The median salary of workers in the United States is currently around $1,041 per week or $54,132 per year. With the cost of living only continuing to rise, it’s a wise move to look for smart ways to boost your bank balance. Fortunately, there’s a number of simple yet effective methods available to generate extra cash flow, which in turn will automatically increase your spending budget.
Take out a cashback credit card
Cashback credit cards can boost your income easily by paying you a percentage of the amount spent each time you use them (or, alternatively, you’ll receive reward points). The most lucrative cards, in particular, pay as much as 5% cashback for the initial three months. Keep in mind, however, cashback credit cards are only a wise income-boosting choice as long as you pay the card off in full every month – you can set up a direct debit to accomplish this. It’s also essential to never go over your limit, otherwise you risk paying an interest rate that’s not worth the rewards. Once you have your card set up, simply use it for all your usual purchases and you may increase your income by several $100 every year.
Get a side job
If you have time in your schedule, take on a side job. 44% of Americans work an extra job to help make ends meet with the average extra monthly income generated being $483, or $5,800 a year. Under the table jobs are flexible and typically don’t require much in the way of qualifications or training, while also being able to provide a decent income boost to help offset smaller bills. They also pay fast and in cash (you will, however, be responsible for paying your own taxes). House sitting, dog walking, bartending, and food delivery, for example, are just some available and potentially-lucrative avenues. As always, before you commit to any new role, be sure you’re clear on your responsibility, as well as how it fits in with your current schedule, home-life and work-life included. In fact, you may decide launching your own business is the way to generate the freedom, flexibility, and extra income you’re looking for.
Use your savings to pay off debt
If you’re in debt, use your savings to pay it off; the interest rate you’re charged to borrow money typically ends up being much greater than the interest earned on your savings, so it only makes sense to pay off your debt with your savings. So, for example, if you have $5000 outstanding on your credit card at an APR of 18%, and $5000 in your savings account with an interest rate of 1%, you’ll save around $850 a year by using your savings to pay off the debt.
As the cost of living rises, it’s only natural to start looking for smart ways to boost your income. By taking out a cashback credit card, getting a side job, and using your savings to pay off debt, you’ll successfully create new cash flows and increase your bank balance.