Income, Income, Yay, Yay. Who doesn't like more income? I am here to tell the tale of how I managed to increase my income over 60% (!!!) from January to June of this year, and how you can increase your income with three steps, a little bravery, and a lot of grit. To start, let's go over the example from my own life.
I'm not going to break down the percentages for you specifically, but my total income in January 2014 was $3950.00 for the whole month. (All of the dollar amounts indicate take home, after tax income…)
In May 2014 I made $6481.00 for the month, which is a 64% increase over the six months prior. Not too bad, eh? Since this is the biggest income increase I've been able to leverage well…ever..I decided to break down just how I was able to make such a sizable jump.
How to Increase Your Income in Three Steps
Increase Your Salary
Back in February, when I was unexpectedly laid off from my job, I found another one with relative ease. Two weeks, I think was the total time I was unemployed. Still, even though I wasn't planning on losing my job, it ended up being a blessing in disguise, as I was able to negotiate a large increase in salary.
I knew that when you change jobs is the best chance you have of increasing your monthly take home pay, so I stuck to my guns and negotiated for exactly what I wanted. Thankfully it worked out, and I am now surrounded by amazing new co-workers and friends. But this is something to keep in mind in case you, yourself are looking to increase your income: you either need to get a raise, or get a better paying job, as this is the largest chunk percentage of my overall income increase came from.
Increase Your Income By Starting a Side Hustle
I count “blog income”: (click here to read how to start a profitable blog of your own!) advertising revenue for the site differently from revenue I get from my freelance clients. Extra money is always nice when you can get it, and I make money on the site in many different ways including affiliates and sales of my own products.
Here is a post on diversifying your income streams later on, but the side hustle is an extremely important part in increasing your earnings. Not to mention that if another emergency were to happen again and I found myself without a full-time gig, I'd still have close to 40% of my total income stream to rely on.
One of the best ways to increase side hustle income without working more is to adjust your prices. Read my piece on how to do this here.
Leverage Your Existing Assets to Further Increase Income
Finally, finally..I was able to increase income by leveraging assets I already had, namely my house. I was able find a renter for the third bedroom in my home. As you can see I was making 0 dollars from tenant income in January, and now it accounts for about 7%. Yay! If you have spare bedrooms in your home, you could be leaving cash on the table. I won't lie, sometimes I think the additional privacy would be nice, but having that extra sense of security is nicer.
If you can do the math on the after-tax take home pay from May, it means I am inching closer and closer to that six-figure (before tax) salary. I had wanted to hit this before I turn 30, but if things continue to go well, it looks like I may hit that well before.
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