Six Ways to Grow Income

The best financial advice I know is “live on less than you earn and save the difference.” For too many, though, there’s nothing left over to save after paying the bills.

Basic living costs seem much higher these days. Housing can take an outsized bite of family income as rents and housing prices have risen. Factor in other big expenses like health insurance, childcare, and student loan repayment, and there may not be any money left to save at month’s end.

I propose a new chapter in the financial planning curriculum—ways to make more money. That wasn’t a core subject in my Certified Financial Planner program. The unstated assumption, I think, is that clients who consult with a CFP are already well-fixed.

To get started, I’ll pitch six ideas. It does feel like I’m stating the obvious, however. You probably have good ideas from your life. Please add them in comments—I look forward to reading them.

Here are mine:

1. If still in school, know what your college major pays before you—or your child or grandchild—graduates. You can look up the average first-year earnings of many majors at specific colleges at a site called CollegeSimply. I learned from this site that at Purdue University, biology graduates earn $33,500 a year, on average, versus $69,200 for mechanical engineers. Try to major in something that pays.
2. If you’re already in the workforce, continue your education by earning a professional designation or advanced degree. Many employers, like mine, will pay the full tuition for a job-related degree, including an MBA or CFP. For white collar workers, these degrees are the equivalent of belonging to a union.
3. Job hop for a pay bump. I wrote about this once during the pandemic, when job seekers briefly held the upper hand in salary negotiations. A reader commented that this seemed disloyal to employers. If you agree, then ask your boss what it would take to be promoted.
4. Teach what you know. Nearly half of all college faculty are adjuncts these days. The hours can be long, and the pay is so-so, but if you teach, you will be perceived as an authority in your field. You might gain job security in addition to a part-time paycheck.
5. The world of side hustles is enormous. I’ve done freelance reporting and found it slightly rewarding, but every dollar counted at that moment. My sister contributed her pay from teaching exercise classes to her IRA. If you go this route, just try not to wear out your car delivering pizzas.
6. Become a landlord. Rental income paid roughly half my mortgage from the time I bought a property with two houses on it in 1997. Yet it doesn’t take a second home to earn rental income. In October, I rented an Airbnb on the first floor of a charming artist’s home on Deer Island, Maine. In the summertime, she also rents out her barn and allows glamping—bougie camping—in her wooded backyard.