There is little you can do about the rising cost of living – but there may be ways to increase the money coming into your household.
Current soaring inflation is making it tougher to manage cash flow as wages fail to keep pace. The average increase in employees’ wages stood at 6.6% in the year to June, according to the Office for National Statistics (ONS). And with the annual rate of inflation at 9.4%, this effectively amounts to a pay cut for the majority of workers in real terms.
But while you might not be able to cut back on what’s going out, there are ways you may be able to increase what’s coming in. We’ve rounded up some ideas.
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Make passive income: This refers to income from an investment or asset that involves minimal time commitment. Investing in the stock market can produce passive income from dividends, for example, which are essentially a slice of company profits. But you need a long-term timeframe of, ideally, 10 years or more to invest, and there’s a chance you’ll get back less than you put in.
You can generate income from investing in dividend-paying shares, investment trusts, and funds, or renting out your assets, such as a property or car. Find out more with our Best Passive Income Ideas for 2022.
Get a pay rise: Workers are failing to ask for a pay rise, despite pressure from rising prices. Only four in 10 Britons who have ever been in paid work have asked for a pay rise, with 26% receiving an increase and 13% failing to get a rise on request, according to a survey by YouGov in February.
Start by checking how much people are paid for similar roles to yours on salary checker’s such as Linkedin’s, and Glassdoor’s. Use your research to negotiate a higher salary. If you’re a freelancer, request a rate increase.
Work for extra income: Start a side business to bring in extra cash by thinking about any skills you have to sell. For example, …….