One great way to earn money to get out of debt or reinforce your retirement savings is to produce extra money. There are so many ways to make extra income with websites like Fiverr, Upwork and Gig Salad as well as just branching out on your own. Here are some ideas for extra income as well as some advice on how to save for taxes and run your side gig.
Unique Side Gigs
With technology today side gigs are not limited to babysitting, mowing lawns or working nights and weekends at local retailers. Take your daytime skills or special talents to a side income site like Fiverr, Upwork and Gig Salad and post your services. Other will see your work, pricing, reviews and can book you from anywhere in the world. The most popular money making skills on these sites include:
- Blog Writing, Resume Writing, Copy for Advertisements
- Sound Editing, Voice Overs
- Photography, Graphic Design, Painting
If you are creative and crafty you can also upcycle furniture, make clothing or jewelry and other handmade items on Etsy. Others love to buy and sell items on Ebay or Amazon. Some side income earners love participating in multi-level marketing programs or driving for Uber.
Using the Extra Income
No one needs help dreaming about what to do with extra money, but it is smart to have a general plan for your side income.
First, consider your tax situation. If you go the freelance option consider setting up to 25% of income earned into a separate account for taxes. It’s an awful feeling to work hard throughout the entire year and then be surprised with an unexpected tax bill, trust me.
If you have consumer debt or student loans decide to pay those off with this extra money. Paying off your loans early will save you interest and free up more of your income for savings. You can also consider adding to your retirement account by opening a Traditional IRA or Roth IRA.
It’s a Business
Remember the reason you are working so hard to earn this extra income. Don’t let your side income become an expensive hobby by purchasing too much inventory or taking jobs sporadically.