If you’ve been feeling stuck with money—like no matter how hard you try, there’s never quite enough—you’re not alone. Many people are doing everything they can just to keep up, and still find themselves wondering how to actually move forward.
The truth is, making money isn’t just about working more hours or finding the “perfect” side hustle. It starts with understanding your mindset, getting clear on your habits, and learning how to make the most of what you already have. From there, it becomes possible to shift into something more stable—and eventually, something that gives you freedom.
This guide breaks down the first steps: how to think differently about money, where to look for opportunities, and how to start building income that supports your goals. Whether you’re starting from zero or just feeling overwhelmed, you’ll find strategies here to help you make real progress—one step at a time.
Step One: Shift Your Mindset
The first step is shifting your mindset. Experts note that your money mindset – the beliefs and attitudes you hold about money – shapes how you think and behave in financial situations. For example, a scarcity mindset (believing money is always scarce) can cause fear and hoarding, while an abundance mindset sees opportunities and is more optimistic about taking calculated risks. Research even shows that feeling “deprived” of resources (like money or time) can impair decision-making, making people focus on immediate needs over long-term goals. By consciously practicing financial mindfulness – staying aware of your real situation and accepting it – you can make clearer choices and break unhelpful patterns.
- Adopt an abundance-oriented mindset: Remind yourself that it’s possible to improve your situation. Believe you can find ways to earn more, even in small steps. As Fidelity Finance explains, your mindset “shapes how you think, feel, and behave,” including how you handle money. Shift from “I’ll never earn more” to “How can I improve my finances?”
- Practice financial mindfulness: Be honest about your current earnings and spending. One academic study defines financial mindfulness as being fully aware and accepting of your financial state, which is linked to better money behaviours (e.g. avoiding irrational spending). Regularly review your bank balances and debts without judgment – acceptance of reality gives you power to act.
- Set small, concrete goals: Break big targets into bite-sized tasks. This avoids feeling overwhelmed and keeps motivation up.. For instance, aim to save or earn an extra $20 each week, rather than an abstract “get rich” goal. Achieving small wins builds confidence to tackle bigger steps later.
If you’ve never really thought about your relationship with money before, now’s the time. The way you think about earning, spending, and saving affects every financial decision you make. This article on how to shift your money mindset takes a closer look at the beliefs that might be holding you back—and how to start building a healthier relationship with money that actually supports your goals.
Step Two: Create a Budget and Control Expenses
Many people struggling financially can start by taking control of their finances with a budget. List every source of income and all expenses, distinguishing essential costs (rent, utilities, groceries) from non-essential spending. Seeing where each dollar goes makes it clear where to cut back – for example, cancel unused subscriptions or dine out less. It is recommended to allocate portions of your income for priorities: necessities, debt repayment, and savings (including an emergency fund). With this clarity, you’ll find extra cash to direct toward making more money down the road.
- Track and budget: Write down every income and expense category. Bankrate suggests this broad view helps you identify waste and hidden opportunities to save. (Apps or spreadsheets can help you stay organized.)
- Trim unnecessary spending: Audit your bills – cancel things you don’t use, switch to cheaper plans, cook more at home, buy only what you need. Every dollar you save is one more to invest in yourself.
- Build an emergency fund: Aim to save 3–6 months of basic living costs. Allocate a fixed portion of each pay-check to a separate savings account. Even small deposits add up; having a buffer protects you from financial shocks and keeps long-term plans on track.
If overspending has been a challenge (you’re not alone), it might help to dive deeper into the habits behind it. This guide on how to stop spending and finally stick to a budget breaks it down step-by-step, especially if budgeting has never quite “clicked” for you.
Step Three: Diversify Your Income Streams
Relying on a single job is risky. In today’s economy, having multiple streams of income adds financial security and flexibility. Even simple side gigs can make a big difference – for example, Bankrate found about 33% of Americans with side hustles rely on that extra money to just cover living expenses. Lafayette Federal Credit Union emphasizes that if one income falls (job loss, cut hours, etc.), other streams can sustain your lifestyle. Diversifying also pushes you to learn new skills: pursuing part-time projects or freelance work expands your abilities and network, which may open more opportunities.
- Tap into your skills: Can you freelance or consult? Offer services (writing, graphic design, coding, tutoring, dog walking, etc.) through online platforms or local networks. Even a few extra hours per week on the side can meaningfully boost your income.
- Start a side business: Turn a hobby or skill into cash. This could be selling handmade crafts online, driving for a rideshare service, renting out a spare room, or offering part-time professional work. Start small to test the market.
- Investing side income: Use any extra cash to generate returns. For instance, you might invest in low-cost index funds or dividend-paying stocks. Over time, these can create their own income stream.
As LFCU notes, more income streams can mean faster wealth-building – you reach savings goals or debt repayment quicker. In practice, every extra dollar you earn (and wisely use) compounds your progress.
Many people assume you need a lot of money or special equipment to start earning extra income, but that’s not true. If you’ve got internet and a laptop, you’re already halfway there. This article on how to make money with just a laptop shares practical ideas you can try from literally anywhere.
Step Four: Explore Passive Income Opportunities
Passive income isn’t magic free money, but it amplifies your earnings over time. Passive income is money earned with minimal daily effort after initial work is done. In other words, you often work hard upfront (creating a product, investing, etc.), but then it brings in cash flow while you sleep. The advantage is that one passive source can become a reliable second pay-check. Here are some common passive income paths to consider:
- Rental Income: Owning property (or investing in Real Estate Investment Trusts) can provide regular rent checks. If you’re not up for hands-on landlord duties, hiring a property manager can make this nearly passive. (using REITs lets you invest in real estate with far less work or capital.)
- Investments: Dividend-paying stocks, index funds, bonds or peer-to-peer loans can yield returns without daily management. Once you buy these assets, they generate income (dividends or interest). Using automated investing apps can make this accessible even for beginners.
- Digital Products & Royalties: Create something sellable – an e-book, an online course, stock photos, music, or software. Once it’s out there (on Amazon, Udemy, etc.), it can earn money repeatedly with little extra effort. For example, writing a how-to book or building a small app can continue to generate sales over months or years.
Step Five: Learn Leverage Psychology & Good Habits
Your habits and attitude can make or break your progress. Use psychology to your advantage:
- Set small goals: Huge goals can paralyze you, so break them into micro-tasks. Instead of “start a business,” think “today I research one idea” or “this week I save $50.” Tangible mini-wins motivate you to keep going. Research suggests that tackling small, achievable steps keeps people moving toward financial goals without feeling overwhelmed.
- Stay aware (financial mindfulness): Regularly check on your progress. Being honest about your balance, bills, and budget (awareness) and accepting your current state without guilt leads to better decisions. In other words, facing the truth (even hard truths) lets you plan effectively. Writing down where each dollar goes and reviewing it weekly is a practical form of mindfulness.
- Educate yourself: Read books, follow finance blogs or podcasts, take free online courses. The more you learn about personal finance, the more ideas you’ll have for making and saving money. Knowledge builds confidence and often reveals side income ideas you hadn’t considered.
Consistency matters: a tiny step every day adds up. Be patient and persistent.
Real-World Examples
Many people in tough spots have turned things around by combining smart choices with hard work. For example, one Tennessee couple started their journey deep in debt (over $170,000 total). They sold homemade cookies on the side after hours; five years later, they’d paid off all their debt and even opened a retail shop with the business. Their story isn’t unique – Bankrate’s survey found that 36% of Americans now have a side hustle, and 20% of those use that extra income to pay down debt. In short, ordinary people are freeing themselves from money struggles by taking small, consistent actions: cutting costs, picking up odd jobs, and slowly building new income streams.
Everyone’s path will differ, but the essentials are the same: think long-term, diversify your efforts, and keep a proactive mindset. Even if you’re starting with just a little, use these strategies and stay focused. Over time, the compounding effect of multiple incomes and good habits can finally shift your financial situation for the better.
Starting to make money—especially when you’re already stretched thin—doesn’t happen overnight. But it does start with awareness, intention, and small, consistent actions. Shifting your mindset, building good habits, and slowly exploring new income streams can create meaningful change over time.
No matter where you’re starting from, progress is possible. Focus on what you can control today: your spending, your learning, and how you show up for your future. With the right mindset and a willingness to try, making money becomes less about luck—and more about strategy, growth, and resilience.
Sources: This advice is based on finance and psychology experts. For instance, Bankrate and Lafayette Federal Credit Union emphasize budgeting and income diversification. Tony Robbins discusses passive income and mindset. Behavioural studies highlight scarcity vs. abundance mindsets and financial mindfulness. Real-life stories (e.g. Bankrate’s profiles of side hustlers) show how these steps play out in practice
