In the last ten years, we’ve seen the
economic environment go from a recession with layoffs, bankruptcies, and other
financial problems to consistent fiscal health. Now, reports show that U.S.
employers added 304,000 jobs in January 2019 alone with other months also
performing well. With this improvement in the economy comes other changes that
impact the cost of living.
That means as jobs, wealth, and
consumer confidence goes up so does the cost of living. From food and fuel to
clothing, housing, and college tuition, everything that goes into living is on
the rise.
However, annual incomes are not rising
in line with the projected spike in the cost of living. To counteract the lack
of matching the cost of living raises or annual income increases, many people
are seeking ways to earn extra cash to fill these gaps. Recently, we asked a
group of respected thought leaders about the best ways to increase annual
incomes in light of the rising cost of living. Here are their suggestions on
adding extra income.
Tap existing employee benefits.
“You can save well more than $500
simply by tapping into your existing employee benefits. I'll use myself as an
example. I have a dependent care FSA, which is saving me more than $1,000 a
year. I also have a healthcare FSA that saves me around $525 a year. I've been
contributing to the monthly limit on my pre-tax commuter card through work,
which has also led to tax savings of over $1,000 a year. And, if your employer
offers a 401(k) match, you can ‘make’ thousands of extra dollars beyond that.”
-- Allison Kade, millennial money expert at Fabric, a one-stop-shop for
families to organize their finances
Make Money On Your Experience and
Expertise
“After working with a lot of major
brands on creating Superfans, I realized that there were a lot more people and
companies I could help. I started speaking at smaller events for minimal fees,
but as I spoke to more groups I was fortunate enough to get on top lists for
guest speakers. Now I have a lot of
inbound opportunities with larger fees and speaking is my primary focus.” --
Brittany Hodak, Speaker at BrittanyHodak.com and Superfan Expert
Adjust your withholdings.
“The quickest and easiest way to add
$500 to your paycheck is to adjust your withholdings. By simply maxing out your
allowances, you will start to receive a bigger paycheck with less money being
taken out for taxes. It's a nice way to get some quick cash without having to
pick up an extra job or work overtime. Now, of course, you are still 100%
responsible for paying the appropriate amount for taxes at the end of the
year.” -- Kelan Kline, Co-owner of The Savvy Couple and personal finance expert
Sell your snaps.
“License and sell your strongest
photos. A surprising number of our members contribute to our Marketplace collection.
If your images are well-composed, you might make a few extra thousand dollars
each year just by letting brands use them. Although it can be tough to predict
which ones will do well, they tend to be artful, authentic, unique, and
well-lit. And because stock images don’t expire, popular ones may pad your bank
account for years to come.” -- Ori
Guttin, Founder of Viewbug
Start that side hustle.
“When people hear the words, ‘side
hustle,’ they think that means long hours and startup costs. But the truth is
you can start a business today with nothing more than a Facebook page. If
there’s something you’re passionate about that serves people or solves a
problem, put those skills to work and charge for them. Plus, consider
alternative ways to utilize your talents. Do you know someone who could benefit
from your skills in a freelance capacity? Maybe you love photography and can
start charging to shoot on the weekends. The beauty of having a side hustle is
that you set the terms. You set your hours and you determine how much your time
is worth.” -- Christy Wright, #1 national best-selling author of Business
Boutique, host of the Business Boutique Podcast, a Certified Business Coach and
a Ramsey Personality
Get creative with cutting expenses.
It’s not always about making more
money; sometimes, it’s about learning where to reduce your expenses. Since the
beginning of the year, my wife and I have been testing various meal delivery
services to drastically reduce our monthly food costs by over 50%. With our busy
work and school schedules, we rarely found enough time to go to the grocery
store and even less time trying to plan out our meals appropriately. Instead,
we were getting takeout and going out to eat several nights a week. Paired with
coupons and rebates, we have been able to easily save ourselves a few thousand
dollars since the beginning of the year on food alone. We were able to get our
average cost for dinner down to $4.33/per person during our nine-week
experiment. We got to try out lots of new foods, test our cooking abilities,
and, most importantly,save a ton of money.”
Add a new skill.
“The best way I’ve found to earn extra
money is to learn to code. I was able to learn to code on the side with sites
like Code.org and Khan Academy. You can take basic courses and in a matter of
three months have the basics to be able to code simple websites. I then
networked with site owners and local leaders to help out on the side. This has
helped me bring in an extra $500 to $2,000 a month on the side since I learned
years ago.” -- Chalmers Brown, CTO of Due
Begin by setting aside a small amount
of money each week.
“Make it a habit to put money aside
every single day or once a week. Since every penny counts, this tip will not
only help you get the extra $500 but will also make you financially
responsible. You can do this through strategies like micro-investing through
apps like Stash, reviewing purchases and reducing unwanted expenses, and paying
off debt like credit cards and auto loans.”
Try affiliate marketing.
“We've found that affiliate marketing
is one of the easiest ways to make passive income. It's even better if you can
find programs that pay you a recurring commission for a subscription signed up
under your link. If you're looking to hit the $500 target, I'd recommend
building out a small niche Facebook group where you're positioning yourself as
an authority. This can be anything from horse training to gardening to little
league baseball. The key is that you want to be passionate about it and be an
expert. Then reach out to people you know who would be a good fit for the group
and begin to build their trust. Once you have their trust, all you have to do
is recommend certain products that fit well into their lifestyle and interest
in the niche. If you've done an effective job at the part above, this should be
an easy goal to reach.” -- Alex Nerney and Lauren McManus, full-time bloggers
at Create and Go and Avocadu
Turn trash into cash.
“Decluttering can make you money while
also helping you clean up around your house and get rid of things you don’t
need or want anymore. Try selling more valuable items online through Facebook
marketplace, Craigslist, or eBay. Amazon will even buy some items directly from
you that they will then resell, and clothes can be sold on sites like Poshmark.
Get together with your neighbors and host a yard sale this fall to turn
whatever you haven’t been able to sell, as well as smaller items someone might
want, into extra cash.” -- Logan Allec, CPA and Founder of Money Done Right
Create a budget, then commit to
investing a portion.
When is the last time (if ever) you
reviewed your budget? I always encourage people to identify the amount of
excess income they have over their expenses. A person can use this excess to
spend, save or give. Balance is always good in life but commit to investing a
portion of this excess each month. Doing so will allow a person to grow wealth,
and passive income, over time. While there are no guarantees with investing, it
won’t be long before your investments will have the possibility to create
passive income to you, through dividends or the potential appreciate of the
investment. --Travis Cook, President of Convergence Financial
Build a business from your passion.
“I started blogging on my own site
several years back. My blog made me zero money. What it did do was help me find
clients that were looking for ghostwritten pieces. Over the following years, I
started making $500, $1,000, and then $5,000+ a month just by helping out
businesses with their blogs. What started as a passion turned into real money.
By the time I left my job, I was earning double outside of work than I was
earning at my job. I could do it all but decided to leave. Had I not started it
would have never worked the way it did.” -- John Rampton, serial entrepreneur
and Co-Founder and CEO of Calendar