Unless you’re fortunate enough to be born with a ‘silver spoon’, you will have to make your money the good old fashioned way — work for it. But, working for money has never been a bad thing to do, provided you are not working yourself out but earning less still.
Below are four basic ways to earn more money with some excerpts from thebalance.com, and these strategies could help you build a fortune.
1. Money Made Selling Your Time
This is the source of income that the middle and lower classes consider the most important. It is the money you receive for selling your time to an employer. It is often represented as salary or wages. You’ll often hear well-intentioned parents telling their children to find a “good job”, preferably one “with benefits”.
The rate you receive for your time depends on how rare and in demand your skills are to society. A gifted brain surgeon, for instance, can charge millions of dollars per year because there simply aren’t a lot of men or women who can do the job. Someone who works as a shop salesperson or clerk earns less not because such a person is any less valuable as a human being than the Surgeon, but because virtually anyone in good health can be a salesperson, causing a huge supply of potential workers to drive down wages.
To earn more money, you have to Invest in Yourself and improve the rate you can charge, work more hours, or a combination of the two. This type of income is the most tyrannical form of earning a living because you only generate money when you are actively laboring.
A brilliant lawyer may earn millions of dollars a year, but he can’t continue to live off legal fees if he isn’t working.
2. Interest Income on Money Lent
This type of income comes from money borrowers pay you to “rent” your capital (the term capital refers to money you’ve set aside for investment purposes.
This may not necessarily mean renting your properties to earn some money, though that’s also a good means to make some money; nevertheless, there are many ways you may not know you’re indirectly renting out your resources. For instance, when you deposit your money with a bank, you are lending money to the bank in exchange for a predetermined small rate of return. The bank takes the money it “rents” from you and lends it out at a higher rate, pocketing the difference.
However, it is better off you get those crumbs of interest than not getting any at all; but a better way to get reasonable or higher interests on your deposited money if you’re not going to need it every time, is to opt in for those high interest rate deposit accounts with your bank.
3. Dividend Income From Profits on Businesses Owned
Just like interest income, the essence of dividend income is that your money goes out working for you in businesses you mainly own or a stakeholder to.
You may still have your regular job while your established business goes on under the care of someone you assigned to it. You can also buy shares from businesses you desire and become a part-owner of such business, passively receiving income from its share of profits.
This is a good way of increasing your income without dividing yourself into multiple places and working yourself out.
4. Fast Moving Business
Embarking on those little but money bringing businesses which quickly solve the needs of people around you is a good way to keep your pocket far from dryness. What is that thing you found out that people around you always go for?, by being a source to meet their needs, do you know you can make some little cash alongside?
Embrace one of the above means to diversify and add to your means of income, it will be of great help to you.