How Running a Side Business Can Help You Pay Off Debts and Boost Your Savings

I once read an article about a couple who managed to pay off their debt in just a year. They accomplished this by creating a second stream of income, bringing in an extra $1,000 each month, which was entirely used to pay down their debt. Their story seemed so straightforward that it made it all sound almost too simple.

It’s easy to think getting out of debt would be simple if you have a financial cushion. The real challenge is actually finding an extra $1,000 every month. That was the case for me, until I found a way.

The secret to paying off debt isn’t very complicated. If you read enough articles on the topic, they all boil down to two main ideas: spend less and earn more. It sounds easy enough, right? But if it were that simple, no one would have any debt. Just like with weight loss, the ‘secret’ is no secret at all—eat less and move more—but how many people really follow through with it?

When it comes to this two-step debt-clearing strategy, reducing expenses seems easier to tackle. We start by cutting out the non-essentials, and if needed, make more drastic savings decisions. Personally, I moved into a less comfortable place for 16 months to save money and eliminate debt. It was tough, but it worked. We managed to pay off $20,000 in debt in two and a half years.

Since leaving our temporary home, our living costs have naturally increased. To keep addressing our debt, the only realistic option was to boost our income. We tried various things over nine months, like mystery shopping, freelance writing, and cash incentives, but none quite did the trick.

Things changed when we found a side gig offering $1,000 extra a month for just 10 hours of online work per week. At first, I was skeptical and worried about finding the time, but I decided to go for it. So far, it’s been a good move, letting me split my earnings between travel savings and debt payments. For the most part, handling the extra workload hasn’t been a major issue.

Not everyone can easily find an extra $1,000 each month, but every bit helps when it comes to paying off debt. Keep an eye out for freelance opportunities that might increase your income and speed up the path to a debt-free life.