Money. Cash. Scratch. Sometimes there just isn’t enough of it to make ends meet. When the going gets tough, learn how to make extra money, and consider the pros and cons of each idea.
1. Get a side gig
If you have even a little bit of time, you may be able to find a side job to earn some extra dough. In the midst of our chaotic time, there is increased demand for delivery services. Two popular categories include grocery shopping (like Shipt or Instacart) and food (like Grubhub or Uber Eats).
- Advantage: You don’t have to pay it back; it’s your money to spend.
- Disadvantage: It may take some time to find the right opportunity.
2. Through a home equity loan or home equity line of credit
Both of these options hinge on the same basic idea: You owe less on your house than what it’s worth. The differentiator between the two is that with a home equity loan you receive a lump sum; with a home equity line of credit (HELOC) you can draw money as you need it.
- Advantage: Interest rates may be lower, and interest paid may be tax deductible.
- Disadvantage: You may face foreclosure if you can’t make the payments, and you’ll need a decent credit score to qualify.
3. Take out a personal loan
In recent years, companies have begun to leverage crowdfunding as a model for personal loans (also known as peer-to-peer lending), resulting in more competitive interest rates and opportunities — even for less-qualified borrowers. This makes it a popular option for those looking to take out money for upcoming expenses as well as those who want to consolidate existing (higher-interest) debt.
- Advantage: It typically offers a lower rate than most credit cards.
- Disadvantage: You’ll have to pay it back — with interest — and eligibility varies.
4. Apply for a credit card
Most people are familiar with credit cards. But beware, companies often play up discounts or use other perks to lure you in before you have time to notice the crazy high annual percentage rate (APR). Do your research before committing to a card — you definitely have a lot of options to choose from — and your due diligence could save you lots. Know how to use credit cards to your advantage.
- Advantage: You have instant access to funds, and it can help you build or restore credit.
- Disadvantage: You must be deemed creditworthy to qualify, and cards may have high fees or APRs
These strategies to make extra money are meant to get you through difficult times. To avoid being in a bind know how to save your money.