If you want more money, the easiest way is to cut your spending. But if you slash your expenses to the point where mac and cheese is on the menu every night, your quality of life will begin to suffer.
Another way to improve your bottom line is by increasing your revenue. Here are five ways to make some additional cash:
1. Ask for a raise
One of the easiest ways to earn more money is to ask for a raise. Some employers might increase everyone’s salaries to keep up with the pace of inflation while others may not do anything at all. Overall, Canadian employers expect wages to rise by 2.3% in 2018. If you’re looking for a larger increase, you need to make a case for why you deserve to earn more. For some advice, check out Robert Half’s tips on how to ask for a raise.
2. Get a side hustle
Doing work on the side is another option. Become a house sitter, an Uber driver, or take on a part-time job. You can also let your friends and former colleagues know you’re looking for additional work. If you’re unsure of what you want to do, here are 99 side hustle ideas.
3. Find a new job
If you’re unable to get a raise or don’t want to do extra work on the side, maybe it’s time to put yourself on the market. Polish your resumé, update your LinkedIn profile, do some networking, and start applying for jobs. You might be able to get a better salary and possibly a nicer job title. If you want to make yourself more marketable, consider taking some courses or getting an MBA. The return on investment should pay for itself in the future. If you’re thinking of changing careers, Canadian Business has a list of the top 100 jobs in Canada.
4. Sell your stuff
Do you have old furniture lying around or clothes you never wear? Maybe you should consider selling your stuff online. Kijiji, Craigslist, and eBay are three great sites to get rid of things you no longer use or need. Here are some tips on how to make money on eBay.
5. Make riskier investments
Putting your money in GICs or a high-interest savings account means you’ll get slow and steady returns. But the interest income you earn might not even beat the annual inflation rate (1.4% in August). That’s why you should consider investing in the stock market, either through mutual funds, index funds, or exchange-traded funds (ETFs).
As of Oct. 5, 2017, the S&P/TSX Composite Index’s five-year annualized return was 4.9% while the S&P 500’s five-year annualized return was 11.8%. Over the past five years, you would have made more money investing in the stock market than having cash sit in a savings account or owning a GIC. Although past performance isn’t indicative of future results and the stock market is more volatile, it has been a better place to put your money. Not convinced? A chart from Fidelity shows how stocks have outperformed GICs over a 40-year period.
Want a better GIC rate?
Compare the best GIC rates available
- 5 Benefits of GICs
- Choosing the Best GIC for Your Needs
- [Infographic] How Much More Can You Save With a TFSA?
Flickr: KMR Photography