An average salary in London may be enough to make ends meet, but the soaring inflation is making it increasingly difficult for people to manage cash flow as salaries fail to keep pace. Instead of downgrading your standard of living, it is time to put your knowledge of personal finance to use and increase your income using the following strategies.
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Get a Pay Raise
As the price of regular commodities continues to rise, it is only fair to ask for a pay raise at the workplace. If you have been fulfilling your duties and responsibilities sincerely, there should not be any problem in asking for a raise. You may also check how much people get paid for a similar role to yours on salary checker platforms. You can use your research to negotiate a higher salary.
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Start Working For Extra Income
You can boost your income by starting a side hustle. You need to figure out what additional skills you have that can help you earn extra cash. From setting up your online store to working for international clients as a freelancer – there are several ways to boost your income using your free time. If you have a particular set of skills that are in huge demand, you can teach that skill online.
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Make of Passive Incomes
Passive income refers to the income from an asset or investment that requires minimal time commitment. Investing in the stock market can potentially earn you a significant amount of profits. However, stock market investments also come with a certain level of risk. You need some well-thought-out investment strategies if you want to build wealth over a long period of time. Putting your old property on rent can also help you earn passive income.
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Sell Unwanted Items
If you have plenty of items at home that are no longer in use, you can sell them to people who may need them. This tactic helps you declutter your home while earning some extra cash. If you have some action figures or collectable trading cards from your childhood, you can put them up for sale. If you have a limited edition item in good condition, you can get several times the purchase value while selling. In addition, things like furniture, electrical appliances, electronic gadgets, books and graphic novels, old CDs and DVDs, and cell phones can be sold for money.
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Look for Offers and Discounts
While you look for ways to boost your income, it is also important to save money on the purchases you make. Thanks to the availability of various products and services on the Internet, it is now possible to compare the prices before buying things. You can get the best deals by comparing prices. Also, if you love travelling, you can follow a few money-saving tips to reduce your expenses on the go. If you are buying a product from a brick-and-mortar store and do not see any discounts on the items, there is no harm in asking for discounts.
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Make Commissions by Selling For Others
If you have past experience selling items on platforms like eBay, you will have an earning opportunity. Many people do not have the knowledge or time to put up their unnecessary belongings on various listing sites and sell them. You can use your past experience to sell those items on the internet and earn a commission for each of those sales. All you need to do is market yourself to find people who are willing to sell their products but cannot do it themselves.
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Earn Interests on Your Savings
In recent times, the savings rates have gone up as the Bank of England has increased its base interest to 1.25%. In fact, some providers are now paying about 1.8% interest on their easy-access accounts. If you agree to tie up your money in a fixed-rate account, some providers may offer more than 3% interest. So, check out the best savings account options available to get as much interest as possible.
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Take in a Lodger
A lot of people don’t know this, but the government’s Rent a Room scheme lets you earn up to £7,500 tax-free per year if you let out a furnished room in your property. If your income from renting out a room is higher, you will have to complete a tax return to pay the remaining income owed. You can check out the rules and regulations before signing up for this scheme. Also, you may need to consider the home insurance premium, which may increase if you put it up for rent.
Put Your Knowledge and Skills to Use
As you may notice, there are plenty of ways to increase your income if you have enough time and resources to execute these ideas. Also, as your income increases, you may move to a higher rate tax bracket. So, consider the tax implications before exploring the available income options. It will be better if you focus on income avenues where you can get tax deductions.