23 Jan

How to Create Additional Streams of Income

woman holding cash deciding how to create Additional Streams of Income

Money. We all could use a little more of it, especially with talks of an impending recession. Whether you’re putting some money aside for a rainy day, saving for a down payment, or trying to pay down debt, a little bit of additional income can go a long way.

Your full-time job will help you pay for the necessities, but the game-changer is having a side hustle. This will make a difference in your pocket and give you the financial independence you’ve always wanted.

How to Choose an Additional Source of Income

We could all go out and get a second job at a restaurant or retail store to earn some extra income. But that’s usually not plausible for busy adults. That’s where side hustles come in. Consider these aspects when determining how you can produce additional streams of income:

  • Flexible: An ideal source of extra income will enable you to call the shots when it comes to your time. Especially if you have a full-time job, the last thing you want is being committed to working a set number of hours at a second job every week.
  • Enjoyable: Generating additional revenue streams is a lot of work, so you might as well enjoy it.
  • Inexpensive: Stay away from income-generating ideas that require a big financial investment.

Tips to Look Out For

  1. Make a list of what you are interested in
    You need to enjoy what you are doing to make it a successful side hustle. Since it will be done on your own time, it’ll take a lot of energy and motivation for you to work on it, especially if you have a day job. When you’re passionate about something, you’ll have that motivation to drive you. Brainstorm some ideas about your passions and hobbies for your side hustle.
  2. Schedule time for your side hustle
    A side hustle takes time out of your every-day life, so make sure everything goes well. Setting up your website, arranging your content, and forgetting about everything until next month will cause difficulties. Set aside time for your side hustle and set actionable goals in your planner regularly so you know what you’re doing is worthwhile.
  3. Don’t forget about your day job
    If you set up a side hustle while having a full-time job, remember to put 100% of your energy into your day job when you are there. A side hustle is going to give you some money, but you’re relying on a check from your day job to pay the bills. Don’t try to juggle your daytime job and side hustle within 9-5 hours. This is a recipe for disaster.

Ideas for Additional Income

  1. Sell Your Clothes
    Selling clothes you don’t wear anymore is a quick way to make money. Start with local consignment stores like Plato’s Closet or use sites such as ThredUp and Poshmark to find buyers online. If you are going the online route, be sure to take clear, well-lit pictures of your clothing and research similar items to price them correctly.
  2. Love Dogs? Walk Them or Pet Sit!
    Do you love dogs or like to get active? Get your fix by caring for other people’s pups and get paid for it! If your home is not dog-friendly, consider becoming a dog walker. Apps like Wag and Rover offer dog walking and pet sitting jobs. It’s flexible so you can schedule a walk whenever you have time! You can also pet sit at the owner’s homes or have the dogs come and stay with you for a while.
  3. Take Surveys
    Taking online surveys can produce a small side income— but don’t expect to be rolling in money. Survey sites usually don’t offer a big payout unless you invest a lot of time. Some of the more popular survey sites include Swagbucks and Global Test Market.

Talks of a recession are scary, but RMLEFCU is here to help you through any financial situation. Follow the RMLEFCU blog for more recession preparation tips. Give us a call at 303-458-6660 if you have any questions!

30 Dec

Focus on What You Can Control During a Recession

calculating costs of recession and cutting down budget

Discussions about an upcoming recession are extremely frightening. Focusing on what you can control is a good way to be prepared and maintain your sanity.

The most important thing is to focus on what you can influence in your own life. While things may seem scary and the unknown is looming, it’s going to be all right! Look hard at your job security, debt, and investments.

Secure Your Job

The first step is to look at the money you earn, which means you should consider the safety of your work. Make yourself indispensable in your job in order to create job security. To complement your role, learn new skills and begin to acquire more responsibilities. Pursuing an education is one of the best investments you can make.

You should also get your resume together and start networking in order to be prepared for a Plan B. If a recession hits, you don’t want to start a job search with a bunch of other people already laid off. By networking ahead of time, you’ll have a head start.

Pay Down Debt

If you have high-interest debt, now is the best time to begin aggressively attacking it. Prioritize debt starting from credit cards and switch to other types of loans, such as mortgages or auto loans. Student loans have more favorable terms, making it less important to pay them off.

One technique that is often advised by experts in the form of a debt avalanche. The plan is to continue to pay the minimum on each balance, on time, but put any extra money on balance with the highest APR.

To order to create some breathing room in your budget, it is important that you pay down any outstanding debt, more precisely high-cost debt, such as your credit card balance.

Start Saving

If a recession truly scares you, take your budget out and start cutting expenses now. The money you save can go straight into your emergency fund, which can be kept in a high-yield savings account with zero market risk and even growth opportunities.

Regardless of the condition of the economy, maintaining an emergency fund is key. After all, an enormous medical bill or temporary income loss may occur at any time. The first line of defense against debt is to support yourself with a cash safety net.

Recessions can be worrisome, but if you follow these tips and help prepare yourself for a recession, you may come out of it smoothly! Follow our blog for more recession tips. If you have any questions, call RMLEFCU at 303-458-6660.