Ho, ho, ho! Merry…scamming? While we were all busy enjoying our Thanksgiving holiday and shopping all the Black Friday deals at our favorite McMinnville stores, scammers were busy little elves too.
To kick off National Tax Security Awareness Week, the IRS issued a warning about holiday scams.
A couple examples include:
– Fake messages that look like they’re from delivery companies which encourage you to click a link to learn more about your delivery status and provide updated information.
– Fake emails from the IRS or other tax agencies that promise a tax refund or threaten you with a tax bill.
The main thing to do to protect yourself here is don’t click on links or open attachments in emails or texts unless you’re 100 percent sure they’re safe.
UPS, the Post Office, and other delivery companies won’t send you a text to update information on a delivery. They’ll email you about those necessary changes and will include official logos and a legitimate sending email address.
As for the IRS, they stick to snail mail. However, you can opt-in for email communications, though those are almost always preceded by a letter or notice. They will never text you or contact you on social media. So don’t open anything electronic claiming to be from Uncle Sam unless you are sure you requested email contact… and even then, verify.
I bring these up today to help you SAFEGUARD that cash you’ve worked so hard to earn and save for holiday (and other) purposes.
But let’s also talk about ways you can MAKE some extra cash to help boost your holiday spending and other financial goals for the new year. Here are some second income sources you can consider…
Lisa Heckman’s Five Simple Second Income Ideas
“Wealth is not about having a lot of money; it’s about having a lot of options.” — Chris Rock
Economic uncertainty continues to push many to look for ways to stabilize their finances. While trimming expenses is a great first step, there’s only so much “fat” you can cut. (Sorry, bad analogy the week after Thanksgiving, I know.)
But when you’ve pared back your budget as far as it can go, what do you do next?
The next step is often adding some “lean” by generating additional income streams. But don’t worry, building a second income isn’t just for young, single people with extra time for a side gig.
So here are some updated (and yes, practical) ways to start supplementing your earnings, along with some helpful stats to help you gauge their potential impact:
1. Pick up a part-time job or gig work
Getting a second job is obviously one of the quickest ways to bring in dependable extra income. Over 5.2 percent of employed Americans work multiple jobs — so you’re in good company.
While a side hustle can take up some of your free time, choosing something you enjoy can make it feel less like “work.” For instance, if you love animals, try pet sitting for some McMinnville pet owners through Rover. Enjoy driving? Services like Uber or DoorDash can be flexible, letting you earn during your downtime. Love fitness? Work at a gym. Into books? Look for opportunities at a local bookstore.
And this time of year, it seems like seasonal work is always available.
2. Invest in dividend-paying stocks
If you have some money to invest, dividend-paying stocks can provide an ongoing income stream with relatively little effort. Many well-established companies (such as utilities and banks) offer annual dividend yields between 3-6 percent. For example, a 10k investment with a 5 percent dividend yield could net you 500 dollars annually.
But before jumping in, research potential investments on platforms like Yahoo Finance or consult with a financial advisor to ensure you’re choosing stocks that fit your goals. Dividend stocks can be a smart way to let your money work for you.
3. Generate income through rental property
Rental property is another great second-income idea, provided it’s “cash flow positive.” This means the rent you collect covers your mortgage, maintenance, and other expenses, leaving you with extra cash.
The average gross rental income in the U.S. is around 1.2K per month, which makes it a potentially lucrative option. Just be sure to plan for the rental ownership hiccups, like a late rent payment or emergency repair.
4. Sell unused items or monetize your hobbies
While this isn’t the ideal time of year for a garage sale, you can still sell items that are just sitting in your closet collecting dust. Consider creating a Facebook Marketplace listing for those specialized power tools you never use or those boots you wore once and then never again. There are sure to be Yamhill County people interested in taking those off your hands.
If you’re crafty or have a creative streak, you could sell handmade or custom goods on Etsy. Or there’s a lot of business in digital goods right now. Why not consider selling printables, e-books, or courses? Platforms like Teachable and Gumroad make it easy to share your creations with a wider audience. Once you create a product, it can generate passive income for months or even years.
5. Freelance or use AI to amplify your skills
Freelancing is a fantastic way to monetize your skills, whether you’re good at writing, graphic design, coding, or even data entry. Platforms like Upwork and Fiverr connect you with clients around the globe, and just a couple of those jobs can create some great extra cash flow to help you with extra things (like buying Christmas gifts).
If you’re worried about competing in a crowded market, consider using AI tools to speed up your workflow and enhance your offerings. For example, you could use Canva to create eye-catching designs or Jasper AI to draft marketing copy efficiently.
Freelancers in the U.S. earned over 1.3 trillion in 2022. So there’s plenty of opportunity to earn a slice of that pie.
Not every second-income idea will make you rich overnight, but even small efforts can pay off over time. For example, earning and investing just 100 a month with a 7 percent annual return could grow to 122K in 30 years. That’s a lot of financial breathing room from simple, manageable steps.
Building a second income might be easier than you think—and it could set you on a path toward greater financial freedom.
And if you do decide to go one of these routes, let’s meet to discuss the tax impact. My “door” is wide open:
To getting a little more in your pocket,
Lisa Heckman
