Everyone likes the idea of making more money, but few people are willing to put in the time and effort required to get it. Broadly speaking, there are three major ways to make more money: you can make more money in your current role by acquiring new skills, you can change jobs or careers, or you can make extra money on the side with side gigs and investments.
Which of these should you choose and how do you make the most money?
1:Acquiring New Skills and Responsibilities
If you want to stay in your current job, the best way to earn more money is to acquire new skills and responsibilities. Most employers won’t voluntarily hand you a raise, aside from occasional raises based on inflation, unless you give them a solid reason to. Sure, you may earn merit-based raises as a result of your increasing experience, but acquiring new skills and responsibilities is a much more reliable path to greater earnings.
For example, you can become forklift certified. Forklift certification gives you the education and knowledge necessary to operate forklift equipment safely; if you can add this to your resume and help make the workplace safer, your employers may reward you accordingly. This is especially valuable because some forms of training and certification require very little time and minimal monetary investment.
There are some advantages to this path:
- Comfort and familiarity. Many people choose this route because they’re already comfortable and familiar with their existing job. You don’t have to spend years in a new training program, nor do you have to switch careers.
- Minimal time and effort. While some skills and responsibilities do require a significant time investment, many can be acquired in a matter of days, or even hours. If you want to pump up your resume quickly, this is arguably the best way.
- Future potential. Depending on your career, there could be a lot of future potential in acquiring new skills and certifications. You can keep ratcheting up your abilities until you reach your financial goals.
However, there are also some drawbacks:
- Limited impact. The raises you get from some certifications will be minimal. You probably won’t double your salary overnight.
- Similar environment. If you don’t care for your current work environment, this isn’t a viable path. Acquiring new skills and responsibilities for your current line of work could have the unfortunate side effect of accelerating your burnout.
- No guarantee of a raise or promotion. Just because you add a new skill or responsibility to your job doesn’t mean you’re guaranteed a new form of compensation.
2: Changing Jobs or Careers
Another option is to change jobs or even change your entire career. Simply changing your job could net you a salary increase of 10 to 20 percent. If you change careers, you could pursue a line of work that allows you to make much more money.
These are some of the advantages:
- A fresh environment. Some people appreciate the fresh environment that comes with a change. This is especially valuable if you’ve been in your current job for a long time.
- Bigger potential. Switching jobs or careers has much more potential than simply adding to your resume. It won’t happen overnight, but you could literally more than double your salary.
- Personal autonomy. This move allows you much greater personal autonomy. You won’t be limited to acquiring skills and responsibilities that align with your existing job; instead, you can pursue anything that interests you.
These are some of the disadvantages:
- Education and training. Switching jobs or careers sometimes requires you to take on more education and training. This can be both time-consuming and expensive in some cases.
- The job search. Searching for a new job will probably take more time than acquiring a new skill or responsibility. You may also struggle to find a new job if you lack experience.
- Starting from the ground level. Starting a new career usually means starting at the ground level. In some cases, you may have to take an initial salary cut for the promise of greater future rewards.
3: Side Gigs and Investments
The final path is to stay with your current job, but focus more time and energy on side gigs and investments. You could drive for a ridesharing company, start your own pet sitting operation, or start a freelance photography business. You can also invest in real estate, stocks, bonds, and other assets.
These are the best perks:
- Total flexibility. There are countless investments to consider, and even more side gigs and secondary jobs available to you. You can do almost anything you want here.
- Unlimited scalability. Investments allow you to snowball wealth, granting you practically unlimited scalability.
- Compatibility with other options. It’s fairly easy to take on side gigs and invest in assets while simultaneously pursuing other career goals.
These are some weaknesses to consider:
- The learning curve. Investing isn’t always easy or straightforward, and some side gigs come with a steep learning curve.
- Capital demands. You need capital to make investments; if you don’t have much savings, this may not be a viable option for you.
- Time demands. Pursuing a full-time career alone leaves you with limited free time; side gigs and investments can reduce that free time even further.
As you can see, there are many ways to make more money and accelerate your accumulation of wealth. Keep in mind that you can hybridize these approaches, following multiple approaches simultaneously to see which ones work best for your current needs.