Pimp Your Finances

Kiplinger’s Starting Out recently published a list of 8 Ways to Boost Your Income.  The site is aimed at people in their 20s and 30s, but I think this article applies to all ages.  I want to share their list, and also my thoughts on their advice.

1. Sell your junk

I haven’t done this yet, but it’s a great idea.  We all have too much stuff that is just taking up space.  Craigslist, eBay, and even Amazon are all good places to sell things.

You could try selling old electronics, textbooks, musical instruments and equiptment, clothes, etc….  The list is endless.

I love this because it’s a 2 for 1 deal.  You get paid to get rid of stuff you don’t need.

2. Get a job

This seems like common sense, but they have a good point.  If you’re unemployed, you may have to settle for a less-than-ideal job offer given the economy.

If you do have a job but it’s still not enough to make ends meet – consider getting another one. 

3. Sell your skill

Even if you don’t want to get a second job, there are a variety of services you could get paid for.  Good at math?  Try tutoring.  Play an instrument?  Give lessons.  Like animals?  Try walking dogs.

It won’t be glamorous, but it’s still a way to make more money, possibly doing something you enjoy or that gives you a sense of fulfillment.

4. Rethink your rent

This is probably the best suggestion on the list.  One reason why the economy is in such bad shape is that people insisted on housing they couldn’t afford.

Housing is probably the biggest expense in your budget, so it’s also the biggest opportunity for improvement.  Try downgrading your house, or taking a roomate.  The savings could be huge, and could spread to other areas like utility bills or even groceries.

5. Claim unclaimed assets

I don’t think this is really practical for most people, but there are unclaimed funds from lost bank accounts, uncollected utility deposits, unclaimed tax returns, etc…

There are a couple of sites out there to see if you’re missing money.  They suggest sites like www.missingmoney.com or www.unclaimedassets.com.

6. Adjust your tax withholding

Another good one!  As fun as it is to get a big tax return each year, you’re throwing money away.  You’ve essentially given Uncle Sam an interest free loan.

If you adjust your federal tax withholding, you can increase your take home pay by a significant amount.

7. Get paid for stuff you do anyway

If you use reward credit cards responsibly, you can save money, get cash back, or earn points to redeem for things you want.  If you can get rewards for the things you’re already doing, you’d be a fool to not take advantage of them.  Just make sure you pay off your credit cards every month!

8. Hit up Mom and Dad

I have very mixed feelings about this.

First, they recommend moving back home to save cash.  I’m a big fan of this, and did it for two years after college.  Instead of rent, I paid down my credit card debt.

Then they suggest borrowing money from family or friends.  I am completely against this.  If you’re short on cash, borrowing is only a temporary solution.  How are you going to pay the money back?  There’s a good chance that you’ll only dig a deeper hole for yourself, and strain your personal relationships in the process.  It’s just not worth it.

I liked their tips.  Nothing groundbreaking, but it definitely offers a few ways to increase your cash flow.  It won’t replace your income, but it could give you the boost you need to make ends meet or even get ahead.

One of my favorites is selling your skills.  If you have a talent or passion, why not try to get paid for it?  Another favorite is re-thinking your rent.  It’s normally the biggest expense in any budget, so it’s also the easiest to cut back on.