Using Your Car to Bring in Some Extra Money

Auto financingThere are a lot of ways to go about bringing in some extra money. You could start a small business, get a part time job, sell things you don’t need, or even just cut some costs around the home. One way that a lot of people overlook however is using their car to bring in some extra money. If you’re the owner of a car, there are several things you could be doing to bring in some more cash. Here are just a few suggestions to get you started.

Grab a Side Gig

One of the first things you’ll want to consider is using your car to get a side gig. Side gigs are great at bringing in extra money on your own schedule, and some of the best require the use of a vehicle. For example, you could become a driver for a rideshare app like Lyft or Uber. With one of these gigs you drive people around when you want and earn some extra cash. Everything is handled through the app so you don’t have to worry about finding customers or getting paid.

Another option you can look at is deliveries. Chances are you can find a local restaurant that could use some help bringing food to customers. Or, some grocery stores provide delivery service if you have enough space in your car. Amazon is even looking for people to deliver packages in their local areas. You can see if this service is available in your area here.

There are plenty of options for side gigs if you have a car, so think about what it is you might like to do then see what is available to you where you live.

Advertise on Your Car

If a side gig isn’t for you, consider using that blank space on the sides of your car to earn a little extra cash. Some companies are willing to pay you to advertise on your car and all you need to do is drive around like you normally would. When looking for these opportunities, make sure that you are partnering with a reputable company, as there are some scams out there. If you’d like to learn more about getting paid to advertise on your car, you can do so from this guide.

Rent Out Your Car to Others

Do you not use your car very often? Does it spend long periods of time simply sitting in your driveway? If so, you should think about renting out your car to others. Some people only need a car for a few days or weeks at a time and don’t want to pay the expensive prices that come with a car rental service. By renting out your car to others you get to bring in some extra money without having to do much.

Of course, there are some considerations to take into accounts. For instance, make sure your insurance company covers you when other people are driving your car. You’ll also want to think about the amount of miles that will be put onto your car, or limiting the miles for whomever drives. If you’re on a lease you don’t want to rent out your car only to find that they used it for a cross-country road trip.

Get Rid of It

Finally, you could always just get rid of your car. Maybe you and your spouse are now retired, and you only need one vehicle between the two of you, allowing you to get rid of the other one. Or maybe your car is broken down and you don’t want to pay to have it fixed. There are plenty of reasons why someone might want to get rid of a car – the real question is how to get rid of it.

One option is to simply sell it. You can do this privately or through a dealer. If your car is in good shape you should be able to get a decent return for it. Broken cars will get you less, but something is better than nothing.

Another option is to donate your car to charity. In return you get a tax write-off, and some charities throw in a little thank you gift. It isn’t much, but if you’re not going to use the car anyway, you might as well get something for it.

Finally, if all else fails, take look for some car junkyards near you. Junkyards will give you some money to scrap your car, although it likely won’t be much. This option is usually taken by people who have a car that is beyond repair and who are unable to sell or donate it.

Plenty of Ways to Get Extra Money from Your Car

As you can see, there are plenty of ways to use your car to bring in some extra cash. It all depends on your current situation, how much money you’re looking to bring in, and what condition your car is in. If you take the time to explore the options above you should have no trouble finding ways to bring in extra cash thanks to your car.

Most Common Investment options and how they are taxed

Investors always want the “best” companies and funds to invest for the best returns, but what most of them forget is that there is no such thing as best investment. Every type of investment includes some risks and benefits, the higher the risk, the higher the benefit. It really depends on your expertise in a particular area that defines how you’ll perform there. As for those who are new to the investment scene, below is a list of the most common niches for investing for you to start your investment journey.

1. Direct Equity

Investing in stocks is not for everyone, it’s classified in the volatile asset class and has no guarantees of returns. Furthermore, picking up the right stock and the right entry and exit time demand tons of experience as well as luck. The only good thing about stocks is that Equity over time has shown higher values of return than any other class. It is recommended that you use the stop-loss approach while investing in direct equity so that you incur the minimum possible loss.

Taxation: STCG 15%, LTCG 10% (Long Term is applied after a minimum of 1 year)

2. Debt Mutual Funds

Ideal for those who want long-term stable returns, debt mutual funds are open-ended funds and are considered less volatile than equity, therefore they give a more stable return that equity. There are various types of debt mutual funds like liquid-funds, short-term funds and corporate bond funds which are managed by special debt fund managers and are invested in various classes with varying rate of risk.

Taxation: STCG- Added to Income, LTCG- 20%

3. Bank Fixed Deposits

Bank Fixed deposits are a popular investment option as they offer fixed as well as stable returns after a fixed amount of time. FDs vary in varies depending on their type and tenure. Most Banks offer an option of premature withdrawal by paying a penalty. Banks offer both cumulative and non-cumulative FDs. In Cumulative FDs the interest is re-invested and is payable on maturity, while in non-cumulative the interest is added to your salary and is taxed together with your salary.

Taxation: Interest is taxable as per income slab

4. Public Provident Fund (PPF)

With a lock-in period of 15 years, this is one of the most popular investment options in India. Investment in PPF offers tax benefits under article 80C and the interest earned on maturity is also exempted from tax. What’s more, you can even extend your account post maturity in slabs of 5 years for n number of times.

Taxation: Interest is Tax-free and has EEE status

5. Gold

A person can buy gold in numerous forms like jewelry, bullion, gold bonds, and even digital gold. One of the most common investment options all over the world, the returns in past 10-20 years have crossed double digits but in recent times have diminished.

Taxation: STCG is added to income while LTCG is 20%