Supplement your savings by boosting your income

It’s challenging to get a foot on the property ladder and coming up with a large enough deposit can seem like an impossible task at times. One way of increasing your savings is to boost the amount of money you have coming in.

When it comes to boosting your income, every little bit helps, so let’s look at some of the ways you can top up your savings.

Increase your earning power

The first step is to look at what you are currently earning and see if there is the potential to earn more by working overtime or by increasing your contribution or responsibilities.

Is it time to ask for a raise? With wage growth stagnating, it’s important to present a compelling argument for a salary increase. It’s not just about summoning the courage to have ‘the talk’ with your boss – you need to maximise your chances of receiving that increase. Think about how you can demonstrate where you have added value, taken on more in your role, or achieved cost or efficiency savings for the company. It might even be an idea to consider doing further study and developing additional skills that could see you increase your earning capacity.

Change jobs

The employment market has swung in favour of job seekers of late so it can be a good time to see what else is on offer as a way of increasing your income. In fact, data shows workers who move jobs received pay rises of between 8 per cent and 10 per cent, while research out of the Reserve Bank of Australia suggests a more modest 5 per cent pay rise for switching jobs is in the normal range.i

On a cautionary note – consider your overall career objectives and don’t just jump ship for more money. You don’t want to move to a higher paying job to find that it makes you miserable.

Sell or rent things you don’t need

We all have stuff lying around that we don’t need that can generate extra income and ‘one man’s trash is another man’s treasure’. Sites that are good for selling items online include Facebook marketplace, Gumtree and Ebay and you may also want to consider second hand markets in your local area or having a garage sale. Make sure you do your research and know what things are worth as you don’t want to give away a sought-after collectable for a song when it’s worth a bomb!

It’s also possible to get income from renting out your stuff you are not using. Do you have tools in the garage that someone would pay to access? Or camping equipment that others would want to use for their get-away? Australian company Releaseit provides a renting platform where you can list your items and accept booking requests from members of the public.

Take on a side hustle

A side hustle does not have to be a second job. Think about what skills you have that may be marketable. For example, are you a whizz with words? If so, you could earn some money writing cover letters and CV’s for job applicants. If you are a gardening green thumb you might be able to help others with their garden design and plant selection. Or if you are creative, selling your work on a platform like Etsy can be financially worthwhile. Even just sharing your opinion can earn you money as participating in paid market research can earn up to $100-$150 per session.ii

Boosting your income is a great way to reach your property goals faster than focusing solely on saving but saving is still an important part of getting your deposit together. Paying any extra income into a dedicated account can make sure you don’t touch it.

It’s also helpful to have a firm figure in mind to be aiming for to ensure you stay on track.

i https://www.afr.com/policy/economy/want-a-pay-rise-then-you-should-switch-jobs-20220330-p5a9ds

ii https://researchconnections.com.au/

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