How to Make More Money

There are probably a bazillion ways to make more money, but today we'll focus on the four best ideas that make you the most money while also being a viable alternative for most people.

Career

For the vast majority of Americans, your career is your most important financial asset. Consider the fact that if you earn an average of $50,000 over the course of a 45-year career that it adds up to $2,250,000. That means your career is a $2.2 million asset! Do you have any other $2.2 million assets? I thought not.

And here's a little secret: you can make your career more valuable! There are a few simple steps you can take to make even more money than you would otherwise. If you had a $2.2 million asset (which you do!) and you could take some easy steps to make it worth even more, wouldn't you? I thought so.

We'll be talking a lot about how to make more out of your career here because it's a key factor in driving your wealth.

Business/Side Business

If you have a successful business, it can be a great source of income. It's no secret that successful small business operators are among some of the wealthiest Americans.

But many small business owners are also bankrupt. It's a high risk, high reward proposition. And maybe you already have a job. So maybe working for yourself full-time is not for you.

If you already have a career/job, you can supplement that with income you earn on the side. A few ideas (the ones with asterisks are the ones I've done):

• Lawn mowing
• Pet sitting
• Freelance writing*
• Web design
• Refereeing*
• Teaching (piano, gun safety, etc.)
• Coaching

The list goes on and on. We'll talk about more money making ideas in the future.

Opportunity Money

What if you could make more money simply by doing something you were already planning on doing? I call this "opportunity money" and it's worth several thousand dollars to me each year.

Here are some examples of opportunity money:

• 401k Match -- You were planning on saving money anyway, right? So save it within your employer's 401k plan and get FREE MONEY! Save at least enough to get the full employer match.
• Rewards Credit Cards -- For example, let's say you're going to buy some furniture for your house. Instead of paying for it in cash, what about signing up for a credit card ($200 or more bonus just for getting one) and earning 2% cash back on that purchase. A much better deal, right?
• High Interest Checking -- Set up an account with a credit union or bank that offers high interest checking.  Right now I make 3% on my checking account (on the first $15,000 deposited) just for having the account and using their debit card 10 times a month.

These amounts add up quickly. For someone who earns $50,000 a year, here's what you could expect from the above:

• A 3% employer match is worth $1,500.
• Two new credit cards (with sign-up bonuses of $200 each) with charges of $15,000 a year at 2% nets $1,100.
• Earning 3% on $15,000 gets an extra $450.

So the person above just made an extra $3,050! That's like getting a 6% salary increase!!!!

Sell Your Old Stuff

Stop for a moment and consider all the stuff you have around the house or taking up space in a storage unit. Do you use any of it? When was the last time you even thought about it?

Instead of letting it take up space, you can make AND possibly save money (if you can cancel the storage space you're renting) by selling it, then use the proceeds to improve your finances. You’ll reduce the clutter in your home and be a little richer. What's not to love about this idea?

As I said above, there are almost an endless number of ways to make more money, and we'll be covering many of them in the future, so stay tuned!

Comments

[Michael]

Great suggestions. I'm doing all but the high interest checking and selling our stuff (though we've done the latter in the past). I highly recommend (as I know you do, too) starting at the top of the list and doing what you can to grow you income and/or launch a business.

[Michelle]

I'm working on side business, which will eventually be my full-time business. I can't wait! :)

[Don]

As I've gotten older, I find that I am happier with fewer possessions. So much so that I have been selling off things that I don't use on a regular basis -- the extra TV, the second lawn mower, etc. Not only does this clear up space, but I can use that cash for things that mean more to me now, like travel with my wife.

I read somewhere that the greatest happiness with possessions occurs during the anticipation phase; in other words, while you are actively researching and shopping. Once it is acquired, the object starts to decline in its happiness factor for you. After a few months, you are no more happy than before the purchase.

[Lance @ Money Life and More]

I love credit card rewards. They don't take any extra effort and you get a free discount (or extra money depending on how you look at it). You can make bigger strides in other areas, but this one is so simple.