Wednesday, February 29, 2012

Ways to Increase Income

Living frugally is important but not sufficient to building wealth.Increasing income above maintenance levels is a important element for building wealth. Here are some ways that I've found to be successful for increasing income.
  • More jobs.  The simplest way is to work at more jobs.   A second job will increase income by a factor of the hourly rate times the hours worked.  The challenge is the extra time worked takes away from personal time and there are only 168 hours in a week.  There is a limit as to how many more jobs that can be worked.

    An alternate way is to work overtime in a current job.  This option is not always available.

  • More responsibility.   Getting promoted is another approach.  Typically, the higher level or higher skilled job title will provide a higher pay rate.   Moving to higher pay grades requires demonstration of capability prior to being promoted to the new level.

  • More sources.  Working a job is one way to acquire income.  Other ways include investments (stocks and bonds),  CDs,   rental property, or collectibles.    While these sources don't require constant attention, they do require some minimal level of work to create positive income.

  • Before retiring, getting promoted was the most effective way to increase income for me. Investments were a good source of supplemental income, but not sufficient to support our lifestyle. Now that I'm retired, I work additional part time jobs when I want to increase our income in the short term.

    For more on  The Practice of Personal Finance, check back every  Wednesday for a new segment.

    This is not financial or earning advice. Please consult a professional advisor.

    Copyright © 2012 Achievement Catalyst, LLC

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