There are good ways to make more money and there are alternatives that aren’t so good. Those that enhance your life and give you more freedom are good. Those that rob you of joy and freedom…not so much. While you might think that the only way to make more money is to slave away harder and harder there are actually great alternatives that can actually provide more money and more life. Regardless of why you want to make more money, here are 7 good ways to do it:
1. Reduce Interest Costs
Reducing your interest costs is just as good as earning more money. That’s because you can do a few simple things to reduce your interest costs now and that savings will compound as long as you have debt. The best way to reduce any interest you currently pay is to look for credit card alternatives, roll over your high cost debt to lower cost debt or get your friends and family to refinance you. These are also great credit builders. By increasing your credit score, you’ll also have more options to borrow at lower rates.
2. Side Gig
An obvious alternative is to find a solid second job. But before you start moaning about the prospect of doing the midnight shift at Flippy Burger, think of this as an opportunity. There are plenty of ways you can enjoy yourself and make some quick cash too. Let’s say you love painting. Can you teach painting? Can you work as a teacher’s aid? How about working the weekend shift at the craft store? What do you have some expertise or special passion in? Are there people who want to learn to do what you already know how to do? I’m sure there are. Make yourself available just make sure you get paid for your efforts.
You may not want to get an additional job but it might be time to upgrade your career. You have to be brutally honest with yourself. If you’re in a career that really has limited income potential and you are willing to do what it takes to take it to the next level, look into a different career. This may not require a huge commitment. And even if you don’t have a college diploma don’t sweat it. You can land terrific careers without already having a degree. You could potentially get all the training you need in private career colleges.
If you go this route it won’t be easy. It will take hard work and time. But the potential payoff could be greater than any other step you could take. One of my favorite clients was a chef who just couldn’t stand cutting one more onion. He decided to chuck it all and become a nurse. He had to work hard and make an investment in himself. But now he works wherever and when ever he wants and earns about twice as much.
4. Open a Business
Opening a business is no guarantee of instant riches of course. I’ve written extensively about how to open a business and how to find profitable entrepreneurial options. The topic is much too broad for me to discuss in length here. But it is an option and if you plan it well, this could be another excellent way to make more money.
5. Cut Spending
Another “duh” idea…I know. But like cutting interest costs, cutting spending is a fantastic way to make more money. Again, simple one-time shifts in your spending habits will pay dividends for years to come. It’s easy to say, “I know I should cut my spending”. The more important question is why haven’t you done it and how do you start. The best first step to cutting spending is to first start tracking what you spend now. I use You Need A Budget software and it’s great. But it doesn’t matter what you use as long as you actually do this. There is something magical about knowing exactly what you spend every month that kick-starts spending cuts. Start tracking your spending religiously and see if it works for yourself.
Are you certain you have the best investments to create the most income? When is the last time you reviewed your investments to make sure? Have you educated yourself to make sure you know all the different ways to create income from your investments. Fixed income is only one way to create income from your investments and right now, it may not be the best way at all. Think about your long-term objectives, how long you need to generate that income and consider real estate and equity investments in your search for more money.
This is my secret weapon. The #1 best way to make more money is to involve your entire family in the process. Have a group pow-wow and brainstorm. Make them part of the plan and get them to buy-in. This is critical because as you implement the 6 previous ideas, you won’t get far if your family doesn’t support you.
In summary, I want to point out two considerations.
First, as I mentioned, these ideas will make you more money but that money isn’t going to fall into your lap. You’re going to have to do the work and get out of your comfort zone.
Second, you don’t need a “silver bullet” to fix the problem. Be patient and chip away at this. You can mix and match from the above ideas (as long as you include the 7th step no matter what). Find a balance and what works for you. Don’t be afraid to implement and learn as you go. Life is an experiment just like making more money. You have to try on a number of ideas before you find the right fit. Don’t be afraid to give these ideas a try.