Even though inflation appears to be easing, the recent run-up in prices has laid bare how important it is for your income to keep up with rising expenses. Hopefully you’re already monitoring your compensation on a regular basis to ensure you’re being paid what you’re worth. If you don’t regularly check your salary, your year-to-year raise might not be enough to keep up with inflation or your market value. Over time, your salary could be falling further and further behind where it should be.
Put a reminder in your calendar now to revisit your compensation at least once a year. if you want to make more money right now, here are four ways to make an extra $1,000 a month:
1 – Negotiate a pay raise
You don’t have to wait till your annual work anniversary or performance review to ask for a raise. Many companies give raises off-cycle (i.e., outside the official time each year that raises are typically granted). Ideally, your request for a growth in pay coincides with growth already happening in your job – e.g., your responsibilities, expertise and/or skills have increased. You also might base your request on your market value – e.g., salary data showing that people in your role and/or with your background typically earn more.
If you make $120,000 per year, a 10% raise translates into an extra $1,000 per month (less after taxes). If you make less than that, you’ll need to negotiate a bigger raise to hit that $1,000 target. Larger raises can be tied to promotions, so if you’re ready to take on a bigger role (or your responsibilities have already increased) don’t assume that a double-digit raise is out of reach. Regardless of the amount you’re asking for prepare for the possibility that your employer will push back or even say No outright (here are 10 common negotiation obstacles to overcome).
2 – Add a part-time job
While you’re preparing for that raise request, you can also look into working more hours. If your job pays overtime or allows for additional shifts, that could be your quickest route to growing your income since your company already knows your value. If additional hours at your current employer isn’t an option, consider a part-time job for your off-hours. If you can identify what companies need, and you have the background to help, you might create a part-time opportunity for yourself.
Retail stores hire additional help during the winter holiday season. If you’re in a vacation town, the summer might be prime hiring time. Your specialty might have its own busy season – e.g.,, a tax preparer is busiest in the run-up to the April tax deadline. Rather than a $1,000 monthly target, you might aim for a $12,000 annual target by working the busy season for your role. If you can charge $600 for each tax preparation project, then preparing 20 returns would yield $12,000 (a very busy two to three months, but you wouldn’t be doing double-duty all year).
3 – Start a part-time business
If you can’t find an accounting firm to take you on part-time, you could start your own tax preparation business – or some other business in your existing area of expertise. Depending on your field, you may not even need a special certification or degree to start your own consulting business. The benefit of building a part-time business based on your existing skills or expertise is that it’s something you already know you can do, and you probably already have a track record in it (e.g., from your day job).
You also can start a business based on a hobby or personal interest. If you’re a fitness enthusiast, you could teach classes or offer private training. If you’re an early adopter of new technology, you could tutor people or develop a course on emerging topics, such as AI. These are both service examples so you don’t have to worry about producing, warehousing or distributing physical goods. But, you could also start a product-based side business – this mom built a high six-figure business reselling on Poshmark.
4 – Cut $1,000 in expenses out of your budget
Saving $1,000 each month isn’t the same as making $1,000 since there’s a limit to how much you can save, but there’s no limit on how much you can earn. However, the immediate impact to your cash flow is the same. If you’re stumped or just anxious about how to add $1,000 in income, brainstorm on ways to cut $1,000 in expenses.
Downsizing to a smaller residence, or moving to a lower-cost area if you’re a digital nomad who can work anywhere, are two ways to significantly reduce your expenses. Car-related expenses (loan payment, maintenance, gas, parking) are often high so ditching the car for public transit plus the occasional ride-share might be $1,000 in savings right there. Combing through your regular monthly bills to look for better deals on insurance, cell phone, Internet, streaming, gym membership, etc. can yield additional savings. Just like monitoring your salary over time is good career management, monitoring your expenses over time is good money management to ensure expenses don’t grow unnoticed.
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