How to Multiply Your Income to Support Financial Wellbeing
Income plays an integral part in your financial wellness journey.
Did you know there are different types of income? We often think of income as simply coming from a job where we exchange our time for a paycheck.
However, there are multiple ways to generate income and having a diversified income strategy can support overall wellbeing.
Earning Money Versus Making Money
There is a difference between “earning” money and “making” money. Although the words are interchangeably used, they are not the same thing.
Earning money is a result of exchanging your time for cash, payment, or a paycheck. You earn money by performing work for someone else–a business-owner, employer, or client. In the gig economy, you earn money by performing tasks for others, designing logos, or using your car to drive people or delivery packages.
Making money is different from earning money because it’s an alternative to having a job to earn a paycheck. Typically, making money is associated with MLM (multi-level-marketing), get-rich-quick or other make money fast schemes. But there are legitimate ways to make money by creating and producing products that make money for you without much more time invested.
Increasing Your Income
There are many ways to increase your income starting with:
Increase the income you get from your primary job. There are steps you can take that can help you get the raise you deserve or find another job with a higher salary. Learn how you can ask and get a pay raise.
Get a second job. It’s not ideal to take on a part-time job because ultimately you’re using more of your time. However, it may be necessary to take on part-time for a limited time. Doing so can help you meet your financial obligations and speed up your debt payoff goals.
Work on your time with side hustles. There are many apps and services that connect you with people who need help or tasks completed. These include completing chores, driving people, pet sitting, delivering food and packages, and data entry.
Active Income vs. Passive Income Defined
In Robert Kiyosaki’s bestselling book, Rich Dad Poor Dad, he explained these terms to millions of readers who finally understand how to grow wealth.
The two different types of income:
- Active income is money you physically work to earn such as a job. This is income for which services have been performed. This includes wages, tips, salaries, commissions, and income from businesses in which there is active participation. Typically, you’re exchanging hours for money.
- Passive income is indirectly earned such as interest from savings accounts or dividends. This income is derived from things like rental property, limited partnerships or other businesses in which you’re not actively involved.
How Can You Earn and Make More Money
Visit the financial marketplace for over 50+ ideas on how to earn and make more money.