With cost of living on the rise, you may be looking for ways to become more savvy with your money, whether that be to grow your savings, start investing, or pay down debt.
Financial educator Melissa Browne said when people are looking to tighten the purse strings they often start by cutting things out, but she suggests looking for ways to find extra money.
“We know how to tighten our belts but I don’t think we’ve been taught how to find more income. But being more frugal will only get you so far. That’s why I want to teach people how to find more money, not just perpetually try to tighten their belt,” she said.
One important question Browne gets people to ask themselves is: what are you prepared to suffer for? Of course, finding extra income and saving money will involve some level of sacrifice, but it can be a fun exercise.
“It’s about being creative with ways to find more income,” she said.
If you’re keen to find an extra $5K before the end of the year, it’s a good idea to open or assign a bank account to the challenge (even nickname it ‘$5K’ if that helps) so you can watch the total grow.
With the money you earn, you might choose to pay down bad debt, such as a credit card, Afterpay or personal loans. You might want to create a financial buffer of two to three months’ worth of living expenses. You might even consider investing the full amount.
In instances where you save on the amount you spend, transfer the difference to your $5K account. And if you enjoy this challenge so much, you might want to aim for $10K and keep it rolling for 12 months.
Here, Browne shares 50 ways you can find $5,000: