There Is More Than One Way to Skin a Cat
by Brandon Eley ~ December 4th, 2009. Filed under: Uncategorized.I’ve been struggling lately trying to find a way to cut expenses. I just keep going back through the same list of bills and there’s not much left to cut. We already have the slowest Internet, basic cable, basic phone, no long distance, etc. We have cut so many “luxury” expenses out of the budget already but just aren’t making much progress toward paying off the debt.
After a few months of frustration over cutting $10 here and $25 there in our budget, I thought I might be going about it the wrong way. I had clearly gotten to the point where there were no more expenses that could be cut easily without making serious lifestyle changes such as selling a car or house (which I do not want to do).But then I thought… Why does I have to lower my expenses? Why can’t I find a way to increase my income?
So I set about trying to find a little extra money. I’m not one for delivering pizza, and quickly found an extra $1,000+ a month in income writing and speaking about my industry. That’s an extra $12,000 – $15,000 a year that can go straight to debt. I’m confident that I can find more too, if I keep looking.
So instead of worrying about $10 and $20 expenses month after month, take some time to think about ways you can increase your income. Here are some ideas:
- Write articles for a publication, magazine, or newsletter
- Write a book or ebook
- Speak at conferences or industry events
- Offer consulting services
- Get a part-time job
- Start a home-based business
The list goes on and on. No matter what your skill level, education or experience, there are tons of opportunities to make a little extra cash. I think it could be more productive to work on increasing your income after you’ve already reduced your expenses to the bare minimums.
March 4th, 2010 at 10:52 am
This is a very important point. You can only reduce your expenses by so much, but the sky is the limit on income. You have to focus on controlling expenses or your spending will just increase with your income, but you are right. $1000 extra each month goes a lot further than most of the things you can cut.
Also don’t forget the tax advantage of having a business income. If you structure it right, there are quite a few tax deductions you can take including a deduction for a home office, auto expenses, attending a conference, etc. You don’t want to create expenses that you don’t need, but the tax savings can make your dollar go a lot further.
March 11th, 2010 at 2:21 pm
Great point! Just started my own debt blog, and would love your comments and suggestions!
Keep going, we can do this!!!
April 22nd, 2010 at 10:56 am
great post, couldnt agree with it more. Increasing income and decreasing expenses should go hand in hand for people trying to get out of a debt burden. obvisouly it is easier cutting out obvious luxuries like data plans for a phone or HBO for tv, but getting a part time job on weekends or nights can make a huge difference between saving money each month and going deeper into debt each month.
June 21st, 2010 at 10:37 pm
Very good thoughts. you are right. We have to find multiple revenue streams so that a small profit from each of them can make a fairly good amount every month.
Many successful people used to create these variety of revenue streams, and most of the times they would be almost automated. In the age of internet and information age, computer based business/services can do a lot.
September 21st, 2010 at 3:14 pm
Brandon,
That’s a great idea. Extra income is the easiest way to pay off your debt. But not everyone can do that.
One thought, have you tried talking to your creditors yet? Try to get them to come down on the amount of debt you owe. If you are a good talker, you may luck out in that department.
Keep at it, you’ll see the rewards soon enough.
September 27th, 2010 at 5:59 am
Extra money, even if it is not much can certainly halp a lot. Finding a way to bring in an additional $300 or $400 a month can get you a long way. Great post!
October 31st, 2010 at 6:56 pm
This is usually the most overlooked step in getting one’s budget under control. Most people will make their payments on time and pay them in full so long as their income holds out. When it doesn’t then they cut expenses. Sometimes cost cutting isn’t enough. You have to make more money. The suggestions given for increasing income are excellent ones.
To add a further bit of encouragement regarding home based businesses or writing opportunities, if you have a hobby you’ve been involved with for several years, you have some knowledge and expertise that might be valuable to others. That’s a good place to start.
November 2nd, 2010 at 11:47 am
One way to increase your net income is to ensure you’re not having too much withheld from your paychecks. Why give the government an interest free loan while you’re paying interest on your debt?
December 20th, 2010 at 5:22 pm
Great post. Adding a few hundred dollars a month to your income can certainly go a long way in helping to get out of debt. Over time the results will show.
March 2nd, 2011 at 3:59 pm
Great ideas on how to add income. I’ve thought about writing an ebook and after reading your article I will give it a try.
I’ll let you know how it goes.
Thanks, Chris