5 Best Ways To Maximize Your Income

Why should you maximize your income?

In today’s world, having money is important. Without enough money, you can’t live your life right and achieve your goals. Your ability to make money is also affected. If you don’t have enough money to support yourself properly, how will you be able to fund your future needs? Fortunately, there are ways to get more money! With a little thought and effort, you can increase your income by almost 300%!

Let’s explore how you could maximize your income.

Ways to maximize your income

(1) Become a valuable employee

If you have been reasonably successful in your job, you will be interested in how you can maximize your income even more. An excellent way to do this is by becoming a valuable employee. It is important to have a plan for this.

For example –

• Do something to add more value to company
• Become irreplaceable
• Bring in more revenue for company
• Take courses to acquire new skills helpful for your company
• Be a better team member

Once you feel you have done something valuable for company, try to advertise it. Just talk about the value you are bringing to company. When time is right, approach the manager or boss with things you have done with results. Back your claim with track record or performance and then you can ask for more pay. Thats how you increase your income in salaried job.

I believe in 25x rule !

Lets say you want to add additional 20K to your salary, find a way to add value and increase the company profit by at least 25*20K = 500K. If you do this and show it to your manager, there is very small chance that your claim of salary hike will be denied.

Also read : Negotiating Salary in 2023 : Expert Advice to Maximize Your Earnings

(2) Start your own business

I understand staring a business is easier said than done but some people are more comfortable with running own business than working for others in 9-5 job. There are high chances of becoming rich through business than through 9-5 job.

The entrepreneur instinct helps achieve higher income because all the effort you are spending is on your own self. In 9-5 job, if you spend more effort, company profits goes up. But in your own business if you put more effort, your profit will go up. It is as simple as that.

For example –

• Food lover or a chef can open a restaurant
• Travel enthusiast can start a Tours and Travel company
• Computer programming nerd can open a IT company

Of course, there is more risk involved in business. But again, like every aspect of life this as well works on high risk – high reward principle. You can control the risk if you start the business based on your passion or the things you are know of.

(3) Start side hustle

Getting a significant pay rise or starting new business may not be everyones cup of tea. Let’s accept, most of us are an average lot. In this case what you can do to maximize your income? For such a group, there is an option of starting a side hustle.

You can continue to work on your regular job but find some extra time everyday to generate a side income. For this again you need to find your passion or up-skill yourself and use it to generate side income.

$50/day of side income becomes 30*50 = $ 1500/month or 365*50 = $18,250/year.

Just imagine what all you can do with this kind of extra money?

Here are some of the side hustles examples:

(4) Create a passive income stream

Great investor Warren Buffet had once said that –

“If you don’t find a way to make money while you sleep, you will work until you die.”

Warren Buffet

What he is talking about is building the passive income streams which will make you money with little or no effort from you.. even while you sleep.

Of course you first need to spend time and effort to build it but after that it should work itself.

For Warren Buffet that income stream was – “investing in stocks” from which he earns billions of dollars each year.

Instead of running any company, you can invest your money and be a passive partner. The active partners will run the company and make profit for them and you as well. You need to spend effort to arrange that upfront money and time to identify the right company.

Some examples of passive income to increase your income are –

• Investing in company/stock to benefit from increased stock value, dividend
• Earning royalties through inventions
• Create and sell online course

In “side hustle” you continuously work on the gig and keep earning while in “passive income, you work upfront and then get rewarded in future without your continuous effort.

There is a lots of overlap between “side hustle” and “passive income streams”.

For example, staring a blog/youtube channel or creating digital product/online course can be a “side hustle” in the beginning but once you automate it with little effort, it can be your “passive income stream”.

(5) Renting your assets

Do you have any unused assets, don’t let them lie down. Instead rent those and earn money from it.

Do you have a basement or garage which you aren’t using, rent it out and earn money.

Some examples of renting assets through which you can increase your income are –

1. Rent the garage space with storage rental platforms like – Neighbor, Peerspace or StoreAtMyHouse
2. Rent out your basement or other rental property using platforms like – Airbnb
3. Rent out your swimming pool using platforms like – Swimply
4. Rent out your vehicle (car, RV or boat) using platforms like – Turo, RVShare or GetMyBoat

Recommended reading

The $100 Startup

This book is about : Reinvent the Way You Make a Living, Do What You Love, and Create a New Future

The crux of this book is the outcome of case study author performed on 1500 individuals who made $50,000 or more from very modest investment ($100 or less).

Also read : Personal Finance For Beginners

Final thoughts

With all the advantages of maximizing your income, you must make sure that you are making the right decisions. You need to make sure that you are making the right choices for your reasons. There are ways to make money, and you must be finding the right way.

It can be difficult to find ways to make money, but with a little bit of effort and knowledge, it is possible to significantly increase your income.

Are you ready to take your income to the next level?