Is a $300 Side Gig Worth It? 5 Ways To Earn More Than That Without Working
Side gigs have become an increasingly popular way for Americans to supplement their 9-to-5 income.
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But according to a recent survey by GOBankingRates, over half of respondents reported earning less than $300 a month from their side hustles. That’s concerning, especially considering most households spend over $400 a month on groceries alone.
If you’re investing long hours in your side gig but still making less than $300 a month, your time could be better spent by exploring the following passive and semi-passive income streams that’ll allow you to beef up your wallet without burning out.
While some may require initial setup, once they’re established, they can generate consistent income with little ongoing work. Here are 5 ways to boost your income with little effort.
Monetize Your Online Presence
If you have an online following or a blog, monetize it to bring in more than $300 a month. One excellent way to do so is through affiliate marketing.
Here’s how it works: Partner with businesses to promote their products and services, and when you mention their product or service on your site, you link to that product or service using a unique affiliate code. When your audience purchases a product or service through that link, you’ll earn a percentage of the sale.
Sponsored content is another great way to monetize your blog or social media. If you have a decent following, companies might be interested in paying you to post their products or services. You get to make money, and they get their brand in front of your audience. It’s a win-win.
Lastly, selling digital products like e-books, online courses, or digital services can also be a goldmine. You create the product once, and then you can sell it over and over again without having to package or ship the item.
While it may take time and effort to create a website or establish an online presence on social media, once it’s set up, it can provide a steady stream of income with minimal upkeep.
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Invest In REITs
“By investing in REITs, you can potentially earn more than $300 a month in passive income while benefiting from real estate market appreciation,” said Jeff Rose, CFP® and founder of Good Financial Cents.
REITs, short for real estate investment trusts, are companies that finance, own, and operate real estate. Simply put, they pool capital from multiple investors to purchase and manage income-producing real estate properties like apartment buildings, office spaces, or shopping centers.
“REITs typically pay high dividends since they’re required by law to distribute at least 90% of their taxable income to shareholders. Some REITs even offer yields exceeding 5% or more,” said Rose.
One particular REIT he suggests looking into is the Vanguard Real Estate ETF (VNQ), which currently yields around 4.5% and provides exposure to a diversified portfolio of real estate assets.
Remember, before investing your hard-earned cash, always perform your due diligence and consult a financial advisor to ensure your investment aligns with your financial goals.
Rent Out Your Car
If you’re not using your car all the time, you can make an easy $300 or more a month passively by renting out your car on peer-to-peer car rental services like Turo.
Think of Turo as the Airbnb for cars. You list your vehicle, set your price and availability, and you’re in business.
According to Turo, hosts who list their car on the site earn, on average, $10,516 a year, which equates to $876 a month. Of course, your exact earnings can vary depending on factors like how often your car is rented, but $300 a month is a rather achievable goal.
To get an accurate estimate of your earning potential, Turo has a calculator that allows you to see how much you could make with different vehicles. For example, a Toyota Prius in Orlando can earn an average of $8,412 yearly or $700 monthly.
Rent Out Your Spare Room or Space
If you’re looking for a way to generate income without working long hours, consider renting out extra space in your home. According to Airbnb, the average host on their site makes around $13,800 a year — $1,150 a month.
But don’t worry if you don’t have a spare room to rent out. There are other options available.
Neighbor.com is similar to Airbnb, but instead of renting out rooms, it allows you to list any extra space, whether that’s a closet, garage, or driveway. According to Neighbor, you could earn anywhere from $100 to $600 per month, depending on the location and size of the space.
Park Your Cash in a High-Yield Savings Account
If you have a significant chunk of change that you don’t need immediate access to, parking it in a high-yield savings account can be a smart and low-risk way to generate passive income.
While it’s true that to earn more than $300 per month, you would need to deposit at least $72,000 in a high-yield savings account with at least a 5% APY, the real beauty comes in the power of compound interest. As the balance of your account grows with time, so will your monthly interest earnings, which will continue increasing without you needing to lift a finger.
Let’s say you put exactly $72,000 into a high-yield savings account with a 5% APY compounded daily. In 20 years, this $72,000 will have grown to $195,703 without you touching it. By then, you’ll be earning around $800 a month passively in interest each month.
Methodology: GOBankingRates surveyed 1,021 Americans aged 18 and older from across the country between October 12 and October 16, 2023, asking twenty-three different questions: (1) How much did you spend on your pet in the last year?; (2) How much have you spent/are you planning to spend on Halloween this year?; (3) How much money do you spend on kid-related activities in a year?; (4) How much do you spend on average on your monthly utility bills (electric, heat/gas, water)?; (5) What spending/saving habits have you had to change in the last year due to inflation/rising prices? (select all that apply); (6) What was the biggest unexpected expense you had this year?; (7) How much do you currently spend on monthly car payments?; (8) Do you live in a single-income or dual-income household?; (9) In the past year, did you have to take on a side gig because of rising prices/inflation?; (10) How much do you bring home from your side job(s) each month?; (11) How much have your overall expenses gone up in the past year?; (12) What is your top financial priorities to end 2023?; (13) What is the top way you’ve earned your money/gained wealth?; (14) Have you started financially preparing for 2024?; (15) How much have you spent on home upgrades in 2023?; (16) How will the resumption of student loan repayments affect your budget?; (17) How much do you currently owe in student loans?; (18) How much do you spend on yourself (not including housing, food, etc.) out of each paycheck?; (19) How much do you spend on online purchases per month?; (20) Where do you shop for groceries most often?; (21) Do you shop around for groceries to get better deals?; (22) What are you currently invested in? (Select all that apply); and (23) What is the current value of your stock investments?. GOBankingRates used PureSpectrum’s survey platform to conduct the poll.
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This article originally appeared on GOBankingRates.com: Is a $300 Side Gig Worth It? 5 Ways To Earn More Than That Without Working
