Make More, Spend Less – How to Build Savings in a Tough Economy

At the moment, it may feel like when it comes to expenses, everything is going up. With inflation, interest rates, food and utility costs all on the rise, the pressure may be felt to add a little extra income to ease the burden. Increasing your income, while decreasing your expenses is the best way to add more to your savings and grow your wealth for the future. Let’s take a look at some money saving ideas and strategies, as well as some tips for increasing your income.

How to Increase Your Income – Think Side Hustles

When thinking of ways to increase your income, the first thing you may think of is looking for a better paying job or position, or even just asking for a better wage. While these are all good and possible avenues to consider, it is not the only way to increase your income. Just like any good investment, it does not always pay to have your eggs in one basket. If something happened to put your current job role at risk, would you still have some kind of income to rely on? When there is more than one income stream in your life, a little bit of money here and there can add up quickly. The best part about side hustles is, the ideas and opportunities are endless. Consider what you are capable of and are skilled in. Often things that come easy to you don’t feel like they are worthy of making an income out of. However, you would be surprised if you sat down to make a list of all that you could do for an income. Here are some ideas to get you thinking:

Promote yourself online

Are you a bit of a design or IT guru, or do you know how to write well? These are all skills that can often pay well online. With so many platforms to choose from, such as fiverr and freelancer, you could be earning side money in no time. Perhaps you own a ute and are handy on the tools. Online websites such as airtasker make it easy to advertise what you are capable of. You may find that a lot of people local to you are happy to pay big for a bit of help with their move, or even just to assemble some furniture or have their lawn mowed.

Rent your space

Have you got a big lot of land or perhaps an investment property in a nice or handy location? You could potentially be sitting on a goldmine when it comes to collecting rent. Platforms like Stayz or Airbnb allow you take take the property you have and advertise it to make more money. Perhaps you only have one spare room but live in a central location. Rent it out and enjoy the extra income. This has the potential to make you $1000+ per month in capital cities and other prime locations.

Sell on Etsy, Made it, Facebook Marketplace or Teachers Pay Teachers

Are you crafty or great at organising information? If you are handy with crochet, sewing, woodwork or your ‘Cricut’ machine, you may be able to turn your creative outlet into an online market and enjoy the extra cash. Perhaps you are a confident baker. A lot of locals may love to get their hands on your fresh baked items, and you can tell them about it over Facebook marketplace. You may be a school teacher who is already creating curriculum and activities for your students. Other teachers may be waiting to buy what you have put your time into on Teachers Pay Teachers. Through any of these platforms, you can potentially earn over $500 a month, provided you don’t mind that the hourly rate may feel more like a labour of love than a passive income.

Become An Uber Driver or Food Deliverer

Uber or DoorDash provide a great platform to make some quick money on the side. You can choose your hours to be as flexible as you like. If you are driving others around as an Uber driver, all you need is a clean car and a clean driving record and you are ready to go. Perhaps you are more comfortable just delivering food. UberEats or Door Dash make it easy for almost anyone to deliver food and earn some extra income. You may earn about $20 an hour in peak times, which may be worth doing on a quiet night or time off work.

Sell Your Unused Things on eBay, Gumtree or Facebook Marketplace

Make the most of the things in your home that are no longer needed or wanted, and turn them into some extra cash through eBay, Gumtree or Facebook Marketplace. You may surprise yourself with the items you consider trash, that others consider treasure and may even wind up earning $1000s from your old things.

Take a second look at your interest rates and utility bills

With interest rates steadily increasing and the cost of living increasing, it is crucial to take a look at your interest rates (if you have a mortgage) and review your utility bills to ensure you are receiving a competitive rate. Get on the phone with your utility companies and negotiate and do not be afraid to look elsewhere for a better deal. Likewise, get in touch with your mortgage broker to see if you are getting the best interest rate and loan product for your situation. Even a few bases points on your interest rate will make all the difference to potentially saving thousands over the life of your loan.

Dividends From Shares

Dividends are payments that a company makes in order to share profits with stockholders. They’re paid regularly, and they are one of the ways investors earn a return from investing in stocks. As an investor, you can choose to take these profits as cash or re-invest, which will build your future returns.

Rental Income from an Investment Property

A rental property holds the potential to earn you $2000 to $3000 per month, giving you some regular income and hopefully add to your future wealth with capital growth. You can also enjoy some tax deductions through your rental property. If you find yourself in the position to be able to invest in a rental property, chat to your financial advisor to ascertain whether this could form a part of your long-term investment strategy, as well as a potential income stream to enjoy now.

Reduce Your Expenses

It does not matter how large your income is; if you are letting a lot of money go to waste on unnecessary spending, then you may have very little savings to show. When it comes to increasing your savings, a large factor is reducing your expenses. It does not matter how much you make. It is important to set a budget for yourself and stick to it. Depending on your situation, this may include taking a look at the things you can cut out of your regular spending, such as subscription services, takeaway food, expensive cars or holidays or buying too many clothes. It is important to take care of your hard-earned money and not throw it away without consideration. Anything that you may look back on in twenty years’ time and regret spending so much on at the “expense” of your savings, may need to go. It is important to use your money to get ahead and not continually fall behind. Get in touch with Elliot Watson Financial Planning for advice to consider the above strategies for yourself 02 4038 1623.

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For expert financial planning advice, get in touch with Elliot Watson Financial Planning today on 02 4038 1623.

 

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