April 18th, 2013
**Today’s guest post is contributed by Fiona.**
These days, everyone is trying to save a little extra money. And while it’s not a bad idea to pursue a few simple money saving ideas, what we sometimes forget is that we can also improve our finances (and our credit) by finding ways to make a little more money. Pinching pennies and giving up our lattes only goes so far. Instead, take a look at the collaborative economy, where it’s easier than ever to earn more with what you already have. A growing number of people are providing services and short-term access to goods directly to each other – and you can take advantage of this new economy as well..
From renting out your car to sharing travel experiences, here are five ways to bring in more income through the collaborative economy. These sites help with one of the most difficult aspects of earning more income: finding people who want to pay for what you’re offering.
1. Provide accommodations
If you have extra space in your house, websites like AirBnB and Roomorama connect private hosts to people who are looking for a place to stay. You can choose to rent out your house, apartment, room, or even a couch. Hosts can choose to host guests for as long or short a stay as they wish, and vet them through social media profiles. One pastry chef even managed to avoid foreclosure by turning her home into a bed and breakfast and renting out rooms on AirBnB.
2. Rent out your car when it’s idle
Cars are said to be idle 23 hours a day. Why not make some money when you aren’t using yours? An entire industry has sprung up around providing short-term access to cars to people who don’t have one of their own. RelayRides and Getaround allow folks to rent out all kinds of cars, ranging from old beaters to luxury vehicles, for hourly, daily, and weekly rates.
3. Lend out what you already own
Just like cars, many of the tools, gadgets, and appliances we own lie idle most of the time. For instance, when I asked a former colleague a few years ago if I could borrow his power drill, he outright gave it to me because he never used it beyond the one time he needed it. It even came with the receipt. On Snapgoods, your rarely used items make money for you when you rent them out to other folks who need them. On the flip side, you can also save money by renting goods from your neighbors instead of making a costly purchase.
4. Share a travel experience
You love your area: you know the best eats in your area or have an insider’s view on a destination. Share your specialized knowledge with visitors who are looking for experiences beyond the usual tourist sites. Travel experience marketplace Vayable connects locals to travelers who are eager to go off the beaten path, allowing locals to earn extra cash by providing one-of-a-kind experiences to travelers.
5. Teach a class
If you have interesting skills, consider making money by teaching a class. Skillshare and Dabble connect teachers to communities of learners. Teachers offer classes on everything from blending tea to creating a rock poster to learning programming in a month. Depending on your skill set, you can also choose to offer a local, in-person class or an online course that can be taken by anyone around the world. An added bonus to teaching a class: beefing up your profile and reputation online.
In a time of financial instability, the collaborative economy provides people with ways to develop alternate sources of income. After all, we’re told to diversify our investments and lower our exposure risk – so why not diversify our sources of income?
When many of us are trying to avoid finding out what happens if we can’t pay our student loans or can’t pay our credit cards, it only makes sense to be prepared in case of emergencies that wreak havoc with our regular income. Our careful budgets and financial plans could be for naught if we have to face unexpected challenges like losing a job, health problems, or car accidents. Hopefully the tips above will help you take advantage of some of these new opportunities to make money.
Have you earned money through the collaborative economy? Share your experience below.
Fiona Lee is a personal finance writer at ReadyForZero, a site dedicated to helping Americans manage and pay off their debt – for free.
Follow Credit Karma!
March 14th, 2013
The most savvy consumers know that building your credit throughout your teenage and college years is crucial when it comes to loan interest rates and approvals in your 20's and 30's. The majority of us, however, have no clue how important it is to build your credit early. When I graduated college and went looking for a car loan, I was firmly in the clueless majority and was about to join those consumers who had learned the importance of building credit early the hard way.
February 27th, 2013
I’m 34 years old. And I weigh 25 pounds less than I did at age 24. Whattt?! I’m not saying I was fat at age 24, but I always thought I’d gain weight as I got older. I figured nature would start taking its course…that I’d get a saggy butt and grow a fupa (if you don’t know what that is, Google it). So I took a look back and thought about what could have possibly changed to make me thinner now than I was in my 20’s. And, yes, I’ve had some diet and lifestyle changes… but not enough to make that drastic of a difference. I realized a big thing that changed was the stress level about my finances, especially my credit score.
February 19th, 2013
Want to improve your finances? Maybe you’ve got debt; maybe you have trouble saving money; maybe you feel like your finances are in control of you rather than the other way around. Whatever the case may be, there are four keystones of financial stability that you can master with a little effort (and patience) that will help you get your financial life on track.
February 1st, 2013
While the holidays have come and gone, many of us are still feeling the financial sting that is distinct to this most wonderful time of the year. Credit card debt is usually where most consumers have borne the brunt of the holiday weight (financially, at least—I’m sure nana’s cookies haven’t helped other areas either). But it’s important to know that if you are toting some major credit card debt that you are not alone. Here are some numbers from Credit Karma's December 2012 data that may or may not shock you.
January 16th, 2013
Student loans, we’ve all got ‘em. And if you don’t, you probably know someone who does. So what do you do if you’ve managed to avoid and/or pay off your student loan debt - but your significant other hasn’t? Should you help him or her pay it off or should you let them tackle it on their own? The answer to this is in no way straightforward, so let’s dive right in!
December 19th, 2012
So how can you improve your credit score if you are dealing with debt? One way that helped in my case was to earn some extra income:
December 14th, 2012
With online shopping up 13 percent over last year, cyber space will be crowded with last-minute shoppers over the next several days. The convenience of shopping online is matched only by the great deals to be found. There is a strategy to getting the best price and staying safe, however, so consider these tips before clicking “purchase.”
November 19th, 2012
Most of what you read in personal finance blogging tells you that you need a perfect credit score. While many of us think about credit scores as a quest for 850, there is really no need to have a perfect credit score.
November 12th, 2012
>Most of what you read in personal finance blogging tells you that you need a perfect credit score. While many of us think about credit scores as a quest for 850, there is really no need to have a perfect credit score.