subscribe to the RSS Feed

Wednesday, March 29, 2017

The Other Side: Earning More

Posted by Tim Stobbs on November 25, 2010

As blog writers we tend to be guilty of fixating on the cost cutting side of the equation for the majority of our posts.  We talk of ways to pay off debt, live better on less and frugal tips instead of looking at the other side of the coin: earning more.  Why is that?

I will speculate that writing on living better on less is easier.  There is a large body of tips, tricks, books and theory developed on living frugally.  Meanwhile many people just don’t have any experience of their own to speak of on earning more money.  After all the concept of working even more strikes people as silly since when you are looking at early retirement you typically have some dislike of your current job.

Yet for a good lot of people earning more offers three potential benefits that are often overlooked:

1. You can expand your skill set and learn something new and interesting to you while earning money.
2. You expand your income base so you will be at less of a risk from a job loss.
3. You might actually do so well at earning more you can be ‘free’ of the job you dislike earlier than you predicted.

So earning more can be a good ground to test out income producing hobbies or even earn extra money to take some extra trips, dinners out or buy some electronics (what ever turns your crank).  The point of the matter is earning more can offer you several different benefits that could out weigh you initial reluctance to ‘working’ more.

Now this is where earning more divides itself into two main camps of thought: 1) you can just pick up a second job with flexible hours or 2) you can start a small business.  The first method is by far the more common when you speak of earning more.  Most people don’t go looking to start a small business since they fear the amount of work involved and putting their own money at risk.  Yet what is over looked in that fear is the potential to earn significantly more after all the tax system is designed for business and investors.  After all where else can you take money you have earn, pay no tax on it and turn it around and expand your business and the government is ok with that.

Yet small business is really a very flexible thing that can encompass most activities that you can do to earn money and many of them can be done with minimal investment of your own money.  Often people just fall into a small business idea because it is something they like to do and they happen to be good at it.  Also I run into a misconception that people have to expand a business, which strictly speaking isn’t true.  You can choose to say no to new customers and clients and keep your business small if you want.

I know in my own experience so far with this blog is I’ve fell into some things I was never really planning on doing when I started writing it.  I never really planned to self publish a book.  That idea developed when I realized that I was never really going to find the book I wanted on early retirement.  I was going to have to write it myself and I came to realize that it would likely have limited appeal to a traditional publishing company.  I certainly didn’t plan to get into freelance writing at this point in my life, but when the opportunity came up I decided to take it.  Yet both in the end I hope will result in earning more in the long run.

So what is your reason for not trying to earn more?  Or if you do earn more could you please share what you do?

Comments

7 Responses to “The Other Side: Earning More”
  1. Kiester says:

    Regarding – “Also I run into a misconception that people have to expand a business, which strictly speaking isn’t true. You can choose to say no to new customers and clients and keep your business small if you want.”

    A book called ‘Small Giants’ comes to mind. i.e. You can be successful by being great, instead of being big.

  2. Ravi says:

    “Or if you do earn more could you please share what you do?”

    I am a full-time IT consultant and part-time system builder. I build distribution systems in the financial industry. Doing this have brought me extra $500 to $1000 a month which helped me pay-off two maxed out credit cards (about 10 grand).
    In the words of Robert Kiyosaki I am building a B-business. Startup cost was less than $500, yearly expense of less than $4000, no headaches of doing payrolls, scheduling, marketing expenses, employee troubles.
    Baby boomers will start turning 65 in January 2011. Top things on their minds are Health related products/services, retirement, make more money, Estate Planning, Financial Education. If one can build a distribution system to get to them they can be very successful in the next 10 years. I am building such a distribution system in the financial industry.

  3. I choose to earn less salary so as not to be “time-poor.” Moreover, as a life-veteran of 50, I have the financial luxery of no longer having to bust my hump.

  4. deegee says:

    After working full-time for 16 years, I sought to work less and cut my pay not once but twice in the next 7 years (2001-2008) before cutting my wage income to zero and retiring in 2008 at age 45.

    It probably seemed strange to everyone else to see someone seeking to earn LESS, but I valued my time more and the need to rid myself of the miserable commute I endured more than the extra dollars I earned while working more. But then again, I was not like everyone else who depended on their wage income to survive and pay the bills. Work had become a nuisance, even only 2 days a week, and once I saw in 2008 that I could generate at least the same (or more) level of dividend income as I could from working, and could meet my expenses with room to spare, then it was time to pull the trigger and retire.

    For 2010, my money is working very hard for me instead of the other way around, the way it should be!

  5. What about the possibility of earning more in your current profession? I did it by job-hopping and moving to consulting vs. working as an employee. The pay is around double, the only problem is getting the work. Connections help there – but it’s pretty easy to build lots of connections if you job-hop quite a bit, you get to know a lot more people.
    But there is quite a lot of reward in just seeing your savings pay off dividends / gains without lifting a finger to do anything at all. Makes you not want to touch it though. :-)

  6. Janet says:

    I liked the perspectives on this blog post, nicely done. I’m a life coach who works with women fifty and older who have found themselves in a transitional phase. I am a small business coach helping the women uncover their passions and turn them into profits. The government most certainly will not be able to ensure we have a comfortable retirement so it’s up to us to do so. As you allude to, find your passion and then make money from it! Well done. Janet

  7. How about becoming a freelancer to earn more?

    Strangely enough, I could earn $90k as a salary with a corporation, but on my own, I’ve doubled that in this year alone, working 3/4 of the year.

    I did the same thing as Jacq — I do the same profession (I love it too, so that helps) but I earn much more than I ever would working for a company.

    Of course, this only works in certain niches and industries, not everyone can become a consultant.

home | top