
To help get a positive outcome, go prepared with reasons as to why you deserve a salary increase. If you’re being underpaid compared to similar roles in the industry, for example, show your bosses the evidence by presenting relevant job adverts. In addition to this, use recent work and projects to highlight your contributions to the business and justify your position.
Broaching the subject might seem nerve-racking at first, but it’s always important to stand up for yourself in a working environment. Even if you don’t get a raise straight away, you’ll have a clearer idea of whether a salary increase is likely to happen in the near future.
2. Secure a Promotion
Another way to increase your income while remaining with your employer is to secure an in-house promotion. You’ll usually be expected to take on more responsibility, but the increased salary and new duties will give you a chance to take a step up the career ladder.
If your employer is currently advertising vacancies, consider whether any of these would match your professional skills. If not, talk to your supervisor or manager about what promotion opportunities are likely to arise in the next six or 12 months.
Make sure your managers are aware of your ambitions and take steps to ensure you’re ready to take on additional responsibilities. Honing your leadership skills can be an effective way to prove you’re ready to be promoted, for example.
3. Apply for a New Job
If you don’t think you’re in line for a pay increase at your current place of work or you simply don’t enjoy working there anymore, look around for alternative options. Starting afresh at a new company can reignite your passion for your industry and give you the chance to secure a higher salary package.
While some people are hesitant about leaving a reliable job for something new, choosing a business that has a reputable and successful track record should give you confidence. Furthermore, expanding your skills, earning more, and taking on new challenges can provide an immense amount of job satisfaction.
4. Obtain Extra Qualifications
When you need to take a step up the career ladder to boost your earning power, you may need to complete extra qualifications first. From professional certifications to master’s degrees and doctorates, there are lots of routes you can take to enhance your skill set, increase your employability and generate more income.
What’s more – being able to study online makes it easier to obtain advanced qualifications while you’re still working. When you can study from any location and take advantage of reduced fees for online students, enrolling in a relevant course could put you on the path to a more successful future.
5. Decide to Invest
If you have savings or money to spare at the end of each month, deciding to invest can be a savvy way to enhance your financial situation. With the right investment strategy, you can generate short-term income, as well as grow your capital.
When it comes to investments, there are lots of options to consider. Playing the stock market is perhaps the most well-known, although it is a high-risk form of investment. To find out whether it’s the right option for you, take a look at this beginner’s guide and learn more about buying stocks in Canada. With Wealthsimple, you can use automated investing tools to manage an ETF portfolio that’s designed to minimize risk and maximize returns. Whatever level of risk you’re comfortable with, they have a range of solutions available.
As well as playing the stock market, you might want to consider other forms of investment too. Cryptocurrency is a high-risk investment that can offer big returns, for example, while real estate is an alternative investment that’s often considered to be relatively stable. The Crypto space is vast, and you need to find the best information available - you may wish to start by reading something like this Reddit best cryptocurrency guide to have a look at what your options are and find the best Crypto exchange for your needs.
By linking your financial goals to your investment strategy, seeking professional advice, and deciding what level of risk you’re willing to take, investing your funds can be an effective way of increasing your income and boosting your capital.
6. Become an Expert
Using your professional expertise to generate extra income can be a savvy way to enhance your financial situation. There are many websites that connect individuals to professionals and enable users to seek a quick response to their queries. Typically, you’ll receive a flat fee for every question you answer, with the site taking a cut of whatever the user pays.
Additionally, many people are working as freelancers in their spare time to optimize their earnings, broaden their network and create future opportunities. You will need to ensure that operating in this way doesn’t contravene any of the contractual terms with your employer, however. Once you’re sure that you can combine your existing role with additional work for external clients, you can set about creating a freelance profile and building your reputation.
7. Start a Side Hustle
Working as a freelancer and using your professional expertise to generate income can be a great side hustle, but there are many other options to consider. You might want to start a side hustle that allows you to use your hobbies and interests to make money, for example. This can be an effective way to prevent any conflicts of interest and separate your full-time work from your side hustle. Furthermore, doing something completely different gives you the opportunity to explore new fields and spend your time doing something you enjoy.
Whether you start a blog, create homemade products, or provide professional services, such as translation or virtual assistance, there are endless possibilities when it comes to launching a side hustle. While some people use a side hustle to test the water before starting a small business, many people simply rely on their side hustle to generate extra income while they’re working for their employer.
8. Minimise Tax Contributions
You can’t avoid paying tax, but you can make sure that your contributions are reduced where possible! Getting help from an accountant or tax adviser is a good place to start as there are strict regulations regarding taxation. However, there is also a multitude of rules that can enable you to secure tax breaks and reduce your tax liability. As these aren’t always well-publicized, many people end up paying more tax than they really need to.
Contributions to some pensions and savings plans can be tax-deductible, for example, so saving for the future could be a good way to reduce your tax liability now. Alternatively, you may want to register a company if you’re operating as a freelancer so that money can be obtained in the most tax-efficient way.
9. Generate Passive Income
Passive income gives you the opportunity to make money with minimal active involvement. This can take the form of rental income from a buy-to-let property, dividends from successful investments or profits from a business that you’re a shareholder in.
However, there are other ways to generate passive income too. Writing and selling an eBook can be considered a form of passive income as people can buy it at any time. While you’ll need to put the initial effort into creating the book, it then becomes an asset that can be sold again and again, without further activity. Alternatively, renting out a room in your home or leasing your garage as a storage space can give you the opportunity to earn extra passive income.
Active income, such as a side hustle or your full-time job, can take up a significant proportion of time. In contrast, passive income allows you to generate extra income with virtually no activity or effort on your part. As a result, passive income can increase exponentially, depending on the methods you choose to use.
Another option is to explore sports betting. Betting on sports has been legalized in many states, including the great state of Wyoming. Wyoming sports betting sites will guide you on how to bet on sporting events, including betting limits to minimize your losses and enjoy your wins.
Optimize Your Earning Power
Your earning power might not increase overnight but deciding to boost your income is the first step to building wealth. When you reassess the resources that are available to you, you’ll be surprised at just how many opportunities they are to earn extra revenue.
When you combine these with other financial strategies, such as increasing savings contributions or paying off high-interest debt, you can transform your financial situation in a relatively short amount of time and increase your long-term earning power.