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10 Simple Things You Can Do To Earn More Money

10 Simple Things You Can Do To Earn More Money

There are many different, simple things you can do to earn more money. And who wouldn’t like a little extra money to add to their income this year? Just think of all the things you could buy with some extra side income.

Here are 10 simple tips that will put more cash in your pocket:

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Earn money by cutting back

1. Cancel any memberships or subscriptions you don’t use. For example, do you subscribe to a magazine or a service like Netflix or Hulu? If you don’t use the subscription on a regular basis it might not be worth paying for anymore. The same goes for memberships. What about cable television? Cable is expensive and for most people it’s not even worth paying for, since there is so much media available through other methods online and through Hulu, Netflix, YouTube and torrent websites.

2. Take a look at your variable expenses, like phone bill, car insurance, groceries and gas. Can you get cheaper car insurance or cut your phone bill in half? Eating out less and being smart with how much you spend on food and health items can help save money and put more money in your pocket.

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3. Go through your belongings and sell things on Craigslist, eBay or Amazon. You most likely have a couple of things laying around that you don’t use anymore or don’t really need anymore. Think of old electronics, clothing and other items that you can part with and list them online for sale. You could also look at recycling centers in your area that may allow you to recycle electronics like TVs, cameras and computers.

4. Sell unwanted things to a pawn store or to friends. Pawn stores are a great option if you want to get rid of unwanted items and make some quick cash. Pawn stores sell a variety of items that people have sold to them, so there’s a good chance they might be interested in whatever you’re trying to sell. Also, post your items on social media for friends to see. Oftentimes a friend might like to purchase something you have for sale because they can get it at a discounted price and it’s something they want or need. This is especially true with items like baby clothing and other baby items, adult and children’s clothing, purses and electronics.

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5. Host a clothing swap or yard sale at your house. Charge an entrance fee for others to join and sell their belongings too. You can sell your unwanted belongings and make money on both the entrance fee and items that sell. A clothing swap or yard sale is a good way to get some friends and family involved to sell their unwanted items, then everyone can make a little extra money this way.

Simple ways to earn money

6. Write an e-book and sell it on Amazon and Smashwords. Writing an e-book is easier than ever. All you have to do is write your book in Microsoft Word or any other similar word processing program, upload it to Amazon, use Amazon’s cover creator and then list it for sale through their Kindle Direct Publishing site. It’s also a very easy process to upload a book to Smashwords and sell e-books there. You can make anywhere from a couple of dollars a month to considerably more depending on how many copies you sell, what you choose to charge for the e-book and the royalty that is paid out to you. It’s an easy way to make some extra money continuously.

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7. Write articles for websites like Lifehack. There are several reputable article websites out there that pay per article you write. With a little time and effort you can make a little or a lot of extra money, depending on how many articles you want to write.

8. Sell your photos online. You’ve probably got tons of original photos you’ve taken on your phone, with a camera or another device throughout your life. There are several websites where you can sell your photography. Here’s a list of photo websites where you can list photos for sale:

9. Make something and sell it on Etsy. If you are crafty then Etsy is just the place for you. You can create one-of-a-kind products and sell them on Etsy. Make sure to advertise them on social media like Pinterest, which is great for specialty items, crafts, clothing and gifts.

10. Sell your plasma. Do a search to find the closest location to you that will allow you to sell your plasma. Oftentimes you can earn up to $130 for the first four times you donate plasma. Make an appointment, go in to have it done and walk out with cash in hand. You can repeatedly donate so this is something you can do occasionally to make a little extra if needed. Plasma donors should check with their local donor facility to find out how often they can donate. Donating plasma is a little more involved than donating blood and requires a little more time.

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Amanda Bradbury

Amanda is a passionate writer who shares lifestyle tips on Lifehack.

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Last Updated on September 2, 2020

How to Set Financial Goals and Actually Meet Them

How to Set Financial Goals and Actually Meet Them

Personal finances can push anyone to the point of extreme anxiety and worry. Easier said than done, planning finances is not an egg meant for everyone’s basket. That’s why most of us are often living pay check to pay check. But did anyone tell you that it is actually not a tough task to meet your financial goals?

In this article, we will explore ways to set financial goals and actually meet them with ease.

4 Steps to Setting Financial Goals

Though setting financial goals might seem to be a daunting task, if one has the will and clarity of thought, it is rather easy. Try using these steps to get you started.

1. Be Clear About the Objectives

Any goal without a clear objective is nothing more than a pipe dream, and this couldn’t be more true for financial matters.

It is often said that savings is nothing but deferred consumption. Therefore, if you are saving today, then you should be crystal clear about what it’s for. It could be anything, including your child’s education, retirement, marriage, that dream vacation, fancy car, etc.

Once the objective is clear, put a monetary value to that objective and the time frame. The important point at this step of goal setting is to list all the objectives that you foresee in the future and put a value to each.

2. Keep Goals Realistic

It’s good to be an optimistic person but being a Pollyanna is not desirable. Similarly, while it might be a good thing to keep your financial goals a bit aggressive, going beyond what you can realistically achieve will definitely hurt your chances of making meaningful progress.

It’s important that you keep your goals realistic, as it will help you stay the course and keep you motivated throughout the journey.

3. Account for Inflation

Ronald Reagan once said: “Inflation is as violent as a mugger, as frightening as an armed robber and as deadly as a hitman.” This quote sums up what inflation could do your financial goals.

Therefore, account for inflation[1] whenever you are putting a monetary value to a financial objective that is far into the future.

For example, if one of your financial goal is your son’s college education, which is 15 years from now, then inflation would increase the monetary burden by more than 50% if inflation is a mere 3%. Always account for this to avoid falling short of your goals.

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4. Short Term Vs Long Term

Just like every calorie is not the same, the approach to achieving every financial goal will not be the same. It’s important to bifurcate goals into short-term and long-term.

As a rule of thumb, any financial goal that is due in next 3 years should be termed as a short-term goal. Any longer duration goals are to be classified as long-term goals. This bifurcation of goals into short-term vs long-term will help in choosing the right investment instrument to achieve them.

By now, you should be ready with your list of financial goals. Now, it’s time to go all out and achieve them.

How to Achieve Your Financial Goals

Whenever we talk about chasing any financial goal, it is usually a two-step process:

  • Ensuring healthy savings
  • Making smart investments

You will need to save enough and invest those savings wisely so that they grow over a period of time to help you achieve goals.

Ensuring Healthy Savings

Self-realization is the best form of realization, and unless you decide what your current financial position is, you aren’t heading anywhere.

This is the focal point from where you start your journey of achieving financial goals.

1. Track Expenses

The first and the foremost thing to be done is to track your spending. Use any of the expense tracking mobile apps to record your expenses. Once you start doing it diligently, you will be surprised by how small expenses add up to a sizable amount.

Also categorize those expenses into different buckets so that you know which bucket is eating most of your pay check. This record keeping will pave the way for cutting down on un-wanted expenses and pumping up your savings rate.

If you’re not sure where to start when tracking expenses, this article may be able to help.

2. Pay Yourself First

Generally, savings come after all the expenses have been taken care of. This is a classic mistake when setting financial goals. We pay ourselves last!

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Ideally, this should be planned upside down. We should be paying ourselves first and then to the world, i.e. we should be taking out the planned saving amount first and manage all the expenses from the rest.

The best way to actually implement this is to put the savings on automatic mode, i.e. money flowing automatically into different financial instruments (mutual funds, retirement accounts, etc) every month.

Taking the automatic route will help release some control and compel us to manage what’s left, increasing the savings rate.

3. Make a Plan and Vow to Stick With It

Learning to create a budget is the best way to get around the uncertainty that financial plans always pose. Decide in advance how spending has to be organized

Nowadays, several money management apps can help you do this automatically.

At first, you may not be able to stick to your plans completely, but don’t let that become a reason why you stop budgeting entirely.

Make use of technology solutions you like. Explore options and alternatives that let you make use of the available wallet options, and choose the one that suits you the most. In time, you will get accustomed to making use of these solutions.

You will find that they make it simpler for you to follow your plan, which would have been difficult otherwise.

4. Make Savings a Habit and Not a Goal

In the book Nudge, authors Richard Thaler and Cass Sunstein advocate that, in order to achieve any goal, it should be broken down into habits since habits are more intuitive for people to adapt to.

Make savings a habit rather than a goal. While it might seem to be counterintuitive to many, there are some deft ways of doing it. For example:

  • Always eat out (if at all) during weekdays rather than weekends. Weekends are more expensive.
  • If you are a travel buff, try to travel during off-season. You’ll spend significantly less.
  • If you go shopping, always look out for coupons and see where can you get the best deal.

The key point is to imbibe the action that results in savings rather than on the savings itself, which is the outcome. Focusing on the outcome will bring out the feeling of sacrifice, which will be harder to sustain over a period of time.

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5. Talk About It

Sticking to the saving schedule (to achieve financial goals) is not an easy journey. There will be many distractions from those who are not aligned with your mission.

Therefore, in order to stay the course, surround yourself with people who are also on the same bandwagon. Daily discussions with them will keep you motivated to move forward.

6. Maintain a Journal

For some people, writing helps a great deal in making sure that they achieve what they plan.

If you are one of them, maintain a proper journal, where you write down your goals and also jot down the extent to which you managed to meet them. This will help you in reviewing how far you have come and which goals you have met.

When you have a written commitment on paper, you are going to feel more energized to follow the plan and stick to it. Moreover, it is going to be a lot easier for you to track your progress.

Making Smart Investments

Savings by themselves don’t take anyone too far. However, savings, when invested wisely, can do wonders.

1. Consult a Financial Advisor

Investment doesn’t come naturally to most of us, so it’s wise to consult a financial advisor.

Talk to him/her about your financial goals and savings, and then seek advice for the best investment instruments to achieve your goals.

2. Choose Your Investment Instrument Wisely

Though your financial advisor will suggest the best investment instruments, it doesn’t hurt to know a bit about the common ones, like a savings account, Roth IRA, and others.

Just like “no one is born a criminal,” no investment instrument is bad or good. It is the application of that instrument that makes all the difference[2].

As a general rule, for all your short-term financial goals, choose an investment instrument that has debt nature, for example fixed deposits, debt mutual funds, etc. The reason for going for debt instruments is that chances of capital loss is less compared to equity instruments.

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3. Compounding Is the Eighth Wonder

Einstein once remarked about compounding:

“Compound interest is the eighth wonder of the world. He who understands it, earns it… He who doesn’t… Pays it.”

Use compound interest when setting financial goals

    Make friends with this wonder kid. The sooner you become friends with it, the quicker you will reach closer to your financial goals.

    Start saving early so that time is on your side to help you bear the fruits of compounding.

    4. Measure, Measure, Measure

    All of us do good when it comes to earning more per month but fail miserably when it comes to measuring the investments and taking stock of how our investments are doing.

    If we don’t measure progress at the right times, we are shooting in the dark. We won’t know if our saving rate is appropriate or not, whether the financial advisor is doing a decent job, or whether we are moving closer to our target.

    Measure everything. If you can’t measure it all yourself, ask your financial advisor to do it for you. But do it!

    The Bottom Line

    Managing your extra money to achieve your short and long-term financial goals

    and live a debt-free life is doable for anyone who is willing to put in the time and effort. Use the tips above to get you started on your path to setting financial goals.

    More Tips on Financial Goals

    Featured photo credit: Micheile Henderson via unsplash.com

    Reference

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