How to Make an Extra $200 Every Month

Earning an additional $200 each month is an achievable financial objective that can significantly enhance your budget. This goal is well within reach through various flexible and accessible methods. Many avenues exist for individuals to leverage existing resources or develop new skills, transforming spare time into supplemental earnings.

Selling Items You No Longer Need

One straightforward approach to generating immediate income involves decluttering your home and selling items you no longer use. Begin by identifying goods that hold value, such as electronics, gently used clothing, furniture, or unique collectibles. Preparing these items for sale involves thorough cleaning, taking clear, well-lit photographs, and crafting accurate, appealing descriptions to attract potential buyers.

Numerous platforms facilitate these transactions, ranging from online marketplaces like eBay and Facebook Marketplace to specialized apps for apparel or electronics. Local options, including consignment shops or community garage sales, also provide avenues for quick sales. The selling process typically involves listing the item, communicating with interested buyers, and arranging for shipping or local pickup. If an item is sold for a profit, the gain may be subject to capital gains tax.

Engaging in App-Based Work

The gig economy offers flexible opportunities to earn extra income through mobile applications, allowing individuals to set their own schedules. These platforms connect service providers with customers for various tasks. Common examples include food delivery services such as DoorDash or Uber Eats, rideshare platforms like Uber or Lyft, grocery delivery through Instacart, or general task assistance via apps like TaskRabbit.

Prospective workers typically sign up through the app, completing a background check and meeting requirements like age verification and a valid driver’s license. For driving services, an eligible vehicle is also needed. Once approved, users can accept tasks or requests, complete them, and receive payment directly through the application, often on a weekly or even on-demand basis. Earnings potential varies by platform and location; for example, rideshare drivers might earn an average of $19 to $28 per hour, while food delivery drivers could see $13 to $25 per hour.

Monetizing Your Skills and Interests

Leveraging existing personal skills, hobbies, or unique knowledge can create supplemental income. Consider talents such as writing, editing, graphic design, pet care, babysitting, tutoring, crafting, or gardening. Opportunities can involve local networking, posting on community boards, or utilizing online freelance platforms like Fiverr or Upwork.

Specific examples of services include pet sitting, which can earn an average of $16 to $40 per hour for visits or $53 to $100 for overnight stays, or local tutoring, with rates typically ranging from $25 to $80 per hour depending on the subject and student level. Freelance writing can also be a profitable endeavor, with rates varying from $0.05 to $1.00 per word or project-based fees. Researching market averages and managing time effectively are important for building a reliable income stream.

Tax Considerations for Supplemental Income

Income from app-based work and monetizing skills is generally considered self-employment income. Individuals earning more than $400 in net earnings from self-employment in a year are generally subject to self-employment tax, which covers Social Security and Medicare contributions. The self-employment tax rate is 15.3% on net earnings, with 12.4% for Social Security up to an annual earnings limit and 2.9% for Medicare on all net earnings. It is often necessary to make estimated tax payments quarterly to cover these obligations.

Individuals should track earnings and eligible business expenses, such as mileage, vehicle maintenance, and phone data plans. If a single platform pays $600 or more within a calendar year, they are generally required to issue a Form 1099-NEC for nonemployee compensation.