There are a variety of reasons people seek ways to make extra money. Tough economic times may be causing them to struggle, the cost of living rising faster than the average wages. Some people may find themselves with a larger than usual utility bill, or they may have to pay for a vehicle repair they were not expecting. Losing a job, even after many years of employment with a company, is a reality that many are suddenly faced with.
Regardless of the reasoning for needing some extra cash, there are options available. Maxing out a credit card should not be the go-to answer; in fact, it probably should be the last means of covering an expense if all other options have been explored.
You may find yourself in a similar situation as those mentioned above. If you do, don’t dwell on that feeling of failure many people have when they fall into financial troubles. That will only create anxiety and depression. Millions of people face money challenges, no matter how responsible they are with that money. Focus on getting through the difficulty instead of the fact that there is a difficulty, and you will find it easier to get through the challenge.
This is typically the first option that comes to mind when finances are tight. This is a good option to help you get through a tough time. It is also a good idea to get a second job if you are simply trying to save up enough money to make a purchase on a high ticketed item that you would not normally be able to afford. If you need a down payment for a car, getting a second job can help with that.
Getting a second job can be stressful in itself. You will be working extra hours during the week, leading to less recreational or family time. This can lead to burnout. To alleviate this, make sure your part-time job is one that you enjoy. Get a job in a field that you know and have a passion for and you will not feel stressed. The more fun you have at this job, the better.
Freelancing / Consulting
Along a similar line of thinking as the part-time job, using your knowledge and talents on the side can earn you some extra money. Freelancing allows you to take advantage of your skills in the field you know but in a different way. It could also allow you to use the second set of skills that your primary job does not give you the opportunity to use. This can be both fun and relaxing, even though you are working. Content writing, artist, videographer, virtual assistant, data entry; these are all possible side careers that you can take on to help pay the bills.
If you have knowledge in business, information technology, accounting, or law, then consulting can be a good option for you. These are things you can do in your spare time, responding to questions and issues from big-name firms or individual clients. These can end up becoming more long term gigs so make sure these options are something you want to get into for the amount of time they may require. If you need something to help pay the bills on a continual basis, or if you just enjoy having the added influx of money, consulting or freelancing can be viable options to reach your goals.
Sell Your Hobbies
A crafty person cannot help but craft. A techy person can’t help but tinker with tech. An author has an inner need to create worlds through words. A musician is drawn to the instrument that allows them to release their emotions. These are great hobbies that give people something to do with their time, something that they are passionate about. Why not turn them into a means of earning additional income.
Thanks to the Internet, writers who would never otherwise be discovered are able to sell their completed works. Fairs and festivals are perfect places for selling homemade jewelry and clothing. Take advantage of your hobby and sell them. The customer base may be small at first, and it may not bring in a lot of money, but there is a clientele for everything. All you have to do is find it, then you know where to sell your wares.
Taking out a personal loan is a good financial solution for a variety of situations. Getting caught up on bills after a layoff is one way you can benefit from a loan. It could also pay for that immediate car repair or emergency medical procedure that you had to have. Larger purchases can be made with the funding a loan provides. Instead of saving up for a down payment on a new car – you may need it sooner than a part-time job can provide – you should consider taking out a personal loan.
These are more of a long term solution so be prepared to make payments on a loan for several years – three to five years is the usual lifespan of a loan. This will give you more time to pay back the amount of money you borrowed. The drawback to stretching out the payment period over the course of multiple years is that the interest rate will accrue for the same amount of time. This means you will be paying back more than just the principal, you will be paying for the use of the lender’s funds (this is how lenders make their money and can continue to provide their financial services.
The interest rate on a personal loan could be as low as 5%, but they can get as high as 36%. It will all depend on your credit score and credit history as to how much you will be charged. Even with a potentially high-interest rate, taking out a loan is still a viable option to get you out of a rough situation, more so than maxing out your credit card.
Using all of your available credit on a card will not only have you paying a high-interest rate on a large sum of money, it can lock you into a cycle of making a monthly payment but that payment going towards the interest accrued on the balance. You may find that, even after years of paying on your credit card, you have chipped away very little of the balance, keeping you indebted to the credit card company longer than you would have been with a loan lender. And you will end up paying a lot more in the long run.