- 19 Feb 2021
- Reading time
- 5 minutes
Sadly, money doesn’t grow on trees. Your life shouldn’t revolve around your bank balance, but how much you have in your account is significant. If the amount is too small, it’s hard to afford the basics, such as rent and groceries, and the associated stress is bad for your physical and mental health, as well.
Increasing your income is the key, yet it isn’t always as easy as it sounds. You can’t just ask for more money from your boss and expect a handout. However, you can use the following techniques to boost your earning potential. Even better, they are effective and accessible to almost everyone.
Rent Out a Spare Room
A spare room could be the answer to your problems, as long as you don’t mind sharing your property with strangers. The great thing about this idea is that the room might already be sitting in your home doing nothing, which is the case for 66% of older homeowners. As a result, it’s almost total profit because it doesn’t cost you anything extra to maintain, apart from a couple of overheads. Also, there is a demand for affordable rooms due to the lack of housing for single people and couples. Combine this with the fact that you can earn £7,500 before paying tax, and it’s well worth considering.
Invest in Commodities
It’s tempting to view investments as big commitments, which they are most of the time. Still, this doesn’t mean it has to be massively expensive or induce a huge headache. Real estate, for instance, is only one side of the coin. There are many other commodities, including precious metals, raw agricultural goods and livestock. Commodities trading is a lucrative venture, since you can create a diverse portfolio of profitable goods to eliminate undue risk. And, much like traditional investments, they are easy to understand and manage.
Appeal to Commuters
There are tonnes of ways to appeal to commuters, from wrapping a car in advertising and driving around, to opening a pop-up coffee stall in a densely populated area. But by far the most straightforward option is to market a car parking space in a satellite town. The majority of employees in big cities have to take public transport because the cost of driving is extortionate. Even then, they require hassle-free parking to lower their expenses. Advertising your drive is an ideal way to make extra money, since homeowners can bag £1,539 and £1,525 per year, especially if they live in lucrative places like London and Sheffield.
Affiliate marketing lets website owners, social media influencers and bloggers make money by promoting third-party products and services. Usually, sponsorship is hard to come by, yet the right online traffic will encourage big brands to use your platform as a way to raise awareness of their brand. Amazon is a prime example of an affiliate marketing partner, but eBay and Google are potential clients too. The commission is often anywhere between 3% and 7%, so the more click-throughs you generate, the more money you will make.
As this post highlights, there are several ways to increase your earning potential and make more money. Whether it’s starting a blog or investing, you shouldn’t be put off by the stigma. The trick is to research your options and choose the most suitable avenue for you and your family.
If you want to become better at understanding finances but you don’t know where to start, at least know that nowadays there is a wealth of information on the subject and getting started is not difficult. Libraries, bookstores and websites can provide you with most of the information you need on every financial topic you can imagine. Anyone who is interested and willing to put in the time can get access to all the needed resources. Here are some tips so you don’t get lost in the process:
Take a finance course
Look for courses from universities and other academic institutions that can guide you in your learning journey. You can also have a quick read at books such as The Richest Man in Babylon or the well-known "... for Dummies" series which can provide you with insight into the basics of finance so that you can then identify specific items that you would like to learn more about.
Internet is your friend
For any questions, there’s no better place to go to for fast, easy access to information than the web. You can look for finance information at Investopedia and similar sites that provide access to infinite amounts of information and will also keep you updated on the latest financial developments. You will also be able to find economists, strategists and other experts that can be interesting and informative to you.
Get deeper into the subjects
Once you’ve covered the basics of finance it’s important to immerse yourself in more complex financial subjects. There are great publications and magazines that can truly help you gain more in-depth knowledge than you will usually get surfing the web or taking on a course. The more you are able to deal with complexity, the easier also the basic finance matters will be to deal with.
Get familiar with the language
There is really not one formula to do this, the best advice is to just take initiative and immerse yourself into the subject while taking the time to search for the meaning of unknown terms when you come across them. Taking on a course can also help you a lot in getting familiar with the finance lingo. Some of the main concepts you will learn about will be: how to measure profitability, EBITDA, operating income, revenue and operating expenses.
Don’t avoid finance just because you don’t feel you’re good at math or you find it boring. It’s not as complex as it seems at first and it is truly necessary to keep score on your business and measure your progress. Most finance operations are mathematically not that complex.
Either because you feel you are ready to take on your finances on your own or you feel you may need some advice and assistance, check out these finance companies that may help you engage in and improve your finances.