Disposable Income: 9 Ways To Give Yourself A Raise

Calendar December 5, 2009 | Posted by Brad Chaffee

disposable incomeDoes a lack of disposable income at the end of the month have you down? Have you been patiently waiting and waiting for a raise at work? I am going to tell you how to be more self-reliant in order to give yourself that raise, and you won’t have to rely on someone else to do so.

Before we get started I feel I must point out something. If you are looking for a raise simply because you’ve been eyeballing that brand new car sitting on the showroom floor, it may surprise you to know that you will more than likely find yourself right back where you are right now—waiting for that raise.

You see that disposable income shouldn’t be something you view as a way to add stress to your life, but instead as a way to strengthen it. Pay off debt. Save for emergencies. Plan for retirement. Then when all of that is done, enjoy some of it. Do the work first so you can enjoy it second, instead of enjoying it now and working your butt off later in life.

The key is to plan and prepare. I often use the example of the old story The Ant and the Grasshopper. Be the ant!

9 Ways to Give Yourself A Raise

  1. Read more – Get your creative juices flowing. Believe it or not reading stimulates your brain in a way that could cause you to come up with the next best idea. It could be a way to make some additional money on the side.
  2. Follow a written budget – There is no easier way to increase your disposable income every month, than by using a budget to track your spending. It helps you find where you are wasteful, and gives you a crystal clear illustration of what your money situation looks like. Try it and see for yourself.
  3. Have a plan – Got lots of errands to run? How you plan your route to accomplish those tasks could save you time as well as gas. When running errands I am constantly thinking of what we can do and in what order, to be the most efficient, and without backtracking—ever had to turn around and go back home because you forgot something? You could also plan to walk or take a bus when possible.
  4. Adjust your W-4 tax withholding – Do you get a HUGE tax return every year? Stop giving the Government a tax free loan, and instead give yourself more of your own money each paycheck. That’s when you need it the most. Most people waste their tax return on “wants”, yet complain the rest of the year about not having enough money. I’m guilty of it too—but no more.
  5. Pay off debt -There’s nothing that sucks the life out of your labor like debt does. Why work hard each and every week only to make someone else wealthy off of your labor. Become wealthy by paying yourself that money instead. Get rid of that debt!!
  6. Learn about compound interest – By doing this you could become more motivated to start saving more of your money. This is long-term of course but earning interest on your money would definitely be giving yourself a raise–would it not? Invest in your future and save for emergencies and retirement.
  7. Change your deductibles – Lower your monthly premiums by taking on just a little more risk, and removing some of the risk from your insurance company. In order to do this you must have some kind of emergency fund  in place. (Also known as becoming self-insured) It will not do you any good unless you have the money to cover the deductible if needed.
  8. Conserve electricity – Turn off and unplug lights, electronics and appliances when not in use. Make sure windows and doors are properly sealed. Set your thermostat at one temperature and leave it there. Lower your electric bill.
  9. Sell stuff – Go through your house once a month and try to find things you could do without. Sell them on eBay, craigslist, or have a yard sale. You could also shop at Goodwill by trying to find some deep discounts on potentially money making items. We have increased our income in some months by $200 and that is the low number. In the past two weeks my wife has earned over $350 by using this method.

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What are you waiting for? Go increase your disposable income by giving some or all of these methods a try.

photo credit

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Brad Chaffee is the Enemy of Debt, and a regular contributor here at the Self Reliance Exchange. Brad has used all of these methods in order to increase his disposable income over the last two years. Learn more about Brad by reading his bio. You may also contact him here.

Category Categories: personal finance | Tag Tags: , , | Comments 1 Comment »

Comments

One Response to “Disposable Income: 9 Ways To Give Yourself A Raise”

  1. Frugal Living Freedom says:
    December 7, 2009 at 7:49 am

    And, this list doesn’t even speak to wasting money on purely discretionary purchases like alcohol, tobacco, gambling, entertainment and whatever is on sale at the local retail outlet! Regardless of how you create more disposable income, it seems to me that the most important thing is what you do with it. Do you save it, invest it, budget it, or blow it?

    We’re either our own best financial friend or our own worst enemy.

    Clair

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