Making Extra Money
matter how much money we have it would seem that everyone would like to have at least a little more money to spend. This because the ancient systems of barter and exchange have long been replaced by a monetary system – and money is the primary means by which goods and services are exchanged. From this it follows that if you want to have more money – otherwise than by gift or begging, you will need to create a market for goods or services that you can provide to others – so that in exchange they will pay you money.Some talented people such as Google and Body Shop started from humble backyard conditions to create multinational businesses but for those of us who have a job, or investment income to live on – we are not really looking to become billionaires overnight (although that would be nice!) – Just looking for something that we can do to create some extra money. Once you see that it is by marketing goods, or by selling a personal service, that money can be made – all you need do is to find your niche and create your market – and more money will come to you – as people stampede to your door, to be one of the lucky few able to obtain, for a mere payment of dollars – goods or services from you.
In the area of selling your personal services and skills there is work in the sales field – helping others to market their products, you can sell your particular skills in the workplace – for wages or contract rates, and if you are artistically inclined – you can make unique crafts or designer products that people will pay good money for. Even if a review of your personal skills doesn’t reveal any field of possible genius, most people have at very least an accumulation of domestic and personal items, perhaps tucked away in the attic or down in the basement such as clothing, electronic equipment, kitchen appliances, various works of art, jewelry, unwanted gifts, and other household items which you no longer use or have an excess of.
Selling surplus household or hobby products at a yard or garage sale is a very easy, anyone can do, way of selling things to make some extra money. You benefit by getting the house cleaned up and you Make Money from unwanted items – giving you the cash to buy items that you really want and need.
There are also consignment events, like the traditional market, where people can put out discount ware and quality used items for sale. During such events, many sell and buy items for less than in regular stores. By doing so the seller makes money and the buyer saves money. Well – saving money is also a way of earning! Some sellers make hair bows, jewelry, woolen scarves and other accessories and sell them and market their company produce at such events. It’s amazing how people look forward and welcome such sales!
Another place where you can earn some money is at the local market. Some are called flea markets and some are called farmers market. If you have your own vegetable patch and have some extra vegetables from your kitchen spare – you can always sell them at a farmers’ market. These markets are buzzing with activity and nearly everything from fish to fish knives can be found and traded there. Not only vegetables, anything of value, that you have got for sale – is almost guaranteed to bring in money at this kind of sale..
Auctions are also a genuine way to Make Money. If you happen to have your great grandparent’s hand-me-down items such as vintage jewelry, chairs, small items like watches probably they will be listed somewhere as valuable antiques. These antique items gain value every day and you can attend appraisal events to find out what they are worth, and trying putting them up for auction.
Other personal services include teaching others your skills. Do you play a musical instrument? Why not start music classes? Are you a sports person? Coach the younger ones to play and make some extra money. If you have thought of everything and still consider that you have absolutely no marketable talent whatsoever – you will find this to be untrue – there are many opportunities to be a personal assistant to someone – whether it be doing their shopping, helping them to organize a busy lifestyle, doing their garden, or even walking their dog. So what are you waiting for – what’s holding you back? It’s time to make some money!
How to Get Out of Debt
Debt elimination involves three steps:
- Stop acquiring new debt.
- Establish an emergency fund.
- Implement a debt snowball.
Here’s how to approach each step. (I’ll use Nick’s situation as an example, but the principles apply to everyone.)
Stop acquiring new debt
(This step can be accomplished in an afternoon.)
This may seem self-evident, but the reason your debt is out of control is that you keep adding to it.Stop using credit. Don’t finance anything. Cut up your credit cards.
That last one can be tough. Don’t make excuses. I don’t care that other personal finance sites say that you shouldn’t cut them up. Destroy them. Stop rationalizing that you need them.
- You don’t need credit cards for a safety net.
- You don’t need credit cards for convenience.
- You don’t need credit cards for cash-back bonuses.
You don’t need credit cards at all. If you’re in debt, credit cards are a trap. They only put you deeper in debt. Later, when your debts are gone and your finances are under control, maybe then you can get a credit card. (I don’t carry a personal credit card. I don’t miss having one.)
After you destroy your cards, halt any recurring payments. If you have a gym membership, cancel it. If you automatically renew your World of Warcraft account, cancel it. Cancel anything that automatically charges your credit card. Stop using credit.
Once you’ve done this, call each credit card company in turn. Do not cancel your credit cards (except for those with a zero balance). Instead, ask for a better deal. Find an offer online and use it as a bargaining wedge. Your bank may not agree to match competing offers, but it probably will. It never hurts to ask.
Establish an emergency fund
(This step will probably take several months.)
For some, this is counter-intuitive. Why save before paying off debt? Because if you don’t save first, you’re not going to be able to cope with unexpected expenses. Do not tell yourself that you can keep a credit card for emergencies. Destroy your credit cards; save cash for emergencies.
How much should you save? Ideally, you’d save $1,000 to start. (College students may be able to get by with $500.) This money is for emergencies only. It is not for beer. It is not for shoes. It is not for a Playstation 3. It is to be used when your car dies, or when you break your arm in a touch football game.
Keep this money liquid, but not immediately accessible. Don’t tie your emergency fund to a debit card. Don’t sabotage your efforts by making it easy to spend the money on non-essentials. Consider opening an online savings account. When an emergency arises, you can easily transfer the money to your regular checking account. It’ll be there when you need it, but you won’t be able to spend it spontaneously.
Implement a debt snowball
(This step may require several years.)
After you’ve stopped using credit, and after you’ve saved an emergency fund, then attack your existing debt. Attack it with vigor. Throw whatever you can at it.
Many people say to pay your high interest debts first. There’s no question that this makes the most sense mathematically. But if money were all about math, you wouldn’t have debt in the first place. Money is as much about emotion and psychology as it is about math.
There are at least two approaches to debt elimination. Psychologically, using a debt snowballoffers big payoffs, payoffs that can spur you to further debt reduction. Here’s the short version:
- Order your debts from lowest balance to highest balance.
- Designate a certain amount of money to pay toward debts each month.
- Pay the minimum payment on all debts except for the one with the lowest balance.
- Throw every other penny at the debt with the lowest balance.
- When that debt is gone, do not alter the monthly amount used to pay debts, but throw all you can at the debt with the next-lowest balance.
I’m a huge fan of the debt snowball. It still takes time to pay off your debts, but you can see results almost immediately.
Supplementary solutions
You can do other things to improve your money situation while you’re working on these three steps.
First, focus on the fundamental personal finance equation: to pay off debt, or to save money, or to accumulate wealth, you must spend less than you earn.
Curb your spending. Re-learn frugal habits. (Frugality is something with which most college students are all too familiar.) You can find some great ideas in the archives of this site. Also checkFrugal for Life.
While you work to spend less, do what you can to increase your income. If possible, sellsome of the stuff you bought when you got into debt. Get an extra job. (But don’t neglect your studies for the sake of earning more. Your studies are most important.)
Finally, go to your local public library and borrow Dave Ramsey’s The Total Money Makeover. Don’t be put off by the title — this is a fantastic guide to getting out of debt and developing good money habits. I rave about it often, but that’s because it has done so much to help my own personal finances. After you’ve finished, return it and borrow another book about money.
The most important thing is to start now. Don’t start tomorrow. Don’t start next week. Start tackling your debt now. Your older self will thank you.
Money Market Accounts & How to Find The Best Rates
The discussion yesterday about how to earn money when you’ve lost your job got me thinking about ways to earn extra income outside regular employment. None of these are quick fixes, but they’re ways to generate cash in your spare time.
Get a second job
A second job can be an excellent way to earn extra money if you have the time and energy. Why have a second job?
- To pay off your debt
- To build up your savings
- To get more experience
- To ease into a career transition
Real-life example: In 2000, I took a second job programming computers. For several months, I was working sixty hours a week. I’ve never been so flush with money in all my life. Too bad I was a spendthrift back then — it was all wasted on computer games, comic books, and Magic cards.
Become a consultant
Earlier this year, Andréa wrote a guest entry about becoming a consultant to defeat debt quickly:
“Consulting” may sound intimidating. It’s really just a fancy word for someone who trades their knowledge and expertise for pay. Every time you make a suggestion, recommend a process, draw up a plan or manage a process, you’re using consulting skills. To get into consulting, you just need to find someone who can use your expertise.
Read more advice about how to become a consultant at Andréa’s site.
Real-life example: After I decided that computer programming was not for me, I set up a small computer consulting business. I designed web pages, maintained networks, and repaired computers. Though I didn’t have much work (I never pursued the business as much as I could have), my hourly pay was the highest it’s ever been in my life.
Earn money from your hobbies
If you’re like most people, your hobbies cost money. They may cost lots of money. For example, I used to spend hundreds of dollars for new camera lenses just so I could take better photos of my cats. Is there a way to turn your hobby into a money-making proposition? Even if you make just a little cash, you can help offset your costs. Get Rich Slowly readers have been sharing their stories about money-making hobbies in an ongoing (though irregular) Sunday series:
- Selling digital photos (more here)
- Binding books and printing buttons
- Mystery shopping and belly dancing
Here are some more ways that you can use your hobbies to bring you wealth.this article!
Real-life example: After spending a fortune on lenses and camera equipment, I’ve actually been able to make a little money on my hobby. The $750 I’ve generated from prizes and sales is peanuts compared to what I’ve spend on the hobby, but it’s a start.
Make money online
Wait. Didn’t I just write that blogging is no way to get rich quick? Absolutely. But blogging can be a way to supplement your income. If you have subject that you’re passionate about, and if you like to write, a blog can let you earn extra money from your expertise.
But blogs aren’t the only way to make money online. You could open an online store. You couldsell things on eBay. Here’s a list of 10 ways to make money online from Web Worker Daily.Real-life example: This blog.
Sell stuff
A final way to earn some extra cash is to sell things. Look in your closets. Check your bookshelves. Walk out to the garage. See all that junk? How much of it do you actually use? Couldn’t you borrow books from the library when you need them? When was the last time you played Mario Kart 64? Wouldn’t you feel better if your house were less cluttered?
As long as you don’t try to sell it all at once, it doesn’t take much time and effort to sell your used stuff to generate some extra cash.
Real-life example: Once or twice a year, I sell extra stuff I’ve accumulated. Each year at our garage sale, I make about $300. Every couple years, I sell more valuable items on eBay. Last year I made $1500 for a few hours of work.
Use your extra money wisely!
What should you do with the extra money you earn using these techniques? Put it in a high yield savings account, establish an emergency fund, pay off debt, and then save for retirement!