While inflation is cooling, its impact has already done a lot of damage to people's personal finances. According to the latest data from the U.S. Bureau of Labor Statistics (BLS), the average amount Americans spend on necessities each month is now $6,081 -- an increase of $500 per month compared to 2021.
Higher costs for nearly everything have caused many people to use credit cards to cover everyday expenses. The result is that America's collective credit card debt is now a record $1.08 trillion.
I mention all this because some people may think they're the only ones who need extra cash right now. But they're likely in the same boat as many Americans who are just trying to find a way to earn extra money and stretch their budgets. Here are five ideas to help you do just that.
1. Sign up for gig work
I know, this is always the recommendation when you read an article about earning extra money. But here's the thing: You can make money from a side hustle.
At the beginning of this year, I signed up for Fiverr and created a few writing gigs on the platform. I signed up specifically for the company's Fiverr Pro option, which allowed me to get paid more for the gigs I was completing. It hasn't been perfect, but I've earned nearly $5,000 throughout the year from just a handful of steady clients.
You don't have to be a writer to start a side hustle, there are platforms for gig workers for all sorts of skills.
2. Start a small business
This suggestion may seem overwhelming, but it doesn't have to be. Sure, if you want to start a small business like a restaurant, you will need substantial capital to get started. But you can approach the process in simpler ways, like opening an online shop.
If you're good at making jewelry, crafting, or creating things with your hands, then starting an Etsy shop may be a good way to make extra money. How much you make on the e-commerce site can vary depending on what you sell, but with 92 million active buyers on the site, there's plenty of opportunity to find your niche.
3. Rent out your car
If you work from home or have a second vehicle that doesn't get a lot of use, consider signing up for a car-sharing site like Turo to rent it out. Turo's website says the car needs to be at most 12 years old and have less than 130,000 miles on it and, of course, you'll need car insurance.
You'll have to spend time keeping your car well-maintained and clean and scheduling the delivery of the vehicle to customers, but it could be the right gig to earn extra cash. Turo says the average annual income of one car listed on its site is $10,516.
4. Tutor students online
There's no shortage of topics people want to learn more about, and some people are willing to pay good money to have you teach them. While teaching kids is the most common form of tutoring, many adults also need tutors for things like learning a new language.
You can find tutoring gigs on platforms, including Outschool and Wyzant, and many sites allow tutors to set their own hourly rates. Some tutors charge anywhere between $15 per hour and more than $100, depending on their experience level and the topic.
5. Sell digital products online
Many apps make it easy to create products like journals, notebooks, and digital artwork that you can sell online. You can design many of them in Canva or use Adobe's Creative Cloud suite of apps and then sell the digital prints on Amazon or Etsy.
Some people choose to specialize in creating certain products and are seeing great results. For example, a recent CNBC report highlighted a teacher who creates worksheets for other educators and sells them through the Teachers Pay Teachers marketplace, earning her over $125,000 last year.
While you may not be able to quit your day job with some of these suggestions (unless you sell worksheets to teachers, apparently), trying out one or two of them could go a long way toward earning you additional income in 2024.
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