7 Ways To Manage Or Increase Your Income
- The normal ways people obtain an income:
- Selling time by going to work.
- Running your own business.
- Making ad hoc money.
- Receiving payments from government.
- Payments from ex-partners etc.
- Interest on bank deposits and other investments.
- Dividends from shares.
- Capital growth from shares.
- Rental income from property.
- Capital growth from property.
- Gifts of money and inheritance.
- Insurance payouts.
- Gambling income.
1.1) Pay Yourself First - One of the best books I have ever read on managing your finances was Rich Dad Poor Dad. The lesson I found the best was pay yourself first. This means have your boss divert some of your pay into your mortgage or an investment account. You survive on what is left. This way you are always getting ahead and adjusting your lifestyle to make it on the money that is left. If you try to pay down your mortgage or try and save after you pay all your bills there is rarely any money left. So, pay yourself first and reduce your expenses to match the money you have left. We are lucky that we live in a two income household. We have my wife's income paid straight into our mortgage and we live thrifty on my income. This way we are getting ahead every month no matter what.
2) Selling Things
2.1) Find Bargains At Verge Collection - When your council has a verge collection, people put some very valuable items out because they don't want them. Go for a drive, pick up a bike or a weight set and then sell them on Gum Tree. Make sure the money you make goes on your mortgage and not in your tummy as beer.
2.2) Sell Your Stuff - Go hard around your home and find everything you can sell. Books, toys, furniture, TVs, the extra fridge, dresses. Sell all of these things for free on Gum Tree. DO NOT SPEND THE MONEY! The money MUST go on your mortgage or in an investment account.
3.1) Get an extra part time/casual job - Even 2 hours a week will make a dent. Don't spend this money, have it paid straight into your mortgage or an investment account.
3.2) Ask for overtime - Ask the boss if there are jobs that they would love done but no one gets time to do. Offer to do this work on the weekend or at night for some extra cash. You know the deal, don't spend it.
3.3) Ask for a raise - Don't just say give me more money. Say something like "I have just done my budget and I am trying to get ahead. I would like to earn $5 an hour more. What would I have to do to justify a pay rise like that?"
4) Self Employment
4.1) Set up a full time or part time business - This about your skill set. Can you mow lawns on the weekend? Can you set up an online business? Can you offer welding training to a company of welders?