It is very easy to think that the easiest way to be able to save money is to find ways to cut costs, to spend less. This can be the case, but the truth is that it often can be easier to increase your income. At least if you are single (childless) and can spend more time away from home.
We are often very set in our ways, and it can be tough to save money by cutting things that we have gotten used to from our lives. We all know that we could save more than USD1000 a year by stopping buying coffee at star bucks on the way to work. We all know that we could save even more by bringing a lunch box to work. Most of us would agree that we would enjoy going on an extra vacation each year more than we enjoy that coffee. Most of us will despite this keep buying that coffee. We know what it cost us, but we have gotten used to it so we can not give it up.
It is easier to earn more and save the extra money that we have not gotten used to spending yet.
Spend less by earning more
Earning more allow us to create good habits with the extra money we earn. An added benefit of working more and making more money is that you will have less free time to spend money. You will find that you spend less and can save more of your old paycheck as well. Working to earn more money allows you to break old bad habits and reduce your spending.
The more you work, the less time you will have to spend money. Combining these two factors and you are able to save a lot of money.
You might think that it is not worth giving up going to the pub with friends to be able to earn more. That you do not want to save money that badly. That your pub nights are a necessity in your life. This might be true for you, and if it is then there is nothing wrong with that. But I would ask you to read our article about creating a passive income. There you can read how a mere 50 000 can be enough for you to be able to retire with a USD 50 000 a year passive income in 20 years. Are you sure that it isn’t worth forsaking your pub nights to be able to retire in 20 years? Are you sure that it isn’t worth working hard for 2-3 years to give you a brighter future where you spend your retirement traveling the world?
How to earn more
Below I am going to give you some tips on how you can make more money if you have decided that is worth spending a few years working hard if it allows you a brighter future.
Ask your boss if he needs someone to work extra. Tell him that you be happy to work extra when he needs you to and that you are happy to work weekends or nights if required. Many employers need people that are willing to work extra when people call in sick or when there is a scheduling conflict and will be happy to know that you want to work extra. This is true in most but not all professions. Make sure to accept any work he gives you during the first few months. Don’t tell him that you want to work extra and then turn it down when he offers. If you do you are unlikely to get asked again. Working extra like this allows you to earn extra money and can be great for your career. It creates a relationship with your boss and will often give you a chance to learn new positions. The employer might need someone to do a job you usually do not do. If you do it well, you might be moved to that position eventually. You can become the natural person to take over when someone leaves their job because you have already filled in for them while they were out sick. I have personally been able to move up in organizations very quickly using this technique.
A second job
A second job provides more security than overtime because you know how much you will work every week. You can schedule your life better around your work. Getting a second job is however harder than it is to get your boss to assign you over time.
It is crucial to remember that your second job is to allow you to save money. It is not a career. Take whatever you can get. It does not have to be fun or glamorous. Working nights or weekends in a gas station can be excellent ways to earn extra money. Do not be picky. Take whatever you can get and work as much as you can without getting too tired to perform your primary job.
Freelancing from home
A third option is to freelance from home. Everybody has a skill that somebody else is willing to pay for, and everybody can find opportunities freelancing. You find jobs at sites such as upwork.com and freelancing.com. Freelancing can be rewarding and profitable, but I recommended you work overtime or get a second job instead. The reason for this is that it is too easy to spend money while working from home. You can spend it shopping online or by ordering food etc. The second reason is that it usually takes several months or more to start earning a decent income from freelance work. The first few months you will work for peanuts building a reputation online.