Like it or not, money is a reality that we all must face. We all understand that the most important things in life are experiences, family and friends but it’s hard to run away from the fact that having financial freedom gives you time to make the most out of such things.
Couple this with the fact that being unable to pay your bills is among the most stressful experiences you can have, and you start to understand that being able to generate income is a key skill. So what should you do to effectively increase income? Well, here are the top ways to increase your income;
1) Get a Raise – or a Second Job.
There are numerous articles and books that offer advice on getting more money out of employers. They give counsel on everything be it dressing well or taking pay cuts in exchange for a performance bonus. One of the best techniques is going for further education or training. This may cost you some money now, but will hopefully translate to higher wages or a more secure post in the company.
2) Create passive income.
To truly have financial freedom, you should consider pursuing passive income sources. These are investments which generate wealth with very little ongoing output from you. These include sources such as publishing royalties, profits from a business partnership, dividends from equities or rental income. These require significant upfront investment, but have a huge potential payoff.
Another good way to increase income is to reduce spending expense. Simple items like refinancing your mortgage or shopping better auto insurance can help reduce costs.
- Start here: tips to lower housing costs
Help us spread this article with a quick “comment/share” to your friends and family.
3) Start a Business.
Starting your own business, even if small, is a legitimate technique of bolstering your income. Just like a second or raise job, running the business will have a greater demand on your time and effort. The difference is that one sees more income from their labor because taxation for business owners is a very small pinch. Some of the business write-offs can even be claimed against other income sources, but one has to follow these rules carefully.
4) Spend Less.
A great way of increasing your disposable income is protecting the money earned by spending less. Making your budget tighter will take some effort because you will be forced to sacrifice a few luxuries, but this will have a very positive impact on your disposable income. The more the after tax dollars you will hold onto, the easier it’s to do stuff such as investing into secure more income later in the future.
5) Start prioritizing your activities.
When setting up your weekly or daily schedule ensure you begin with income generating activities. Of all your daily or weekly activities, 20 percent account for about 80 percent of your earned income. Figure out what they are and put them in your schedule to ensure you’re creating income.
Helpful article? Leave us a quick comment below.
And please give this article a rating and/or share it within your social networks.