How to boost your income

[dhilipkumar]

How to boost your income

The current financial crisis has affected individual and household budgets like never before and also forced a majority of people to cut spending and postpone their savings for a while.

Still many of them are coming up short, having little idea of what to do next and how to maintain their living expenses.

Boosting one's income or earning some extra bucks seems to be a way out, but not many are sure how to do that. Still some beginning has to be made...particularly if we want to survive the current turmoil.

Here're some tips to boost your income in such times of crisis:

Spend less, save more

A penny saved is always a penny gained. No need to say that in times of recession, you should try to reduce your spending as much as possible so that you are able to save more. This will also help boost your income.

"During recession times, cash is the most valuable asset to have as almost all other assets would be losing value. Therefore, parking funds in bank accounts and short-term investments that are highly liquid in nature is advisable. This will ensure that your money keeps appreciating and can be invested once a better opportunity comes by," says Ashish Kapur, CEO, Invest Shoppe India Ltd.

Postpone non-essential expenditure

In times of crisis you should definitely avoid purchases of non-essential items as well as luxury products.

For instance, if you plan to buy a high-end luxury car, it's better to hold on till this recessionary period gets over. Likewise, you can postpone buying that hi-end mobile phone or laptop for the moment.

"In times when there is uncertainty about future income flows, jobs and businesses, outflows owing to non-essential purchases don't just strain your finances, but also cause mental stress," says Kapur.

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[dhilipkumar]

Reduce your debt

Being in debt can be stressful in such times. However, a well-planned debt reduction strategy can slowly turn the tide in your favour.

The best strategy is to be debt-free, but you might be paying EMIs for your car, house etc. which will accompany you for some more period. In such cases, options of loan pre-payment or credit refinancing with a new lower interest credit plan could be explored.

Default is an unpardonable crime in these times as it not only increases your current financial burden, but also seriously compromises your credit standing in the market.

Rethink your rent

If you are living in a rented house which is too big for your family, then you should try to shift to a smaller house for some time. This way you can save some rent money which can be used on some essential goods.

Similarly, if you are living alone, getting a roommate could save some rent and boost your income too. However, if the house is your own, you can think of giving a portion of it on rent.

Increase sources of income

If all is not well with your finances, then you can explore some new and innovative sources of income to boost cash flows. These days based on your abilities, many options of taking up part-time job opportunities are available.

Assignments like guest faculty in colleges, seminar participations, creative/technical writing, consultancy, project management, accounts & book keeping, direct selling etc. can earn you those extra bucks much needed in such tough times.

Determine & sell your skills

One of the ways to increase your sources of income is determining and selling your skills. In fact, you may have a skill that someone else might be willing to pay for. So why not cash on that opportunity too?

For this "you need to write down all the skills and experience you have. Include all education, training and past employment. Consider how you can use those skills and turn them into a part-time business to earn money," says Lovaii Navlakhi, managing director & chief financial planner, International Money Matters.

Teach others a skill

Do you have a skill which can be taught to others also? For instance, you may be good at singing or dancing or art. Or you may be a martial arts expert. If nothing else, then you can teach someone computer or English/Hindi speaking. Just find out. If you have a skill, then there are many others who are willing to learn it and are ready to pay for it.

[dhilipkumar]

Set a goal

Just thinking about earning some extra bucks in a bid to keep your housing budget balanced, and doing little in that regard won't help you much. More so if you haven't set any target for yourself. However, if you have a goal to earn a specific amount of money each month, it will not only help motivate you, but also help you reach your target.

Sell your creations

If you are good at making things such as jewelry, gift baskets or candles, consider selling your crafts to the people who may need them. To take an example, girls and housewives good at Mithila paintings are already making good bucks in big cities. You can do it too if know something similar. This way you would be able to generate some extra income.

Work from home/online

A lot of these opportunities are there on the Net. But "be careful and run your checks before you work with them as they may even be scams," warns Navlakhi. Also avoid giving your personal information to any stranger or on any site which looks suspicious. But once you have run your checks to your satisfaction, you can start working from home/online.

Check job boards

These days people are losing jobs like never before. Still there are many employers who are hiring people. Also, there are many employers who hire part-time workers. Therefore, read the local newspapers daily for leads.

So far as part-time jobs are concerned, you should also look into specific industries. Because some industries hire more part-time workers than others. For instance, restaurant business or retail work. If you have spare time, you can work there and, thus, earn some extra bucks.

And if you are getting a better full-time job offer from a good company, why not consider changing your job itself? That would be the best way to boost your income!