When your expenses exceed or are uncomfortably close to the income you’re bringing home, you can of course work on budgeting and cutting expenses. But another avenue to solve this problem is by supplementing your income. There are 5 common ways this is done in Israel:
- Open a side business – Whether you are already an entrepreneur or an employee, a side business can bring in that extra income you’re looking for. Do you have a talent or a hobby you can turn into a business? Are your friends always asking for your help with something? That might be a service that is needed in your community. Don’t forget to consult an accountant before starting a business, to ensure you are legally compliant and set up for success.
- Take a second job – Working more than one job is common in Israel, especially if neither job is full-time. Many people work one job in the mornings and another in the afternoons. If your main job takes up a full day, maybe you have time in the evenings for a few hours of remote work or babysitting. If you’re in a profession with time off on school vacations, consider working on those days for businesses that have extra traffic when school is out. Make sure you let the tax authorities know that you have two jobs and fill out a Teum Mas so you pay the right amount of taxes on each income.
- Raise your rates – If you work for yourself, raising your prices is an effective way to increase your income. Don’t be afraid that the market in Israel can’t bear higher prices. When you charge more, you let customers know that your product or service is higher quality and worth the investment. As you gain experience and perfect your offerings, you should raise your rates accordingly.
- Ask for a raise – As an employee, you have less control over the salary you receive, but Israeli employers aren’t necessarily going to promote you or give you a raise if you don’t ask. At your annual review or another opportune time, present your accomplishments in the job and ask for that raise. If you get an emphatic no, it may be time to start looking around for other opportunities in your field which offer room for advancement.
- Invest – If you’ve got some money saved up, investing it can generate passive income for you. Many investment opportunities require a sizable sum, but there are some that will allow you to invest smaller sums. Investing is best done with professional advice, especially if you’re an American citizen and have to avoid certain types of investments for tax purposes.