It’s that hard time of the year when most of us are trying to make a financial comeback and those “WhatsApp stokvels” and forex/bitcoin schemes start to look a lot more convincing so I thought I’d share a couple of safe ways to generate some additional income.
Reducing Your Tax Liability
We often associate making more money with thinking an additional income stream such as a side hustle is where to kick it off. What we often forget about is our current finances, sure there’s the option to engage in absurd “cost-saving” antics such as cutting out your coffee and not eating any take-outs for the foreseeable future (Not having a kid is also a great way to cut costs by the way). However, for us mere mortals who live in a world where the only things that are certain are death and taxes, it might be a good idea to get savvy with our taxes. One great way is by reducing your tax liability through Section 10(1)(q) of the Income Tax Act No. 58 of 1962 which provides an exemption for any bona fide scholarship or bursary granted to allow any person to study at a recognized educational or research institution. This means that when a bursary is granted to an employee (or relative) by an employer, the amount of the bursary will be exempt from tax (essentially a certain portion of your salary is tax-exempt). You need to earn under R600k per annum to qualify for this. There are other means to reduce your tax burden such as donations, Medical Scheme Fees Tax Credit, Tax-free savings etc. Tax management is part and parcel of personal finance, the stress of navigating this area of your personal finance journey can be reduced by engaging with individuals such as Andre Bothma and using tools like TaxTim.
Facebook Marketplace is also a great place to sell goods you longer need anymore. The logic is simple, sellers post ads for goods and buyers show up and pay cash in hand if they’re happy, it’s basically like an online version of the newspaper's classified section. Their major selling point is convenience and the fact that it’s free unlike eBay which charges 10% for the total transaction, add all the other associated costs with this and you quickly realize it might not be worth the hassle.
Check out our blog (generating additional income streams) for more information on the various ways that are available to you to generate additional income streams. Putting in time and energy to effectively grow one or a few side hustles is more lucrative than engaging in a lot of ways to earn extra money.
Author: Sihle Hlatshwayo