STEP 7
Getting More Money In (Income)  


A budget has two sides – income and expenditure. It is easy to get obsessed with managing the spending side. Though expenditure is very important it focuses only on how you spend your income. What about the income side? Is there anything you can do to get more income? Don’t just focus on trying to lower your expenditure; put every effort into thinking about how you can raise your income. Even small increases in income can make a very big difference over the longer term.

Example 
Take a basic wage for unskilled work. Many people may earn, say, $15 an hour.
If you work a 40 hour week, that’s $600 and if you work a full year, $31,200.
If you did that work for 40 years you would earn a total of $1,248,000.
If you could get a $1.50 increase an hour – which does not seem very much – the changes to the numbers are quite dramatic.
You would now earn $660 a week ($60 extra).
Your annual earnings would be $34,320 ($3,120 extra) and over a lifetime you would earn
$1,372,800.
That’s $124,800 extra. 

Try some calculations with your own income and see what a difference even a small increase would make to your overall earnings. Look at the difference an increase of 3, 5, 7 or 10 per cent would make – even small increases in income are worth making the effort for. Pay increases also tend to get locked in – pay levels almost never go backwards. If you can get an increase you’ll almost certainly get it for the rest of your working life and you can continue to look for increases all of your life – one year’s raise simply becomes the baseline for the next year.

Tips for getting your income up include:
  1. Get paid what you’re worth
    Check out what others are paid for the same job People often get paid what they settle for rather than what they deserve to be paid. Make sure you don’t settle for less than you are worth. 

  2. Ask for a raise
    Remember that this is never as hard to do as you may think.

  3. Look for a new job 
    It’s often much easier to get a pay rise by changing jobs – either by going to a new organisation or by getting a different job where you currently work. You often get the biggest leap in pay by changing jobs. 

  4. Make yourself more valuable 
    Employers pay for skills, experience and the track record you bring to work. No matter what you do to earn money you should take this seriously – any job should be treated as if it were part of a valuable career. Take every opportunity you can to learn more. Good workplaces tend to invest in people and provide plenty of training and development, but don’t rely on your employer: invest in yourself. 
It’s often easier to earn more than to struggle constantly to make ends meet. Put your mind to it – extra income is worth the effort.


“I maximise my income”


 NEXT STEP
Minimise Your Fixed Costs