Ways to grow your income

James

I cut back on everything I could think of. It helped, but there’s only so much you can cut. That’s when I realised there were two sides to the equation.

Remember: income − expenses = what’s left. You can make “what’s left” bigger by spending less, or by earning more. Cutting costs has a limit, because you still need to live. Growing your income doesn’t have the same limit.

The three types of income

Active income is money you earn by working: a salary, wages, freelance jobs. If you stop working, it stops.

Side income is money you earn outside your main job: selling things, freelancing at weekends, tutoring, content creation. It’s still active income, but it adds a second stream.

Passive income is money that keeps coming with little ongoing work: interest on savings, dividends from investments, rent from a property. It isn’t free, though. It usually takes money, or a lot of work up front, before it pays you anything.

James

Everyone online sells “passive income”. Most of it is either a lot of work in disguise, or a scam.

Growing your main income

For most people, the biggest income jump comes from their main job, not a side hustle:

Build skills people pay more for. Learn something that makes you more useful at work or in your field.
Ask for a raise. Bring evidence: what you’ve delivered, and what similar roles pay.
Look around. Changing jobs is often the fastest way to a bigger salary.

Starting a side hustle

A side hustle works best when it uses a skill you already have. Before you start, check three things:

Your real profit. Take away the costs: materials, transport, data, platform fees. What’s left is what you actually earned.
Your hourly rate. Divide your profit by the hours you spent. Remember lesson 1: money is stored time.
The tax. Side income is usually taxable. It’s much easier to set some aside as you go than to find it later.

An extra $300£250€250₦100,000$300 a month adds up to $3,600£3,000€3,000₦1,200,000$3,600 a year.

Side income and tax

In the UK

The trading allowance lets you earn up to £1,000 a year from side income, such as selling services or making things to sell, before you pay tax on it. Above that, you need to tell HMRC and register for Self Assessment. Selling your own unwanted things is usually treated differently.

In the US

Side income is taxable, whether or not you receive a 1099 form. If your net earnings from self-employment are $400 or more in a year, you’ll generally owe self-employment tax and need to report it on your tax return.

In Europe

Rules depend on your country, but side income is usually taxable, and some countries require you to register as self-employed. Check your national tax authority’s website before you start.

In Nigeria

Under the new tax law that started in 2026, the first ₦800,000 of your income in a year is tax-free. Income above that, including side income, is taxable, and you may need to file an annual return with your state’s Internal Revenue Service.

Change country

Red flags

Be careful with anything that promises fast, easy or guaranteed money:

“Guaranteed” returns, especially high ones
Paying a fee to “unlock” a job or an opportunity
Being paid mainly for recruiting other people
Pressure to decide right now

Real ways to earn more take time and effort. If it sounds too good to be true, it almost always is.

Quick check

James's weekend side hustle earns 60,000 in a month. Materials and transport cost 25,000. How much did he actually earn?