Most millennials and all the generations before them have been taught that if they want to grow their money, they must work hard for it. Hence, many of them juggled multiple jobs, only to still struggle to make ends meet. Even college graduates, especially those from developing countries, earned meager salaries.
Entrepreneurs, however, spared themselves the hassle of overworking. They definitely weren’t lazy, but they didn’t wear themselves thin either. Ask any of them how they grew their income, and they would certainly answer something along the lines of “Work smart, not hard.”
Working smart is the key to greater productivity, and ultimately, to a higher income. If you’re wondering why you’re still not progressing in your career after rendering multiple overtime’s, that’s because extra working hours don’t necessarily result in more output. You’ve only drained yourself, and it’s still your boss who earns all the money.
Therefore, the secret to boosting your income is to change your mentality about hard work. Overworking benefits no one but the one you’re working for. Working smart, on the contrary, saves your energy, increases your productivity, and grows your wealth.
That said, here are some ways to increase your income without overworking:
1. Build a Passive Income Stream
Your salary is an active income since you earn it after accomplishing tasks. Revenue, dividends, interest income, and profit, on the other hand, are passive income. They’re the money you can earn even in your sleep. In other words, passive income is the money that works for you.
Even students can build a passive income stream and develop a career from it. Investing in stocks, bonds, or real estate is a brilliant way to earn passive income, but the process may be too complicated if you’re a novice in investments. So instead, consider doing something you enjoy. If you love fashion, for example, you can create a fashion blog or YouTube channel. You’re technically still working for your money that way, but when people read your blogs or watch your videos, your platform earns money, even when you’re asleep.
Keep in mind that passive income won’t build up overnight. If you’d write blogs, you have to reach a certain number of followers first. Advertisers or brands will only approach you if your blog has a huge following. So the first few months to years of creating online content will require patience and dedication.
2. Cancel Unnecessary Subscriptions
If your main problem is paying too many bills, review your monthly payments and see what you can eliminate. Chances are you’re still paying for subscriptions you don’t benefit from anymore.
Minimizing your monthly bills not only boosts your savings, but improves your credit as well. With a good credit score, your likelihood of being approved for a loan increases. If you want to buy a home from your added income, you can get the best home loan plan. Mortgage lenders favor buyers with fewer monthly bills because it proves your ability to repay the loan within the given term.
3. Start a Side Business
Opening a small business may sound like too much work, given your day job and all the time you spend on it. But not all businesses require too much of your time. A blog or YouTube channel is a form of business too. You cater to a certain audience and earn passive income from their patronage.
To avoid overworking on your side business, divide your time realistically. If your day job runs from nine to five, then dedicate all those hours in the office alone. Work on your side business only after you’ve rested. That would most likely be at night, or on the weekends. If you can write blogs or shoot videos in advance, seize the opportunity so that you can enjoy a more relaxed work week. By the time you start earning money from your content, you can pay someone to edit them for you, taking one task off your to-do list.
4. Pay Yourself First
If the first thing you do after getting your paycheck is spending it, do the opposite; save first. Set up your savings like a bill that needs to be paid. Author and self-made billionaire David Bach recommends this strategy. Dedicate a portion of your monthly paycheck to yourself, and let the rest go to your bills.
5. Increase Your Contributions
Lastly, to grow your income for the long-term, increase your contributions. After paying yourself, contribute another chunk of your paycheck to your retirement savings. Even a 1% increase can result in a big difference over time. If you have an employer-sponsored 401(k), check online if you can set up an automatic increase for it. That way, you’ll always stay updated on your contributions.
Growing your income should be possible without straining yourself. What’s the use of your money if you’re too tired or sick to enjoy them? You are not a slave of money, so turn the tables and make yourself the master of your finances.