How to Make More Money to Pay Off Debt?
Does this sound familiar to you? You’ve been making payments on an auto loan, credit cards, and student loans but for some reason, you don’t seem to make any progress in paying off these debts. In fact, the payoff dates seem like an eternity away.
If this is you, the good news is you can kill this feeling once and for all. You see, making a resolve to achieve financial independence by getting out of debt is easy, but the process of getting to that destination is hard.
Eliminating debt requires two approaches. The first is cutting back on expenses, and the second is increasing your total income. These two will help you to achieve a debt-free status faster while saving you a lot of money on interest.
The first approach will require a lot of discipline because it involves changing your lifestyle. Now, some suggestions may save you $10 or $20, which may seem small compared to the overall debt. However, saving this amount from 10 categories in a month will result in $100 extra to pay off your debt.
It’s also important to note that not all tips outlined here will apply to you. However, make sure you use as many as possible.
1. Cut Back on Your Spending
This is the most obvious place to start when looking to make more money to pay off outstanding debt and same day loans no credit checks. Take some time off to track your spending to find any unnecessary expenses. While at it, you may want to focus more on the wants, instead of your needs. Here are some areas to start looking at:
- Spend less on food: This may sound awkward because food is a need. However, there are unnecessary expenses that creep in this sector. For instance, why should you eat out when you can carry food from home? Other changes you can make in this area include starting a garden to grow some vegetables, using coupons for items you need, buying in bulk, and freezing excess foods for later.
- Reduce your transportation costs: Transport is necessary to make ends meet and for that, there are three categories you may fall in: a car owner, a commuter, or both. If you own a car and is your primary means of transportation, consider using the car for productive work only. This means walking to the grocery shop if it’s close by instead of driving.
If you choose to drive, make sure you make all your purchases in a single trip. Don’t ignore the next service date, or you’ll reduce your car’s efficiency, which, in turn, reduces gas optimization. Other areas of consideration include insurance rates, buying the right gas, and also swapping your guzzler for a low-cost car.
- Lower your utility bills: This includes your water and electric You must be conscious about how these utilities are used. Fix leaking pipes, turn off the lights in rooms that no one is in, etc.
- Track your expenses: This will help you to weed out any unnecessary expense and goes hand-in-hand with creating a personal budget.
2. Earn More Income
You only reduce your spending to a certain extent after which things will become next to impossible. Once you reach this point (where there’s nothing else to cut back on or eliminate altogether), it’s time to increase your total income. For this, there are several routes you can explore:
- Increase your working hours: You want more, so you’ll have to work more. The best part about this move is the results are instant—your next paycheck kind of instant. If you have extra hours in your day, inform your supervisor about that.
- Start a second job: If you fail to get additional hours at your job, starting a second job is your next option to boost your income. Jobs that offer tips can be lucrative considering your debt situation. Such jobs include bartending, delivering food, or waiting on tables. Keep in mind you’ll have to bury your ego in such situations. All you have to focus on is your debt. Besides, they are legal jobs, and other people make a living through them.
- Become a freelancer: Do you have a skill or service you’re good at? This is your chance to turn it into a money-making machine. Freelancing is fast becoming a lucrative job, especially for millennials. In fact, these jobs have the potential to pay more than a day job. Some of the services you can sell online include web development, content marketing, translation, etc. Lookup reputable freelance sites such as Upwork and PeoplePerHour.
- Sell your items or rent out space: Chances are you have some old items or appliances that you no longer need or use. If this is the case, consider selling these items by holding an old-school garage sale. You’ll be surprised at just how much you’ve been sitting on, literally.
You can also consider renting out space or items. For example, Getaround and Turo are some of the marketplaces where you can rent out your car. Do you have a massive driveway or parking space? If you do, have you ever considered renting them out through platforms such as Spot or SpotHero? How about renting out that spare room or your entire home through VRBO or Airbnb?
- Get into the care business: if you love taking care of children and babysitting in general, you can consider offering care services to earn an extra buck to clear outstanding debt. Sites such as Sittercity, UrbanSitter, and Care.com are some of the places you find such jobs. If you’re more inclined to animals, you can also consider platforms such as Rover.
- Start a course: The best way to learn and internalize a skill is by teaching others, and you can make a lot of money while at it. You can teach by the hour and potentially make hundreds of dollars per week to clear that burdensome debt. You can also create an entire course and sell it online on platforms such as Udemy or Teachable.
- Start a business: Do you think you have a business idea that may transform the world? Well, that may be far-fetched, but then again, you never know, right? If you have an entrepreneurial bug, setting up a business is a great move toward increasing your income and paying off your overall debt.
You don’t even have to quit your day job just yet. Instead, start out a small, experiment in the market and, once you find a profitable niche, specialize in it and grow it bit by bit. During this time, you’ll get valuable experience including how it feels to call the shots, but also making money while doing it.
Over to You
Cutting back on expenses and increasing your income will, hopefully, give you the much-needed funds to pay down your debt. By remaining focused on the target, you’ll wipe off all your debts way ahead of time and saving a lot of money on interest along the way.
While this sounds great, it’s important to track your progress because this isn’t a one-day job. It may take months or years, which is why it’s crucial to take stock of the gains and celebrate them as you forge ahead. This will keep the spirit and motivation.
In the meantime, implement the tips discussed in this article and work your way to financial freedom step-by-step.