Money Management
November 11, 2024
You have been working for 8-5 or 9-5 but much has not changed around your revenue for a while now. The new year is fast approaching and you probably have plans to increase your income.
Perhaps you have goals like getting married/having kids, moving to a new house, improving your skills, buying land, among other plans – but your salary does not exactly allow it. As you get to the new year, you can plan for revenue growth to help you achieve some of your plans.
In this article, we will share the ways or strategies you can employ to increase your income and achieve your dreams.
First, let’s have an understanding of your employment terms and income.
The textbook definition states that full-time employment involves an employee working for a minimum number of hours set by the employer. The average hours defined by companies for full-time employment range from 32 to 40 per week.
Full-time employees are entitled to benefits including annual leave, paternal/maternal leave, sick leave, health insurance among others.
As a full-time employee, your salary depends on your attendance and production. The mode of payment, however, can be per hour or flat pay. If you are paid per hour (nonexempt employee), failure to attend may cut your salary. Flat salary (exempt employee) is determined by your skills and production.
For nonexempt employees, overtime payment is a guarantee – they are paid an extra wage for extra hours worked. But exempt employees earn the same salary irrespective of the extra hours.
According to Economics, income is the total earnings an individual makes from wages and salaries, investments, commissions, and bonuses.
A full-time employee’s income entirely depends on salaries and wages, and to some extent, bonuses and commissions earned during sales.
Growing your income as a full-time employee is essential to achieving your personal financial goals.
Now, you have a clear understanding of the kind of full-time employment contract you signed. Let’s look at the strategies you can employ to re-define your income as a full-time employee in 2022.
Achieving your financial goals in 2022 is paramount, no matter your source of income. All you need to do is set strategies on how you will grow it and achieve them. Here are seven ways you should consider to increase your income;
To supplement your 8-5 job monthly salary, think and research on the best side hustle. This should be something that will not eat into your working hours, and which you enjoy doing. A good side hustle should be able to give you a return within a short period.
A side hustle can be a small business you start like selling fruits and vegetables, engaging in online part-time jobs like writing, marketing, starting a podcast, engaging in an online survey among others.
Your side hustle should also be able to earn you enough depending on the task you are taking and the time you spend.
Take up a challenge to save your money in dividend-earning investments. This can be buying shares from a Sacco, stock market, or a company. Make sure you run a background check on the market and find out which institution earns the best dividend. Remember, your goal here is to earn money and supplement your income.
Dividend earnings are paid quarterly or annually depending on the kind of investment and the institution. Each year, your shares earn dividends and you can choose to reinvest and increase your shares for an increased dividend in the coming year or stream the income to other users, depending on your goals.
Having a specific qualification or skill is key to growing your income in 2022. You only need to master what you are good at doing, add one or two supplementary or soft skills and look for market demand.
Working as a freelancer outside your 8-5 or 9-5 job is sure to increase your salary. You can get a part-time task like connecting electricity, plumbing, marketing, web design, or graphic design.
Freelance or part-time jobs are considered to earn more compared to full-time jobs, due to their nature of pay. For example, you can be paid per hour, per task, or project. This way, you will be able to grow your income working during your free time or off-days.
Working on a full-time basis can be challenging to take on other tasks or projects. However, when you have a passive source of income, you don’t need to worry about supplementing your salary. Passive income means the money you earn without necessarily having to work – you let money work and earn you more.
Identify what you have; it can be knowledge/skills, assets, or capital. Consider pushing this to passive investments and with time, you will start earning passive income. If you have an idea, you can decide to write a book, start an online course, YouTube channel and with time you start earning from it. If you have an asset like a car, you can rent to taxi services like Uber and start earning. Other sources of passive income include building rentals, buying government bonds, or investing in money market funds.
You know your capabilities and have skills that are in market demand. Look for another job with better pay. 2022 is a year with a great shift in employment and getting a new job could have a positive impact on your payslip.
An alternative way to grow your income could be asking for a pay rise from your employer. Considering your reliability, accomplishments, and value-added to the company, you can reach out to your boss and demand a pay rise. Research how much your role pays in the market and merge with your capabilities then present to your employer.
These could be electronics, items like books, clothes, or furniture. You can make money and increase your income by auctioning these items to second-hand retailers or sellers. If you have books you have already read, do not let them collect dust in your house, open an online shop or street yard and sell them. For electronics like gaming console, old phones, computers, or laptops, turn them into cash by selling them online or to other people.
Chama or Merry-go-round enables you to earn money after a round of contributions to members. When your turn comes, you are given the contribution and you decide what to do with the money. You can use the money to increase your savings account or invest in a manner that grows your income.
Some chamas contribute money and invest to earn a profit, which is then distributed equally to members. While joining a Chama or forming one with friends, set clear goals and objectives that will meet each members’ needs and expectations towards income growth.
WRAPPING UP
The bottom line to increasing your income as a full-time employee is to set up clear financial goals. What you intend to achieve from your income growth should be clearly stated. This way, you will be able to master each strategy and know which will suit and enable you to achieve your goals. Each strategy that you choose should be in line with your goals – earning you more to meet them.
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