Sometimes, the best way to manage expenses and start saving is to earn more money. Unfortunately, earning more money often means that you have to work longer hours, change jobs or get that hard-to-reach promotion. What can you do?
Thanks to the power of the Internet, there are now a number of new ways to make extra cash… using only things that you already have. These simple techniques can help you save your daily $5, $10 or $20 to fund your Five Ten Twenty Club goals.
Here are some of our favorites:
If you own a car… you can car share.
Available across most of the USA including at airports, RelayRides helps people turn their personal cars into money-makers by renting them to strangers through an online marketplace. The San Francisco-based start-up checks the driving records of all its renters and also insures your car with $1 million in coverage whenever it’s being rented. The typical active vehicle owner on RelayRides makes about $250 each month through rentals, while some car owners make over $1,000 a month! That money is a huge help when, according to RelayRides, the average vehicle owner spends about $715 each month to own and operate his or her vehicle.
Example Five Ten Twenty Club Savings:
1 Month: $250
1 Year: $3000
35 Years: $856,000 (Assuming you invested the savings at 10% yearly average returns)
If you have a car… you can ride share
If you own a smart phone, ride sharing services can help you turn your car into a taxi and give rides to strangers nearby who announce that they are looking for a ride using their smart phones. Lyft, Sidecar and UberX are some of the big names in this web-driven personal taxi industry. Lyft advertises that drivers in their market make up to $35 an hour and get to choose their own hours; it is currently available in Boston, Chicago, Los Angeles, San Francisco and Seattle with plans to continue expanding. Sidecar says that its drivers can make over $30 an hour through their network, which operates in Austin, Boston, Chicago, New York City, Philadelphia, San Francisco and Washington DC. Other companies to look into include UberX and InstantCab.
If you have a spare parking spot… you can rent it out
If you live in a busy part of a city where parking spots are hard to find and expensive, you might be able to make money by renting out a parking space you have at your home to people that want to use the spot. ParkAtMyHouse and ParkingSpotter are two new web-based services that are helping space owners to find these renters. ParkingSpotter says that monthly parking rentals can sometimes average from $90 in Atlanta to $630 in midtown Manhattan.
Example Five Ten Twenty Club Savings:
1 Month: $90
1 Year: $1080
35 Years: $308,000 (Assuming you invested the savings at 10% yearly average returns)
If you have spare living space … you can home share.
Airbnb is an online marketplace that helps people to rent spare rooms, apartments or homes temporarily to tourists and passersby that are looking for a place to stay for a few nights. Airbnb can a great way to turn extra space into cash to help with your rent or mortgage or even pay for life-saving surgery, but be sure to check whether your housing agreement allows you to welcome paying guests.
If you have some spare time…
The power of the Internet is encouraging all sorts of new opportunities like the above businesses as part of a shift toward something called the Sharing Economy. The Sharing Economy is revolutionary because it is making it easy for people to turn their stuff—the things that we usually consider expenses—into assets that we can use to make the money that we need in order to pay for the things we own. Sometimes—and it seems increasingly often, too—these new Sharing Economy businesses are helping people like you and me to not just cover our costs but to start making real profits.
So if you have some spare time … you should invest it in learning how to Share.
Have you used any of these services? What other ways can you make money by renting out things that you already own? Share your thoughts in our Community Forum!