There are different views and perspectives on what income means. whether to an economist, a salary earner, a businessman, or a laborer, to mention but a few. The Term income is a unit of value that is used to measure the production of goods and services in an economy. It can be created as a result of work, trade, or natural resources. Most salaries and wages are usually referred to as income but in a wide range, it is just more than that. Income exists in different forms which could be earned, or unearned.
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Importance of an Income
Money, as we all know, provides security and control. Its importance cannot be overemphasized. An individual’s daily hustles are geared towards meeting basic needs such as better food, housing, education, water, health care, and sanitation, to mention but a few. Therefore, income is one of the basic needs that ensures all other needs are met. The amount and source of income can also influence the importance placed on money. Larger amounts of money received for labor are associated with individuals placing greater importance on money.
Additionally, income can affect the importance people place on money, depending on its source. Also, income is a strong predictor of psychological distress, particularly for bereaved parents living in poverty. Similarly, family income also has an impact on the formation and evolution of children’s non-cognitive skills, with a divergence observed based on income levels. Furthermore, income levels can influence the relative importance of saving time and money for online shoppers, with higher-income consumers showing a greater tendency toward saving time.
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Statistics have shown that in 2023, there were estimated to be approximately 3.4 billion people employed worldwide, compared with 2.28 billion people in 1991—an increase of around 1.1 billion people. There was a noticeable fall in global employment between 2019 and 2020, when the number of employed people fell from 3.3 billion to 3.19 billion, likely due to the sudden economic shock caused by the coronavirus pandemic. Everyone strives hard to make an income to meet their daily needs. The truth about this is that how does your income meet all your expectations, basic daily expenses, and expenditures as a salary earner?
In Nigeria, for instance, the average salary of a teacher is between forty-nine and sixty-thousand naira in monthly remuneration. Then, when divided by 30 you have approximately 1,600-2000 as your daily income whereas a sachet water seller who owns a shop by the roadside supplies pure water to parks restaurant. Similarly, for a graduate student working in a bank earning up to two hundred thousand (200,000) as his monthly income compared to an irrigation farmer who supplies vegetables to the local markets, stalls, and restaurants, one can attest to the fact that their daily income surpasses that of a banker. Furthermore, with the current situation of fuel prices, one can conclude that what an individual earns can no longer sustain or meet his daily needs.
Ways of Growing your Income
There are many ways and opportunities out there for individuals to help grow their income,, especially for those who depend solely on salaries as earned income.
Form partnerships.
A partnership is a form of business that enables two or more people to co-own an organization, and they agree to share the profits and losses of the company. Forming a partnership with an organization can help boost your daily or monthly income. This, however, could depend on the goals and achievements the organization aims at.
Investment.
An investment is seen as any asset acquired or money committed to earn an income in the future. This could be in the short or long term, where one’s goal is to obtain additional gain or profit from the investment over a specific period. Your total earned income determines how and what you should invest in. However, most people invest in something they know nothing about and are always eager to make money fast. With regards to this an individual can expand his or her network, look for a mentorship and decide what or you are investing on paving the way to generate income whether in long or short term
Use online Strategy.
The advancement of technology has indeed taken over human jobs in the global world. Most individuals these days make a lot of money using online strategy. These include; the developing a website, creating a blog where most of them sell their business and ideas, work as a freelancer. Freelancer (work-from-home) is the most common online job people engaged on and earn their income in the comfort of their homes. Another online strategy for generating income include; selling of products, online tutoring, virtual assistance, writing of e-books, and writing blog articles among others.
Pay your self
This simply means no matter how small your income is always pay yourself. Try as much as possible to save some percentage of what you earn as your income. Devise means or plan on your spending, do not live a lavish life or living above your expectations avoid liabilities such as loans, mortgages, or debts, or renting an apartment above your salary scale as a worker.
Start a side business
There are different business ideas one can choose from. One can engage in fish culture, snail farming, poultry, vegetable farms, irrigation farming etc. or an individual can own a retail stall.
Acquire Assets
An asset is a resource with economic value that an individual, corporation, or country owns or controls with the expectation that it will provide a future benefit. An individual can purchase land, jewelries as assets. These generate income over some time and adding his or her financial value. The build up of assets is generally considered to be pursuit of monetary wealth.
Conclusion
Income is a measure of the goods and/or services that a person or company produces in a period. Individuals can improve their financial status by looking at other different angles of income generation.
