Forget Passive Income: Here Are 4 Better Ways to Make More Money

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Passive income sounds like an amazing idea when you first hear about it. Instead of working for every penny, build passive income streams so you can make money while you sleep.

Unfortunately, that's much easier said than done. There are reliable ways to earn passive income -- for example, putting money in high-yield savings accounts. You earn a competitive return, but it will be a small percentage of your total balance. Other passive income methods require a lot of work and don't have any guarantee of success.

Most people are better off looking for active ways to increase income, because you can make much more. Here are four of the best options.

1. Turn your skills into a freelance business

Launching your own business is an excellent way to make more money, and a good place to start is with what you already know. Consider how you can leverage your profitable skills in a freelance business.

Here are a few examples of how you could do this:

• Are you an expert at Wordpress? Offer your services as a web developer.

• Know a second language? Offer classes online -- iTalki and Verbling are two platforms that connect language learners with tutors.

• Do you love photography or videography? You could set up a portfolio on your own website or use a platform like Behance, and then seek out potential clients.

Remember that you don't need to be the best in the world at something to make money from it. Having above-average skills in a field people will pay for is all you need.

2. Find a higher-paying job

Job hopping used to get a bad rap. Nowadays, it's often the most effective way to maximize your earning potential. A 2023 report by Resume Builder looked at the impact of job hopping for younger workers aged 21 to 40. It found that 80% of those who had job hopped in the last five years increased their salaries. And 20% increased their salaries by $50,000 or more!

It never hurts to see what's available. Keep your resume up to date, browse job sites, and network when you can so you don't miss out on any high-paying job opportunities.

3. Apply for a promotion or negotiate a raise

Instead of looking elsewhere, you could also look for ways to increase your salary with your current employer. One option is to get a promotion. See if your employer has an internal job board. This is a great way to keep track of job opportunities at your place of work and apply for any that match your skill set. Since these job listings aren't public, there's often far less competition.

Another option is talking to your boss about a raise. If you go this route, make sure to bring any data you have to show you're a top performer and deserving of a higher salary. For example, you could show your boss positive performance reviews or strong sales numbers.

4. Start a side gig

Thanks to the gig economy, there are more side hustle options than ever before. Although the pay isn't outstanding, many side hustles at least pay reasonably well. These can be a good way to make some extra cash if you're not getting full-time hours at your job, or even if you are, but you don't mind working more.

Here are some of the most popular side gigs and apps where you can do them:

• Driving for ride-hailing services: Uber and Lyft

• Delivering food: DoorDash, Instacart, and Uber Eats

• Pet sitting and dog walking: Rover

The most effective ways to grow your income

There's nothing wrong with looking for ways to earn passive income. It's good to make your money work for you by investing in stocks and putting savings in high-yield accounts. And if you have a business idea with passive income potential, such as real estate investing or creating your own online course, it could be worth pursuing.

Just keep in mind that building passive income is hard work, and it doesn't make sense to put all your eggs in that basket. The four options listed above may not be passive, but they are tried-and-true ways to raise your income.

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