We've been told for years that the only way to earn more money is to get an education and find a good job. But what about making extra cash from home in our spare time? If you're looking for ways to make money with little effort, this article has lots of options for you.
These are not investments, but they do involve spending some money. We'll explain why it's worth doing them anyway — even just once — so you can decide whether these strategies fit into your long-term financial plan. And yes, they will definitely give you something to show off at parties.
Here are five things you can try out today (or maybe tomorrow) to see what works best for you.
The first thing many people think when learning about investing is "I need stock market training." In reality, most investors already know enough to avoid bad habits that could cost tons of money later. Instead of trying to pick individual companies, invest in index funds like Vanguard Total Stock Market Index Fund which invests in 500 different large public U.S.-based companies. That means you take advantage of economies of scale through diversification while avoiding potential pitfalls such as overpaying for growth companies. If you aren't sure where to start, check out The Motley Fool's beginner guide to understanding basic finance terms.
You also won't be forced to sell shares often to pay tax bills, though you may still end up selling sometimes to raise capital for big purchases like homes or cars. You might miss out on short-term gains, too. However, since you own a total fund rather than specific company shares, you don't really care about those details. What you focus on is the bottom line return every year. This strategy is similar to putting everything into one mutual fund versus picking stocks yourself. It requires no research skills whatsoever, but you should treat it like any other type of investing because it isn't.
Once you learn how to invest, you probably wonder what kind of returns you'd actually get by skipping the whole process altogether. Fortunately, there are plenty of alternatives to owning actual companies.
One option is real estate. Real Estate Investment Trusts (REITs), which are funds that trade like stocks but operate much differently, offer great dividends. For example, dividend income from REITS tend to beat regular bonds. Dividends from REITS come straight out of their profits, unlike bond dividends which must go to creditors before taxes. A well-run REIT can provide double digit annual dividends, plus interest payments, without ever having its earnings taxed again. Some types, however, are riskier than others. To read more about this, here's how to choose a quality REIT.
Another alternative is finding passive streams of income outside of traditional jobs. Services like Airbnb allow homeowners to rent rooms or entire houses on demand and Uber drivers can use their vehicles for personal profit. These services require very low maintenance and almost zero work. While these businesses usually rely on word of mouth marketing, savvy entrepreneurs can create viable startups using modern technology. Here's how to build your own profitable startup.
In addition, you can turn existing assets into passive incomes. Selling collectibles is common practice among retirees who don't want to spend hours researching prices. Even if you live near family members, you can easily flip items around town to generate small rental incomes for free. Or, consider becoming a landlord. Renting out space lets you leverage unused bedrooms or garages. Once you figure out what you want to do, sign up for classes or search resources like Landlords Academy to help you become successful.
Stocks have historically provided higher returns compared to bonds or bank accounts. However, after decades of growth, stock markets became less efficient. Nowadays, Warren Buffet says he would recommend saving 10% of each paycheck toward retirement instead of focusing solely on equities. He believes that asset allocation between stocks and bonds provides superior results.
This is especially true now given recent events. During 2020, global equity markets suffered severe losses due to COVID-19 pandemic. Many experts say this event was unprecedented and caused major changes in wealth distribution worldwide. Wealth inequality increased substantially, particularly in developing countries. As a result, the world lost $13 trillion dollars from March 1st to June 30th alone.
However, during this period, gold rose dramatically. Gold gained 8%, despite crashing 20% overall. According to CNBC, the yellow metal's performance suggests that investors were hedging against future volatility. With uncertainty remaining high, gold may continue growing in value. Since precious metals typically appreciate faster than other currencies, you can expect to earn more currency per dollar invested in gold.
Also, remember that commodities like oil and natural gas used to track inflation rates. Yet, during 2020, both dropped significantly due to reduced supply. Therefore, you can keep earning more money on savings without worrying about fluctuations in the economy.
Finally, cryptocurrencies are volatile and risky. They have experienced huge swings in price multiple times throughout history. Cryptocurrencies' unpredictable nature makes it difficult to predict their values. Thus, you shouldn't put all your eggs in one basket.
To protect your portfolio, you should diversify across several coins. Otherwise, you run the risk of losing significant amounts of money.
Time management is crucial to success. No matter how busy your day gets, you always have choices to maximize revenue while minimizing stress. One simple solution is outsourcing tasks that don't require your full attention. Letting someone else handle errands gives you time to pursue other projects. Amazon offers same-day delivery service PrimeNow for orders under $35, and TaskRabbit connects customers with hourly workers willing to complete chores in exchange for payment. Meanwhile, Postmates brings food deliveries right to your door. Using apps like Fiverr, UpWork, Instacart, Fancy Hands, and Zilok, you can connect with freelancers and gig workers.
By taking advantage of opportunities created by new technologies, you can earn extra income without quitting your current job. When you combine smart automation with flexible scheduling, you can accomplish more in less time. For instance, let me introduce you to my favorite app, Latero, which helps you organize meetings and bookings.
There are hundreds of possible solutions to your question. Our goal is to spark creativity and empower you to reach your goals. So, explore these five techniques and tell us below what worked for you.
The world of investing has always been complicated for those who don't know what they're doing. It's even more difficult now with so many options and choices.
If you've ever bought into something like Bitcoin (or other cryptocurrencies) only to watch it fall apart, you probably understand that investing in stocks isn't exactly easy. And if you haven't done much research before making an investment decision, the chances are pretty high that you'll end up losing some serious cash.
That said, there are still ways to invest without getting burned. If you're looking for alternatives to traditional stock market investments, here are five methods for generating income from assets while avoiding risk.
1. Real estate
Buying real estate involves purchasing land or property already built upon, then renting out space inside the building(s). You could also purchase raw land and build yourself — although this takes time and expertise. Either way, when you buy rental properties, you own them outright. This means no monthly mortgage payments. That's why many people choose real estate over stocks.
But not everyone wants to take ownership responsibilities off their hands. Some folks enjoy being landlords but would rather avoid responsibility altogether. In that case, look at becoming a landlord through a company such as Equity Trustee Inc., which helps investors pool capital together to create residential property management companies. These firms manage buildings owned by individual investors. The owners receive checks based on rent collected per month, plus a percentage of each check after expenses.
Another option is to use rentals as part of a portfolio strategy. For example, instead of putting everything into one big house, consider splitting your funds between multiple houses. Split your money among three different homes or apartments, for instance, and collect rent from each. Then distribute your earnings proportionally among each home owner once taxes come around.
3. Stocks & Bonds
As mentioned earlier, owning shares in a publicly traded firm used to be popular because of its potential growth. But today, these types of investments aren't nearly as attractive thanks to increased volatility (and sometimes fraud), according to Investopedia. However, private businesses offer another alternative. Companies like Apple, Google, Facebook, and others typically trade under "private" labels instead of going public. Private equities allow investors to earn returns similar to larger corporations. Plus, private offerings tend to be less risky than large-scale publicly held ones.
4. Mutual Funds
Mutual funds are essentially pools of investor money invested directly into various kinds of financial products, including stocks, bonds, annuities, etc. According to Morningstar Investment Research, mutual fund managers generate roughly $100 billion annually in fees and service charges alone. So while most investors will agree that it makes sense to diversify across a range of asset classes, cost considerations may cause you to opt out of certain categories.
For example, let's say you decide to put away $10,000 into a 401k account. Most experts recommend contributing at least 20 percent of salary toward retirement savings. With a starting age of 25 (the earliest possible age to start saving), that amounts to $5,000 a year. At 6% annual return, however, you'd need about 30 years just to break even. On top of that, you'd pay federal tax on any gains made within your 401k plan. By contrast, if you had started early enough to open an Individual Retirement Account (IRA), you wouldn't incur any taxes on your initial contribution. Instead, IRA contributions are taxed annually at ordinary income rates, meaning they become free cash flow as soon as received.
In addition, IRAs often provide better liquidity compared to 401ks, especially during emergencies. When the markets crash, you won't lose sleep knowing that you can easily access your money whenever necessary. Of course, if you're planning to withdraw funds later down the road, you should factor in additional costs associated with withdrawals. Also keep in mind that IRAs attract penalty fees if you leave your plan before a specific period ends.
To find success outside the realm of "traditional" stock trading, try opening up shop in a new industry. Here are a few examples:
Virtual assistant work
Mobile app developer
Social media manager
You never know where opportunities will arise until you begin exploring new areas. Do remember though, that the best way to succeed is to focus on what interests you first and foremost. Don't worry too much about how profitable ventures might turn out. Just stay persistent and determined. Eventually, profits will follow.
When it comes to growing wealth, speed really does matter. Unfortunately, slow and steady wins the race when it comes to long-term investments. Even Warren Buffet himself recommends focusing on low-cost index funds and sticking to them throughout your life. Why? Because compound interest works overtime when you hold onto securities longer.
So, if you're someone who prefers quick results, here are two suggestions for maximizing your earning power quickly. First, pick up skills like software programming and web design. Second, spend extra hours learning about finance and economics. Once you master both, apply your newfound knowledge to creating passive streams of income. Remember, passive income refers to revenue that keeps coming in whether or not you personally continue working. Examples include royalties from books and music, dividends from stocks, rents from real estate, and subscriptions from digital content providers.
Here's our final tip: Start small. Focus on mastering one type of stream of income at a time. Use whatever resources you can to help you along your journey. To save money, join a group called Warrior Forum. Within the community, you'll find mentors willing to share advice and support. There, you can ask questions related to business, fitness, martial arts, meditation, blogging, personal finances, marketing, health, and more.
It goes without saying that patience is key when trying to acquire massive wealth. After all, it took decades for Bill Gates' net worth to reach $92 billion. Likewise, if you expect instant riches, give up right now.
Instead, think bigger. How else can you contribute to society besides providing for your family financially? What other goals do you hope to achieve in the future? Maybe you dream of helping millions live healthier lifestyles via healthy food education initiatives. Or maybe you aspire to improve the quality of lives of children and adults alike through innovative medical solutions. Whatever your vision, figure out how you can execute it effectively and efficiently. Then go ahead and start taking action!
According to U.S. Census data, Americans spent almost $7 trillion dollars on healthcare last year. Now imagine what kind of impact you could potentially make if you focused your efforts into improving healthcare outcomes further.
I've been thinking about this question for years. As someone who has spent time in the workforce over the past decade, I know that there are some days where it feels like I'm barely making enough cash from my salary alone. This is especially true when taxes come due at the end of each year.
There's also something else weighing heavily on me. My wife recently got laid off after working several different jobs over the last 16 months. Now she works full-time while I work part-time doing freelance web development with our two kids under four. We don't make nearly what we used to make combined but still feel strapped financially because we're using credit cards most of the month. Even though I get paid hourly wages, I only see myself getting worse. The reason why is simple -- I need to find ways to make extra income outside of my normal 9-to-5 gig.
So here's what I'd love to hear from anyone out there. How do people earn money online (or offline) without spending any real money? Where does one start? What kinds of things should they look into first before diving right into their own entrepreneurial endeavors?
Here are some of the answers I came up with so far. If you think of other great suggestions please share them below!
This is an interesting one. In terms of earning extra cash, you could try starting a blog or website and monetizing it through affiliate marketing. You'll probably be able to generate around $500 per month if you stick with it long enough. Another thing you might consider is renting space on Fiverr or Craigslist and offering services that would normally fall under "plumbing" or "moving." For example, maybe you offer a particular type of cleaning service or perhaps some packing help. It doesn't matter what kind of services you provide, but the point is to create value for others. Once you establish yourself as somebody who provides quality goods or services, then you can begin charging higher prices for those items.
Another option is to become a freelancer. There are lots of sites now that allow you to post gigs related to writing, programming, design, etc. People will bid on these projects based on the price they want to complete them for. Since you're bidding against competitors, you won't necessarily be competing solely on cost. Instead, you'll compete on which project you're best suited for completing.
You may even decide to go the traditional route and open your own business. Maybe you already have skillsets in graphic design, music production, photography, coding, SEO, social media management, etc. These can definitely be turned into profitable businesses depending on your area of expertise. Again, you can rent office space or live space near friends/family and charge them a monthly fee for use of said property. Or you could simply take photos of houses similar to yours and put signs advertising your house sitting services next to them. Of course, you could always advertise on Craiglist, Facebook Marketplace, etc., too.
The key takeaway here is that there are many options available that require very little investment upfront. All that matters is whether or not you actually finish what you promise. And once you prove your worth, you can hopefully raise your rates accordingly.
Yes and no. One way to potentially make money quickly without investing much is by trading forex. Forex stands for foreign exchange. Basically, this involves buying low and selling high currencies. When you buy a currency pair, you pay less than face value and hope that its counterpart sells for more than face value. Typically, you receive profits based on the difference between the sale price and purchase price.
If you learn how to properly trade forex, you could easily make hundreds of dollars within minutes. However, it requires proper training, discipline, patience, and knowledge of market conditions. Learning how to trade forex isn't easy. But it certainly beats having to deal with brokers and commissions every time you buy or sell stock.
Of course, the risk involved in trading forex is pretty substantial. So you must understand the risks associated with stock investments before jumping headfirst into forex trading. Also keep in mind that forex trades usually happen 24 hours a day since markets aren't closed during business hours. Forex trading is volatile compared to stock trading, so there's potential for big swings in either direction. Finally, forex traders often rely on technical indicators to determine entry points and exit points. Technical indicators are mathematical equations designed to predict future trends. They typically involve moving averages, oscillators, stochastics, support levels, resistance levels, Bollinger bands, RSI, MACD, ADX, ATR, CCI, SARs, MFE, and EMA's among others. Some of these tools can be helpful, but you shouldn't rely 100% upon them. That's why you should seek professional advice from a licensed financial planner.
Absolutely. Owning shares allows you to participate in the growth of certain private corporations. Over time, if you invest wisely and choose good companies, you can easily double or triple your capital. However, you must stay focused on actively managing your portfolio rather than trying to pick winners and losers. After all, picking winning picks takes skill. Staying consistent from week to week and keeping track of company fundamentals is what separates successful investors from unsuccessful ones.
One final note regarding stock ownership... never chase losses. Never buy stock just because it dropped 20%. Stay disciplined. Always follow your gut instinct. Don't let fear rule over logic.
Sure. As mentioned above, you can buy stock and hold onto it forever. Then again, you could also sell stock and pocket the profit. Let's say you bought Apple Inc back in 2010 for $10 per share. Today, it's valued at close to $150 per share. That means you made roughly $140 per share while holding onto your initial position. On top of that, you likely received dividends along the way. Dividends represent regular payments given to shareholders. Those payments tend to compound the longer you hold onto that stock and grow exponentially overtime.
That being said, there are times where stocks lose value. Sometimes it happens gradually, sometimes it happens overnight. Either way, losing value is inevitable considering stocks fluctuate constantly.
What's important to remember is that short term gains can lead to catastrophic loss down the road if you're not prepared. Take advantage of compounding interest whenever possible. By reinvesting earnings back into new purchases, you can maximize returns and minimize overall risk.
Obviously, there are countless opportunities for passive income floating around out there. Unfortunately, unless you're independently wealthy, it's going to take a lot of hard work and persistence to reach success. Good luck to everyone reading this article today. Hopefully, we can continue helping one another achieve prosperity together.
Have questions of your own about making money without buying anything? Ask us below!
Become CEO of your own lead generation software company, just follow our battle-tested guidelines and rake in the profits.