The new year is a trigger for many to reassess their financial situation and make changes to shore up greater financial security.
There are many ways to tackle this, including reducing expenses and paying down debt to identifying new or increasing existing income streams.
One of the increasingly popular ways to increase income is taking advantage of the booming share economy. Estimates suggest that as many as 1 in 5 Australians partly supplement their income through the share economy. Finder’s survey last year found that 22 per cent of Australians are turning to the share economy for additional income and are already earning an average of $7,300 a year from such side income.
The difference that paying an extra couple of hundred dollars can make to the average mortgage is considerable. Paying an extra $200 a month over the life of a $300,000 loan may save you over 6 years and almost $60,000 in interest repayments.
Savings based on a $300,000 30-year loan with a 4.5% interest rate
|Extra monthly payment||Time shaved off loan||Interest payment saved|
|$100||3 years 7 months||$34,088|
|$200||6 years 4 months||$59,437|
|$300||8 years 6 months||$79,134|
|$400||10 years 4 months||$94,932|
Calculated using Extra lump sum payment calculator (https://www.yourmortgage.com.au/calculators/extra-lump-sum-payment/)
Ways to earn extra income through the share economy depend on your passion and personality. Pet lovers can dog sit. If you have a killer wardrobe, you could rent out some special pieces or if you enjoy talking to people and driving, you could car share. If you like the idea of company during the week, with weekends free to yourself and the benefits of extra income to help pay down your mortgage, then hosting a professional weekly boarder could suit you.
A successful model in the UK for more than a decade, WeekDay Space allows landlords to list a room or car space that is available during the week. Likewise, it offers potential lodgers the opportunity to express their interest.
If you’re not interested in fulltime flatmates or lodgers and all the additional household possessions that come with them, perhaps Australia’s newest share accommodation site could be for you?
(Note – information provided in this article is general in nature and does not constitute financial advice)