9 ways to increase your income

Are you tired of working so hard for small wages or feel like the money you make is not enough? If so, I have a plan to help you increase your income which is essential in reaching financial security faster.

While working a 9 to 5 job for the rest of your life seems like an inevitable path, there are effective ways and strategies you can utilize to boost your income and escape the rat race. Some of these strategies could be easy or hard depending on your schedule and willingness to implement them. For example, if you want to make an extra $300 per month, you can do so by simply working a few hours of overtime. On the other hand, if you want to double your income, you might need to get a second job or boost your education level to get a high-paying and specialized job. These are not the only options to increase your income. You can also boost your income by allocating some of your funds through different investment options that earn you streams of income without having to work for it.

No matter how much extra money you want to make, there is always a way to do it. This article has practical tips to increase your income which you can start as early as today.

Without further ado, the following are 9 easy and effective ways to increase your income.

Table of Contents show

1. Work Over-time

When it comes to boosting your income, there are a ton of options to consider. One of the easiest ways to increase your income is to work overtime. This option is on the first spot on our list because you don’t have to do anything extra other than show up to your current job.

You don’t have to send in applications for overtime hours or get signatures from your superiors. The only thing you need to do is to talk to your boss and ask whether you can work overtime and how many hours you are allowed to work. That is pretty much it.

If your boss denies you the hours or your company does not allow overtime, this option will become useless, in your case. That doesn’t mean you are out of luck. There are other ways to increase your income but you might need to put a little extra effort. This leads to our second option to make extra cash which is getting a second job.

2. Increase your income by getting a second job

I know it is not easy to get a second job. After getting hired for the job, you will still have to go through training, the application process, W4 forms, submitting your information to the new company, etc. If you get frustrated with this process, you are not alone. Many people get frustrated with all the steps and processes involved with getting a new job.

The truth is that nothing good comes easy. If you want something, always understand that you must pay the price to get it. That also applies to increasing your income. If you want to make more money, understand that there is a price to pay. That price is sometimes doing things you don’t like or want to do like applying for a second job and working longer hours.

Once you have secured a second job, you will be in good hands. The second income will allow you to take care of your pressing financial matters such as mortgage, car loans, student loans, or credit card debts. Not only you will have a ready-to-use paycheck, but you will also have a safety net in case things go wrong.

If you have a busy schedule, consider getting a part-time job instead of a full-time job. In case you choose to get another full-time job, make sure that there is no conflict with your current job. You don’t want to get one job only to lose the other due to attendance issues.

You might also like: How to secure your financial future after landing a job?

3. Get a raise at your current job

The first two options are great but hard to fulfill. Yes, you will put in extra time and work harder than usual. You will sweat more and probably get frustrated which is why getting a way might be a perfect way to increase your income.

I used to be in your shoes. I worked a lot of hours and harder before discovering other ways to boost my income without trading my health for it. Although you have got to do what you have to, your life is the most important asset you have and you should treat it as such.

Working longer hours could result in long-lasting damages that will cost you more than the money you made to fix them. That is you could end up getting sick on the job or develop serious medical problems from your hard work.

Instead of working 100 hours only to make a few bucks, increase your skills instead. Increasing your skillsets can easily help you get paid 20% or more than your current salary while working the same number of hours.

Most companies offer classes and certifications you can take that are fully paid and funded by the company. Once you finish your training, you will more likely get a raise either doing the same job or getting a promotion.

Ask your supervisor or manager if your company has educational programs you can take. If they do, enroll as soon as possible. After finishing the program, your raise should be increased in response to your new skillset.

4. Buy income-generating assets

The first three ways to increase your income have been focusing on working harder and improving your current job efficiency. You are probably saying: why everything written so far is about working my butt off. I can’t blame you. When I started the same journey, I only focused on working hard for money. Later, I found out that what I was making did not justify my frustration and if I did not change my plan, I would never become financially free.

Let’s face it. Working hard alone doesn’t guarantee financial stability. At the end of the day, what you make ends up in other people’s pockets through higher taxes, increased expenses, etc. That is why you also need to work smarter when you are trying to increase your income.

An effective way to increase your income without working hard for it is by investing which is by far the only and easiest way to boost your income and build wealth with minimal effort.

Investing is a great way to make more money and you can start from income-generating assets. What makes these assets great for many investors is that all you have to do is buy them and hold them for a while. In return, they give you a regular income through dividend payout, interest payments, or capital gains.

For example, if you own dividend-paying stocks, you will earn passive income through dividends every quarter. You can also put your money in high-yield savings accounts or special CD accounts which earn well above 4% or even 5% annual percentage yield(APY). Here are different types of CDs and how to pick the right one for your investment strategies.

Investing in bonds, mutual funds, real estate, etc. is also another viable option to increase your income without working hard for it. Keep in mind that investing requires time as it allows your interest to be compounded for greater returns.

Here is a list of income-generating assets, investment options, and money-making ideas to help you boost your income.

Farmland: Can give you a lot of cash flow as long as you have someone using it.
Certificate of deposits(CDs): They pay a small percentage but are secure. Sign up for a promotional CD for a higher yield.
Royalties
Rental properties. Pay well but you need to deal with tenants
Peer-to-peer lending. Less secure but they offer a consistent return on investment
Real estate crowd-funding
Create a physical product. It can be sold for a long time. Keep in mind that you will need to deal with shipping and packaging. But, with an eBook, you will not worry about these costs.
High-yield savings account. These are more secure but they give you a very small return
Bonds: Bonds are secure and offer a fixed percentage of return for a given period of time.
Stock-based funds. You can increase your income by investing in mutual funds, exchange-traded funds (ETFs), and Index Funds

5. Buy dividend stocks to increase your income

The dividend is a portion of the profit that a company pays to its shareholders. By owning shares of a company, you automatically become a shareholder. For this reason, you get paid every time the company distributes dividends to its shareholders.

The number of shares you own will determine how much you get paid. For example, if the company has an earning per share (EPS) of $0.25, you will get $0.25 for every share you own. If you have 100 shares, you will make $25 and 1000 shares will get you $250. You got the point.

Owning shares of a company also comes with its own risk. The company’s performance, economic conditions political instability, global pandemics, etc. all affect the stock market and the health of your portfolio. This means that even if you are getting dividends, your portfolio could decline in a bear market. Due to the risk associated with the stock market, it is best to consult with a financial advisor before investing your hard-earned money.

6. Increase your income by starting a side hustle

Haven’t found something that works for you? Don’t leave yet. There are other options you can use to increase your income.

If you can’t invest, get a second job, or make more money with your current job, consider starting a side hustle.

TIP: The best side hustle you can start is one that lets you monetize what you already know.

When you monetize what you know already, it helps you succeed faster with little to no effort. For example, if you are a graphic designer, you can pick graphic design projects from independent clients. Since you already know how to use different software for graphic designing, you will be up and running in no time.

What makes side hustles a perfect way to boost your income is that they can easily replace your full-time job if done right. Here are a few side hustle guides to help you get started.

7. Sell your clothes/used electronics

One of the best ways to increase your income is to sell used clothes and electronics. Selling unwanted products online is an easy way to make money due to little to no initial cost.

If you have not sold something online, it can be a little intimidating. But, the process is very easy. Most online platforms such as Amazon, and eBay require that you create a seller’s account and start selling right away.

Here are a few guides on where to sell used clothes and electronics online.

8. Increase your income by Paying off your debt

Sometimes the best way to increase your income is to save what you make in the first place. Paying off your debt will be the best money decision you ever made. If debt did not come with interest, being in debt could make sense.

What makes debt so bad is the interest. Let’s take a good example of credit card debts. The interest you pay on your cards is known as the annual percentage rate (APR) and it is one of the highest interests in the lending industry with current credit card APR around 24.37% for new accounts, according to LendingTree. Besides, this interest is compounded.

This high interest makes it very difficult to pay off credit card debts. What if you can get rid of this debt and live a debt-free lifestyle? Guess what, you could save all the money you give away in interest. If you really want to be in control of your finances, you should get out of debt as soon as possible. Being debt-free allows you to meet other financial obligations such as saving for retirement, vacation, a down payment on a house, etc.

9. Rent out a room to increase your income

The last easy and clever way to increase your income is to rent out a room. What does renting out a room mean? Let’s assume that you have a 3B3B house but you only use 2B and 2B. In this case, you will have one extra room and bathroom that are sitting there without being used.

Instead of wasting that space, you can lease it to a tenant who will pay you a monthly rent. This setup is known as renting out a room. The money you will make from this side hustle will increase your income and reach your saving goals faster.