How to Make Extra Money to Pay Off Debt
The best debt payoff plan allows you to make more than the minimum amount due on each debt. If your regular salary doesn't allow enough room for this, consider learning to make extra money to pay off debt.
Here are some of the top ways to make more money to help reduce your debt burden.
Side Hustles
Side hustles are jobs you do in your free time that allow you to have extra money to pay off debt. Most side hustles will enable you to work on your own terms, but be aware that you're also responsible for all costs and both sides of employee and employer taxes.
Rideshare and Delivery Services
If you have a reliable car, you can turn it into an income source by offering rideshare or delivery services. These gig economy jobs allow you to set your own schedule and even spontaneously work by turning your availability on and accepting available ride or delivery requests.
Uber, Lyft, DoorDash, and Uber Eats each have different requirements, but in general, you need a reliable vehicle that's ten years or less old, a valid driver's license and insurance, and the ability to pass a background check.
TaskRabbit
If you are handy, you can showcase your services on sites like TaskRabbit. The tasks you offer can be as simple as furniture assembly, house cleaning, or moving furniture. If you're licensed and insured to provide other tasks, such as electrical or carpentry work, you can list those services, too.
TaskRabbit has over 1 million users, so you leverage a much larger audience than you could on your own by using their service. However, they only charge "taskers" a $25 registration fee. You set your hours, fees, and what you're willing to do, and TaskRabbit advertises for you.
Freelance Jobs
Not all jobs require a formal employer. If you have skills, you can market to your target audience and make extra money by offering the services on your terms. Some common freelance jobs include:
- Writing (blogs, website content, and advertising material)
- Graphic design
- Coding
- Transcription
- Virtual Assistant
You can advertise your services on your own social media pages, by word of mouth, or by using sites like Fiverr to leverage their significant audience and market to people around the world. The nice thing about freelancing is you choose how much you charge, what jobs you'll accept, and how long you need to complete them, all without a boss breathing down your neck.
Earn Passive Income
Sometimes, you can make money without sacrificing hours of your time. This is called passive income because you either do a little work upfront and continue to reap the benefits, or you don't have to do any work but can make money off an asset you own.
Rent out Assets
If you own a car, have an extra room (or house), or even have extra storage space, you can rent it out and make extra money.
It may sound crazy to lend a stranger your car or let someone store their belongings in your empty garage, but it's a great way to earn income without putting in hours. Many apps and platforms can help you in your endeavors, including Turo for car rentals, Airbnb for house rentals, and Neighbor for storage or parking spaces.
Of course, you should always read the fine print to ensure you understand the terms, but most platforms offer seller protection and even insurance to protect your assets.
Create a Course or Sell Photos
These income-making opportunities require some work upfront, allowing you to continually earn income as long as you keep them up for sale. Course creation is a popular way to make extra money, and you don't have to be a professor to do it. You can create a course on almost anything from knitting to website coding, whatever you are an expert at doing and can help others.
Selling stock photos is also a great way to earn money. You take the photo once and then allow as many people as want to purchase it, earning you a royalty for each purchase.
Dividend-Paying Stocks
If you can handle the ups and downs of the stock market, consider investing in dividend-paying stocks. You can use the funds to pay off debt every time you earn a dividend. When you're out of debt, you can then reinvest your dividends to make your money grow faster.
Fast Money-Making Opportunities
Consider these fast money-making opportunities if you're in a hurry to budget extra income.
Sell Items Online
There are many places to sell your items online and earn cash almost instantly. EBay is great for just about anything you have to sell, especially hot items that may be worth more in an auction. You can also use apps like Poshmark to sell designer clothing and accessories or Thredup for non-designer clothing.
Take Online Surveys and Use Cashback Apps
Some apps, like Swagbucks and MyPoints, offer both the opportunity to answer surveys and earn cash back on purchases. If you aren't into answering surveys, you can use apps like Rakuten or Ibotta strictly for cash back. If you want higher-paying survey opportunities, check out sites like Survey Junkie and Opinion Outpost.
Final Thoughts
Learning how to make extra money to pay off debt is the key to reaching your financial goals. Thinking outside the box can help you find unique ways to bring in more money and budget the extra income toward your debt payoff goals.
The key is to diversify your efforts and track your spending so you ensure your money goes directly to your debts. The faster you pay your debts, the faster you can set other financial goals.
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