Very often, readers request advice on how to conquer their financial challenges. Most times their major issue is that they are not earning enough to pay their basic bills. As the cost of living increases, this problem only gets worse.

The reality is that it’s almost impossible in these times to expect that one job will be able to cover all our spending requirements. Many people try to borrow to make ends meet; but the only sustainable solution is to look around for other ways to earn more income.

Earning more is absolutely vital for financial success. Apart from the fact that many people do not earn enough to cover their basic expenses, they need to generate more money in order to achieve their financial goals. It’s also true that most persons don’t make full use of their abilities and time to make money.

The challenge with trying to earn more money is that we have only 24 hours in one day.

When I encourage people to increase their income, I usually get a lot of excuses why this is difficult to do. Most people say that they are already strapped for time – job, school, and family requirements don’t leave much space for more work to be done.

It’s not as hard as you may think to increase your earning power. Here is a four-step method to help you make more money:

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Find Out How Much Money You Need

To determine your extra income needs, you first need to prepare a comprehensive budget. This will help you to identify all the things you have to spend money on throughout the year; and if your income will be enough to satisfy your requirements.

First, download a budget planner at www.financiallysmartonline.com. Write down all your monthly expenses, including your desired savings, on the worksheet; then record all your sources of income. Subtract your total expenses from your total income. If you have a shortfall of income over expenses, then this figure is your target to increase your income each month.

Make Your Money Shortfall Easier To Manage

If you’re feeling hopeless after calculating your budget shortfall, don’t despair. The problem is that your brain will initially not be very helpful in coming up with ways to earn that large sum of money. You have to trick your mind into thinking that your money needs are not as bad as the figures indicate.

Next, break down your monthly shortfall into a weekly or daily amount. For example, if you need an extra $15,000 to balance your budget, then divide this number by four to get a weekly shortfall of $3,750; or divide by 30 to get a daily figure of $500. You must now work with the smaller quantity as your targeted income amount.

Break Your Shortfall Into Units

You earn when you have convinced others to part with the money they have in exchange for something you have to offer. If you can increase the number of people that you supply, or provide more goods and services to the market, then you can boost your income.

Take the smaller budget shortfall figure and work out how many people would need to pay you to achieve your desired total. For example, if you require an extra $500 per day, this could mean that 10 persons would need to give you a profit of $50 daily. You could further break down that amount into earning $25 from 20 people, or $20 from 25 people every day.

Look For Products Or Services To Sell

Many people complain that they don’t like sales, because they feel uncomfortable selling things to people. That probably explains why so many people are broke! When you sell, you are simply exchanging products or services that people need, for their money. Your nine-to-five job is a sale; the problem is that you have only one customer.

To create extra income when your time and people’s money are in short supply, you have to get creative. Look around your workplace, school, community or church for opportunities. Are people having problems that you could solve? Can you introduce a product or service that would make their lives more comfortable or convenient? Do you have any natural talents that can be used to generate income?

Here Are A Few Examples Of Simple Ways To Earn:

. People love to talk on their mobile phones. Provide a convenient service by selling phone cards at work or at home. If you make a profit of $17 on a $100 phone card, you will need to sell about 29 cards every day to earn $15,000 per month.

. People are often too busy to make breakfast. Make muffins or porridge and supply your co-workers. Work out your input costs to determine your profit, and then figure out how many customers you will need to make up your shortfall.

There are many other income-generating ideas out there, so start looking around for ways to earn more!

Copyright © 2009 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, September 17, 2009

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl