How to make extra cash when times are tight

There is lots of advice available on how to budget and cut down your expenses in order to build wealth and be financially savvy. While this holds true, it is sometimes necessary to supplement your income to get on top of debt or pay normal monthly expenses, particularly if you feel that you are only just scraping by each month.

“If you have drawn up a budget, listing all the money coming in and going out of your household, and it shows that your expenses tend to add up to more than your income at the end of the month, then it is time to think about how to supplement your income,” says Eunice Sibiya, Head of Consumer Education at FNB.

Thinking of ways to make a bit more money may appear daunting, especially if you already have a full time job and possibly a family to look after. However, finding smart and efficient ways of bringing in a bit of cash will, in the long run, make your life less stressful.

Firstly, if you have a family, sit down with them and explain what you will be doing and why you need the extra money each month. They will need to understand the “why” and “how” as it will require their support. Secondly, find smart ways in which you can bring in a bit of money that won???t put too much stress on yourself.

Offer your time
A fairly easy, undemanding way to earn an extra buck is to offer your time. Consider providing a service such as babysitting, dog walking, bookkeeping or go to your local store to see whether they require assistance over the weekends. “These types of jobs don’t require particular skills, however they will require time. If you have a family, it might interfere with family time and you may require additional support from friends and family to help you if you are away from your home,” says Sibiya.

Sell unwanted goods
Another way of making some extra money, once off, is to sell unused or unwanted items in your household. “Do you still have a baby cot even though your children are now out of school, or do you have unused or spare furniture? Get rid of these items,” says Sibiya. “There will always be people who want or need something that may be now of no use to you and there are many ways to get rid of it these items like online websites or even yard sales.”

Use your skills to make or create items to sell
Think of skills you may have that could help you to make money. Are you good at knitting, baking or are you particularly creative?

“Making something to sell is another way of effectively supplementing your income,” says Sibiya. “If you can bake, use this skill or if you are good with cars or beadwork, this could also be a way in which to supplement your income.” There are a few very important aspects that you need to consider if you are planning on making something to sell. The first is margins. This is the amount of money you are able to make on each item that you sell. Secondly marketing, to ensure that you are going to get customers aware of your product.

“Once you have decided on making something to sell, you need to be very careful about what you spend on the items to make sure that you’ll make a profit from selling the items for it to be worthwhile,” says Sibiya. For example, if you are making biscuits, add up how much all the required ingredients cost, do not forget to include your fuel and electricity costs as well. Once you have baked a batch, divide the biscuits by how much you have spent. If you spent R50 on baking the items and you baked 50 biscuits, the cost price will be R1. This essentially means you need to sell your biscuits for more than R1 each, if you’re going to make any money.

Then add on an amount that is reasonable to ensure that you make a profit. If you decide to sell each biscuit for R1.50, you will be making 50c profit per biscuit and a profit of R25 per batch.

“Once you have worked out how much you are making, you will need to let people know that you are selling – marketing your products,” says Sibiya. “This is important, as without customers you won’t be making any additional money.” You can sell your wares in many different environments, to parents at your children???s school, in the taxi on the way to work as well as to colleagues at work.

“Consistency is the key,” advises Sibiya. “Once people know that they can expect a particular item from you, they will tell friends and become repeat customers; this is where you need to make sure that you continue to produce enough items at a good quality.”

Finally, once you have established a source of additional income, don’t be tempted to spend this on unnecessary items. “Set a goal for yourself, and stick to it,” advises Sibiya. “Try pay off one of your debts, or pay a monthly expense such as the electricity so that the additional income makes a real difference to your household finances. This would be the beginning of your journey to financial freedom! “