Recently, I shared 5 of my most powerful ways to spend less in NYC. However, that’s only half of the equation. In terms of building wealth, the saying says that you have to “spend less than you earn”. We’ve covered spending less. How about we take a look at how to earn more. I like to focus on the saving side of the equation a lot, because it is the piece that you have the most control over. However, earning more can be even more powerful. There is a limit to how much less you can spend. You can’t spend LESS than zero dollars. However, there is no (reasonable) limit on how much you can earn! Ideally, you will implement both saving and earning strategies and build wealth faster than you ever thought possible, so you can focus on the important things in life. Here are five real ways I have found to increase your earning power in NYC:
- Get a New Job – The best raises at work come when you switch companies. That’s easy to say, but hard to do. However, there are some tricks you can use. A few months ago, I got some great advice from social media guru, Julia Roy. She told me two great strategies for getting a new job. First, show interest for the industry. If you want to go work for ESPN, start a sports blog or podcast, something that stands out and shows your interest or passion. Second, do the job in order to get the job. Julia told me that she created a social media campaign for a job that, on paper, she was under-qualified for. She got the job. And as a bonus, she already had a road map to follow for her first few months at the company! In NYC, it’s not enough to blindly blast out your resume and wait for an interview call, just so you can sit down with someone in HR and feed them the same lines about how excited you are to work for company X. You have to prove it!
- Turnkey Real Estate Investing – I used to think that real estate investing while living in NYC was WAY out of my league. Then I read this post from FIFighter about turnkey investing that opened my eyes. Of course, you need some money for the downpayment here and you shouldn’t take turnkey investing lightly. There is a lot of work that goes into learning about real estate investing and doing your due diligence on turnkey companies and specific properties. But for the NYC dweller, turnkeys offer a great opportunity.
- Peer-to-Peer Loans – I don’t recommend putting a very large percentage of your net worth in peer-to-peer loans, but I have had a lot of fun and some good success with Lending Club. Basically, you act as the bank for people who need a loan. You and many other people each chip in $25 and you are paid back with interest. Of course, there are dangers to lending, of course. Borrowers can’t pay you back or they are late in paying you back. However, if you spread your $25 chunks of money across many different loans to many different people, the diversification mitigates some of the risks.
- Create Something Digital – Ah, the side hustle. Go online and you can create your own business. Now, as far as I’m concerned, blogging isn’t the most lucrative. I blog because I enjoy it and I hope to help readers. I can’t say that I have made more than a few bucks off of it. However, there are plenty of opportunities out there. Check out Fiverr.com, Odesk.com, and Elance.com. Plenty of people are finding creative ways to make money, by becoming a virtual assistant, freelance writing or graphic design, or even making ridiculous custom videos. Or you can use a blog as a platform to sell an ebook that you create. There are many possibilities out there, so scour those sites and see if you are inspired!
- Create Something in the Real World – Side hustles aren’t limited to a digital service. You can also create physical products and sell them online. Take a look at Etsy! Tons of people are creating amazing crafts and selling them through that site. Personally, my side hustle is playing music in a band. Hey, you could even consider getting a second job if you really want to supercharge your earnings! Think about what works for you.
Bonus: Index Funds – I left this one off because I always talk about my Vanguard Index funds. But really, they are a tried and true approach to building wealth. If you haven’t read it yet, PLEASE check out JLCollins’s Stock Series.
Now you have the power to go out and earn more money! Combine these techniques with the 5 ways to spend less and you will not believe how quickly you will be able to reach your goals!
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