Those of us who were trying to make a living during the Great Recession know that absolutely nothing is sacred. No one was safe.
Now, living in a post-recession world, we’re more careful than ever with our hard earned money. Interest rates recently increased, which is a good sign for the economy, but that doesn’t mean we’re so easy to trust that our sole source of income won’t unexpectedly be snatched away from us again. On top of that, we’re juggling student loan payments, car payments, mortgages, and that pesky credit card balance.
How can we manage all of this, build up a savings account, and still enjoy a night out now and then? Diversify your income and don’t rely on one source for money.
Begin with making a list of things you’re good at and, this is the important part, that you enjoy doing. You could be a whiz with numbers, but that doesn’t mean you want to devote five extra hours a week to helping people with their taxes.
“Find something you love then find ways to make money off of it,” says Ben Dolgoff, founder of ForeverVacation.com. He has spent the last several years traveling the globe, all the while making money off passive income streams, such as real estate and affiliate marketing. Now his business is to teach other people how to go on a “forever vacation.”
After you’ve identified a few things you’re good at and that you enjoy, figure out how to monetize them. The best place to start is with your existing network.
“Ask everybody you know that you’re open to freelancing, looking for extra work. There are opportunities where you least expect them,” says Kim Vavrick, a digital marketing professional with a journalism background. She has been building up her freelance network since 2011, while she was working on her master’s in journalism. Those first few freelance gigs are exciting, but they also open doors to other opportunities. Someone always knows someone who needs a service that you can provide.
Meagan Thomas juggles three jobs: digital marketing by day, freelance writing on the side, and teaching Pure Barre several times per week. This may seem excessive, but each job serves its purpose.
“My Pure Barre job pays for my car payment and I can take classes whenever I want for free,” Thomas says. So not only is a major bill taken care of, but she can also take a class she otherwise wouldn’t be able to afford. Make your extra income work for you. Look for these kinds of opportunities on flyers at your local coffee shop or, as in Thomas’ case, on Craigslist.
Upwork, formerly Elance and oDesk, is an online marketplace for myriad freelance jobs. Writing, marketing, social media, graphic design, virtual assistance and customer service are just a few of the opportunities available. There’s bound to be something for you here. Take some time to bulk up your profile with a nice headshot, lots of work samples and a well-written elevator pitch. Especially as a new user, you’ll need to incorporate as many trust signals as possible to attract potential clients. Similar websites include Freelancer, Mechanical Turk, and People Per Hour.
When you land your first gig, make sure it’s a home run for both you and your client. If your client is difficult, you may want to focus your efforts elsewhere.
“It’s not worth it to work with someone who makes it difficult for me to get paid. If the first month it doesn’t go well, I’m not going to work for you again. Even if it’s good money,” Thomas says.
You’re going to have to say no to opportunities eventually. “When you start to get overwhelmed you have to cut something out,” Thomas says. If you take on three extra jobs and you start to feel like your life is not yours anymore, pick one to cut. Your happiness is more important than the extra $50.
And if you’re scared to get started? Vavrick says, “At least try it and don’t just think about it. You can stop it at any time.”