Debt relief is more than just controlling your spending – finding ways to further improve your income can be just as important. A recent survey has found that the average American with a secondary source of income earns about $8,000 extra per year. In light of a ValuePenguin survey that found the average American household carrying a debt of $5,700, this means the average income from side hustles is significantly more than what you’d need to pay off the average debt.
Engaging in a side hustle doesn’t just make it possible to get out of debt faster; it can also bring other additional benefits. The extra income, when used wisely can be used to improve your long-term financial position. Perhaps more importantly, side hustles change your mindset so that you have a better appreciation of the economics of running a debt-free household.
1. Drive for a ride-sharing service
If you have a working vehicle and some free time, driving for a ride-sharing service can be a solid way of earning a decent income on the side. For instance, Lyft claims drivers can earn up to $800 driving on Fridays and weekends, which works out to an extra $3,200 extra, which is enough to pay off the average household debt after less than two months. One can assume Uber and other ride-sharing services can offer similar payouts for at least some drivers.
2. Sell extra smartphones and other devices on Gazelle
Most of us have a few unused phones kicking around. Selling them on Gazelle is good a way to make some quick cash if you have an unused device you’re not using. You won’t get much, but it can still make a difference. If you’ve got friends and family willing to give up unused phones, you can even get enough to make tight payment deadlines.
3. Rent out space
Turn extra bedrooms and unused garage space into money-making assets with Airbnb and storage rental services such as Neighbor. The other great thing about this is that you will be earning money from space that would otherwise just be a drain on your income, due to maintenance costs. One very minor drawback to going this route is that you will have to shell out some money initially to get things to standard.
4. Manage social media for small businesses
You might have noticed that a lot of small businesses need someone to maintain their Facebook, Instagram, SnapChat or Twitter accounts. Many business owners simply don’t have the time to manage their social media on top of everything else. Offer your services to local businesses for a set fee. Chances are, someone will eventually take you up on it. This way you can make money wherever you are – provided you’ve got access to a good internet connection.
5. Be an ESL tutor over Skype
There is currently a huge demand for English as a second language (ESL) tutoring services in East Asian countries, such as Korea, Japan, and Taiwan. If you can handle the time zone differences, there’s a decent amount of money to be made teaching ESL students the finer points of using the English language. The beauty of this is, there are also part-time positions available, making it possible to do this gig on top of your regular job.
6. Become a personal chef
If you’re a good cook (or at least, good enough), you can consider preparing meals for other people. You can use your social media accounts or services such as HireAChef to reach out to people and businesses near you and offer your expertise in meal preparation. If you have knowledge in preparing special vegan, keto, or paleo diets this can be quite a viable option for earning extra income.
Taking the time to discover opportunities to earn additional income can make all the difference when it comes to being able to consistently meet a debt payment plan. Not only will finding an extra source of income give you some breathing space for paying off your debts, you can also substantially reduce the time it takes to get out of debt by engaging in a couple of side hustles.