There are times when being frugal isn't a solution anymore. Don't get me wrong - there are immense benefits in having a proper budget and cutting out everything that can be removed from the spending.
But what happens if...you've done all that and you're still not meeting ends meet or unable to put together any sort of savings implementation because your necessary spending is barely covered by your net income? There are some who will say that there are always ways to cut down your necessary spending and get your budgeting on track.
But at some point, there may come a realisation that there just isn't enough.
There are just too many mouths to feed, a need to keep a roof over your family's heads, a need for proper and safe transportation, and a need for the children's education.
The main option left when every avenue of frugality has been used, is to increase income. And in order to do this, there are a few ways other than going to your boss and asking for a raise or finding a new, higher paying job.
Firstly, to get a part-time job. If you are able to work efficiently and leave your usual workplace on time, some people are able to fit in work during the off hours. The problem with this approach is that you're burning two ends of a candle and many times, unless you have significant perseverence, you're going to burn out, affecting your performance both at work and in your part-time job, ultimately affecting your future increment, bonus and promotion prospects in the long-term.
Secondly, to get freelance projects in an area which you have skills in. This is different from a part-time job with hours which are set for you to do work; it pays upon the completion of an assigned project and usually can be done in the person's own time as long as it is delivered before the due date. This is probably the best option to have a pretty decent extra income but the main drawback is that you need to have a specialised skill in an area freelancers are sought after.
Thirdly, you can set up your own business. There are two types of business which can be started. The most common type overlaps with freelancing in that you start a business in which you have a specific skill in, to provide a product or service in return for payment.
The second type of business is what I'm attempting to do - build a business with a longer-term perspective with employees, heavier investment and capital requirements, and usually means you quit your full time job to set up (I circumvented this because a good friend is handling the daily operations of the company full time). This can be the most potentially rewarding method but it has the highest risks as well, requiring heavy capital investment, a lot of time and energy invested, and since the inception of the company, I haven't taken a cent of payment and am looking significantly ahead for the potential returns. At the same time, you can feel like you're constantly burning through your reserves (both financially and in terms of energy).
Finally, you could set up a website which generates revenue although, to be honest, I haven't found any solution for that yet. Write a blog which everyone wants to read (try to target substantially more than the 3 readers I get per day on mine), or have a site with content people want to visit whether for entertainment or for practical reference. Some people are able to have a successful model to gain revenue from advertising revenue from these sites but if you find the solution, do share with me. For now, this is not my preferred option and I'm blogging just to vent out my feelings and structure my thoughts for more clarity.
So there you have it. Sometimes having a scrooge-like budget isn't sufficient to cover spending needs and other options can then be considered.
Or is it just me?
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