The second installment in our 5-part series (in which we examine 100 ways to improve your finances that can be done in 5 minutes or less) has perhaps the most eye-catching title of the bunch:
Making Money!
Part 2: Increasing Income
That’s right. While there are certainly some very time-consuming ways to increase your income, like going to college or breaking the world record fingernail length, the tips here can be completed or at least started in just 5 minutes. And no, none will require even an ounce of luck, like having Bob Barker tell you that “You’re the next contestant on The Price Is Right!”
Is Bob Barker still alive?
Do people still watch game shows?
Anyway, without any further ado!
1) Keep learning. This one should arguably be #1 on all the lists. Showing that you care about continuing your development shows your manager that you are eager to contribute to the company. To get you started, there is a wealth of quality online material and courseware at little to no cost. Sign up in minutes for free courses using edX, Coursera, Duolingo (Google phones, Apple phones), or an industry-specific program to develop professional skills. If a full class is too much, watch a TED talk instead of TV or social media. Think about what skills you need to advance your career, and start learning them today. You may not see the benefit immediately, but incremental efforts pay off over time. Developing your skill-set is perhaps the most important factor to improving your salary in the long-term. Don’t let your talents become outdated; keep learning!
2) Research all your company benefits. You’re likely aware of the big ones like health insurance (including HSA’s), dental insurance, and retirement/401k/403b accounts and matching (You absolutely must do this if you haven’t… a whopping 1 in 5 employees ignore this truly free money). However, don’t overlook that your company may have some lesser-known benefits. Mine offers free passes to local attractions, a discount on a cell phone service, free disability insurance, free life insurance, and even a free fitness tracker through the health insurance plan, but you have to opt in. Ask your manager or HR for a full list of these benefits and take a moment to enroll.
3) Sell your skills or labor. Are you a proofreader? Translator? Transcriber? Writer? Driver? Mechanic? Cleaner? Handy person? Ironer? Web designer? Resume expert? Personal trainer? Dishwasher? Babysitter? Dog walker? Graphic designer? Entertainer? Tutor? Teacher? Gamer? Dungeons and Dragons expert? Friend? There are hundreds of websites for selling these skills, and most let you sign up and start offering your services in minutes.
4) Rent out your belongings. Services like Turo, Spot, and Fat Llama let you list items for rent like your car, parking spot, clothing, lawn mower, camera, bike, scooter, and wedding dress. Each transaction only takes a few minutes, and the cash you earn is a better bargain than your unused stuff collecting dust.
5) Rent unused space in your home. Most people think of Airbnb as a way to rent out an unoccupied house only, but you can easily rent out as little as an unused bedroom. You don’t have to do it all the time, just when demand might be high for your area. For example, Lady Centsei and I live near a university, and renting out a room for parents’ weekend or graduation could be hugely profitable, and we’d only need to deal with guests for a few nights per year. If the idea of people in your house is too uncomfortable, some sites will let you rent out space on your lawn or driveway too. Signing up is quick and easy.
6) Sign up for an online side gig. I haven’t used these personally, but a family friend who is a full-time student makes an average of $10 per hour on Amazon’s MTurk and another makes about the same doing online surveys. It’s not much, but this can be a nice supplement if you have a flexible schedule and a bit of extra time. A note of caution: use a reputable service, and don’t burn yourself out.
7) Sell unused household items on eBay/Craigslist/Amazon. Textbooks, video games, and electronics have decent returns on the second-hand marketplace, and let’s be honest, I know you have some extras sitting around your house. Price your items fairly and ignore pesky time-wasting buyers. If the goods need to be delivered in person, meet in a safe, public location. Only accept cash, bank-certified checks, or PayPal/AmazonPay to avoid getting scammed.
8) Sell a collection. Coins, POGs, video games, basketball cards, Pokémon cards, key chains, shot glasses, even unopened bars of soap from hotels… all junk I’ve collected over the years. However, maybe only one or two of these bring me real joy, and the rest was just a fad that came and went. If the collection has legitimate resale value to other hoarders collectors, sell it. I sold a dozen video games this way for no more than a few hours’ work and made over $500 from games I hadn’t played in decades. If it has no resale value, take a picture of it “for the memory” and donate it (tax advantages may apply) or trash it (for the peace of mind). Selling your jewelry, art, antiques, rare books, or sports memorabilia could not only generate enough money to pay off some debt, but also prevent your wasting additional money on the collection down the road.
9) Sell or donate your old clothes. A few times per year, Lady Centsei and I have a party where we go through and donate our old clothes, or sell the ones that are still in good shape. We pick up an old box and each go through our closets at light speed. An old but great rule of thumb is that if you haven’t worn it in the last year, then you won’t wear it in the next year. Donate it!
10) Return “that” thing. Another task we’re all guilty of putting off until it’s too late. We buy something we don’t need, saying “oh, I’ll just return that.” The window goes by and now you’re out some hard-earned dollars. Set aside a specific time each week to return everything you need to. Most companies make this easy. Pick a specific time each week/month to do returns. Every dollar that you get from a return is like earning $1.25-1.50 in income before taxes.
11) Ask for a raise. Public speaking, heights, the dentist, and asking for a raise all scare people more than death itself! Fear not. It is very normal to ask, and if you’ve been doing great work for a year or more, do not wait until its “time” for a raise. Today is the time to ask. Research similar roles for your experience level, make a list of your largest accomplishments, and find some time when your manager is in a good mood. Schedule a meeting and start the conversation by showing appreciation for your role and your increased responsibilities, and follow up by saying that you’d like to talk about increasing your salary to best reflect the value you bring to the company. If you have a specific figure or percentage, discuss it, but read the situation and offer a range if appropriate. Do not mention anything about your personal finances or bring up anything threatening or negative in the negotiation. Be open to other ways of increasing your compensation too, such as a bonus, added vacation time, or a more flexible schedule. If you still get a “no,” know that this may mean “not yet.” Your boss is human and may consider your accomplishments during regularly scheduled raises as well. However, it’s also possible that you may need to leave in order to find get a better salary, and that’s OK. Your skillset and work ethic will follow you anywhere.
12) Get started on a work project that will earn you a raise. Most of the progress I’ve made as a professional can be attributed to a handful of projects that propelled my career. I identified a task that needed to be done, volunteered to complete it in a time frame that I knew was realistic, went above and beyond the expectations, and was “noticed” by the right individuals upon the project’s completion. I stood out among my coworkers and reaped the rewards when it came time for raises, bonus, and promotions. Down the road, these projects helped me land jobs at other companies, as they were the best way to ensure my resume showcased my abilities. Your “project” doesn’t have to be at work, it could be a new hobby that you enjoy that helps you develop a special skillset. Data science, computer programming, people management, app/web development, artificial intelligence, and public speaking (conquer your fear!) are all high-demand skills that can be taught and mastered through projects.
13) Update your resume. As your network grows and as the economy weakens, very few people can ever have 100% job security. Take a few minutes to update your resume every 6 months (when you change your clocks) with even just a line or two of major recent accomplishments or proficiencies. If an opportunity does arise either at your current job or elsewhere, you’ll be prepared.
14) Update your LinkedIn/professional profile. Social media can be a time waster, and I see plenty of people get sucked down the rabbit hole of professional websites like LinkedIn using it as they would any other social media platform. Don’t. Rather, update your professional profile every 3 months with relevant information and remove anything outdated. You might get contacted by a prospective customer, business partner, or other opportunity worth pursuing.
15) Rebalance your retirement portfolio. Here’s a rule of thumb that I fully endorse: Your retirement portfolio should have stocks (riskier) investments equal to 100 minus your age, with the rest in low secure (low-risk) investments. In other words, a 30-year-old should have 70% stocks and 30% low-risk bonds. For a 75-year-old, 25% stocks. Once a year, take a few minutes to look at your IRA and 401k accounts, and make a few adjustments if you’re way off. Many brokerages and 401k administrators are offering something like a “Target Retirement 2050 Fund” that basically automatically does this for you. If the expense ratios are good, these can be a great focus for less experienced investors. Don’t do this every day, and definitely don’t panic and start selling when a recession hits.
16) Find a new bank. Changing banks can be a hassle, but so can excessive fees and low interest rates. There’s no one-size-fits-all approach here, so just prioritize what features are most important to you. High savings rates (yes!)? Low fees? Good online features? Quality products and services? Nearby locations? A brand (NO!)? Shop around for banks once per year, and be honest if yours is meeting your needs. If you can manage it, there’s nothing wrong with having more than one if, for example, one has an excellent savings account and one has an excellent checking account.
17) Open a high-yield savings account. If you’re earning any less than 1.70% in today’s market on your savings account, you’re missing out on free money. Do a Google search for “High Yield Savings Accounts” at both national banks and local ones, and take a few minutes to open an account. If you do, $1,000 in your savings account is almost $20 in interest per year in today’s rates. Tell me that’s not worth 5 minutes!
18) Open a brokerage/stock account. If you have 3-6 months savings in an emergency fund, and if you’ve maxed out your retirement accounts, and if you’ve paid off all high interest debt, then it might be wise to open an account with Fidelity or Vanguard to invest your excess savings in the stock market. Do not day trade stocks. Do not panic when the market fluctuates. Don’t pick fad stocks that your heard about on TV. Instead, invest in index funds that have low expense ratios and an acceptable risk profile for your age and risk tolerance. Invest for the long term and diversify your investments. “It’s about time in the market, not timing the market.”
19) Lend your money via a Peer to Peer lender. P2P lending is higher risk (and again, I do not give advice on this website), but this is a low-effort way to possibly generate higher returns. You lend money to qualified buyers at rates higher than your savings account; they borrow money at rates lower than their credit cards. You may want to consider this as a small percentage of your high-risk investments. Signing up and connecting an account can be done in minutes. Do your homework.
20) Ask for help from your friends and family. You’re not alone, and your trusted and knowledgeable social circle can be a great resource: looking over a resume, getting a lead for a new job, finding money-saving places or ideas, making resolutions, and so on (not all friends will give Centsei-approved advice). Think very carefully about asking your closest connections for a loan directly, however, as financial obligations and dependency can quickly complicate even the closest relationships.
