7 Smartest Ways To Increase Your Income as Inflation Drains Your Budget
Written by
Jordan Rosenfeld
Edited by
Molly Sullivan
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As prices continue to rise, your paycheck may not be stretching as far as it used to, which can leave you scrambling to stay ahead. While cutting costs is one way to cope, the smartest strategy in times of inflation may be to focus on boosting your income instead.
From side hustles to smarter financial planning, there are practical ways to increase what you earn without completely upending your life.
Here are seven smart strategies to bring in more money as inflation chips away at your budget.
Take On a Side Hustle
Undoubtedly the quickest way to bring in additional income without changing careers or getting a full second job is to take on a side hustle, according to Aaron Razon, personal finance expert at CouponSnake.
This has become one of the most accessible ways for people to increase their incomes without a total career shift. One reason: A side hustle often comes with the double advantage of securing additional income while also pursuing passions and interests.
From food delivery and ride-share driving to freelancing or selling products online, today’s gig economy offers flexible options for earning more on your own schedule.
Monetize Your Skills
The best part of a side hustle is that it often allows you to monetize something you’re already good at or passionate about.
“If you’re an expert, someone probably wants to learn your skills. Look for opportunities to teach community ed, become a private coach and create YouTube content,” according to Melanie Musson, a finance expert with InsuranceProviders.com.
Whether it’s tutoring, graphic design or musical instruction, your skills could be valuable to others and profitable for you.
Focus On Services
Services tend to be inflation-proof, Musson pointed out. In high-inflationary periods, people are often working longer hours, so they need more things done for them, she said.
That creates a strong opportunity for those who can offer time-saving help. Tasks like dog walking, child care, house cleaning, gardening and cooking are all in steady demand — and can provide a reliable source of weekly income.
Rent Out Homes and Rooms
If none of the above strategies work for you and you want to avoid working extra hours, consider renting out a room in your home as a vacation or long-term rental, Musson said.
There are also platforms that let you rent out other unused assets — from your car to your garage or backyard pool. In the right circumstances, passive income from rental opportunities can make a noticeable difference in your monthly budget.
Plug Financial Holes
If a side hustle isn’t for you, Razon said, “Sometimes, the most effective approach to increasing your income is to plug the financial holes you have in your budget and take a more strategic approach in your financial management.”
This might mean negotiating bills, cutting out unnecessary expenses or taking small steps to improve your financial knowledge and skills. Even modest changes can make a long-term impact when it comes to keeping more of what you earn.
Position Yourself for a Raise
If you’re already doing well at work, one way to increase your income is to ask for a raise. But don’t walk into that conversation unprepared.
“Be ready to present a case for why you deserve a raise based on your performance,” Musson suggested.
Even if you’re not ready to ask yet, it’s smart to build your case. Razon recommended taking on additional responsibility and consistently delivering quality results to put yourself in a strong position for future growth.
Don’t Make Risky Investments
While it may be tempting to chase a big win when money feels tight, Musson warned against taking on high-risk investments.
“Risky investments could put you in a far worse financial situation than you currently are in,” she said.
A smarter move is to stick to proven income strategies like offering services, working extra hours when possible or building long-term side hustles that align with your strengths.
Inflation may be out of your control, but how you respond to it isn’t. By thinking creatively and acting strategically, you can find smart ways to increase your income and protect your financial future.
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