According to a survey by BDO, a debt solutions company, inflation is causing half of Canadians to cut back on their spending. Other strategies for regaining purchasing power include diversifying sources of income. However, finding a second job or supplementary activity to make ends meet is not without its drawbacks.
The survey, conducted by Léger among more than 1,500 people, revealed that more than a third of Canadians plan to reduce their debts in the coming year, notably by adopting better budgeting habits. Nearly 31% would also consider finding a side job to gain more financial independence, pay living expenses and pay off their debts.
Freelancing can be seen as a source of additional income, to start with, according to BDO. This can involve delivering meals by bike, if you own one, or using your car to drive people around.
The downside of this type of business, BDO points out, is that you have to work hard to earn a good living. An Uber driver earns an average of $24.50 an hour, before deductions.
Exploiting know-how is another avenue. An example is offering consulting, accounting or legal services as an additional activity, invoiced as professional fees. Beware, however, of recurring late payments on online platforms, as denounced in a recent study by Payments Canada.
Take advantage of technology
While it’s hard to identify which activities make the most money, people who achieve their goals share certain characteristics, according to BDO. They have a clearly identified solution to a well-defined problem experienced by a target audience. ”They leverage technology to collect email addresses, receive quotes and market themselves to the right categories of customers,” the consulting firm states on its website. “They act methodically, never embarking on over-ambitious projects or jeopardizing their work, and never overspend.”;
Around a quarter of young people aged 18 to 34 have already used to this solution, working part-time to regain some purchasing power. Earlier this year, a survey conducted for TurboTax indicated that 23% of workers combine a second paid job with their main job.
It should be noted that a side job implies a more complex tax situation and may increase the amount owed to the government at tax time.