Proven Strategies to Increase Your Income and Build Financial Freedom

When your income barely covers your expenses, it's easy to struggle to see how time and financial freedom could be out of reach. Even if you live in a fabulous house, have an awesome car, and have a great career, a common experience is that there is often very little left at the end of the month.

From first principles, there are only two approaches to building wealth: increasing income or reducing expenses. You can do a bit of both, but you will never scrimp your way to wealth by reducing expenses alone; you need to learn to increase your income.

If you have a highly paid, flexible job, increasing your work to earn more money is tempting. However, this falls into the old trap of exchanging time for money, which is never scalable, no matter how much you earn. Learning how to develop other sources of income is essential if you ever want to transition from being a busy, time-poor professional to a life of time and financial freedom.

I often get one or two responses when I mention this to people. The first is where I was 10 years ago. They immediately start talking about how paying more tax would mean the effort would not be worth it. This results from preprogramming or not understanding how to maximise tax or how to find a way to scale your income and decouple your time from the income you receive. The second type of response I get is usually the obvious - how do I do this?

If you're in the second camp, this blog is for you. You don't need to worry about tax for now, even if you are a higher-rate or additional-rate taxpayer. Learning how to increase your income is the first step. We should be concerned with how we optimise for tax later.

Understanding your financial baseline

Empower yourself by understanding your financial baseline. The first step in this process is comprehending your income and expenses. It's easy to think about how much I am earning, but I'm left with such a small amount at the end of the month. There are often clear patterns of where money is going. I used to have a very bad handle on subscriptions, draining my bank account. Do you know what your income and expenses are every month?

Control of your numbers is essential because it will tell you what is happening with your money. Are you ever spending on takeaways? Is your mortgage too much? Has Amazon or eBay gotten out of hand?

Set clear financial goals and achieve them. When I ask people how much extra income they need, they often give a vague, generic answer, such as 'more.' But unless you know exactly how much you need to cover your basic expenses and invest, you risk working more or spending more time trying to increase your income. What is your actual target?

This matters because if the aim is time and financial freedom, working harder and harder to increase your income will not get you there. Knowing how much you need and achieving it via some of the things I will explain below is the clever approach; I will increase your opportunities to have more time freedom rather than a fast track to burnout.

So here are the five key ways you can increase your income while still working as a busy time poor professional:

1. Explore Opportunities for a Pay Rise

When was the last time you asked for more?

No. I mean it.

Often, professionals think pay raises need to be automatic or reserved for a special occasion. However, they often do not receive a pay raise because they have not asked for it.

If you are working in a public sector organisation, I get it. Having worked in the military and the NHS, I know getting promoted to jump up the pay scale, where there are fixed pay structures, can often be difficult. But how much are you actually worth?

Often, I see people working in public sector organisations going above and beyond, hoping that the boss will see the value they are providing and get promoted and increase their pay. When was the last time you told your boss what increased value you are adding to the organisation? It might seem flashy or not the done thing, but why not? How easy would it be to email your boss explaining how you are going above and beyond, even once a month? No one will push for a pay rise unless you push yourself!

This is much easier in the corporate or private sector, with value inherently linked to remuneration. Even then, however, people still do not ask. How could I add value to the bottom line of this business and ask for a cut of it? If you add ￡100,000 profit to the company by adding a system or a new way of working, giving that employee a ￡10,000 pay rise is a no-brainer. This is what we call 'value-added'-when you contribute significantly to the company's success, you have a strong case for a pay rise.

So add value, tell everyone what you're doing, and then have the nerve to ask for more. What's the worst that could happen? I'd love to know.

2 - Start a side hustle

You almost certainly have something in your head or a skill that is valuable to others.

It may be consulting, freelancing, or selling something. Alternatively, it could be knitting, knowing how to apply make-up properly, or having some skill you could teach others. The key here is that it does not necessarily need to be related to your career. For instance, you could start a blog, offer your services as a virtual assistant, or sell handmade crafts online.

What are you known for amongst your friends? Where do you have an unfair advantage? Having worked as a financial advisor and also invested in property, people often come to have a chat at work asking all sorts of questions. I don't always know the answer, but certainly, that's the reputation I have. Let me ask you again—what are you known for? What is your secret passion?

Having a?side hustle?isn't always about income. It's also about having the freedom to explore a passion that can build a safety net, increase income, or fund the next big adventure.

If you are too busy to start this, I invite you to do a tiny audit of where you are spending your time. You can find an hour or two a week to start something and build from there.

Start small. Build big. It may not happen overnight, but your side hustle could give you the time and financial freedom you want to live on your own terms. Remember, it's not just about the income, but also about finding a balance that works for you.

3 - Monetise Your Assets

What is sitting around your house not earning its keep?

From spare room to a treadmill gathering dust, you have assets now that you are not using that could be put to good use to earn income. Sites like Airbnb have made earning money from spare rooms you own easier than ever.

Another way to manage your clutter is to turn some of it into income. Sites like Vinted and eBay allow you to sell old stuff you are not using, which can be turned into investments.

This small investment did not make a difference. Still, any money I can put toward investing is another small step toward time and financial freedom.

Monetising helps you build momentum and gets you into the habit of not having things you do not use.

4 - Enter the World of Property Investment

Think the world of property is out of reach? It might not be.

Most people assume property investing is only for those with big bank accounts. But strategies like rent-to-rent and joint ventures can help people start investing in property with much less money than they think

While this is not as easy as selling things from your garage, it is a reliable way to build long-term wealth. Property remains my favourite asset class because it can be set up to provide income, capital growth, or both. Even if you do not have the cash to start, learning the ropes can put you in a strong position when the right opportunity comes.

However, the one key caveat regarding property investing is to ensure that you are educated. There are certainly more risks when investing in property, and larger amounts are involved. There are several reputable training companies in the UK. I trained with Progressive Property and found the experience fantastic. Attending some of their courses or networking events (other networking events are available) is key to ensuring that you are doing it correctly to protect the downside.

For me, the property provides income today and builds a legacy for my family for tomorrow. It's not for the faint of heart, but it is a good option for a busy time for professionals who want to build a life of financial freedom.

5 - Leverage Passive Income Streams

While property is great, it can be quite active regarding the required effort. But what if you could make money in your sleep?

Passive income might sound like a dream, but it is achievable with the right strategies. There are many ways to develop passive income, from investing in dividend stocks to creating a digital product that sells itself. I do both of these things.

It does take time and effort upfront. Once established, it can generate steady cash flow with very little maintenance. I see it like being a gardener planting seeds and watching them grow year-on-year.

Why is this such an important method of increasing your income? For me, it is about buying back your time. Having large amounts of income is great, but if it actively requires your time, you are simply swapping what you are doing for another job. Using passive strategies is a key transition from working for money to having money work for you.

The big pitfall ice here is what I call shiny penny syndrome. When people jump from one thing to another to another. If you wish to go down this route, pick one passive income strategy and implement it before moving on.

Every pound of passive income brings you closer to that life of time and financial freedom you deserve.

It's time to take control of your financial future.

Increasing your income isn't just about making more money; it's about creating options. Options to spend more time with your family, pay off that mortgage, travel, or even work fewer hours. It's about breaking free from the cycle of "just getting by" and building the life you've always envisioned.

You don't need to make drastic changes overnight. Start small, whether by negotiating a pay rise, launching a?side hustle, or selling unused items in your home. Each step builds momentum, compounding over time into something much bigger.

Now, it's your turn. Pick one strategy from this list and commit to taking action this week. It could be having that overdue conversation about a raise, researching side hustles, or finally looking into property investment.

The journey to time and financial freedom starts with one step.

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Good luck on your journey!

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