When trying to save money, eventually you’ll come to a point where you have cut as many expenses as you can and there are no additional steps you can take to free up money from your current income. The next step to saving more could be to look for other sources of income. These are a few ways to make extra income that I’ve either done or at least looked into.
One of the most obvious has to be getting a second job. While this can eat into your free time, it’s an immediate way to bring in a dependable, set amount of income. You could try to make it more enjoyable by choosing something you’re interested in. For example, if you are an avid golfer, then work in a golf store. Not only will you enjoy the job more, you may have a discount that will benefit you as much as the pay cheque.
When you invest in dividend paying stocks, you can receive 3-6% annually in dividends from some of the top financial and utility stocks. REITs could also fall into this category, though with their various types of disbursements they might be best inside your TFSA.
Rental property can be a great form of income, as long as it’s cash flow positive, meaning that the rent you bring in more than covers all the expenses. You don’t want your only hope of making money to be on the future value of the property. With the exception of the occasional real estate bubble, the appreciation on a house makes a terrible investment.
Sell things around the house that you don’t use anymore. This could be done with a garage sale or online at Ebay, Kijiji or Craigslist. If you get comfortable with selling on these sites, you could even buy things at other garage sales that are undervalued and sell them online yourself. If you enjoy a certain hobby, like crafts or woodwork, you might be able to make something that you can then sell online.
While not all of these ideas will make a lot of money, even bringing in an extra $100 a month to invest and earn 7% will give you extra savings of around $117,000 in 30 years!