Is it possible to increase your income without working more? Hell yeah! If you are looking for the best ways to increase your income without working harder, you are in the right place. According to Go Banking Rates, about 69% of adults in the U.S have less than $1,000 in their savings account. Eeek!
Statista reports that over 53% of people in the US had less than $75,000 annual household income in 2019. The Covid-19 pandemic has drastically affected individuals and businesses worldwide, and unemployment rates in the US have increased since the outbreak.
According to Congressional Research Service, the employment rate increased to 14.8% in April 2020 at the peak of the Covid-19 pandemic. People fail to increase their income and maintain a stable financial status, for various reasons, such as:
- Increased debt
- Procrastination
- A limited money mindset
- Non-specific financial goals
- Not earning enough income
- Forgetting to negotiate
- Not getting professional advice
So, what are the best ways to increase your income without working harder? I will give you 6 practical ways to increase your income without working more. To find out what they are, keep reading!
1. Use the Power of Negotiation
Negotiation is an art and skill that helps you succeed in all walks of life. Better negotiation skills help you create strong relationships and deliver quality and lasting solutions, enabling you to avoid future conflicts and problems.
Learning to negotiate is one of the most effective and fastest ways to increase your income without working harder. Negotiating is simply the art of asking, and the rule of thumb is to always ask for more than you want.
Although most people find it challenging to ask for a raise, learning to negotiate will streamline the entire process. A research study conducted by Lina Babcock highlights that 57% of men and 7% of women negotiate their first salary. The study concludes that people who negotiate can increase their wages by 7%.
You can use the power of negotiation to ask for a raise, discuss house prices, vacation time, freelance projects, etc. If it scares your socks off, I suggest just starting with your immediate family and see how amazing it works.
2. Find a Mentor
What do you need to do to increase your income? If you are an introvert, you may find it challenging to find a mentor and learn ways to increase your income without working more.
Finding a mentor, personally, scares me as I am an introvert. However, it’s probably cost me millions of dollars.
Over the life of my financial planning practice, I have noticed that my clients have created outrageous results. I can only attribute this to having someone guide them to their goal. I have been following my program, but I haven’t had as much success as my clients.
The one glaring difference is that I have no coach. It is hard to see your weaknesses and having a coach, or a mentor, to guide you gives you the faith you need to take the next step. Having a financial mentor or coach helps you achieve:
- A personal and customized wealth plan
- Evaluation and analysis of results
- Reduced mistakes and increased efficiency
- Improved confidence and self-esteem
- Improved financial management skills
- Greater happiness and balance
3. Ask for a Raise
Suppose you get a $150,000 salary and your co-worker has negotiated up to $157,000 salary with the HR team. Assuming that the company will treat you and your co-worker identically and offer you the same promotions and raises, you will have to work 8-10 hours more after your retirement to become as wealthy as your co-worker. Asking for a raise is one of the simple ways to increase your income. Here is how you can make a plan to ask for a raise.
Lay the Groundwork
This is simple. This is not keeping track of every penny you added to the company’s bottom line. Simply walk into your boss’s office and ask if you can have five minutes of their time. After they agree. Thank them and state your intention.
“Hi, boss! My desire is to get a promotion this year. Will you please give me a little feedback on what I’m doing right and three areas that I can improve so I can make my intention a reality? “
Then check in quarterly with him or her to see how you’re progressing. Don’t worry. You won’t get tons more work. You will actually have to work less because they will tell you exactly what to focus on to get that promotion.
I had a client who is willing to do four years of college because she thought that was the best way to get a promotion! She was smart, so, she asked her boss’s boss first. He said the best way was frequently attending company conferences. That’s what she did in four short years. She has doubled her income!
Decide on Timing
Find out who handles reviews about employees in the HR department? Is it a collective process or the HR Manager has the final say? Bear in mind that some companies conduct an in-depth review process, where you get a salary raise based on your hire date. While other companies hand out group promotions simultaneously. Because companies run on a fiscal calendar, it is crucial to figure out when they develop budgets and time to inquire for a raise at the right moment.
4. House Hack
House hacking is an effective way to increase your income without working more, and you don’t need to own a property for this. You can rent a room and look for roommates to pay their share.
When my boyfriend and I broke up, I took over the lease on our two-bedroom apartment. The rent was about $1200 a month. I got a roommate, and she ended up paying $850 a month, leading me to be able to save $80,000, in 2 years, for a down payment on my apartment. That’s only possible because my rent was so incredibly cheap.
You don’t even have to own your apartment or rent your apartment if you know anybody with real estate. For instance, my parents have a small cabin in Montana’s mountains that remains empty throughout the year.
I suggested we put their property on Airbnb, allowing me to handle all the Airbnb reservations to increase my revenues and streamline profits.
So, ask yourself, “Do you know any friends or family with apartments you can use for this purpose?” This is a passive way to increase your income. If the idea of a long-term roommate scares you, then you could Airbnb the individual rooms.
5. Start Investing
Many people have misconceptions about investing. For instance, most people think they need a lot of money to start a small business or create passive income streams. Remember, you can start a business without investing a lot of money.
For example, if you know how to do online research, find relevant data, and write in your own words, you can start a blog. Doing so will require you to spend a few hundred dollars to buy a dedicated hosting, domain name, responsive theme, and plugins.
Even if you don’t have extra money to start a small business, you can start working as a freelancer on Upwork, Fiverr, People per Hour, and other platforms. Although working as a freelancer is not a passive income idea, if you have time and skills, you can increase your income by selling your services, such as programming, photo editing, content writing, video editing, etc.
How much do freelancers make? According to CNBC, freelancers charge a median rate of $20 per hour in the US. However, you can charge more money if you have an outstanding portfolio and excellent skills.
If you find yourself saying you have no money to invest, start with a small $5. Invest in your 401(k), pick up the match, and a small investment will turn into significant profits. Likewise, if you don’t know what to invest in, pick an index fund like the Vanguard Total Stock index fund. It’s a “basket of businesses” covering the entire US market.
6. Know what you want
What kind of financial future do you want? Have you heard the cliché that knowing what you want is half of getting it? It’s a cliché because it’s true. Most of the work is done when you know exactly what you want with crystal clarity. Then, all that’s left to do is set up a S.M.A.R.T goal.
| Your S.M.A.R.T Financial Goals | Questions to Ask yourself |
| Specific | What do I want to achieve? Why is increased income important to me? |
| Measurable | How much money do I want? What are the best ways to increase my income without working more? How will I know when I achieve my goal? |
| Action-Based | What actions do I need to take to complete my financial goal? |
| Reachable | Can I achieve my financial goals? What are the challenges and opportunities? |
| Time-Bound | How will I reach and achieve my financial goal? For example, can I save $10,000 in three months? |
Research shows that about 67% of Americans have budgets, but, most don’t know how to maintain them. About 33% of Americans fail to maintain their monthly and annual budgets.
Remember, budgeting is essential because it helps you maintain and control your spending. Likewise, it enables you to monitor and track your day-to-day expenses, allowing you to save more money.
A solid budget plan can help you make informed decisions, get out of debt, stay ready for emergencies, and achieve your long-term financial goals to maintain profitability and stability.
Set up a budget online that allows you to see your spending in real-time. I like mint.com. Look at your budget about once a week and make sure you do not judge yourself. The purpose is to evaluate where you spend money and whether it’s providing value. Look at your money through the lens of value to reduce your spending and save more for investment purposes.
Key takeaways
- It’s no fun and a big drag to work yourself to the bone.
- Ask yourself how many of these six tips are you employing in your life?
- Challenge; pick one that appeals to you and give it a spin.
- Money is a thinking game. Not a working game. If you want the map to think rich, click here.