It is not exactly a surprise that those who earn a higher income are more likely to be able to build their wealth and Master Their Money than those who are on a lower income.
In addition, studies have shown that those who have a higher income are more likely be happier, healthier and have more opportunities in life than those who don’t.
This pass the common sense test (or the Pub Test as Alan Jones calls it), those who have a higher income can eat better food, access better medication and can access opportunities for travel, career, events etc. than those of us who are on a lower income.
But I Am A Great Budgeter And I Can Live Off My Low Income
To put it simply “A budget doesn’t make you rich, it just prevents you from going broke!”
A budget is very important to Mastering Your Money, however it is not going to build your wealth as much as increasing your income. You can only get your expenses down so far, but you can increase your income (especially passive income) infinitely if you desire.
At the end of the day we need to treat ourselves like a business – the more revenue coming in the more profitable your business will be!
However, I hear from a lot of our members that they can’t increase their income as their boss won’t give them a payrise.
So, I want to share with you in this post 5 ideas in order to seamlessly increase your income.
Income Booster One – Ask For A Payrise And/Or A Promotion
It is amazing how many people are scared to ask for what they really want! If you know you are being underpaid then you need to ensure you are being paid what you are worth.
If you can see similar jobs being advertised with the same experience, qualifications and location but it pays you an extra $15,000 per annum, then you need to speak to your boss about giving yourself a payrise.
Good employers will do all they can to keep their good employees. Therefore, if you are able to demonstrate the value in what you do, whether that be in the amount of sales you do, new clients you have brought in or the costs savings you have brought to your business then your employer should be able to facilitate your request.
Of course, the above may not work in unionised industries where wages are set such as teaching, nursing and retail, but that doesn’t stop you from seeking a promotion and subsequent payrise.
Income Booster Two – Change Employers
If the above doesn’t work and your employer doesn’t facilitate your request then it may be time to seek an alternative opportunity with another employer.
A recent article in Forbes stated that ‘Employees Who Stay In Companies Longer Than Two Years Get Paid 50% Less (than those who don’t)’.
Again, why are undervaluing yourself by working for an employee who is not paying you what you are worth, especially if you are not enjoying or stimulated by working with your current employer?
If this is you, I would suggest getting your resume and LinkedIn profile up to date and seek opportunities elsewhere.
Income Booster Three – Start A Side Business Or Second Job
In the 21st century it has never been easier to get a second casual job or starting a side business doing something you are passionate about.
Whether it is gardening, working in a café, arts and crafts or even being a Uber driver, there are so many ways that you can earn an extra $100 to $200 per week (referred to on the farm as beer and smokes money).
Is an extra $100 to $200 per week going to make you mega-wealthy, probably not (although there is nothing stopping you from growing your passion into a full time business).
But if you are struggling for cashflow and/or want to pay down debts than an extra $100 to $200 per week will make a considerable difference for you to take control of your finances and enable you to Master Your Money Now.
At the end of the day it is the little things you do every single day that makes the biggest difference to your financial situation going forward.
Income Booster Four – Change Careers
I want to ask you a question which may unveil an uncomfortable truth:
If you worked in the same industry for the next 10 years, what sort of income would you be on?
Yes, your income is going to increase by an amazing 3% per annum (note sarcasm) for the next ten years, but if you can see those in the same industry as you earning not much more than you are currently earning, is this the industry you want to be in, going forward?
Career changes are a big thing in my family. My brother has recently decided to go to university after seven years working in retail management.
He asked himself the above question and realised that in ten years’ time he is not going to be earning much more than what he is earning at the moment and probably will make him quite miserable in the process.
My brother may have been inspired by our father who after working 30 years on a farm decided to get his Bachelor of Education at 49 and worked another 15 years as a school teacher (like my mother).
It is a risky prospect changing your career and it may require you to take one step back (in terms of your income and lifestyle) in order to go three steps forward. But as someone much smarter than me said ‘short term pain, long term gain’!
Income Booster Five – Build Your Passive Income
Your passive income is income that is generated from investments that require minimal work – you earn more and work less, the dream!
Ultimately this is what retirement or financial freedom is, building up enough investments to generate enough income so you can live the lifestyle you want.
But Money Isn’t Everything
I totally agree money isn’t everything in life and I would much rather take a $60,000pa job that I enjoyed than a $90,000 pa job that I hated.
In saying that, I have moved from jobs before which I have really enjoyed because I knew if I stayed there I wouldn’t grow and be challenged and consequently I would begin to resent it.
Increasing your income doesn’t just grow your wealth, you also grow personally as well. It is a risk, but if we don’t take risks in life we will never grow.
Average Isn’t Enough
To finish, let me leave you with these two facts:
The average full time employee earns approximately $79,000 per annum in 2016 according to the Australian Bureau of Statistics
The average person will not build enough wealth to be self-reliant in retirement.
If you are ready to take action, lets have a chat!
If this is a topic that you would like to discuss in more detail, please go to www.MasterYourMoneyNow.com.au/getstarted to book in your complimentary 30 minute strategy session.
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Disclaimer: This information is general information only. You should consider the appropriateness of this information with regards to your objectives, financial situation and needs. Past performance does not guarantee future returns.
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