How do people earn money

I'm going to break this question down into a number of component parts:

Begin

The place to begin is by defining what "rich" means to you; £100 extra a month or more like £1k, £10k or £100k extra per month. Also define what timescale works; what does "faster" mean? 1, 6, 12 months? Finally, decide why you need to get rich faster; do you have one off bills to pay, or are birthday's and Christmas's round the corner that require additional cash. Alternatively, do you want a sustained additional income. This helps shape the actions you take.

To get rich faster, and have a higher net worth, you need to increase your income, cut your spending and be psychologically aware of your financial and money habits.

Increase your income

Income comes in the form of passive and active income. Ways to increase your active income involves:

• getting a job, and if you have one, asking for a pay rise

• freelancing

• completing surveys for short term income boosts, or
  starting a blog where you can earn money from affiliate marketing, selling goods or services, writing ebooks etc.

• house sitting, plant sitting, pet sitting, child sitting etc

Passive income is income derived from owning an asset where the money accretes over time without you having to do any actions to obtain it.

• Savings accounts with interest,

• Renting out a room in a house

• Dividends from stocks and shares

• Cut Costs

On the flip side, and my preferred method of choice, is to cut my costs back. If I want higher net worth, and generally more happiness, I stop spending on clothes, shoes, soft furnishings, gym memberships. Items tend to depreciate quickly over time (i.e a car you purchase now, will be worth half it's value in two years, unless it's vintage). This is compared with investments that tend to trend up in value over time (caveat: markets usually work in cycles so the price can go down as well as up).

Try to cut costs that come from interest on credit cards as that is completely dead money.

Be Psychologically Wise

The third part to all this is be psychologically wise. We overspend when we're hungry, we see relative pricing as more attractive than absolute pricing, we have unconscious bias due to advertising. I recently finished reading Dan Ariely's book "Small Change: Money Mishaps and How to Avoid Them". He provides the motivations behind our decisions around money. This has helped me be more wise to my spending and saving habits, and thus my overall net worth.

Summary

Upskill yourself on increasing your income, reducing you costs, and me more savvy and wise to your money habits and behaviours and you can "get rich faster".