Extra income to boost your savings

Having two or three jobs is the new norm for many people. The extra income can help to cover bills, make those special purchases and increasingly allow people to save for the future.

Once upon a time people had second jobs to help build a deposit for a house. If the regular income only just covered the essentials, an extra income could also help pay for that special annual holiday.

Juggling busy schedules is never easy, so squeezing in time for more work isn’t possible for everyone. However, increasing numbers are doing what it takes to generate spare cash to give them flexibility. That also means being able to save.

In fact, if you are earning additional money, you are not alone! What some describe as “side hustles” are on the rise. This is often freelance or occasional work rather than regular part-time employment.

Data released by GoDaddy and the Centre for Economics and Business Research (CEBR) reveals that side hustles have risen by 32% over the last decade. That ties in with the economic downturn that has affected so many people in recent years.

A second income can be fun

While a part-time position involves working for someone, when they require you, freelancers enjoy much greater flexibility. Moreover, the route to extra income is often done in conjunction with something they are passionate about. The work is done on their terms, often at weekends or in the evening.

Generating that second income can be an escape, something fun. People who have craft skills can make gifts, clothes and collectibles. Anyone with professional qualifications can offer ad-hoc services to small businesses. People with teaching skills can offer tutorials.

What is apparent is a growing desire to explore fresh opportunities. Anyone looking to change direction and find a new career that pays the bills can experiment before taking the plunge.

Having more coming in each month means that savings do not need to be neglected either. There are many flexible investment options available. This means people can establish a contingency fund, raise funds to start a business, or invest directly into a pension fund towards longer-term retirement plans.

Earning extra from a hobby or something you are passionate about is great. If you are looking to benefit from that additional income it’s always worth speaking with an independent financial adviser to help you make the most of your money.

Also, make sure that you keep records of what you earn and how, and if necessary register with the UK Government Gateway for Self-Assessment tax returns online.

Making the most of extra cash

Ten years of austerity has encouraged many people to focus on the future. Since the economic crash of 2008, local authorities, companies and individuals have struggled to juggle income and expenditure. Everyone has needed to find smarter ways to earn and save.

That’s why anyone earning an extra wage increases the financial choices open to them. Small, regular savings into an ISA or over longer periods into a pension will soon add up. It’s a small sacrifice to boost income later in life.

Logic Wealth Planning can help you start the savings and investment ball rolling. Call us on 0808 1234 321 or email info@logic-wp.com for a no-obligation chat about the many options available.

Wise words about money.