There are so many reasons that you might want to increase your income.
Maybe you're tired of living pay cheque to pay cheque and you want to finally have some breathing room.
Maybe you want to go on a family vacation and a little extra money would definitely make that easier.
Or perhaps you want to start setting money aside to invest for your retirement.
Or like many, you want to buy a home but the bank won't approve you for a mortgage.
The reality is, the bank will require a minimum income in order to approve you for a mortgage. They do this for their own protection but to also make sure that you have money to pay for the mortgage and all of your other living expenses too.
But did you know that increasing your income might not be as hard as you think?
In today's blog post, I will share 4 ways that you can increase your income so that you can qualify for a mortgage. #1 Ask for a raise Did I really just say that? Yes! Yes I did! This one question might just be the solution to increasing your income. And what's the worst case scenario? They say no?
Alright.
No harm, no foul. But if they say yes? Then you've just increased your income by simply asking 1 question. But before you go demanding a raise, arm yourself with information to back up your request. What do other people doing your same role get paid? At your company but also at other companies?
Are you paid below market? Be prepared to share this information with your boss. Have you been with your company for a long time? Do you have knowledge/skills/experience that makes you worth more than the average person in your role? Highlight the things that make you worth more. Are you taking on more than your job description? Do you frequently go above and beyond? Work extra hours, etc.? It might be time to make your employer aware of all that you do, and request to be compensated accordingly. These are just a few ideas to help make your case. But the gist of it is, don't just ask for a raise. Come with supporting information that your employer won't be able to deny!
#2 Change jobs So you asked for a raise and your employer said no. And since you presented solid evidence for why you deserved the raise, you now realize you're actually underpaid! And if you simply decided to work for a different employer, straight off the bat you would likely increase your income. Did you know that it's often much easier to increase your income by changing employers than it is to get the same increase in income from your current employer? This is a fact! Employers are much more likely to pay a new employee more than they are to increase an existing employee's income. And again, what is there to lose in this case? You can always choose not to accept an offer should one come your way. But I suggest you apply to a few jobs, go on some interviews, and you might just be surprised at how much more you can make by simply changing your employer. And don't forget, the first offer they give you likely isn't their final and best offer! You can definitely negotiate. And NOW is the time to do so. NOT after you've started working there. A couple extra tips: They don't need to know how much you currently make.
Simply set the expectation about what kind of income you are looking for. And don't feel like you're asking for too much. Go in higher than you expect (within reason for the role) and you might just be surprised at what you end up with. Know your worth. Don't let them trick you into thinking you're worth less than you know to be the case. Stay strong and don't bend lower than you're willing to go to accept a role with this new company.
#3 Pick up a side gig Nowadays almost everyone has a side gig of sorts. So if you don't already well, you're kind of already behind. And I'm not saying you need to go pick up another full-time job and have no time to enjoy life.
But it's these small sacrifices now, that can make a world of a difference for your future. Do you have a skill that you can use to help others? It could be as simple as starting up a lawn mowing and/or snow removal business. Set aside a few hours a week, find a few people in your neighbourhood that need help and start bringing in some extra dough! Let's run a few rough numbers. Say you cut 5 lawns per week at $50/lawn. The lawns need to be cut from June to September so roughly 16 weeks. That's $250/week for 16 weeks or $4,000. Now say you do the same for snow removal - but maybe rather than paying per snowfall, you charge a flat fee for each home that you will service for the entire winter season. Assume you will charge $400 per home per winter season. And you have 10 homes you will shovel. That's an extra $4,000. Between the lawn mowing and snow removal, that's an extra $8,000 per year. This could be the difference between qualifying for rent to own or not. And it only takes an extra ~5-10 hours per week. If manual labour isn't your thing, there are plenty of online positions that you can do in your spare time. A simple google search or query on workopolis or monster will produce many results. Some of them might pay hourly or some might pay by the job so depending on your skillset one might be more lucrative than the other. If you have a vehicle and enjoy driving and socializing, another option is to drive for uber! The possibilities really are endless. So while you might not want to work more, sometimes it's the sacrifice we have to make to get to where we want to be.
#4 Freelance on sites like Upwork or Fiverr Do you have a skill that you could use to make some extra income? This could be a skill you use at your workplace, or maybe something that you do in your spare time for fun. A few examples might be:
Logo design
Copywriting
Video editing
Translation
Transcription
Slideshow videos
Truly, the possibilities are endless. Not sure what skill you have that could earn you more income? Visit Upwork and browse some of the categories they have available. I'm willing to bet there is something there you can do. Now that you know what you can do, create a profile (it's free).
To start gaining traction, keep your rates low relative to other talent and get some jobs under your belt. Once you get some good reviews, start to raise your prices! This will allow you to either a) make more money because you are charging more for the same type of work or b) do less work for the same amount of money. Pretty cool, eh? And because YOU chose what work to do, it's likely something you actually enjoy doing. And when you enjoy doing something.. Well, you know the rest! I didn’t say it wouldn't take work! Ah yes. I promised to tell you 4 simple ways you could increase your income. But I never said it wouldn't take work! But is it really work when you get to choose what to do? And to be honest, I think I've provided some options that are more than doable if you're willing to put in the work or get out of your comfort zone. But my best piece of advice is this: Remember your WHY. WHY are you doing this in the first place? You're doing it to make your dreams of owning a home a reality. And without making changes to your circumstances, that dream will remain just that - a dream. Put in the work, and continue to remember your WHY. In the end it will be worth it.
So which one of the 4 ways are you going to try?
Let me know in the comments and come back later and let me know how it goes!
Victoria
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