When it comes to personal finance, the well-touted advice is often about skipping that extra latte and watching the pennies accumulate. That's not entirely wrong; there's definitely merit in trimming unnecessary expenses. Yet, like a rubber band, there's only so much you can stretch your savings.

Let's flip the script for a moment. What if the secret to a more robust and fulfilling financial future isn't just about cutting corners, but in having more?

In this episode, we dive into the less explored but equally essential mantra: "earn more, save more". We unfold practical strategies to bump up your income—whether in your day job, or through a fledgling business or a side hustle. We also peel back the curtain on passive income, breaking down the good and the bad.

With these tips and insights, we hope to help you achieve your dream holiday or early retirement with a bit more speed and a lot less scrimping on life's joys.

The “Savings” squeeze

When we chat about personal finance, it's almost ritualistic to start looking for budgeting and saving techniques that actually work . And truthfully, that bad deal on your car insurance, or that gym membership you haven't used in months? They can add up. By reassessing those daily habits, there's potential for a chunkier bank balance or even a bit more for investing.

Yet, there's a catch. There's always an inevitable limit to how much you can save. Sure, you can opt for a lesser brand of cereal or negotiate your mobile plan. But you've got the non-negotiables like rent or mortgage and utilities that keep on rising. Even your thrifty grandparent would agree that there's only so much scrimping and saving one can do.

Sky's the limit: increasing your income

While there's a cap on how much you can save, there's no such cap on how much you can earn. Imagine a scale. On one side, you have your fixed expenses, the non-negotiables. On the other side, you have your potential earnings, ever expansive and unbounded.

Now, most of us are tethered to the predictable paycheque of a 9-5 job. In fields like healthcare, there's often a glass ceiling on salaries. But hold on, that's not the end of the story. While it may require some effort and planning, there's more money you can potentially earn in your current role and elsewhere.

Increasing your income through your current job

The first and often most overlooked avenue is right under your nose – your current job. For many of us, our primary jobs come with a preset salary. However, before you sigh in resignation, remember – there's always room for negotiation . The key is not just to ask, but to justify the ask.

• Show and tell – Document your achievements and how they've added value to the company. It's hard to say no when you have solid evidence of your contributions.
• Clear expectations – Not sure of your contribution? That's alright. Ask your manager about the company's expectations and targets. Align your goals with theirs. Once you hit those milestones in six months or so, it's time for that raise talk again.
• Work more to earn more – If you're on an hourly wage, think about taking on extra hours or overtime. Every additional hour translates to more dollars in your pocket.
• Earn extra on weekends or public holidays – As Tash shares from her experience as a support worker, working on a Sunday or a public holiday could rake in double or even 2.5 times the normal pay. A few extra shifts during these premium hours could significantly boost your monthly income.
• Opportunity in flexible schedule – While we can't add a day to the calendar, tweaking your work schedule might do the trick. You could work four long days instead of five regular ones. Or maybe, spread out your hours across nine days, taking the tenth off. With that extra day, there's a world of opportunities to take on additional roles or even kickstart a side gig.

Taking the job-hopping route

We've all been there. The same desk, the same coffee machine, and the same paycheque. But did you know that most people change their jobs approximately every three years? And it’s not for the love of new coffee machines; there's solid financial sense behind it.

According to the career site Zippa , employees, on average, see about a 14% pay bump when they switch. So, that range of 10-20% could be your next raise if you're contemplating a change.

But three years still feels a tad long, doesn’t it? A Forbes article suggests that while older workers stick around for about 4.1 years, those who are between 25-34 tend to hop jobs around the 2.8-year mark. Not surprisingly, those in government positions hold on to their roles almost twice as long.

’Loyalty tax’ at work

Sometimes, employers wouldn’t budge to your pay raise request because you’re already paying the ‘loyalty tax’. In this case, switching jobs indeed sounds like a wise career (and money) decision for many.

Ever shopped for insurance or utilities and noticed how newcomers get the discounts, while the loyal customers get zilch? This loyalty tax isn't confined to your shopping. It's silently operating in your job too. You stick around, and instead of getting a raise, you pay this unseen loyalty tax.

Think about it. You're loyal, so why would they hike up your pay when they can get away with your current rate? But for the fresh face, to match wage growth and cover hiring expenses, they might loosen their purse strings.

Ana shared her take, lamenting her decision to stay in a job for four years (twice!) in her twenties. The result? She felt it stunted her growth trajectory. Tash, on the other hand, was a frequent job hopper. She did it mainly for better conditions, although the pay was quite similar across roles.

The job-jumping checklist

Switching jobs isn't just about handing in your notice and waltzing out. Here's what you should keep in mind:

• Revamp your resume – Take a moment to revisit your cover letter and resume. If you're stumped on words, tools like ChatGPT can help you out.
• Echo the job posting – Let your resume mirror the terms in the job posting. This isn't just fancy footwork. It subtly shows you're the fit they've been searching for.
• Don’t undersell yourself – Think you’re not 100% fit for the job? Apply anyway. You might bring something unique to the table.
• Salary research – Knowledge is power. Knowing what the market offers for your role gives you negotiation power. Platforms like Seek, LinkedIn, and Glassdoor can tell you what others are earning in a similar role.
• Negotiate other benefits – Salary isn't the only negotiable item. Discuss leave days, stock options, and other benefits. Ana even managed to get long service leave on one of her contracts.

Levelling up in your career with education and new skills

Investing in education can be transformative for your career and your paycheque. Think of your career as a video game. The more skills and knowledge you acquire, the further you progress and the bigger the rewards.

True, it might set you back initially, but the ROI? Well, that can be exceptional, especially if you're shooting for a high-demand role.

Take Ana, for instance. She was not content with just sticking to tech-industry reads. She expanded her horizons with courses in design, marketing, copywriting, and even finance. These added layers of expertise made her more valuable in her field.

Or look at Tash. She started as an occupational therapist but didn’t stop there. From mortgage broking to money coaching in the US, her diverse skill set became a treasure trove of opportunities. Heck, she even took on roles as a swimming instructor and lifeguard during her uni days, which paid more than the usual student gigs.

Side hustles and businesses

Your primary job has given its best. You've maxed out its benefits and potential raises. Now, what else is out there?

Remember, the universe of income isn't restricted to what you're doing from 9-5. Side hustles have become all the rage, and for good reason. They’re not just about padding your bank account; they’re a reflection of passion, skill, and entrepreneurial spirit.

Freelance or consulting work

Think about that one thing you’re incredibly good at. For some, it’s providing sage business advice. For others, it’s crafting an article that readers can’t pull themselves away from. Your talent can be your ticket to added income. So, next time you find yourself pondering over your skillset, think on how you can monetise it.

Starting a business

Businesses don’t always need to be big and meticulously planned. Sometimes they sprout from the simplest ideas or even pure chance. Have you ever considered selling homemade crafts, or maybe offering gardening services to your community?

Tash’s story is what happens when passion collides with opportunity. One day, she spontaneously began sharing content on personal finance on Instagram, purely out of passion.

Without initially intending to monetise her posts, her page grew in popularity. Now she's doing it full-time. A genuine love for what you do can, surprisingly, be the best business model out there.

Small gigs, big potential

For those not ready to dive deep, there's always an ocean of small gigs waiting. You can participate in customer research, be an Uber Eats driver, or even look after pets for busy owners. The possibilities are only as limited as your imagination (or your Google search skills).

Exploring passive income sources

Passive income – the elusive unicorn of the financial independence world. Many chase it, few truly understand it. Is passive income truly as hands-off as it sounds?

It might seem like a dream to earn while you chill in your pyjamas, but remember, every rose has its thorns. Hold onto your calculators as we dive into the beauty and the real deal behind some passive income sources.

The investor's dream: living off dividends

You've probably heard it before in some of our episodes, but it's worth repeating. Investing could be your way to earning passive income through dividends . Think of dividends as a company's way of saying "thank you" to its shareholders. By holding onto certain shares or an exchange-traded fund (ETF) , you're entitled to a slice of any profit the company or fund generates.

Now, before you start counting all those dividends, remember: like all good things, they're taxed. That's why it’s crucial to understand Australia’s tax on dividends and how they nibble into your dividend earnings. And, as we've said before, no investment can guarantee returns, and all investments carry risk.

Renting out a property

If they're debt-free and tenanted, investment properties can add monthly rent to your nest egg. But as Ana points out, they aren't necessarily the "set it and forget it" type of investment. From tenant issues to unexpected repairs, properties demand attention. So, while it's not 100% hands-free, it's not a 9-to-5 grind either.

Other sources of passive income

Beyond dividends and rent, there are many more passive income options, especially in the digital economy. Ever thought about penning a book? Or maybe designing a cool app? How about affiliate marketing?

These ventures might demand some initial investment, either in cash or sweat equity. But once the ball's rolling, you could be taking longer leaves or enjoying a holiday while the cash keeps coming in. The magic is in creating something that sells itself over and over, with minimal intervention.

To give you a peek into our passive income sources:

• Ana has some royalties trickling in from her book (a must-read by the way!), enjoys her dividends, and does some affiliate marketing. She's also experienced the roller-coaster of owning an apartment.
• Tash, on the other hand, owns an apartment and receives dividends from her ETFs. Although she’s into affiliate ventures, she cheekily debates its 'passiveness'. It takes some courage and determination to advertise and keep the momentum going.

Take action this week

Ensuring you're earning what you deserve isn't just a passing thought. It's a pivotal step in your financial journey. Sure, you can limit the weeds (expenses), but a lush and bright garden only blossoms when you plant more seeds (earn more).

To set your compass right:

1. Research your role's market value using platforms like Glassdoor or LinkedIn. It's the modern way of ensuring you're not underselling your skills.
2. If you sense there's room to grow in your current role, don't wait for annual reviews. Initiate the conversation on career progression and raises.
3. For those with a little extra bandwidth, why not consider turning your passions or skills into a side hustle? It’s a nifty way to add a stream to your income river.

For richer understanding of how we did some of the above, hit play and listen to the full podcast episode. And if the spirit of sharing strikes you, connect with us on on our Instagram page and Facebook group . You can also chat with the Pearler Community over on the Pearler Exchange .

Happy investing!

Tash & Ana