Financial Literacy Series #9: Little Ways to Make a Big Impact on Your Bank Account in a Short Time Frame

Life has gotten expensive. Home repairs. Car maintenance. Your mortgage. You name it…

On average, homeowners spent $13,667 on improvement, maintenance and emergency repairs in 2023. Don’t forget fuel and maintenance for the car, which costs 25.76 cents per mile on average.

Unfortunately, many people are caught off guard when an unexpected expenditure occurs. Finding creative ways to supplement your income while simultaneously cutting back on unnecessary expenses can be the right formula to mitigate the shock of unexpected expenses when they arise — and they will arise!

Struggling to find ways to increase your income?

Here are three ways to earn some additional cash:

1.???? Turn hobbies into income.

We all have a passion that can be harnessed. How can you generate income from that hobby and create a mini job for yourself in your spare time? Having a side hustle is more common than you may think. An estimated 39% of Americans currently have a side hustle or extra job and earn approximately $810 per month from it.

There are so many ways you can do that! We have a full-time teammate who also runs a balloon business on the side; I have a friend who’s a classical musician who earns a few thousand dollars each month from advertisers by posting personal videos of him playing piano and singing on YouTube.

2.???? Work overtime.

Can you work overtime at your job? Many employers offer overtime pay for working extra hours. This includes many jobs, such as police officers, pharmacists, nurses, retail, delivery, and most union jobs. Some positions pay incrementally higher rates — even double the hourly rate — for overtime. Other companies will offer paid time off if you work extra hours. This can free you up to work another job as you will have more flexibility. It’s also federal law, which mandates at least one-and-a-half times a person’s regular wages when working overtime. Determine how much extra income you could earn if you worked an additional day per week at your day job. How much would you make? It adds up.

3.???? Get a second job.

Holding multiple jobs is a great way to earn additional income, and the practice has increased in the United States in recent years, with 5.3% of jobholders reporting having multiple jobs. Pet sitting, babysitting, tutoring, virtual assistance, and food delivery are just a few examples of part-time jobs that can provide supplemental income. If you’re tech-savvy, consider influencer marketing, participate in market studies, create an online course, or even consider becoming a third-party reseller for Amazon.

How do you manage expenses? Are you managing them closely?

Earning additional income is just one way to manage your expenses. Taking time to assess your current spending habits is another. Knowing where and how you spend money is essential to staying on budget and curbing spending. Do you know all of your discretionary spending?

Here are a few ways to cut everyday expenses and increase your available cash:

• Assess transportation costs. Driving to and from work by yourself adds up over time. People who drive themselves to work spend $14 per day on commuting costs and $8 on parking. Consider carpooling with fellow teammates to save on gas, parking, and other car-related expenses. Alternately, many companies allow their team members to work remotely or have a hybrid work policy, allowing people to avoid the costs of the work commute.
• Bring lunch from home. On average, people spend $11 to $20 per meal when dining out. Packing your lunch can save you significantly during the week. Two times per week can save you $20-$40; over a month, you can save $100-$150—now that is real money.
• Cut back on subscriptions. Streaming services, cable TV, magazines, subscription clubs for clothes, mystery box gifts and the like all add up. People tend to sign up for these services, set automatic payment plans and then forget about them. Review all of your current subscriptions and determine what you really need. Consider calling and asking for a discount on a service, or at a minimum, request monthly costs stay the same. Some pay TV services will charge cheaper rates if you agree to view ads. Doing this annually can help you save in the long run.
• Skip the alcohol. On average, restaurants mark up a bottle of wine 200% to 300%. Instead of having alcohol when out to dinner, opt to have a drink at home with friends instead or maybe have one drink rather than two. Saving small amounts adds up to significant amounts over a month.
• Make your own coffee. An estimated 66% of Americans drink coffee every day. Those who splurge on coffee purchases from stores such as Starbucks spend exponentially more on coffee costs. Making coffee at home can save you between $300 and $700 annually, depending on the type of coffee you drink. There are many quality single-cup coffee makers on the market today. Sure, you’ll pay upfront for the machine, but you can quickly recoup those costs and compound your savings over time.

Ways to spend strategically

We’re all entitled to spending money earned — if you don’t spend more than you make. When you do, try to do so cost-effectively.

• Use your gift cards. Gift cards have become popular in recent years; however, many go unspent. There is $21 billion in unspent gift cards, earning money for companies. Use your gift cards versus saving them for something special. Keep them in your wallet so they are readily available.
• Book vacations early. Plan ahead and book flights 28 to 60 days in advance to receive the best rates. Consider obtaining a credit card that earns you mileage points for flights to save on travel costs.
• Buy a warehouse club membership. Purchasing a Costco or Sam’s Club membership can help you save in the long run, as they offer products in bulk at lower prices. Fuel is typically cheaper there as well. However, if you’re paying for an annual wholesale membership but not using it, cancel the subscription.
• Harness rewards-based credit cards. Earning reward miles for travel is just one way to take advantage of rewards-based credit cards; many credit cards also provide hotel rewards, earning you credit toward hotel stays. YouTube has multiple videos on earning and redeeming credit card points to help you navigate these types of credit cards.
• Cut back on utilities. Adjusting your thermostat can save you up to?10% annually?on heating and cooling. Set your thermostat accordingly when sleeping or away from home—a few degrees up or down makes a big difference.
• Travel off-season. Instead of traveling at the most popular times of the year, vacation in the off-season —?if you can. Many companies offer cheaper rates on fares, lodging and even car rentals in the offseason. Be sure to comparison shop when booking accommodation. Look at the cost of renting through Airbnb or Vrbo, which can be much more economical than staying at a hotel. You can still enjoy that five-star experience without paying five-star prices by going when others are not going.

• Comparison shop. Shopping on Amazon may not cost the same as shopping locally. Realize that most websites offer free shipping when you spend a certain amount. Canceling an Amazon Prime subscription can help you avoid impulse purchases.

Exercising financial discipline by curbing non-essential spending habits takes effort. But it will help keep you on budget and better prepare for any unexpected expenses that may arise — whenever that is. Any combination of the above will put you on the path to help boost your available income by hundreds of dollars each month. Here are even more ways to save.

Good luck. You’ve got this!

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