Sep 11, 2023
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TikToker and steakhouse server Anela Marquez recently broke down how she took home $2,517 over just five short shifts — despite it being her Beverly Hills restaurant’s “slow time.”
While Marquez apparently earns an impressive amount, her situation is rare. First off, to work in Beverly Hills you’d need to make enough to live at least nearby. And the average rent for a one-bedroom apartment in Los Angeles currently sits at $2,402, according to Zumper.
Secondly, don’t forget that the bulk of her earnings came from tips, averaging 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.
Create actual passive income
This usually means one of two things: investing or renting.
Investing would involve identifying strong stocks that provide dividends, which can be used to reinvest back into your shares, creating more savings.
Acorns — an automated saving and investing app— makes getting started easy. When you spend money, Acorns automatically rounds up the cost of your purchase to the nearest dollar and invests the change in a smart portfolio. Outside of the cash you save by passively rounding up your purchases, your diligent contributions can help you generate significant passive income from a diversified portfolio.
As for the renting option, you don’t have to have an extra home or room to become a landlord.
With Arrived — an online platform where you can invest in shares of rental homes and vacation rentals — you can get into real estate without taking on the onerous responsibilities of property management.
Start by browsing a curated selection of homes, vetted for their appreciation and income potential. Once you find a property you like, you can choose the number of shares you want to buy and start investing in real estate with just $100.
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Diversify your investments
If you’re already investing your cash, consider alternative assets.
Alternative assets – those that don’t belong to traditional investment categories like stocks and bonds – can reduce risk and deliver higher returns, especially during times of market volatility and high inflation.
If you’re looking to diversify your portfolio but aren’t sure where to begin, start by browsing some of the top alternative investments this year. The best part is you don’t need to be an investing pro to get in on alternative assets like fine art and commercial real estate because there are online platforms that guide you through the process and take on the legwork.
Take advantage of high interest rates
Your savings account’s interest rate is influenced by the Federal Reserve. When the federal funds rate goes up to counteract inflation, it affects the interest rate of banking products like savings accounts. Over time, earning high interest on your cash can boost your overall savings rate significantly.
A high-yield savings account could deliver returns of over 4%, while the U.S. Bank's standard savings APY is 0.01%.
For a streamlined look at what high-yield savings account is best for you, you can check out our guide to the Best High-Yield Savings Accounts of 2023 to see which is the right soil for your savings to grow in.
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