Aussies urged to get creative to make extra money

Australians are being encouraged to adopt more proactive financial strategies as interest rates are expected to climb further and cost-of-living pressures intensify, with one lending expert warning that traditional budgeting alone may no longer be sufficient.

Founder and chief executive of Finch Financial, Julian Finch, said households need to shift their approach from managing money to actively increasing and maximising it.

“We are entering a period where earning more is not a luxury, it’s a necessity,” Finch said.

“Rates are going up, expenses are rising and relying on a single income or outdated habits is going to leave people exposed.”

Finch, who brings decades of experience in mortgage brokerage and commercial lending, said households that adapt quickly by becoming more resourceful and flexible are more likely to weather ongoing financial pressures.

“This is about squeezing more value out of your time, your assets and your everyday decisions,” he said.

“The good news is, there are far more opportunities to do that than people realise.”

One of the most underutilised opportunities, he said, is within the home itself. Renting out a spare room, including for short-term stays, can provide a steady supplementary income.

“If you have a spare room, that is income sitting idle,” Finch said.

“Renting out a room, even short term, can make a meaningful difference to your mortgage and living costs. International students need homestays, why not reach out to schools, universities, colleges and other organisations that arrange short stays.”

Despite the potential benefits, Finch said many households overlook this option due to comfort or habit.

“But in a rising rate environment, you need to start thinking differently about your assets,” he said.

“Your home can work for you, not just cost you.”

Beyond property, Finch said individuals should reconsider how they use their time, noting that additional income streams are increasingly accessible through freelance, casual or online work.

“There are countless ways to generate additional income, often with minimal setup,” he said.

“Odd jobs, freelancing, weekend work, online selling, it all adds up.”

He added that even modest increases in weekly income can significantly improve financial resilience.

“An extra few hundred dollars a week can be the difference between struggling and staying ahead. Get on Airtasker and other platforms and start to take on additional work,” he said.

Finch also pointed to unused household items as a potential source of immediate funds, with many homes containing goods that could be sold.

“Garages, cupboards and spare rooms are often filled with items that are no longer used,” he said.

“Selling these can provide an immediate financial boost.”

At the same time, he said reducing expenditure remains important, but should be approached strategically rather than through blanket cutbacks.

“Focus on essentials first,” he said.

“Shop smarter, compare prices, buy in bulk where it makes sense and avoid paying a premium out of convenience.”

He warned that discretionary spending, including subscriptions and impulse purchases, can erode household budgets over time.

“Subscriptions, impulse purchases and unnecessary upgrades quietly drain thousands of dollars a year,” he said.

Transport costs were also highlighted as an area where savings can be made, particularly as fuel prices rise.

“Carpooling, public transport or even consolidating trips can significantly reduce weekly costs,” Finch said.

“For some households, this alone can save hundreds of dollars a month.”

He also suggested contacting hire car and motorhome companies directly when travelling interstate, as some offer discounted or free rentals to people willing to relocate vehicles.

“They often need vehicles relocated and will offer free or heavily discounted rentals if you help move them,” he said.

In addition, Finch encouraged consumers to make better use of loyalty programs and rewards systems.

“Supermarket points, credit card rewards and frequent flyer programs can deliver real value if used properly,” he said.

“You can reduce grocery bills, access discounts or even secure flights and products for free.”

Finch said the broader challenge facing households is a shift in mindset, with many still expecting economic conditions to return to previous norms.

“Too many people are still operating as if things will go back to how they were,” he said.

“They won’t. Higher costs and tighter lending conditions are here for the foreseeable future.”

He said those who act early to adjust their financial habits will be better positioned in the long term.

“This is not about panic, it is about being proactive,” he said.

“If you take control now, you create options. If you don’t, those options start to disappear.”