If you have a spare room in your house you can earn up to £4,250 a year tax free if you rent it out. There are a lot of things to consider before you do this:

• Check your mortgage / tenancy agreement allows you to do this
• If you have a family you need to consider the impact that an stranger in their home may have on them
• Think carefully about the sort of person you would like to move in. If you have young children do you want a drunken 21 year old student coming in at all hours? If you are a massive party animal do you want to have to curb your lifestyle to keep a lodger happy? If you love a peaceful quiet home do you want someone loves listening to techno very loudly?

Before letting anyone move in:

• Have them sign a tenancy agreement 
• Make sure you get references and check them. Be aware that some people fake them so try to verify that they are genuine.  
• Make sure that they are in employment and can afford the rent. If you have any doubts ask them to provide a guarantor
• Take a deposit to pay for any damages they may cause to the property.
• Trust your gut instincts - if you have a bad feeling about someone don't let to them even if they have impeccable references and a good job. It just isn't worth the hassle.

Sell your skills

Can you speak a foreign language or play the piano? Are you a dab hand at gardening or web design? If so you can use these to earn money. You can charge around £20 an hour for lessons in a foreign language or an instrument. And there may be hundreds of new and small businesses in your area who could do with a professional website. If you can sew then you could make bags or clothes and sell them on eBay (read the guide to selling on eBay for more tips) or at craft fairs.

Anything that you can do that not everyone can can be used to make money