- Ask for a raise -- Your job is your most important financial asset and using it to make more money represents the low-lying fruit of all money making opportunities. Of course you simply can't demand a raise for showing up. You have to ask for a raise in a way that maximizes your likelihood of getting one. Fortunately it's rather simple: do a great job, make sure others know about your success (especially your boss), then pitch the proper person on why you deserve a raise. If you do these things better than most, you can secure a 5-7% raise while the others are stuck with a cost-of-living adjustment. Also note, it's just as important to NOT do certain things when asking for a raise. Otherwise, you might torpedo your chances for the extra loot.
- Get a promotion -- Ok, let's say you're squeamish about asking for a raise -- how about earning a raise by getting a promotion? It's generallyaccepted that if you have more responsibility you get paid more. But how do you go about getting a promotion? Basically it's the same way you go about building your case to get a raise -- perform well and make sure everyone knows about it. (Plus you can go "above and beyond" most others by doing things like taking professional classes to enhance your marketability.) Since this tip is dependent on the fact that a position actually opens up in your company, it's not quite as good as asking for a raise in my opinion.
- Change jobs -- Just like it's usually the case that you'll earn more when you get a promotion, most people earn more money when they change jobs (either a lateral change that earns you more or a promotion via job change.) The key here is to market yourself correctly in the job hunt process so you can actually land a job that pays significantly more than your current position. Some job-hunting success tips: make the most of your cover letters, stick with a classic resume that highlights significant job accomplishments, and make the most of your interviews (which includes not asking stupid questions). I've applied these principles several times and I've averaged roughly 13% increases when I've made a move.
A couple other tips that are important when it comes to changing jobs:
- Don't quit your job before you get another one. Quitting without another job is not a good idea and by doing so you're risking your most important financial asset. Believe me, I've seen the disaster. If you're stuck in a job you hate, take specific steps to get out of it, but don't quit without another position lined up.
- Once you do get a job offer, ask for more money before you accept the position. Doing so can pay off big, netting you $1,000 a minute. Not a bad return, huh?
- Turn your hobby into an extra income -- How would you like to do something you love and make some extra money at the same time? Then consider turning your hobby into an extra income. This could be anything from starting your own website tomonetizing your artistic penchant to launching your own blog (if interested in this, seeHow to Get Your Blog to 100,000 Visitors and Beyond) to creating crafts to whatever.
I've done this with my hobby of writing. I've sold somewhere around 160 financial and business/marketing articles in the past ten years, earning me around $60,000 total. In addition, I started this blog on the same topic and it now generates a substantial amount of money (though I give away all the proceeds to charity). I have friends who've done the following: turned their love of cycling into a part-time job of repairing and maintaining bikes, turned their love of hunting and art into making decorative hunting knives that sell nicely at flea markets, and turning their love of baking into a side business selling high-end cookware. Is there something you love doing that could earn you some extra money?
- Start a side business -- Ok, let's say you have a hobby like growing roses or playing video games -- something that may not lend itself easily to making extra money. Instead, you could start a side business (here are some additional tips) of something totally different. Not something you love doing, but not something you hate either. A few examples of what you could do:
- Take a job no one else wants to do (can you say "pooper scooper?")
- Become a lifestyle manager
- Advise college-bound students
- Stage homes
- Start a sign-in-the-yard business
- Take pictures or play music
- There are literally all sorts of things you could do (including selling your blood -- admittedly it's not a "business", but I just had to throw in this idea to show how some people are so creative when it comes to making money)
Or, if you don't feel like you're able to start your own business, maybe you couldbuy an existing business.
- Maximize your investments -- At first blush, it may not seem like there's a lot of extra income potential in earning an additional percentage or two on your investments. Over the short-term, there isn't. However, when time and compounding are considered,eeking out even an extra 1% could mean thousands of extra dollars for you. Personally, I like index funds because they beat most investments in the long term and take a minimal amount of time to manage. Combine them with the proper asset allocation andregular rebalancing of your portfolio and you're on your way to earning a good bit more from your investments.
- Trade/barter skills -- This is a new one for me, but one that I've had a bit of success with. For instance, I've exchanged marketing advice for some legal counsel. Maybe you're a carpenter who can build something for a plumber who can fix your clogged sink. Or maybe you're a dentist who can offer free cleanings to a veterinarian in exchange for free pet visits. Or perhaps you could design a website for a chiropractor who could give you free adjustments. Or maybe you can offer dance lessons in exchange for someone tutoring your child. The possibilities are almost endless.
Yeah, this option doesn't put cash into your pocket, but it does save you money on something you need to have done. And it could serve as a launching point for your own new business -- you get some experience providing services for others and maybe you'll be able to sell some of those services to people who can't trade but would be willing to buy what you have to offer.
- Use your current job skills -- Take what you do in your current job and consider selling those skills to others at night. If you don't like this option, consider teaching what you know to others. Simply take what you do 40-plus hours a week and extend it into a new business/side income.
- Sell stuff you own and don't need -- If you're like the rest of America, you've got a boatload of stuff in your home that you don't need/use. So why not sell it and create some extra cash for yourself? With the popularity of EBay, doing this is often a cinch. And let's say you're in the 1% of people who don't have anything useful to sell -- maybe you could find some items at auctions and then sell them for a profit.
- Use credit cards strategically -- In 2006 I earned almost $500 simply by charging purchases on a cash back credit card. My 2007 results aren't in yet, but I'll be way over this amount. Why? Because I picked the right card for my spending habits (which isTHE key to making the most with credit cards) and charged as much as I could on it(including creative ideas like buying gift cards strategically.) In 2008, I'm planning on earning even more by using a hybrid cash back credit card method to earn upwards of 2.6% on my charges by combining uses of the Blue Cash from American Express card and the Chase Freedom Cash Visa Card. Eventually I hope to earn in the high three figures simply for doing what I'd normally do -- buying what I'd normally buy. You can do the same.
- Get money owed to you -- As I've noted before, there are billions of dollars in abandoned and lost checking accounts, pensions, and so forth collected by governments. You should see if any of it is yours I'm a pretty good money watcher, but when I went to Missing Money I found that I had a claim (for "under $100") from a past job. Sure, it's not a ton of money, but someone out there is likely due a significant sum. Since it takes about one minute to check and see if it's you, what's the harm?
That's my list for now. I have a lot more ideas that I couldn't include on this list. If you'd like to check them out you can visit my making money category. But for now, let me ask you: do you have any other money making ideas to add?
