Understanding Ways to Increase Your Disposable Income.
If you are like most people you want to increase your income. Don’t assume you can’t do this. You may need to change your thinking. You may need to approach it differently. With some creative thinking and taking action it is likely that you can increase your disposable income.
Here is an explanation of what disposable income is and several interesting ways to increase yours.
If most Americans have anything in common, it’s the desire to increase their income and pay fewer taxes — in other words, to increase their disposable income. Increasing disposable income can be life changing, but only if the extra money is used wisely.
What is disposable income?
Disposable income is the amount of money left over from your income after you pay federal, state, and municipal taxes. For example, if your income is $100,000 annually and you pay out 25% of that in various taxes, your personal disposable income would be $75,000.
Disposable income shouldn’t be confused with discretionary income. Discretionary income is the amount of disposable income that remains after you pay the necessary expenses for daily living, including food, shelter, and clothing. Therefore, discretionary income is what a person can use for things like iPhones, vacations, and nocha lattes.
Increasing disposable income
People have many options to increase their disposable income, but all of them involve either increasing personal income or decreasing your tax burden. Here are a few examples.
When did you last receive a raise? If it’s been a while, it could be time for a chat with your employer.
If a pay raise isn’t in the cards, there are still a few options. First, a number of websites have popped up, including Elance, that allow people with certain skill sets, such as programming, writing, editing, or creating spreadsheets, to earn extra money by contracting their services to others who lack those skills.
If contract work isn’t your thing, an improving job market offers a growing availability of second jobs, too. According to the Glassdoor survey, 50% of employers initiated large-scale hiring programs in the first quarter. – via The Motley Fool
Think Outside The Box To Increase Your Disposable Income
Here are some unique ideas of ways to make money so that you can increase your disposable income. You may have never thought of these possibilities but they could be effective for you.
Take a look and see if something on this list will work for you.
Making Money On The Side
There are a lot of other miscellaneous ways to make money on the side. These things aren’t going to make you rich, but can be fun or a nice way to get some extra spending cash. Here are just a few:
Be on a virtual jury:
Some people will make money by being on virtual jury – to help a defense attorney try out a case on live people.
Rent out a room:
Make some extra coin by renting out an extra room to a college student or friend from church. Make sure you know the laws surrounding this in your area.
Rent out your tools:
You bought all those expensive tools, but hardly use them. Consider putting them to use and renting them out on a site like NeighborGoods.
Be a landlord:
While this one requires a substantial outlay of capital up front, it can lead to some positive cash flow every month if done right.
Sell Things To Make Money
If you’re short on cash you can also sell things that you’ve got around the house, buy and re-sell things from garage sales – or if you want to live on the wild side – you can even sell your body!
Have a garage sale:
You can have a garage sale to get rid of some clutter, and make some cash. Our most recent garage sale made us several hundred dollars! …
Sell things online:
If you’ve got unused things around the house that are worth something, sell them online. I’ve had good luck selling smaller items like video games, music and movies on eBay or Amazon.com, while for bigger items Craigslist seems to work pretty well.
Sell your follicles:
Some people will sell their hair for a good chunk of change. The hair can be used to make wigs, hair extensions or used in artwork via sites like TheHairTrader.com. Some people routinely make between $300-900. – via Bible Money Matters
Spend Less To Increase Your Disposable Income
One certain way to increase your disposable income month after month is to look into your monthly budget and find expenses you can lower or cut out completely.
Here are some great ideas to get you thinking about ways you can save on your expenses and use that money to improve your life!
Cut out the takeaway coffees
Get yourself a nice flask and make your own coffee. If you’re serious about cutting your expenses and you still buy a takeaway coffee every morning, buying a flask will save you at least $80 a month.
Take your own lunch to work
Yes, it’ll take up a few extra minutes of your evening, but wouldn’t you prefer to have an extra $100 at the end of each month instead? Over the course of a year, that’s a saving of over $1,000.
Compare gas and electricity prices
Are you really getting the best deal with your gas and electricity? It only takes a few minutes to compare deals on an online comparison site.
Cut out the pricey drinks
Perhaps you don’t drink much, but for a lot of people, spending a good proportion of their monthly salary on expensive boozy nights out is part of their monthly regime. If this rings true, try cutting back or going alcohol-free for a month to see how much you save.
Re-evaluate your insurance
Whether it’s life, health, or travel insurance, shop around, compare prices and make sure you’re getting the best deal for the least amount of money. Remember though, that cheapest does not always equal the best.
Change your phone deal
Do you really need all those minutes and extras? Is there a cheaper phone deal that will save you money in the long run? Shop around and see what other phone deals are out there.
– via Lifehack
If you could increase your disposable income by a few hundred dollars every month would that make a difference in your life?