Double Your Income
This chapter is specifically written for people who are employees and whose income is under $50,000 p.a. However the principles apply regardless of your income and are even more powerful if you are under-employed or a student. If none of these apply to you, you may want to skip this chapter.
If I said you could double your income either by taking certain opportunities or by working 15% more, would you would be interested?
Let’s look at an example to see how this is easily achievable:
Let’s say Jane Smith’s annual gross (before tax) income is $35,000. Assume her tax will be $6,825 leaving her $28,175
$28,175 / 52 = $540 per week Jane’s weekly expenses are:
Food per week 100
Rent 100
Flat expenses 20
Petrol 30
Clothing 20
Presents for Others 10
Take Out Food 10
Eating Out 10
Lunches 20
Car - Insurance and Rego 10
Car Maintenance 10
Gym 15
Vacations 10
Phone 10
Entertainment 40
Cafes 20
Other 15
Total 450This leaves Jane $90 per week to save or put towards something other than living that week. This $90 is Jane’s real income. The rest she spends on just living.
Therefore, for Jane to double her real income all she needs to do is earn another $90 a week.
Here are a number of ways Jane can earn another $90 a week:
1. Ask for a raise
If Jane has been at her job at least nine months she could approach her employer and say she wants a pay rise of $5,500 per year. She could make it clear to her employer that she is willing to take on more responsibility and a few extra hours.
It does take courage to ask but the worst that can happen is the employer says “No”. If it is easier you can put the request in writing. A good employer will not mind being asked.
2. Change jobs
If Jane’s request for a pay increase is not accepted, she could look at changing jobs. It is usually easier to get promoted by changing jobs. If it is a professional position you should have worked for your current employer for at least two years. If it is a casual position you can leave at any time.
3. Start a home-based business
Jane could use some of her spare time to start a low-cost home business. She should concentrate on her passions and interests. If she is stuck for ideas she should at least start trying to buy some items cheaply and re-sell them on an auction site for a profit.
4. Find a part-time job
Remember Jane only has to earn $90 a week after tax to double her real income. It is not difficult to find weekend or evening work.
Once again, go with your passions and interests. If you love coffee, approach your favorite café and tell them you are looking for part-time work. If you love art, approach a gallery or art shop. If you love farming, contact some farmers.
If you get stuck try working earlier mornings in a bakery, or pumping gas or whatever. Remember you are doubling your real income.
When I was a student I cleaned a supermarket from 6am to 8am every morning. It wasn’t easy getting up at 5am but every week I put money into my bank and my student friends only took money out. Then later on when my student friends were broke, I bought a Fender Stratocaster (electric guitar).