Best Ways To Boost Income In The Cost Of Living Crisis

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Are you struggling to make ends meet due to the rising cost of living? You're not alone. Many people are feeling the pinch as the cost of essentials like housing, food, energy and day-to-day living costs continue to climb. But there are methods you can try to boost your income and make ends meet. In this article, we'll explore some of the best strategies for increasing your earning power and surviving the cost of living crisis.

Best Ways To Boost Income In The Cost Of Living Crisis


 

TABLE OF CONTENTS

In this article we will explore in more detail:

  • Boosting your financial health is as easy as ABC

    • How to accumulate extra income

    • Why budgeting is important and how to start

    • Is career growth the answer to your problems?

  • Exploring more ways to boost income in the cost of living crisis

    • Smart investing

    • Entrepreneurship

    • Negotiating for higher pay

    • Real estate investment

    • Government benefits and support

  • How to boost your income by saving money on everyday expenses
  • Additional resources to boost your income


Boosting your financial health is as easy as ABC

Boosting your financial health is as easy as ABC

Building a better financial future is a goal that has united millions of people for many years. However, the demands are even greater in the modern climate thanks to inflation and living costs.  The cost of living crisis has made achieving financial stability a more daunting task than ever before.

However, despite the challenges and rising prices, it's still possible to boost your income and secure a better financial future. And the good news is, it doesn't have to be as complicated as you might think. 

By understanding and implementing the basic principles of income generation, you can take control of your finances and build a brighter future.  Building a strategy to make more money can be as easy as ABC; accumulating extra income, budgeting and career growth.

So, let's explore these simple yet effective strategies for increasing your earning power and achieving financial freedom.

A: Accumulating extra income

One of the most effective ways to boost your overall level of income is to create more revenue streams. They can then be used to supplement your main salary to help remove some of the financial strain. 

The great news is that you can often make money from home which makes the process of earning extra money, alongside your main employment, far more convenient. Better still, it can be your chance to earn money from something you enjoy. This can be seen as a far more attractive prospect than asking for overtime at a day job you don’t enjoy.

Whether it’s earning a little money in your spare time or actively launching a business is up to you. Either way, boosting your overall revenue in this way also creates a safety net. If you were to lose your job for whatever reason, that secondary income would help you through the toughest moments.

Accumulating extra income alongside a full-time job is a great way to boost your earning power and achieve financial freedom. Here are a few ideas you can explore if you’re not sure where to start:

  • Take on a side hustle: Whether it's freelancing, driving for a ride-sharing service, or starting an online business, a side hustle can be a great way to bring in extra cash long term.  We love sharing and testing side hustle ideas on our blog from matched betting to making money on social media or testing free money offers.  Between my husband and myself we have had an online fashion accessories shop, ran a handyman business, made wooden furniture, babysat, cleaned houses, cleared houses, resold items on eBay, sold pond plants and so much more.  If we see an opportunity to have a side hustle and make money, if we have the time, then we do it.

  • Rent out a spare room: If you have a spare room in your home, consider renting it out on a platform like Airbnb. This can be a great way to earn extra money on the side.  This can be a short-term or long-term plan.  There are multiple ways you can make money from the sharing economy.

  • Sell items you no longer need: Decluttering your home and selling items you no longer need on platforms such as eBay or Amazon can also help you earn some extra cash in the short term.  There are companies that buy books, CDs and other items for cash directly from you, so you don’t even have to faff around with selling sites if you just need quick cash.

  • Participate in online surveys or sign up for paid focus groups: You can also make money by participating in online surveys or signing up for paid focus groups.  While completing online surveys won't necessarily make you rich, it can be a convenient way to make a little extra cash on the side, even while you are watching TV or on public transport. Click these links to find out more about these survey and poll sites, that pay real cash, to get started:

  • Tutor online: If you’re a great people person and love to teach then you can offer your services as a tutor or coach in a subject you are proficient in.  You can do this from the comfort of your own home and pick hours that suit you.  There are online tutoring platforms where you can register as a tutor and source students.

It's important to note that some of these options may require some time, effort and investment. They also vary vastly in their earnings potential.  But they can be worth it in the long run, even the survey sites if every little helps right now.  It's essential to do your research and find those that suit you and your skills the best.

If you need money quickly then here's how to make £1000 in one month online or check out our article on how to make money in one hour.  You'll find so many side hustle ideas and online ways to get extra cash easily in our make money sections.  We love making extra money and exploring new ways to do this at home or online.

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B: Budgeting

When looking for inspiration on how to improve your financial health, it is easy to focus on the concept of increased earnings. However, it is often far easier, or at least quicker, to reduce your outgoings. Aside from generating fast results, the benefits can follow you for life.

One of the most effective ways to improve your finances is to reduce your expenses. By cutting back on unnecessary spending, you can free up more money for savings, investments, and other financial goals.  Combine this with earning extra money and you can start to save for a rainy day, or your future, or to prepare for the next cost of living crisis!

In this section, we'll explore different strategies for budgeting effectively, including how to negotiate better rates with service providers, use price comparison tools, and how to analyse your spending habits to identify areas where you can cut back. By taking control of your spending, you can put yourself in a stronger position to achieve your financial goals and weather the cost of living crisis.

Budgeting is a key strategy for reducing your expenses and improving your financial health.  Here are a few tips for budgeting effectively:

  • Speak with service providers: Start by contacting your energy, insurance, internet and telephone providers to see if you can negotiate better rates. Negotiating cheaper deals could save you hundreds or even thousands of pounds per year.

  • Use price comparison tools: Before making any purchase, be sure to use price comparison tools to find the best deals. This will help you save money on everything from groceries to clothing.

  • Analyse your habits: Take a close look at your spending habits to see where you can cut back. For example, you might be able to reduce your food waste by meal planning. Buying in bulk can slash the cost of food, toiletries or cleaning products.  Turning off electronics when not in use could cut your electricity bills.  Check-in on your habits and see where you can make savings and smarter choices.

  • Make a plan: Once you have identified areas where you can cut back, make a plan to stick to your budget. This might include setting a specific savings goal or tracking your spending to see where you can make adjustments.

  • Review your budget regularly: Regularly review your budget and make adjustments as necessary. This will help you stay on track and ensure that you continue to make progress towards your financial goals.  Are there more places you can cut back on?  Make it a challenge!  Don’t be hard on yourself if you need to cut back less though or increase spending in some areas to ensure you are not without, or to have some fun money!  After all, life is for living and enjoying too, if you can afford it.  Work out a budget that is suitable for you and yours.

Improving your family’s financial future and current financial situation all starts with knowing your incomings and outgoings and setting a realistic budget and goals.

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C: Career growth

While the above steps will have a positive influence on your financial health, you should never ignore your career. A better-paid career will provide the strongest platform for building a better financial future. After all, it doesn’t matter how wisely you spend your cash if you don’t have enough money to start.

Career growth is a key strategy for building a better financial future, as a higher-paying job can provide a solid foundation for achieving your financial goals. However, it's important to note that career growth is not only about salary, but also the opportunity for growth, learning, and development. Here are a few ideas to help you take control of your career and achieve your aspirations:

  • Develop in-demand skills: Stay up to date with the latest trends and skills in your industry, and invest in training or education to develop the skills that are most in-demand by employers. 

  • Climb the career ladder: Perhaps you can further your role in your current employment with an internal promotion, or look for new roles and opportunities elsewhere for a higher salary.  An appreciation of what skills employers look for will help you prepare to land a better job. Of course, you also need to actively apply for better roles. 

  • Network: Building a professional network can open up new opportunities for career growth. Attend industry events, join professional organisations, and connect with people in your field.

  • Create a personal brand: Develop a personal brand that highlights your unique skills, experience and personality. This will make you stand out from the competition and increase your chances of getting hired.  For example, you can create your own LinkedIn profile to showcase your talents, as well as network with like-minded individuals and companies.

  • Take on new responsibilities: Look for opportunities to take on new responsibilities in your current role, or to volunteer for projects that will give you exposure to new areas of expertise.

  • Be proactive in your job search: Keep an eye out for new job opportunities, whether it's an internal promotion, moving to a competitor, or starting a new career altogether.

  • Retrain: if your earnings are capped in your career and there’s no room for growth, but you want to earn more, then perhaps it’s time for a career change.  If you are not fulfilled in your current role any longer then considering other options and a new career path could be the answer.

  • Ongoing learning: The answer to never getting stuck in your career is to be constantly open to ongoing learning and development to enhance your career prospects.  As well as levelling up with skills and training, don’t be afraid to take every opportunity you can to teach yourself and learn more about the role through your own learning and education too.

By focusing on career growth, you can not only boost your short-term earnings but also position yourself for long-term financial success. This can lead to reduced financial stress and an overall better quality of life.

Exploring more ways to boost income in the cost of living crisis

Exploring more ways to boost income in the cost of living crisis

Now you know the ABCs of boosting your financial health, what more can you do?  In this section, we'll explore additional income generation strategies that can help you survive the cost of living crisis. From smart investing to government benefits and support, these strategies can provide a steady stream of income and help you achieve your financial goals. So, whether you're looking to reduce your expenses, increase your earning power, or prepare for the future, these strategies can help you navigate the cost of living crisis and achieve financial freedom.

Smart investing

Smart investing is an important strategy for building long-term wealth and generating income in the cost of living crisis IF you have money available to invest after your day-to-day living costs are covered. 

Investing in assets that have the potential for growth, such as stocks, bonds, and real estate can provide a steady stream of passive income over time.  This is a long-term strategy and financial goal and is not suitable for those needing money quickly or in the short term. Investing also carries some level of risk, so it's essential to understand your risk tolerance and investment goals.  As a beginner investor you may wish to explore some low risk ways to invest your money until you feel more comfortable and confident with the process.   Here are a few tips for smart investing:

  • Diversify your portfolio: Diversifying your investments across different asset classes and sectors can help to spread the risk and increase your chances of earning returns.

  • Do your research: Before investing, be sure to research the companies, funds, or properties you're considering. Look at their financials, management, and growth prospects to make informed investment decisions.

  • Invest for the long-term: Investing for the long-term, rather than trying to time the market or make quick profits, can help you weather market fluctuations and achieve your financial goals.

  • Consider working with a financial advisor: If you're new to investing or need help creating an investment strategy, consider working with a financial advisor. They can help you create a portfolio that aligns with your goals and risk tolerance.

By following these tips, you can invest wisely and generate income in the cost of living crisis. This isn’t going to generate money in the short term but is a long-term goal for your finances in the future.  

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Entrepreneurship

Entrepreneurship is another effective strategy for boosting income in the cost of living crisis. Starting your own home-based business can provide the opportunity to earn a significant income and achieve financial freedom. However, starting any business also requires a significant investment of time, effort, and resources. Here are a few tips for starting a successful business:

  • Identify a need in the market: Look for a gap in the market and find a way to fill it with a product or service. This could be something you're passionate about or an area where you have expertise.

  • Develop a business plan: Create a detailed business plan that outlines your goals, target market, and strategies for achieving success.

  • Seek out funding: Look for funding opportunities such as grants, loans, or investors to help you get your business off the ground.

  • Build a team: Surround yourself with a team of experts to help you with the various aspects of running your business.

  • Stay flexible and adaptable: Entrepreneurship is not without its challenges, and it's important to be flexible and adaptable to the changes that come with starting a business.  Avoid these common mistakes when starting a business to get a headstart!

Starting a business can be a challenging and rewarding endeavour, but it can also be a great way to generate income in the cost of living crisis. It's essential to have a clear vision, a solid plan, and the determination to see it through.  Perhaps the best way to achieve this is to test your business idea by starting small.  Maintain your main job and build up your small business in the evenings and weekends to see if it’s a viable business idea.  Using all our spare time around our other jobs and family commitments was exactly how my husband and I started all our business ideas to achieve our self-employment goals.

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Negotiating for higher pay

Negotiating for higher pay is a powerful strategy for boosting income in the cost of living crisis. It's essential to be prepared and to have a clear understanding of what you're worth in the marketplace. Here are a few tips for negotiating higher pay:

  • Research the market: Find out what similar positions in your industry pay. You can use websites such as Glassdoor, Payscale or Check-a-Salary to get an idea of industry standards.

  • Identify your strengths and value proposition: Understand the value you bring to your company and be able to articulate it effectively. Highlight your achievements and contributions to the company.

  • Be confident: Remember that you deserve to be compensated fairly for the work you do. Confidence is key when asking for a raise or negotiating a salary.

  • Be open to negotiation: You may not be offered your dream salary, but be willing to negotiate and be open to different forms of compensation such as bonuses, stock options, or flexible work arrangements.

  • Be prepared for rejection: Remember that not every negotiation will be successful, but that doesn't mean you should give up. Keep your options open, and be prepared to seek out other opportunities if necessary, or try again at a future date if you’re determined to keep this role and know your worth.  Also, make sure you know when it’s time to leave your current role for a better opportunity if your skillset is being taken advantage of.

Negotiating for higher pay can be challenging, but it's a powerful way to increase your earning power in the cost of living crisis. By being prepared, understanding your worth, and being confident, you can increase your chances of success in your negotiation.

Real estate investment

If you have a large amount of savings or the potential to invest in a buy-to-let mortgage then real estate investment is another strategy for boosting income in the cost of living crisis. It can provide a steady stream of passive income through rental income or capital appreciation. Keep in mind that real estate investment also carries a level of risk and it requires a significant investment of money and time. 

One way to invest in real estate is by purchasing a rental property. People are always looking for high-quality rental accommodation and this can be a long-term lucrative opportunity.  This can provide a steady stream of rental income and the potential for capital appreciation over time. 

Rather than a long-term rental or residential property, you could look into vacation rentals as another option.  This could be using an entire residential property for an Airbnb let, or it could be investing in a holiday lodge or mobile park home in a popular resort area.  Often you can leave the management of these sorts of properties to the holiday park for an annual fee, allowing you to simply sit back and enjoy the profits.

Another way is through flipping properties and property development, which involves buying properties at a low price, renovating them, and then reselling them at a higher price. 

Real estate investment trusts (REITs) are another option, they allow you to invest in a diversified portfolio of properties without the need to own or manage them directly. 

It's important to do your research, understand the market and be prepared for the time and money needed to invest in real estate. It's also important to have a clear strategy and a plan for managing the property and to be aware of the risks and potential returns.

Government benefits and support

In the UK, there are several government benefits and support programs that can help individuals and families boost their income in the cost of living crisis. These benefits can provide financial assistance for housing, childcare, healthcare, and other essential expenses.

One of the main benefits is Universal Credit, which is a means-tested benefit designed to help individuals and families on a low income cover their living costs. Eligible individuals can also access additional support such as housing costs, child tax credits and child care costs.

The Pension Credit is another benefit that can provide additional income for pensioners on a low income. It's designed to help older people who are on a low income to have enough money to live on, which can help boost their income in the cost of living crisis.

Another benefit is the Jobseeker's Allowance, which is a benefit for people who are unemployed and looking for work. It is intended to provide financial support for those who are actively seeking employment.

There are also other benefits such as the Working Tax Credit, which is intended to help low-income working families with the cost of living, and the Child Tax Credit, which is intended to help families with the cost of raising children.

It's important to note that these benefits are subject to change and the eligibility varies based on individual circumstances, so it's a good idea to check the latest information on the government's website or by speaking to a benefits advisor. 

Start by looking here on the main benefits page on the UK government website to find out which types of benefits you may be entitled to if you are on a low income, care for someone, are out of work or have a low pension.

Boost your income by saving money on everyday expenses

Boost your income by saving money on everyday expenses

Cutting costs on everyday expenses can help boost income and improve overall financial health. There are practical strategies and tips that you can apply to your own situation to start saving money and therefore have more money available for the most important things.

One area where you can make a big impact is on your grocery expenses and other household shopping including all your online purchases. From using cashback apps and browser extensions to find coupons and promo codes, to shopping around for better deals, there are many ways to save money on your grocery bills. 

Here are 10 ideas and further resources to help you start saving money today:

  1. Check out this list of cashback apps to easily start getting free money back on the things you are already buying.

  2. Link your cards to the Airtime Rewards app and automatically accumulate money when you shop in their linked partners.

  3. Worried about the expense of Christmas?  Here are some savvy ways to save on Christmas shopping so you can be prepared.

  4. If you have kids and want to enjoy meals out and family day experiences, then see how you can save on family days out with Kids Pass.

  5. For special occasions and meals out, look into Tastecard who offer deals on takeout and in restaurants so you can get around 50% off or buy one get one free.

  6. Heat your house with a stove?  If you have a log burner then make use of discount codes like this Lekto discount code to save money when ordering wood fuel.

  7. If you need a new bank account, or even if you don’t, there are many companies that will pay you for signing up for a new current account, such as this new customer offer from Monzo for an easy free £5.  Keep up to date on our list of free money offers for the latest deals and offers to get real free cash!

  8. Use this Jamdoughnut app to prebuy giftcards for the stores you are going to shop in, including supermarkets, to get an instant discount.

  9. Get discounts on your purchases online by installing browser extensions like Slash for notifications when you can save money on your basket!

  10. Finally, check out these 20 ways to make and save more money for more ideas.

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Additional resources to boost your income

Don’t stop researching there.  Here are some more great articles and resources:

For more ideas on the skills required for career development check out our article on skills of the future workforce from 2022 and beyond.

Thinking of supplementing your income with another role or side hustle in your spare time?  Here are some ideas for how to find and maintain a second income to earn more money.

Looking for more money as you have recently separated?  Learn how to get by on one income after a separation or divorce.

Retired?  Look at these methods to supplement your retirement income and don’t forget to see if you are entitled to Pension Credit if you’re in the UK and on a low pension.

Final word

The cost of living crisis can be challenging for many people, but there are strategies and options available to help boost income and achieve financial freedom. Even without a recession or crisis, there are always benefits to improving your financial situation.  This article has explored different strategies and by implementing these, individuals and families can take control of their finances and navigate the cost of living crisis.

However, it is important to remember that each person's situation is unique, so it's essential to research and evaluate the options that will work best for you and your circumstances. With a clear plan and determination, you can reach your financial goals by sourcing home-based income opportunities, taking on more hours, reducing expenses, exploring your personal career growth and navigate the cost of living crisis.

 

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