Why do most Americans spend the majority of their day at work? What’s the best way to make that time more financially rewarding?
In Set for Life, Scott Trench explores strategies to maximize your earning potential during your work hours instead of trying to build wealth in your spare time. His insights offer practical approaches to boost your income through performance-based jobs, skill development, and strategic career moves.
Keep reading to discover how to increase your earnings while making the most of the hours you already spend at work.
Increase Your Earnings
Beyond house hacking to eliminate housing expenses, Trench recommends pursuing new opportunities to boost your earnings. He points out that the average American spends the majority of their day working or commuting. He shares advice on how to increase your earnings significantly, recommending that you focus on making more money during your workday instead of trying to build wealth in your free time.
(Shortform note: We didn’t always spend most of our days at work or commuting. In Your Money or Your Life, Vicki Robin and Joe Dominguez explain that for most of human history, we were hunter-gatherers, and modern-day hunter-gatherers (like the Ju/’hoansi in southern Africa) only work about 15 hours per week to meet basic survival needs. It was the Industrial Revolution that sped up the pace of work and reduced leisure time, with factory workers putting in 60-hour weeks. Although the workweek dropped to 35 hours at one point, the Great Depression made work more valuable, so we now view the 40-hour workweek as standard.)
Find a Performance-Based Job
To significantly increase your income, Trench suggests you find a job that rewards performance rather than pays a fixed salary. He argues that traditional salaried jobs often limit your earning potential with small pay raises and predetermined career paths. On the other hand, performance-based jobs offer limitless earning opportunities that directly correlate with your hard work and results. These jobs include sales representatives, freelance consultants, and commission-based financial advisers—to name a few.
(Shortform note: How do performance-based compensation structures work in practice? In sales roles, companies offer different commission structures: The most basic is straight commission, where you only earn based on sales. Base-plus-commission provides a steady salary with additional performance rewards. Tiered systems increase your commission percentage as you hit higher sales targets. Lastly, draw against commission models provide advance payments that get deducted when you get your commission.)
To get a performance-based job, you may need to make significant changes. You might switch to a different department within your current company, such as moving into sales, or transition to a new industry. Trench notes that these opportunities often have some initial trade-offs, like a lower base salary or reduced benefits. However, he argues that the potential for higher earnings outweighs these initial sacrifices.
(Shortform note: While performance-based jobs can lead to higher earnings, research shows this pay volatility may come at the cost of your health. In one study, workers who relied on fluctuating income like tips, commissions, or bonuses reported more physical health problems like poor sleep, headaches, stomach issues, and back pain. This was true across a wide range of jobs and income levels, from gig workers to higher-paid professionals in finance and sales.)
Whether you decide to stick with a traditional salaried job or pursue a performance-based role, Trench offers some advice for landing a higher-earning job.
1. Learn in-demand skills. Pick up a skill that commands a high salary in the marketplace, like coding or a skilled trade like an electrician or plumber. These skills can often be acquired through short-term training programs rather than expensive four-year degrees. Apart from formal training, build your expertise through self-directed learning to stay relevant—Trench advises reading a book on business or self-improvement every week. Podcasts, online courses, and insightful blogs are also good learning aids.
(Shortform note: Reports suggest that nearly half of all work tasks will be automated by 2027, but this change brings opportunities if you’re willing to adapt. By learning in-demand skills that robots can’t easily replace, you can stay valuable in the job market. Major companies and governments are investing heavily in worker training programs, which could add $6.5 trillion to the global economy by 2030. This economic growth can mean more high-paying jobs and career opportunities for workers who develop in-demand skills. The growing support for reskilling programs shows that focusing on technical skills is a smart way to future-proof your career.)
2. Surround yourself with high achievers. Put yourself in environments with people and resources that can help you reach your goals. Being around ambitious, successful people will push you to perform at a higher level and expose you to more opportunities.
(Shortform note: In The Success Principles, Jack Canfield suggests you form three types of high-achieving groups or partnerships: 1) A mastermind group of five or six people you meet with regularly to tackle challenges and achieve goals, 2) an accountability partner who works with you one-on-one to stay on track with deadlines and share motivation and resources, and 3) a support team of specialized professionals like coaches or mentors who provide guidance in specific areas of your life.)
Start a Business or Side Hustle
Trench writes that starting a business or a side hustle is another way to increase your income. If you’re interested in starting a business but have minimal funds, consider starting a service-based business, as these often require little upfront investment.
Trench suggests you focus on side projects and pursuits that build on your main job skills and experience, as you can grow them more easily into larger, more profitable ventures without needing to put in a lot more time or resources. For example, if you’re an accountant, setting up a freelance bookkeeping service using your existing knowledge would be simpler and potentially more profitable than starting an unrelated business.
(Shortform note: While Trench recommends service-based businesses for their low startup costs, it’s important to understand the tradeoffs. Service businesses, where you trade your skills or time for money, are typically faster and cheaper to launch since you only need your expertise. However, your income is limited by the hours you can work. This means that service businesses may not have the same growth potential as product businesses that can sell the same item thousands of times.)
