According to data from the Federal Reserve, consumers ended 2021 with debt totaling a staggering $15.6 trillion. In the fourth quarter alone this was a year-over-year jump of $333 billion. In addition to the biggest quarterly gain since 2007, the largest annual gain was recorded going back to 2003.
Due – Due
What was the largest debt-load increase? Well, it should come as no surprise that this comes from mortgages — which comprised 87% of consumer debt. By the end of 2021, balances skyrocketed by nearly $11 trillion, including $890 billion in the fourth quarter. Originations of mortgages reached a record high of more than $4.5 trillion for the year as well.
Since a majority of people in the U.S. own a home, 65.5% to be exact as of April 2022, this can be a huge financial burden. And, this is particularly true if you’re struggling to make ends meet or short on cash because you had to cover an emergency.
The good news? You can actually make money with your home. In most cases, this can be a passive income meaning that you don’t have to put in too much time, energy, or money. And, you can then use this extra income to pay down your debt or cover expenses like property taxes, utilities, or homeowner’s insurance.
So, without further ado, here are 15 ways that you can make money with your home. Seriously.
Related: 4 Reasons Why Home Ownership Is Still a Fantastic Investment
1. Get a roommate.
Roommates have long been a good way to save on rent — especially when in college or just starting out with your career. However, they’re also a great income source when you’re a homeowner. With roommates, you can make extra cash to pay down your mortgage faster or split the cost of utility bills. If they’re cool, they can even help with household chores or be a companion if you’re single.
At the same time, it’s not always easy living with roommates — particularly when the homeowners have priority. As such, you may have to make difficult decisions when living with roommates. To mitigate such complications, establish clear rules and have your roommate sign a long-term lease.
While you can post a listing online through sites like Craigslist, I’ve also found word-of-mouth to be best. Having someone vouch for a potential roommate ensures that your personalities click and that they won’t stiff you on rent.
How much can you make with a roomie? That depends. However, with one roommate, you could earn back 30% of your housing costs each month. If you have three roommates, you could earn back 50%.