Many people want to increase their income for a variety of reasons, including to get out of debt, save for the future, have a financial cushion for emergency needs and simply live more comfortably. Many options are available to increase your income, such as obtaining a new certification or starting a side business.
In this article, we discuss the benefits you can gain from more income and 10 ways you can increase your income.
Benefits of increasing your income
Here are several benefits that can come with an increase in income:
- Less stress about finances
- The ability to pay off debts at a faster rate
- The ability to save money for an emergency fund or other financial goals
- More financial stability
- No longer having to live paycheck to paycheck
Both short-term and long-term solutions are available when deciding how you will bring in more income. It's also important to take into account any tax requirements that come as a result of additional income. However, if you plan well, you can make extra income in a way that best suits your abilities and preferences.
10 ways to make extra income
Bring in extra pay with these options:
1. Go back to school.
Going back to school is not the fastest way to increase your income, but it does come with the promise of increased career opportunities and salary. With a master's or doctorate, you are qualified for higher-level positions, which ultimately means you can earn more money in your career. However, you should do some research in your chosen field to ensure that an increased salary will be a result of obtaining higher education, as not all careers work this way.
2. Create a passive income
Passive income can increase your earnings without having to go through training or pursue higher education. Common ways people earn passive income include blogs, influencer marketing on social media and YouTube channels. While these endeavors will certainly require time and effort to get up and running, they can pay off greatly and provide a source of passive earnings.
3. Look into your current employee benefits.
Many companies offer employee benefits that enable employees to save money. Examples of these benefits include a flexible spending account (FSA) and 401(k) options. These benefits help lower the amount of income taxed and save money for retirement.
4. Modify your tax withholdings.
If you need cash fast, you can adjust the tax withheld from your paycheck. This will provide you with a bigger paycheck as soon as the next pay period. However, it's important to keep in mind that you will still be accountable for paying taxes on your income at the end of the year.
5. Start a side business.
Another effective way to bring in extra income is to start a side business. There are various ways to go about this and many of them do not take too much time or money on your part. For example, you could provide freelance writing services on the weekends or turn your love of photography into a side job that pays.
Read more: 20 Side Jobs To Generate Additional Income
6. Earn a certification.
Pursuing a certification can increase the income earned in certain careers, including human resources, personal training and financial planning. You can use several resources to take a program and achieve certification, and many of these programs can be completed online in your spare time. Research the certifications available in your career and consider getting one to boost your income.
7. Ask for a raise or promotion.
Asking for a raise or promotion is another way to potentially increase your current income. If you have been in your position for more than a year and are a great employee, you should be able to realistically ask for and get approved for a raise. Additionally, if your company has an open position that would be a promotion for you, consider applying for it. The more interest you show in advancing in your company, the more likely you will be allowed to move up and make more money.
Read more: How To Negotiate a Raise in 7 Steps
8. Use your hobbies to your advantage.
Several hobbies can be turned into a new stream of income, including art, videography and gaming. Online resources like Etsy allow you to open your own online shop and sell your artwork or other creations. It may take some time to gain a following in these areas, but the more consistent you are the better you'll do in terms of income.
9. Drive for a rideshare company.
If you have a reliable vehicle and a good driving record, you will likely be able to apply for and drive for a company like Uber or Lyft. Rideshare companies are good ways to bring in additional income and allow you to set your own schedule so you don't have to sacrifice family or personal time.
10. Sell your gently used clothes and other items online.
Another way to bring in extra money is to go through your belongings and list the things you no longer wear or use on an online platform such as Poshmark. Be sure that your items are gently used or like new, and that you include descriptive information and high-quality photos for each listing. You can also go to thrift stores in your spare time to find gently used designer items and list these as well to make a profit.