Let’s face it. Earning more money is what most of us aim for. Having more income means we have more breathing room, less stress, and more options.
Growing your business can help you with this goal. But growing a business can take time. If you need a short-term solution to having more income, this post will show you how.
Sometimes you don’t need extra income. Sometimes what you need is to spend less than what you earn. Overspending depletes your resources and buries you in a ton of debt.
Living below your means can take you from broke to financially free. Even if you earn a million dollars a year, if you don’t know how to manage your expenses, you’d still end up asking yourself, “Where did my money go?”
So mind your expenses.
List down your expenses in a month
Most of the time, we don’t realize how much money we actually spend on superficial things. So list down your expenses so you can see the whole picture of your cash flow.
If you don’t have a pen and paper with you all the time, use a phone app to track expenses or use your phone’s notepad.
Make sure to take note of everything no matter how much or how little the cost. The little ones add up! So try your best to be accurate as much as you can.
Aim for at least three months of data before analyzing your expenses. This way, you can see patterns in your spending habits from month to month.
Once you’ve diligently listed your expenses, analyze each item.
Which of these expenses can you manage to cut down? Are there expenses you can do away with, like a cable subscription? Are you spending too much on coffee or eating out? Do you tend to buy groceries you don’t actually eat or cook?
By looking at the numbers, you can make big life decisions like, is it time to move to a different city or state where the cost of living is less expensive?
Or maybe not necessarily big decisions but simple ones like, do you have to start meal planning? Or does it make sense to cook every dinner or cook in batches?
It can be hard to cut down expenses, but once you learn how to give value to your money, you’ll be mindful of your finances.
Create a To-Buy Later List
Most of the time, unplanned purchases are what causes cash deficit. So, make a list of things you wish to buy – all of them.
And then with each item, decide if it’s important to buy them now or if it can wait for a couple of months. If it can wait, put it on your to buy later list.
A To-Buy Later list encourages delayed gratification. By delaying the desire to buy, you train yourself to have self-restraint so that you empower yourself with your finances. Having this list also allows you to grow as a person. What you want desperately now, will make you cringe months or years later. By listing them down on your to-buy later list you give yourself more time to mature as a person. This helps you avoid buying things you’ll regret later or won’t even use in the first place.
So if you happen to see something you want to buy, add it to your to-buy later list. Remember that you’re not depriving yourself. You’re making this list so that you can buy them, just not now. This way, you won’t feel guilty of self-deprivation and then shop impulsively.
After several weeks or months, go back to that list and see which ones you can remove – maybe you don’t want them anymore? Which one stays on the list, and which ones to move to your things to buy list.
Raise Your Rates
When was the last time you had a raise?
If you think you deserve a raise, go ahead and ask for one! Think of your accomplishments and talk to clients about your rates. This way, you’re increasing your income without adding more clients and more work.
Slowly raise your rates for each client until you get to that point where you’ve reached your desired income.
By doing a combination of these techniques, you’ll be well on your way to earning more income without having to work more hours.