Pay squeeze: three ways to make some extra cash
News that real wages are shrinking in the UK will heap further pressure on already-stretched households.
Average weekly earnings increased by 2.1% in the three months to March, while inflation rose by 2.3% in the 12 months to March, according to the Office for National Statistics (ONS).
With inflation rising to 2.7% in April, and some forecasts suggesting it could near the 3% mark by the end of the year, prices are likely to outpace wage growth for some time to come.
If you’re looking to supplement your income, there are a number of ways to make some extra cash without having to go to too much effort.
Here are a few:
Rent out your driveway
Renting out your driveway can be particularly profitable if you live in a town centre or near a train station or sports ground.
Research conducted last year by online parking marketplace YourParkingSpace.co.uk found homeowners in London earned as much as £2,100 a year renting out their driveway, while people in 34 other towns or cities across the country all made an average of more than £1,000 per year.
There are number of sites you can sign up to if you have a parking space or garage to rent out and while most are free to list on, they all charge varying fees and commission, so it’s worth doing your research.
Here are some sites to look at:
Park On My Drive – it charges an annual hosting fee of £15 (once your first booking has been made) but does not charge any commission.
Just Park – there is no listing fee but it charges a 20% commission fee on top of the owner’s list price. So if you wanted £10 a per for your space, it will be listed on the site as £12.
Your Parking Space – there is no listing fee but it also charges 20% commission on top of whatever you charge.
Rent out your car
If you have a car sitting on your driveway while you’re at work, or a spare motor gathering dust, you could earn as much as £500 a week by renting it out.
Several peer-to-peer car sharing websites have sprung up in recent years. The sites all have slightly different user criteria and charging structures, so again it’s worth doing your research.
EasyCar Club – takes 10% + VAT of the car owner’s set price.
HiyaCar – takes 20% commission of the total price of each rental.
Ridelink – takes 30% of the value of the rental.
See YourMoney.com’s guide on renting out your car.
Rent out a room
Airbnb has made renting out a room or a property for short periods of time relatively straightforward. It lists hundreds of thousands of rentals all over the world and charges hosts a 3% service fee.
There are alternatives to Airbnb such as mondaytofriday.com and fivenights.com, which allow homeowners to rent out spare rooms to professionals during the week.
Users can earn up to £7,500 per year tax free thanks to the government’s ‘Rent a Room Scheme’.