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Here's a juicy morsel: TikToker and steakhouse server Anela Marquez recently broke down how she ended up taking home $2,517 over just five short shifts - despite it being her Beverly Hills restaurant's "slow time" and "in the middle of a recession."
The video has now been watched nearly 600,000 times.
While Marquez is apparently earning an impressive amount, her situation is fairly rare. First off, to work in Beverly Hills you'd need to make enough to live at least nearby. The average rent in Los Angeles currently sits at $2,400, according to Zumper. That's almost all of the server's earnings for one week, gone straight to rent. And that's just for a one-bedroom apartment, without factoring in any other essentials.
Secondly, don't forget that the bulk of her earnings came from tips, on average about $400 a shift. But counting primarily on tips for a consistent cash flow can be a risky proposition.
Instead, there are perhaps simpler ways to boost your income; ways that don't involve changing careers or even asking for a pay rise. Here are a few to consider.
The key with passive income is it's passive. That means you do the bare minimum, which is what many Americans likely need after a hard day at work. This usually means one of two things: investing or renting.
Investing would be identifying strong stocks that provide dividends, those can be used to reinvest back into your shares, creating more and more savings.
As for the renting option, you don't have to have an extra home or even an extra room to become some type of landlord. Think creatively - you could rent out parking spaces, your garage, even tools.
And if you want to combine both options, you might consider investing real estate, either through a real estate investment trust (REIT) or a platform that makes investing in real estate possible for regular retail investors.
Read more: This janitor in Vermont built an $8M fortune without anyone around him knowing. Here are the 2 simple techniques that made Ronald Read rich - and can do the same for you
One of the best ways to boost your income is to work more. If you have a passion or skill that others find valuable, you might consider turning it into a profitable side hustle.
Of course, if you're working a day job, you might not have much left over at the end of the day to devote to starting another part-time project.
If that's the case, why not start small? Through sites like Upwork or Taskrabbit you can sign up for small gigs or tasks like data entry, transcribing or assembling Ikea furniture (one of the hardest jobs out there). Depending on your experience, and as you take on more tasks and build a niche for yourself.
Now, we're not encouraging you to stop paying your taxes - that would be illegal. But that fat tax refund you receive each year? That's your money you overpaid the government over the year that's just making its way back to you.
Wouldn't it be better to have that money to spend, invest or prevent you from going into debt before April the next year?
The way you can do that is by adjusting your tax withholdings with a new W-4 form. It might take some math to figure out the exact amount your employer should be withholding from each pay, but it also means you'll stop giving the government what are essentially mini-loans.
Personal finance expert Dave Ramsey's blog actually ran the numbers: assuming you were working with 2022's average tax refund of $3,039 (according to IRS data) and a bimonthly pay period, you could've brought home an extra $127 per paycheck over the year.
While you're digging into your paperwork, you might also look into some ways to lower your tax bill over the year.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.