In today’s economy, having multiple income streams can provide financial stability and open up new opportunities. With the rising costs of living, unexpected expenses, and hopes for vacations, retirement, or simply having extra cash, many people are looking for ways to earn additional money on top of their regular job.
Exploring new income sources with a side hustle or small business allows you to leverage your existing assets, skills, and passions into supplemental income. This blog post will outline seven ways to earn extra money, including renting out unused spaces, pet sitting, driving for a rideshare service, tutoring, freelancing skills, drop shipping, and renting personal vehicles.
Top 7 New Income Streams to Explore
Whether you want to generate a few hundred bucks periodically or build a substantial side business, these seven options can help you make more money and achieve financial freedom.
With some effort and know-how, you may be able to secure multiple income streams that provide security, flexibility, and a financial cushion when you need it.
1. Rent out unused space
Do you have an extra bedroom, basement, or backyard cottage you aren’t using? Consider renting it out on a short-term rental site like Airbnb. You set the nightly rate, rent out the space when it works for you, and earn some cash from folks looking for a local and affordable place to stay.
Depending on where you live and the type of space you have, you could earn anywhere from $30 to $150 per night. You’ll need to report your Airbnb income on your taxes using the w-2 form from the rental site. Creating a separate business credit card just for rental expenses can make this easier. But being able to pocket some extra money occasionally for an unused space could be worth it.
2. Dog walking or pet sitting
If you love animals and live in an area where dog walking or pet sitting services are in demand, this can be a fun and flexible way to earn extra money. Sites like Rover and Wag connect pet owners with dog walkers and sitters willing to provide walks, overnight stays, daycare, and more.
You set your rates and schedule. Expect to earn $15-25 per 30-minute dog walk and $25-50 per dog overnight stay. To get started, create a profile on one of the pet service sites, pass a basic background check, and pay a small fee for third-party insurance.
Then, you can begin getting matched with pets in your area needing your dog walking or pet sitting services. You’ll need to pay taxes on your earnings as self-employment income.
3. Drive for a rideshare service
Driving for a rideshare app like Uber or Lyft is a popular option for earning extra money with a flexible schedule. You use your vehicle to transport passengers to and from their requested destinations. As an independent contractor, you choose when and where you drive.
Expect to earn around $15-25 per hour before deducting expenses like gas and mileage wear and tear. You’ll need a clean driving record, eligible vehicle, license/insurance/registration, and to pass a background check. The rideshare companies cover matching, payments, and insurance during rides.
You’ll receive a 1099 tax form for your earnings to report. Setting aside some earnings to cover taxes is wise. If you drive at peak times and get good rider ratings, rideshare driving can be lucrative.
4. Tutor students
If you have particular subject matter expertise like math, science, languages, music, test prep, or more, offer private tutoring services. This works best if you live near schools or colleges, but online tutoring is also an option today.
You set your hourly rate, schedule, and policies. Expect to earn $20-50 per hour, depending on the subject matter, your expertise level, and student age. You can market your services through neighbourhood listservs, tutoring companies, or directly to families.
Be sure to outline your rates, availability, subject expertise, and policies upfront. Consider having students come to you rather than driving to them. Paying quarterly estimated taxes on your earnings is essential when self-employed. But tutoring leverages your knowledge into cash.
5. Freelance your skills
From writing to graphic design to consulting, today’s digital world makes freelancing your skills easier. You can find clients needing short-term help with projects by joining sites like Flexjobs, SolidGigs, Fiverr, and Upwork. Pricing is competitive, but the variety of gigs is endless.
Do research to set competitive rates for your area of expertise. Beef up your LinkedIn profile. Build a portfolio of sample work. Be responsive and meet deadlines to get great client reviews. You’ll need to be self-motivated and proactive about finding and completing projects.
Paying quarterly estimated taxes and keeping good records is also key. But freelancing lets you turn skills into income.
6. Start a dropshipping business
Dropshipping allows you to sell products through an online store without actually stocking any inventory. When a purchase is made, you forward the order to your supplier, and they ship the product directly to the customer.
This makes it possible to run an e-commerce store with very little upfront investment. Popular dropshipping niches include home goods, fashion/jewellery, toys, hobbies, and more. Choose a selling platform like Shopify or WooCommerce, find dropship suppliers, create listings, and market your store.
It will take time to build consistent sales and revenue, but dropshipping can develop into a solid business. You’ll need to register your business, obtain sales tax IDs and business insurance, and follow good record-keeping. But with some hustle, dropshipping can become a lucrative side income source.
7. Rent out your car
Apps like Turo and Getaround make it possible to rent out your personal car when you aren’t using it. You list the car details, availability, and rental cost. Interested renters book timeslots that work for you.
As the owner, you set rental requirements and pricing, then earn income from folks needing temporary car use. Consider an older, paid-off car with decent mileage and condition. Document the car’s condition thoroughly before listing it.
Set competitive pricing but estimate high to earn more. Meet renters for pickup/drop-off and inspect the car before/after. You may need to adjust your auto insurance policy and report rental earnings as 1099 income. But it lets you earn money from an idle asset.
With a little effort, creativity, and hustle, you can likely find one or more streams to earn some extra income streams in your spare time. Start small, do research, provide great service, and reinvest a portion of earnings to grow promising opportunities into steady-side income sources.
Generating additional cash can help you achieve financial goals and enjoy more security and freedom. Analyze your skills, assets, and interests to determine the best income ideas to pursue. Then, work diligently to convert possibilities into profitable realities.