3 Steps for Increasing Your Income This Year

Cherryl Hanson-Simpson February 26, 2015 1
3 Steps for Increasing Your Income This Year

If you are like most persons, you probably included some money goals on your 2015 resolution list. If you really want to avoid the disappointing results of past years, then you must understand exactly what is required to put you on a positive financial path.

One problem that can be very frustrating for persons who want to achieve their financial objectives is that they just don’t have enough income to do everything they would like to.

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As the saying goes, “It takes cash to care;” and to attain many of your goals, you need to have excess funds on hand.

More money is essential

The reality is that many people do not have enough money left over after paying their regular bills to comfortably attain many of the objectives and acquisitions that they desire. It may be almost impossible for you to live out your lofty dreams, solely on the proceeds of a regular paycheck.

Therefore, a critical part of your game plan to have a better financial year is to look at options to increase your earning ability. Without additional sources of income, you will be challenged in your quest to manage your budget, avoid burdensome debt, and save towards building your wealth.

Although they know that they need to improve their cash inflows, a lot of people find it difficult to come up with practical ideas to make more money. Others are afraid of doing something outside of their nine-to-five jobs. Let’s look at some simple ways in which you can generate extra cash.

1) Set an income target

Imagine how hard it would be to win a soccer match without knowing where the goal was located! Similarly, if you want to score on the financial field, you need to be clear about your money targets. So, your first step is to determine exactly how much more money you need to earn.

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A detailed budget worksheet can help you to calculate the extra amount of cash that will be required to cover all your monthly requirements and save for additional demands. To make this process easier, you can download a ready-made budget form or app online.

List both your actual and desired costs in your budget. After adding up all your projected costs for a month and subtracting this figure from your income, you will arrive at a shortfall amount. If you were able to earn this much more each month, then you would be able to live your desired lifestyle.

2) Break down your target figure

Once you know by how much you need to increase your earnings, your next step is to convert this figure into a smaller amount that may seem more likely to be attained. When faced with a large deficit, you may get ‘brain freeze’ rendering you incapable of thinking of ways to earn extra money.

For example, if your budget reveals that you need another $900 per month to accomplish your objectives, break down this target amount into $225 per week or $30 every day. It will be easier for you to think of earning options if you focus on the smaller requirement than the big sum.

The next step is to convert the required dollar amount into the number of units that you have to sell to attain your target. To earn $30 per day, you may need to have five customers who provide you with $6 profit; or you could sell ten items, each supplying you with a profit of $3.

When trying to find realistic methods of making money, it is critical to be aware of the number of units you need to sell or customers to be serviced, and the profit you need to attain. Consider your options to ensure that you can reasonably earn your target in the time that you may have available.

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3) Increase your value to others

One of the fastest ways to make more money is to increase what you are currently doing to earn. So, a math tutor could offer classes after school, while a home economics teacher could do catering on a weekend. However, don’t take on assignments that could jeopardise your regular job.

Another route is to search reputable internet sites for freelance jobs such as data entry, editing, writing, graphic designing, photography, and various other part-time engagements. Some of these websites include http://www.freelancer.com, fiverr.com, and elance.com.

If you lack a specialty skill, then think about products that you can supply to colleagues at work, school or church more conveniently and at cheaper prices. You could also examine affiliate or network marketing businesses to find excellent, profitable products that are in demand.

There are hundreds of ways to utilise your talents and hobbies, or take advantage of opportunities that may be available right in front of you. The key is to be creative and think of ways in which you can add value to other people’s lives.

AUTHOR

Cherryl is a money coach, business mentor and the founder of Financially S.M.A.R.T. Services, the Caribbean’s number one source for practical, down-to-earth and independent answers for all questions relating to personal finance. Cherryl is currently writing her first book, The 3 M’s of Money – How to Manage, Multiply and Maintain Your Money. See more of her work at http://www.financiallysmartadvice.com.

Article Source: http://EzineArticles.com/8907800

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One Comment »

  1. avatar
    Anonymous February 27, 2015 at 2:30 pm - Reply

    Great article, that can help anyone even young people like me.

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