According to a recent report by CareerBuilder, 78% Americans live paycheck-to-paycheck. This is a sad, but true, fact. Yet, too many people do not believe that it is possible to increase their income, but we are here to tell you that it IS possible and thousands do it every single day. In this post, we will explain how YOU can start to increase your total income to become financially prosperous.
1) Create Multiple Streams of Income
This is by far the most effective way to bring more money into your household. The fact that most people do not follow this rule to wealth is astonishing. Even if your main job is paying you exceptionally well, it is still important to have money coming from other places. What if you lose your job? What if you get laid off and lose your only source of income? Having multiple sources of income not only helps you build wealth faster, it provides security and insurance in case you lose your job. Coin Counselor highly suggests each reader to take action and begin to create more money sources for themselves.
At this point, you may not know exactly where to begin to create more passive income. Don't worry. There are many different ways to accomplish this and we are about to share the best ways to increase your passive income.
Invest in Real Estate.
Start, Build, or Grow Your Own Side-Business.
In our opinion, Real Estate is the best investment to become wealthy. It has made so many millionaires in America and gives people leverage as well as many tax advantages. You can do a quick flip to make quick cash or you can hold on to a rental property for long term monthly cash-flow. If you want to be wealthy, the most crucial way to earn a fortune is to become an entrepreneur.
The best way to start a business is allowing it to grow on the side of your regular income. By doing this, one would not have to immediately get into bad debt and put themselves in a larger financial hole in order to make more money. Once you get to the point where your side business is making more money than your day job, you are ready to pursue your business full-time.
If you have a website or a blog, you can pursue affiliate marketing in order to monetize it. Affiliate marketing is when you earn commission for marketing another company's products. The amount of money you would earn depends on how much website traffic you have and how often people buy the products for the ads on your site. These are just a very few out of the thousands of ways that you can begin to generate more sources of income.
2) Create a Budget
This next item on our list isn't going to to increase your income, but it will sure feel like it did! You need to establish a budget! Many people do not realize just how much money they spend on a regular basis. An increase in income will not matter at all if you can't control your spending. Budgeting is the MOST important thing you can do to increase your spending power. Don't believe us? Try it for yourself. Create a budget for 3-months, and see just how much more control over money you have. You will truly feel like you received a raise. Millions of people have felt this way! Instead of chasing dollars and pennies, you are controlling them and this makes a world of difference! Personal finance is primarily about behavior, not knowledge of finance.
3) Don't Accept Less Than You Are Worth
A mistake that many people make is accepting less than they are worth! What does this mean? Let's say that you are a psychologist. The average salary for a psychologist in the USA is about $66,000 once experience is acquired. NOT STRAIGHT OUT OF COLLEGE. But rather than working at a job for the $66,000 that you are worth, you have a salary of $40,000. This is only about 66% of what you are worth! Work your way up and search the job market well. Get paid what you are worth.
In order to get paid what you are worth, you first have to know what the average salary is for people in you position. Check out a great salary reference here.
4) Ask for a Raise
This may seem like common sense, but common sense is not so common anymore. If you want more money, you may have to ASK FOR IT! Let's learn how to PROPERLY ask for a raise. Within this process, I want you to take 5 things into consideration:
Walk in your employers shoes. Talk to coworkers and know your worth (as previously mentioned). Be prepared to explain what special skills you bring to your position that set you apart from your other team members Be willing to accept more responsibility as well. Be respectful.
One of the most important things you can do is try to see yourself from your employers point of view. If you were your boss, would you give yourself a raise? As the boss, does the company have the funds to give you a raise? These are just a few of the questions that you can ask while trying to see things from a different point of view.
Once again, it is really important to know what you are worth. Do not ask for a raise if you are psychologist and making $90,000 if the average is $66,000. Let your boss make the approach. However, casually talk to team members that do what you do and say, "Hey! Lately I have been considering asking for a raise. Would you mind talking for a minute and helping me to decide?" Try to discuss salaries and see if they are similar. However, we are told that talking about salaries is a sensitive topic, but it doesn't have to be if it is a courteous, and respectful, discussion.
One thing that you have to ask yourself is, "Are there any unique skills that only I bring to this position?" If you do, use this as negotiating leverage in potential salary increase! More power to you!
Please do not make the mistake that millions of Americans make! Many talk the talk, but never follow through. Step up to the free-throw line and shoot. You miss 100% of the shots you don't take. I live by this philosophy. Take a chance. Without a motion from either party, you are just standing still. Do not be afraid to make the first move! Communication is key!
The most important thing to do when asking for a raise is to be kind. Employers are under a lot of pressure most of the time and can be easily frustrated. Being kind, courteous, and self-aware. A smile goes a long way and can one your best assets in stressful situations. Learn to listen and discuss with intent and understanding.
Increasing income is something that is tough to accomplish, but rewarding in the end. To put the solution in prospective, through creating multiple sources of income, budgeting, not accepting less than you're worth, using your special skills as leverage, and just taking the chance to ask, you have a great chance of increasing your income!