For the longest time, I honestly believed the only way to make money was through a job working for someone else.
I also believed that earning capacity was dependent upon your employer.
Bestie, that's just not true!
In reality, there are three main types of income: earned income, passive income and portfolio income.
Earned income is any type of income that is generated from labor or services, such as wages, salaries, tips and commissions. This type of income is typically earned through employment or self-employment.
Passive income is income that you earn without actively working for it. Examples of passive income include things like dividends from stocks, rental income from real estate or royalties from books or music. Passive income can be a great way to build long-term wealth and financial security.
Portfolio income is income generated from investments such as stocks, bonds, mutual funds and other financial instruments. This type of income is typically considered passive income as it is generated without active involvement. It is important to note that portfolio income is subject to capital gains taxes.
So now that we know about the three different types of income, let’s talk about how you can increase that income!
Create a passive offer or new one time offer.
Offering a masterclass can be a great way to share your knowledge with others and grow your business. Here are a few tips to help you get started:
Choose a topic: Think about a topic that you have a lot of expertise in, enjoy talking about and that would be interesting for your audience.
Develop your content: Make sure to provide detailed and comprehensive content that your audience can use and benefit from.
Set up your masterclass: Consider the format and duration of your masterclass and decide on the most suitable platform for it.
Promote your masterclass: Once you have your content ready, share it with your audience and promote it through your social media accounts, website, and other channels to get the word out.
Deliver your masterclass: Make sure to stay organized and keep your audience engaged while delivering your masterclass.
Ask for a raise or raise your prices.
When was the last time you received a raise? Did that raise accurately reflect your contribution to the company? If self-employed, when was the last time you raised your prices? Do your prices accurately reflect the transformation you provide?
Asking for a raise can be a tricky situation. It's important to approach the conversation professionally and with a positive attitude. Start by researching the average salary for your position in your area and be prepared to discuss your qualifications and contributions to the company. Make sure you have a set figure in mind that you would like to attain. Schedule a meeting with your boss and express your desire to discuss your compensation. Speak confidently, be prepared to answer questions, and listen to their response.
If you're self-employed, raising your prices can also be tricky. It's important to consider the potential impacts it could have on your business and your customers. To get started, take a look at your competitors to see what prices they're offering for similar services. You can also look into the cost of materials and labor associated with the services you offer. Once you have a better understanding of what's going on in the market, you can decide if it makes sense to raise your prices.
If you do decide to raise your prices, make sure to keep your customers informed and be upfront about why you're raising your prices. Communication and transparency can help to minimize any negative reactions your customers might have.
That being said, with inflation the way it is right now, most people expect increases.
Sell items you no longer need.
I'm a huge fan of selling my old clothes. Selling your clothes can be an easy and fun way to make some extra money! There are a few different ways you can do this, such as setting up an online store on a website like eBay or Poshmark, hosting a yard sale, or even bringing your clothes to a local consignment store. For online stores, you'll need to take good quality photos of your items and list the items with accurate descriptions. For yard sales, you'll want to make sure you have a good space to host the sale and advertise it to your neighbors and community. For consignment, look up the closest consignment store in your area and call to see if they're accepting items.
Another way to make some extra cash? Sell those old books on Amazon!
Earning extra income is possible with some effort and planning. You could try freelancing in your field of expertise, or look for a part-time job to supplement your income. You could also consider starting a side business, such as selling handmade items online or offering services like tutoring or pet-sitting.
Another option is to invest your money in the stock market or real estate. With these options, you can start with a small investment and increase your income over time.
Whichever option you choose, it pays to do your research and create a plan that works best for you.
Comment below and tell me what you're doing to increase your income this month!
Want to keep track of your weekly income? Head to The Budget BFF Vault for a printable Weekly Income Tracker. And the best part? It’s FREE!
Happy Budgeting!
Caitlin :)
