Image source: The Motley Fool/Upsplash
Passive income sounds like a fantastic idea at first glance. Instead of working for every penny, you can build passive income streams so you can earn money while you sleep.
Unfortunately, that’s easier said than done. There are reliable ways to earn passive income – for example, by putting money into high-yield savings accounts. You’ll earn a competitive rate of return, but it will only be a small percentage of your total balance. Other passive income methods require a lot of work and offer no guarantee of success.
Most people are better off looking for active Ways to increase income because you can earn a lot more. Here are four of the best options.
1. Turn your skills into a freelance business
Starting your own business is a great way to make more money. The best place to start is with what you already know. Think about how you can use your winning skills in a freelance business.
Here are some examples of how you could do this:
-
Are you a WordPress expert? Offer your services as a web developer.
-
Do you know a second language? Offer online courses – iTalki and Verbling are two platforms that connect language learners with tutors.
-
Do you love photography or videography? You could create a portfolio on your own website or use a platform like Behance and then look for potential clients.
Remember, you don’t have to be the best in the world at something to make money at it. Above-average skills in an area that people pay for are all you need.
2. Find a better paying job
Job hopping used to have a bad reputation. Today, it is often the most effective way to maximize your earning potential. A 2023 report from Resume Builder examined the impact of job hopping on younger workers ages 21 to 40. It found that 80% of those who have changed jobs in the last five years have been able to increase their salary. And 20% increased their salary by $50,000 or more!
It never hurts to look around to see what’s available. Keep your resume updated, search job boards, and network when possible so you don’t miss out on well-paying opportunities.
3. Apply for a promotion or negotiate a raise
Instead of looking elsewhere, you could also look for ways to increase your salary at your current employer. One way is to get a promotion. See if your employer has an internal job board. This is a great way to keep track of openings at your workplace and apply to any that match your skills. Since these job postings aren’t public, there’s often much less competition.
Another option is to talk to your boss about a raise. If you go this route, be sure to bring any data that proves you’re a top performer and deserve a higher salary. For example, you could show your boss positive performance reviews or good sales numbers.
4. Start a part-time job
Thanks to the gig economy, there are more side jobs than ever before. While the pay isn’t great, many side jobs are at least reasonably well-paid. This can be a great way to make some extra money if your job isn’t full-time, or if you work full-time but don’t mind working more.
Here are some of the most popular side jobs and apps that let you do them:
-
Driving for ridesharing services: Uber and Lyft
-
Deliver food: DoorDash, Instacart and Uber Eats
-
Pet care and dog walking: rover
The most effective ways to increase your income
There’s nothing wrong with looking for ways to earn passive income. It’s good to put your money to work for you by investing in stocks and putting savings in high-interest accounts. And if you have a business idea with passive income potential, such as real estate investing or creating your own online course, it might be worth pursuing.
Remember that building passive income is hard work and there’s no point in putting all your eggs in one basket. While the four options listed above aren’t passive, they are proven ways to increase your income.
Warning: The best cashback card we’ve seen so far has an introductory APR of 0% until almost 2026
This credit card is not just good – it is so exceptional that our experts use it personally. offers an introductory interest rate of 0% for 15 months, a cashback rate of up to 5% and all with no annual fee!
Click here to read our full review Apply for free and in just 2 minutes.
We strongly believe in the Golden Rule, and editorial opinions are solely our own and have not been previously reviewed, approved, or endorsed by the advertisers involved. The Ascent does not cover all offerings in the market. Editorial content on The Ascent is separate from The Motley Fool’s editorial content and is produced by a different team of analysts. Lyle Daly does not own any of the stocks mentioned. The Motley Fool owns a position in and recommends Uber Technologies. The Motley Fool has a disclosure policy.
