Make more money

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I get bashed from time to time for talking about how important it is to spend less than you earn. I've defended my rationale on this issue, but detractors wonder why I don't spend more time talking about growing income rather than limiting spending. Well, if you're one of those people, this post is for you. Buckle up, because we're about to enter the world of earning more money!!!!

Many of you know that I spent last year trying to earn an extra $10,000 above my salary (FYI, I'm including anything I can get above the 3% cost-of-living adjustment most people get from their employers.) I'm doing the same this year, and I thought many of you would like to join me. As a starting place, I'm identifying all the major ways I've compiled on how to make more money. Here's my list:

* Ask for a raise -- Your job is your most important financial asset and using it to make more money represents the low-lying fruit of all money making opportunities. Of course you simply can't demand a raise for showing up. You have to ask for a raise in a way that maximizes your likelihood of getting one. Fortunately it's rather simple: do a great job, make sure others know about your success (especially your boss), then pitch the proper person on why you deserve a raise. If you do these things better than most, you can secure a 5-7% raise while the others are stuck with a cost-of-living adjustment. Also note, it's just as important to NOT do certain things when asking for a raise. Otherwise, you might torpedo your chances for the extra loot.

* Get a promotion -- Ok, let's say you're squeamish about asking for a raise -- how about earning a raise by getting a promotion? It's generallyaccepted that if you have more responsibility you get paid more. But how do you go about getting a promotion? Basically it's the same way you go about building your case to get a raise -- perform well and make sure everyone knows about it. (Plus you can go "above and beyond" most others by doing things like taking professional classes to enhance your marketability.) Since this tip is dependent on the fact that a position actually opens up in your company, it's not quite as good as asking for a raise in my opinion.

* Change jobs -- Just like it's usually the case that you'll earn more when you get a promotion, most people earn more money when they change jobs (either a lateral change that earns you more or a promotion via job change.) The key here is to market yourself correctly in the job hunt process so you can actually land a job that pays significantly more than your current position. Some job-hunting success tips: make the most of your cover letters, stick with a classic resume that highlights significant job accomplishments, and make the most of your interviews (which includes not asking stupid questions). I've applied these principles several times and I've averaged roughly 13% increases when I've made a move.

A couple other tips that are important when it comes to changing jobs:

* Don't quit your job before you get another one. Quitting without another job is not a good idea and by doing so you're risking your most important financial asset. Believe me, I've seen the disaster. If you're stuck in a job you hate, take specific steps to get out of it, but don't quit without another position lined up.

* Once you do get a job offer, ask for more money before you accept the position. Doing so can pay off big, netting you $1,000 a minute. Not a bad return, huh?

* Turn your hobby into an extra income -- How would you like to do something you love and make some extra money at the same time? Then consider turning your hobby into an extra income. This could be anything from starting your own website to monetizing your artistic penchant to launching your own blog (if interested in this, see How to Get Your Blog to 100,000 Visitors and Beyond) to creating crafts to whatever.

I've done this with my hobby of writing. I've sold somewhere around 160 financial and business/marketing articles in the past ten years, earning me around $60,000 total. In addition, I started this blog on the same topic and it now generates a substantial amount of money (though I give away all the proceeds to charity). I have friends who've done the following: turned their love of cycling into a part-time job of repairing and maintaining bikes, turned their love of hunting and art into making decorative hunting knives that sell nicely at flea markets, and turning their love of baking into a side business selling high-end cookware. Is there something you love doing that could earn you some extra money?

* Start a side business -- Ok, let's say you have a hobby like growing roses or playing video games -- something that may not lend itself easily to making extra money. Instead, you could start a side business (here are some additional tips) of something totally different. Not something you love doing, but not something you hate either. A few examples of what you could do:

o Take a job no one else wants to do (can you say "pooper scooper?")
o Become a lifestyle manager
o Advise college-bound students
o Stage homes
o Start a sign-in-the-yard business
o Take pictures or play music
o There are literally all sorts of things you could do (including selling your blood -- admittedly it's not a "business", but I just had to throw in this idea to show how some people are so creative when it comes to making money)

Or, if you don't feel like you're able to start your own business, maybe you could buy an existing business.

* Maximize your investments -- At first blush, it may not seem like there's a lot of extra income potential in earning an additional percentage or two on your investments. Over the short-term, there isn't. However, when time and compounding are considered, eeking out even an extra 1% could mean thousands of extra dollars for you. Personally, I like index funds because they beat most investments in the long term and take a minimal amount of time to manage. Combine them with the proper asset allocation and regular rebalancing of your portfolio and you're on your way to earning a good bit more from your investments.