As another year rolls in, people start to give serious thought to what they want to change in their lives. Many resolutions focus around finances and wanting to improve them. One way to do this is to earn extra money - money which could be used to pay down debt or put into savings.
If you’re planning on making some extra money this year to help your financial situation, there are a few precautions you need to be mindful of so that your hard work pays off. To protect yourself, look to avoid these 4 mistakes when trying to earn some extra cash:
- As you’re looking for job opportunities to help you make extra money, be wary of situations that require you to invest substantial money upfront. You may or may not get this investment back, so it’s important to do your due diligence first and focus on job types that don’t require you to pay large sums of money upfront. Or, if you are considering starting your own business, the rewards can be great, but this comes with risk too. So if you are spending money to start a business, a good way to reduce your risk is to only spend on items that you could sell if your business plans don't work out.
- Don’t rush into anything - ask yourself if the new job opportunity makes sense for you and your financial situation. Sometimes people are so eager to make extra money, they take the first opportunity that comes their way, but they end up investing a lot of time into something without seeing a lot of financial benefits.
- Don’t mix the extra money with your regular income. If you mix money, you’re more apt to spend it and not use it for the things you want to use it for, like paying down debt or trying to save more. Keep any extra money earned separate and dedicate it only to your debt and savings plans.
- Finally, and one of the most important things to avoid are scams. Scams are everywhere, especially online. They can range from promising work that’s not available, to not paying you for work that was completed and everything in between. To protect yourself, always research who you are working for. Look for feedback from other people who have worked for the client, and never submit a final project without getting at least a portion of your compensation. If it sounds too good to be true, use the reasoning that it probably is.
Looking for more financial tips to help you pay down debt and kick start your 2018 savings plan? Check out our blog - how to cover unexpected expenses!
