How can you make additional money?

By Anita Jaynes on 11 August, 2022

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The cost-of-living crisis continues to rage in the UK, with inflation inching above 9% and set to reach double digits before the autumn.

This is incredibly challenging for households, particularly as interest and savings rates remain relatively low (despite the decision of the Bank of England to initiate five base rate hikes since December).

With this in mind, it may be better to increase your earnings if you want to improve your financial circumstances in the current economic climate. But how should you go about this?

The Rise of the Side Hustle

The notion of taking on additional work or so-called “side hustles” has gained significant traction over the course of the last decade, thanks to a unique combination of need and opportunity.

Certainly, real wages and earnings have stagnated in real terms since 2010 and continue to remain well below their 2008 peak. It’s important to address wages in real terms, as while our pay may increase incrementally each year in terms of the cash that we receive, this means little if the cost-of-living and inflation soars at a faster pace.

Between April 2010 and April 2018, the median pre-tax weekly earnings of a UK employee fell by 3% in real terms, with this trend having been exacerbated by the recent inflation spike.

At the same time, technological advancement has continued at an increasingly rapid pace. This has created more opportunity for people to seek out earning opportunities and work remotely, making a wider range of side hustles in the process.

According to a report from the Henley Business School in May 2018, around 25% of UK adults had a side hustle, with this percentage increasing to 42% among students and recent graduates.

What are the Best Side Hustles?

It’s arguably the emergence of the Internet and remote communication technology that’s most synonymous with side hustles, with this creating the vast majority of additional earning opportunities in the UK.

For example, this has opened up far easier access to the world’s financial markets, creating an entire generation of part-time traders who want to leverage speculative vehicles like CFD trading to generate flexible streams of income. 

Other examples include drop shipping, which is linked to the rise of ecommerce and enables you to sell in-demand items at their retail price and organise their shipment to the customer. You’ll usually buy the items at wholesale prices, realising the difference as your profit.

In addition to leveraging technology to your advantage, you can also use your skills and assets to engage in an effective side hustle.

For example, if you have a car (or bike) and enjoy driving and being out on the road, why not sign up to become an Uber driver? Or, you could work flexibly for Deliveroo or Just Eat, setting your own schedule based on your day job and how much you’d like to earn.

The key is to identify where you can add value and make the most money, as you look to navigate one of the toughest cost of living crises in 50 years.