This post may contain affiliate links. Please read my disclosure for more information.
We all want to make more money, right? I mean, come on, think of all the debt you could pay off faster! Think of all the cool wealth-building investments you can make with all that extra cash! Even an extra $5 per week put toward debt payoff or investing can make a huge difference over time.
Read my article How to Make Your Money Work for You, Part 2: Pay Down More Debt to see how putting just an extra $5 a week toward your debt can make a massive difference in interest savings.
Yes, we all want passive income, and we talk a lot about that too here around Millennial Money Club. But here's the cold, hard truth: if you only make $30,000 a year, then you will never have enough capital to invest in passive income in any meaningful way, unless you start making way more than $30,000 a year. And even if you are already have a healthy income, every extra dollar you make will get you to your financial goals faster.
Make Extra Cash by Taking Surveys! Taking surveys online is a great way to earn extra money. My top choice is Global Test Market because it pays you in cash via PayPal and has awarded over $32,000,000 to its members. 💰
It Works is no different, and a good thing about It Works in particular is that, unlike other industries, it is required to disclose its income statistics so you can see exactly what you're getting into. And I know what you're thinking: it's only a few at the top who are making any real money right? Wrong!
I see so many “gurus” pitching various seminars to people about how to make passive income, and it makes me sad. Most of these people will not make any money from these seminars, and they would have been much better-served by saving their time (and money!) and investing it in one of the four ways to maximize your income I've listed below.
So below I have listed for you the Four Ways to Maximize Your Income. A key for all of them is patience. Unfortunately, I see so many Millennials who want to make bank now. I think a part of this is reading books like Rich Dad, Poor Dad and The 4-Hour Workweek. Those books aren't bad. But if misapplied, they can lead to disaster if you make drastic changes without having a careful plan in place. But if you do the right thing long enough, you will be massively rewarded.
Read my article Rich Dad, Poor Dad: The Good and The Bad to learn what I think about Robert Kiyosaki's work.
So without further ado, here are the Four Ways to Maximize Your Income.
⏰ 1. Make More Money at Your Job.
Ah yes, the dreaded J-O-B, scourge of the American middle class, enemy of the masses…and the reason you roll out of bed in the morning. But like it or not, your job is the thing that puts food on your table and hopefully leaves you with a little bit every month to save or invest, so you might as well make the best of it.
Here are some ways to make the best of your current job:
- Work more. If you're paid hourly, work more overtime. And even if you're not paid hourly, work harder or after hours to show dedication, which is typically rewarded in the forms of raises and bonuses.
- Ask for a promotion or a raise. Let your boss know that you want to perform at the next level and ask him or her what he or she would expect of you to get there.
- Dress nicer. Like it or not, your appearance has a big impact on how you're perceived in the workplace. Appearing more “put together” can give you a huge leg up in terms of career advancement.
- Think for the long term. If you're entrepreneurially minded, it can be very easy to not see the point of drudging away at the 9-to-5 every day. However, you should keep in mind that while at your job you can make valuable connections and develop useful skills that can serve you very well in your future pursuits. I can't tell you how m any late nights I spent learning new concepts at a job that I was able to take to a later job or a side hustle.
💼 2. Get a Different Job.
In some fields, the biggest pay bumps come when you jump from one ship to another. And even if this isn't traditionally true in your field, this doesn't mean that you can't start earning a lot more money by changing companies. This can be especially true if another company will pay you a sign-on bonus.
Here is some advice if you suspect that you could be making more money elsewhere:
- Know what you're worth. If you haven't checked salaries for your position and experience level at other companies in the past 6-12 months, now's the time. You definitely want a specific number in mind when looking for a new position. PayScale is a great place to start your research.
- Upgrade your LinkedIn profile. I cannot overstate the importance of making sure your LinkedIn profile is polished and up-to-date. Make sure you have a professional picture as well as a full employment history that highlights the exact skills potential employers in your field are looking for.
- Upgrade your resume. There's really no excuse for a sloppy or dated-looking resume in this day and age. Just Google “free resume templates,” and you will be taken to dozens of professional-looking resume templates that you can use to make sure your resume doesn't get tossed in the trash based on appearance alone.
- Weigh the pros and cons. Before you jump ship, carefully consider what you're giving up. I'm not only talking about soft assets like the reputation you've built over the years with your current employer, but also about concrete, quantitative factors. For example, if your current company has a pension plan that would pay you $10,000 per year in retirement, but it doesn't vest until you've been with the company for at least five years, and you've only been there four, it probably makes sense to stay with them another year so that your pension vests.
🏃 3. Take on a Side Hustle.
Do you have time to watch Netflix? Mindlessly thumb through Facebook, Instagram, or Pinterest on a daily basis? Drink alone? If so, then you desperately need a side hustle.Remember, every extra dollar you invest in your 20s will likely eight-tuple by the time you are in your 50s! I made pretty good money for my age, but guess what? I still hustle hard because I want to level up my passive income investing as quickly as possible.
Here are some tips and ideas on successful side hustling:
- Take an inventory of your current skills. Chances are, you have some pretty impressive skills that somebody out there would be willing to pay you you handsomely for. Take 15 minutes to write down all the things you're good at and consider ways to monetize them. (If you have more than 15 minutes worth of things you're good at, mad props.)
- Go to networking events. Some industries have dedicated networking events that can be treasure troves of good clientele. But if you're industry doesn't fave formal networking events, per se, don't despair. There are countless informal groups of people who get together on evenings or weekends just to talk about a common topic or interest. You can find dozens of these on meetup.com.
- Tell your friends and family. Don't be embarrassed about this. Your current circle of influence is key in jumpstarting your side hustle. If I meet somebody at a networking event, chat for a few minutes, and give them my business card, there's probably a less than 20% chance they'll call me back. But if a friend or family member refers me, the chance of them reaching out is well over 90%. Of course these percentages will differ based on what it is your'e doing and how long you've been doing it, but in general, referrals are going to be your main source of business when you're just starting out.
- Get as much free advertising as you can. Want to use your Facebook for good instead of sucking your time away? Update your cover photo to advertise yourself. Post about your business on your profile and in local Facebook groups. The same goes for other social media platforms. The possibilities are endless! And don't forget about the old-fashioned methods of free advertising: bulletin boards at the library, community centers, the YMCA, or local places of worship.
💻 4. Turn Your Side Hustle Into a Full-Time Small Business.
Running your own business full-time is the big show, and it's typically a result of taking your side hustle to the next level. While there is a lot to say about throwing yourself at your own business full-time, here are some pointers that apply across industries:
- Carefully count the cost. By leaving the corporate cocoon, you're giving up several things. You'e giving up the sure paycheck every couple weeks. You're giving up employer-sponsored health insurance and other perks. You're giving up relatively easy access to borrowed capital if you need it since lenders have a bias in favor of W-2 wages over self-employment income. So if you're planning on buying a house in the near future, it may be smartest to quit your job after escrow closes!
- Consult with competent advisors. If you start a business full-time, you are going to want to set up an entity, typically an LLC or a corporation, for both asset protection and potential tax advantages. You will want to get on the phone with both a competent attorney and CPA (preferably at the same time) to talk you through your options.
- Have a plan. Write out your mission. Put to paper how you plan on getting new business. Think about what sets you apart from your competitors. Estimate your profit and loss for the first few years. This may sound like a lot, and that's because it is! This is the big show, folks. And if you're going to make it, you're going to have to push hard.
- Dream big. Think of how much time you waste now. How much is it? 5 hours a week? 10? 20? Wouldn't it be amazing if in five, ten, twenty years you can look back at what you accomplished with your free time instead of mindlessly thumbing through Facebook on your nights and weekends? Think of what you could afford for yourself and for your family. Think of what you could give away to worthy causes. Think of legacy you can create. Think of the generational wealth that your children and their children and their children's children could benefit from thanks to your efforts. Dream big, Millennial entrepreneur. 🗻
Sign Up and Get $20!
If you'd like to get a fast $20 bonus TODAY as well as subscribe to blog updates to be informed of other $5, $10, and $20 bonuses that companies give me to pass along to my readers, sign up below!