Do you want to start earning more? Most Americans probably do. According to statistics, Americans use up more than 90% of their pre-tax income. This leaves an average excess of more than $6,800 – but this does not include debt payments, credit card purchases, and the unplanned gifts and expenses. If you are not careful with the latter expenses, you might end up spending more than what you are earning.
We all know that when you spend more than what your income is bringing in, that means you are using credit. Either that or you are going through your savings unnecessarily. You need to do something about your financial situation because sooner or later, you will be in the red. Having a lot of debt can be dangerous and can quickly destroy everything that you have built.
If your budget is falling short, there are usually two things that you can do. You can choose to cut back on some of your expenses. Take a look at your budget plan to see where your money is going. Check those that you can stop spending on. While this is one thing that you can immediately implement, it can be limited.
The other option is to start earning more. This is not as limited as the other. You can earn as much as you need to sustain your budget.
Signs you should start earning more each month
Apart from having your budget fall short, there are other signs that you need to start earning more. Here are some of the obvious signs.
Using credit cards regularly
It is not really a crime to use your credit cards but you need to analyze how you are using it. If every purchase you make on it is planned, that means you have every intention to pay the balance in full at the end of the month. However, if you are using it with no knowledge of how you will pay for it, that is a problem. If you are forced to use it because you ran out of cash, you need to check your finances. Not only that, you need to learn how to use your credit cards to your advantage. In a survey done by US News, almost half of the respondents admitted that they did not research the new card before signing up. Without knowing about the card, it is very easy for you to be irresponsible with it. Get to know the card so you can use it wisely and responsibly.
Running out of money early into the month
It is bad enough to live from paycheck to paycheck. It is worse if you run out of money during the last week before the payday – but it is a reality that some people can live with. However, if you find yourself running out of money during the first two weeks after you got your salary, well, that is a different matter. This is not something that you can ignore. You need to start earning more if you do not want to make drastic changes in your lifestyle. You should also check why your money is falling short. Are you overspending? If that is the case, then you need to consider cutting back on your expenses and taking your lifestyle down a notch. But if you cannot see anything that you are overspending on, then there is no other way to solve your problem. You need to earn more.
Failing to pay all the bills
Another sign that you have to start earning more money is when you cannot afford to pay all your bills. Do you find yourself choosing among your bills to determine what should be paid and what should be skipped? That is a problem that you should not be living with. If there are bills you cannot pay, you have to consider cutting back on your expenses. Downsizing your lifestyle could be the very thing that will save your finances. But if there is nothing left to cut back on, then you know that you just have to earn more so you can pay all your bills.
Having inadequate emergency funds
If you do not have an emergency fund, that is a clear sign that you need to start earning more. Having an emergency fund is the best way for you to avoid a lot of financial issues. First of all, it can make your financial future more secure. It can also keep you from incurring debt. If there is an unexpected expense, you do not have to borrow money to get past it. Most of the time, people use their credit cards – which involves high-interest rates. If you have an emergency fund, you can use that instead. So if you do not have this fund, you might want to find a way to earn more so you can save up for it.
Feeling financial stress
When you are constantly stressed about money, that is another sign that you might need to start earning more each month. Always worrying about how to pay for your bills and other expenses can really take its toll on you. If your health starts to suffer, you might end up with more bills to pay – specifically health care expenses. While we do not want you to work too hard, you need to make sure you are earning enough to sustain your financial needs.
Tips to increase your monthly income
If you have to start earning more money to help finance your lifestyle and reach your financial goals, you might want to consider the following tips to increase your monthly income.
Start a side business
According to a recent survey, the main motivation to work a side hustle is to earn more cash. Starting a side business will help you get this much-needed cash. You will still keep your day job. But you will have to exert a little bit of effort to start a business that you can do during your free time. There are so many ways to set up a business without asking for a lot of money. You can actually build an online store that can run itself while you sleep. You can also buy and sell items online for profit. Find a niche that you know very well and work on that.
Go into freelancing
If you are an accountant, you can start getting clients by helping them manage their books. Or you can go online and have yourself hired on a project basis. There are outsourcing websites that can connect you to various small businesses in need of project-based professionals. This is something that you can work on at night or during the weekends.
Use your hobbies
If you are good at cooking, you can offer to sell packed lunches to your colleagues. The same is true if you are good at baking. If you have a green thumb, you can offer to care of the garden of your neighbors who are too busy to do it themselves. In case you are good at painting, you can create art pieces and sell them online. Those who are good at photography can take beautiful photos and post it in photo sharing sites. These are only a few of the options that you have to start earning more money through your hobbies.
Ask for a raise
This is a pretty straightforward approach to earning more. You can ask your boss for a raise – but only if you are certain that you can justify that you deserve it. You can get a certificate or complete a training that will improve your skills. This is something that you can use to defend why you are worthy of getting a raise.
There are so many ways to start earning more money and it can really help you improve your financial position. It will help you pay off your debts, reach your goals, and so much more. With a little hard work, you can increase your monthly income.