It wouldn’t be hard to predict that it’s going to be more difficult to make money in 2010. Employees and entrepreneurs alike are experiencing a decline in their earning power due to pay reductions, job layoffs, and consumer spending cuts. Investors who had previously benefited from lucrative profits in the money market now have to cope with decreasing returns.

How can you survive when you are not earning enough? Let’s look at some of the typical challenges that people are facing today and offer some possible solutions to these problems:

Situation: Your boss is cutting your work time to four days per week, and you stand to lose 20 per cent of your pay.

Don’t use that day to stay home and mope about your loss. Those extra hours away from your regular job can provide the perfect opportunity to take advantage of a business idea which you never had the time to pursue. If you hadn’t seen the need to create your own income before, get busy and brainstorm some ideas to earn extra money.

Your first goal is to replace your lost income. Break down your shortfall into a manageable figure; for example, if you stand to lose $10,000JMD per month, think of something you could do on your day off to earn $2,500JMD. Calculate how many customers you would need to reach your target. What service or product could you sell to 25 people in your community to earn $100JMD from each person?

Situation: You graduated from college with a management degree, but a year has passed and you’re still unable to find a job.

Widen the scope of your job search — don’t limit yourself to a typical managerial position. There are some fields that are always recruiting new persons, such as the life insurance industry, the army or the police force. You could actually find a satisfying career in the long term.

The reality is that we need more entrepreneurs in Jamaica to create job opportunities for new entrants in the job market. If you can’t find employment, then you may have to invent your own job. What skills and talents do you have that could provide an income? Many small businesses are contracting out their data entry, marketing, accounting and Internet correspondence needs; if you can supply these services, you may be in the money.

Situation: The company you worked for has closed down; your previous job was in a specialised field and there are few other businesses that utilise your area of expertise.

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If you’re facing a roadblock in securing another job, you may need to look far and wide to locate employment. The great news is that the Internet provides a virtual marketplace that can help you to link with a buyer for your services. Post your résumé on websites such as Monster.com or register with Elance.com or Odesk.com to find freelance work.

You could also examine the possibility of sharing your specialised knowledge with others. Is there a need for training courses or educational material in your area of expertise? Can you create a new service that would appeal to a wider retail market? For example, a geophysicist with extensive information on earthquake activity could hold seminars to teach people how to prepare for this natural disaster.

Situation: You are a self-employed hairdresser and many of your customers are cutting back on your services.

Consumers are now looking for better value for their money, so you have to respond to changing customer demands by giving more for less. One option is to offer frequent user specials, such as one free wash and set if your customer pays for three within one month.

Try to increase your business volume by designing a referral programme that will encourage existing customers to market your services for you. For example, you could offer a 25 per cent discount on services to anyone who brings a new customer.

Situation: You’re retired and you depend on the interest from your investments to pay your bills. Recent changes in the government paper market will reduce your income significantly.

If your earning source has decreased, you may be forced to find additional methods of generating an income. Don’t be disheartened by this development, as there are many retirees who are actually enjoying their ability to make money in areas that are exciting and fulfilling.

There are always available openings to work part-time if you have professional skills such as teaching or nursing. You could also look at providing consulting services or training persons in your field. Consider using your hobbies to create income; you could provide organic vegetables to the supermarket or sell ceramics or paintings at craft shows.

To succeed financially in 2010, you have to become more industrious and innovative in generating income. Don’t sit back and wait for someone else to make a job for you – get creative and do it yourself!

Copyright © 2010 Cherryl Hanson Simpson. No reproduction without written consent.

Originally published in The Daily Observer, January 28, 2010

Cherryl is a financial consultant and coach, founder of Financially S.M.A.R.T. Services. See more of her work at www.financiallyfreenetwork.com and www.financiallysmartonline.com. Contact Cherryl