How do I Create Additional Income: Additional Income: Rent a room, cost analysis

Earning extra money (additional income source)

Why do we need an extra source of income? In difficult times, we may get retrenched, or we may suddenly hate our jobs one day due to unforseen circumstances. If we do not have an extra source of income to continue to support ourselves and our families, we would be in deep shit.

So... what are some means for getting that additional income source that is so sorely needed? I have a few suggestions. I am personally experimenting with some of them. This list will grow as I discover more ways along the way, so it never hurts to check back here once in a while.

Sell you trash from home at auction sites
Lots of trash in your bedroom and you have no idea where to keep them? Throwing them away seems such a waste too... Why not set them up for a bidding war in one of the many auction sites with have nowadays. Things to watch out for though includes how you are going to deliver the items sold. If the transportation cost exceeds the peanuts you're getting paid for it, then forget it. So obviously you are not going to be able to sell that useless mcdonald toy you have have, unless theres some weirdo out there keeping them.

Start a website/blog with an advertising program
This is already going on in full scale. The idea is to create a website or blog that generate web traffic and put ads on your website where you get paid when people click on the ads or even view your website. Point to note is that, this way takes some time before you actually see any money coming in. And it is not easy to generate traffic at your website.

Give tuition or start coaching classes
Why not cash in on what you know? You can give tuition and teach math, English, Chinese etc. Or if you are good at tennis, you can even give coaching lessons. This is definitely a good source of income and the more specialised you are the more money there is. But of course it requires you to put in a significant amount of your time.

Advertisement on your car
This is something that is not very common at the moment. And this would only apply for people who already owns a car. Running ads on your car is a good way to cover for the instalments of the car if it is still not fully paid. This will also be easy and it's not time consuming. However points to consider are whether there are any social stigma of being seen driving around in a car with ads all over.

Paid to read email
This is something very interesting. The basic point is, you are being paid to read ads sent to you via email. The risk being that there are several scams being ran out there, hence it is necessary to do your own research and find out which ones are the real deals. But make sure they are free to join. Below are some I found to be the real deal and are free to join. I am constantly looking out for others out there and would update here when I find them.
emailcashpro

Part time work
Well, you could take up a part time job in your spare time. Maybe on weekends or in the evening. Some examples are kitchen helper, delivery man, webpage designer, massage therapist, insurance and property agents etc. What's good about a part time job is that not only is it a good source of money, you get to train up an additional skill set as well, which would come in handy when you need to do a mid career switch. Have you at times been wasting 3-4 hours a day playing computer games or watching TV. Imagine converting these time into productive work to earn money.

Internet business as they call it
While I call it the internet MLM. There are many funny internet business schemes out there. I do not intend to go anywhere near it, but I believe this potentially could be a good source of income. I haven’t tried any so I do not want to comment further on it here.

Rent your room
Ever considered renting out your house? You can rent out a spare room or the whole unit. This is easy and not time consuming and the money is generally decent in Singapore. However there are several points that you need to consider. The first would be the convenience and flexibility you possess and whoever is staying with you. If you rent out the whole house, are you able to move back in with your parents or girlfriend’s house? Also you have to consider the condition of your apartment after the lease period, will it still be profitable after the clean up or possible renovation required to get it back to the original condition? And also, you will not be able to know what kind of people will be staying at your place, will they be any bad people, illegal immigrants and would your neighbours be displeased with the arrangement?

Setting up a Blogshop
The next "bubbletea fad". Blogshops are sprouting out all over like never before. Fashionphiles, man-geeks and girl-geeks are all piling up the bandwagon. Its low cost, low manpower requirements and zero rental. Whats a better deal than this? But are you able to make any sales out of this? That's the question. Many are selling clonewear and clonecessories(clothing and accessories that are all the same). How do you differentiate from the others?

So you are interested in renting out that extra room you have? Seems like a good deal isn't it? Never hurts to do some math we learnt in school.

So basically for the rental of a room, getting ~$400 should be considered reasonable? You could get more for renting out the master bedroom, but for calculation sake, we shall stick to the regular bedrooms.

And I expect the usual rental term to be about 2 years. Base of this, our rental revenue for the 2 years would work out to be

24 months x $400 = $9,600

Decent... But wait, everything has costs involved. So what kind of cost are we looking at? Well, the first thing we need to look at would be furnitures. We can't rent an empty room. Below I list a bunch of stuff we need.

As an estimation:

Item - - - - - - - - - - - - -Est. Price
------ - - - - - - - - - - - - ----------
Bed/Mattress ----------> $1,200
Cupboard ---------------> $400
Desk --------------------> $250
Chair --------------------> $120
Small TV ----------------> $500
Air conditioning --------> $750
- - - - - - - - - - - - - - - - ----------
- - - - - - - - - - - - -Total: $3,220

Next would be utilities. Basing on the average household of 3 people, the monthly bills are about $150. At least thats what I am getting. So 1 person would cost about $50. We know all tenants over use their water and electricity, so we shall mark up the usage by 20%. That would make the tenant's contribution to utility bills be at $60. And over 2 years that would work out to be

24 months x $60 = $1,440

What about repairs for the air-con, lightings, da da da. Lets say it works out to be approximately $200 per year, $400 in 2 years. Now assuming thats all the costs involved, our total cost is

$3,220 + $1,440 + $400 = $5,060

And our profits

$9,600 - $5,060 = $4,540

Thats $4,540 plus a bunch of 2 year old furniture in 2 years.

How do I Create Additional Income

Earning extra money (additional income source)

Additional Income: Rent a room, cost analysis

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