8 Ways to Make Extra Money

Starting a side hustle has never been so easy…

It is a safe bet to say that most of us need and want to make more money. We are constantly thinking of ways to make more money for many different reasons: to pay off debt, save more, invest more, retire early, or simply just buy more things. According to considerable.com; the top Google searches of 2018 revealed “that people are largely preoccupied with that most universal or interests; getting rich as quickly, and with as little effort, as possible.”

Everyone has a different reason for wanting to earn more money. The truth is there
is no such thing as free or easy money; you have to either trade your
time or learn how to increase your income. The get rich quick schemes?
They don’t work, and they will only lead to disappointment, trust me.
I’m speaking from (regrettable) experience on this one. Ponzi schemes
have been in existence since the 1920s and were named after the man
himself, Charles Ponzi, a banker, and financial swindler. Some 40,000
investors entrusted $15 million to him after being told they would make a
fortune buying Spanish mail coupons and redeeming them for U.S stamps,
in an effort to take advantage of the weak Spanish currency. Another
good example from recent history is Bernie Madoff’s story. Many of these schemes fail because we get greedy, impatient, and are always looking to make a quick buck as fast as possible.

So, if you’re willing to learn and trade some of your valuable time, there are many different ways you can make additional income. If done correctly and with patience, it can benefit you over the long haul. In some cases, there are some short-term gains, maybe just not immediate ones. The truth is the easiest way to earn a quick buck is by finding a day job like almost everybody else; sorry to burst your bubble. However, the difference between the regular earners and the creative income earners is the extra time and effort they put in — that’s what makes the difference.

As the saying goes, nothing worth doing ever came easy. Now with all that said, don’t be scared. Be brave, open-minded, and prepared. There are many opportunities out there to make extra money and earn extra income. We will seek to explore a few of those; stay with me, and hopefully, you will embrace one or two of these to create and earn additional money. Some of them are very much within reach and will only take a few adjustments to your everyday life. In contrast, the others take more discipline and the willingness to take a risk. If you dare to bring your dreams to reality, then let’s dive in.

1. Invest in high dividend stocks

If you have some extra cash sitting around or are willing, put some of your money to work. You can invest in index funds and high dividend stocks. All you need is a brokerage account. Index funds or ETFs are a group of bundled stocks based on the S&P 500 Index and are invested in the general market without you having to choose or re-balance your portfolio. All the work is done for you by a fund. You can do this easily through vehicles such as Acorns. If you want to get your hands dirty and do the work yourself, you can invest in high dividends stocks. These are stocks that have dividend yields above 4% and, to some extent, up to 10%, meaning for every share you buy, that stock will pay you back between 4–10% of the price of that stock quarterly. An example of a stock that pays a quarterly dividend is Apple. As of today, Apple’s dividend per share is $0.63 per share. So, to put this in context, if you owned 500 shares of Apple stock, it would yield roughly $315 a quarter, giving you about $1,260 in dividends payments a year. The more dividend-paying stocks and ETFs you own, the faster you can create passive income from just investing in stocks.

2. Peer to Peer Lending

Peer to peer lending (or “P2P”) involves offering money to individuals or businesses through online services that match lenders with borrowers. It is a way for borrowers who generally don’t have access to traditional banking institutions to receive much needed funds. You might be asking yourself, how safe is this? Considering you don’t know who you’re lending money to, nor do you know anything about their business or creditworthiness. Remember, all money-making ventures come with a risk. But to ease your concerns, make sure when engaging in P2P lending, go with a reputable company. There are many out there like Prosper, Lending Club, or Kiva, to name a few. When a borrower takes a loan from these online services, you invest in a portion of the loan and get back a return as they make payments. The average P2P lender can expect a return of between 4–10% returns, depending on how diversified their portfolio is and the borrower’s ability to pay back on time. Think of this kind of investment as helping others while earning a passive income.

3. Real Estate

Everyone loves HGTV and shows like the Property Brothers, Flip or Flop have us all aspiring to become real estate moguls. It’s an attainable goal, but like any hustle or dream, it involves hard work, dedication to your craft, and in many cases, seed money to get started. Real Estate Investing for passive income is no different. If it is something you are interested in, learn as much about it as you possibly can. Find someone who can guide you through the process. I have written more elaborately on this topic, so stay tuned to learn more about the different ways to get your real estate investing career started.

A few things to consider are what kind of investments you want to invest in (residential or commercial), and how much time, commitment, and resources you are willing to put into this venture. If you intend to be a passive real estate investor, you have to vet the person, group, or syndications you want to invest in to ensure your investment is in good hands. It can be a very lucrative business that earns you a decent income. Mos importantly, investing in real estate also creates generational wealth because you will be able to pass it down to your children.

4. Build an eCommerce Business

According to the Department of Commerce, as of late 2018, online retail businesses generated $121 billion. That is a massive opportunity to get a piece of the pie, especially in today’s social media and tech-savvy environment. Small businesses to giant retailers like Amazon are all profiting big. If you have a passion or desire to enter this space, first figure out what you would like to sell. You can sell just about anything online; with the right digital marketing strategy, you can build a successful online business. Ten years ago, my business partner and I started a small successful eCommerce t-shirt brand called Royal Dynamite. One of our campaigns generated $10K in 14 days without creating a single product. Not bad for a small venture created out of passion! So what are you waiting for? Get started today. If you would like more information on how to get started on yours, hit me up.

5. Create an online course

Creating online courses is like the new kid on the block for the internet. There is a course for every imaginable thing you can think of, from learning how to run Facebook ads to even learning how to create your own online course. As the internet grows and people’s appetite for learning increases, so does our ability to figure out how to create content that people can use and that we can monetize. It is supply and demand, and I have significantly benefited from some of these courses. I have taken online marketing and Project Management courses at Duke University and UPenn. I’ve taken online courses from bloggers and subject matter experts in investing and branding. If you know you have something to offer the world, today’s environment has created the perfect opportunity and platforms to create them. Yes, there is a process, but as I mentioned earlier, there are even courses out there to teach you how to create an online course. Once created, you can continuously earn passive income from the community you build for years to come with minimal updates.

6. Payoff your Debt

Want more money? Look no further than within. According to data from the U.S. Federal Reserve, the average American household is approximately $5,700 in credit card debt. Eliminate your debt. On average, you would have an additional $6,000 a year you could be saving and investing. It is easier said than done; however, many techniques and resources are available today to help you pay off debt. I have outlined a few in my article here. The bottom line is sometimes you don’t have to look further than cleaning up your own house a little. Paying down substantial amounts of your debt essentially creates an additional income stream. This will free up more cash to invest, which will afford you more compounding interest on your passive investments.

7. Invest in a company — become a silent partner.

Another way to earn passive income is to invest in a private company. While this might take a bit of vetting, it’s possible should you have extra funds you’d like to put to work. You can invest in a friend’s startup or other small businesses that need funding. Websites such as SeedInvest allow you to invest in crowdfunded private companies doing some amazing things and creating solutions to our problems. If you choose to go this route, make sure you understand your agreement’s terms, how and when you get paid, and the length of the investment period. Yes, this can be one of the riskiest ways of generating passive income. Suppose the business you have invested intakes off. In that case, the return on investment can be pretty nice, depending on how much you invested. On the other hand, if the businesses you invest in don’t do well, your returns will be minimal. Before you jump into these, a word of caution: seek an accountant and/or lawyer’s advice to help you go over the number and terms of reference. Who knows, you can go from a small-time silent investor to a big-time venture capitalist angel investor!

8. Rent out unused space

With the emergence of AirBnB, HomeAway and VBRO, renting out unused space such as a room in your home or an entire house has become a lucrative means to earn additional income. Create a listing, rent out space, create unique experiences for your customers and get great reviews and watch your budding business grow with little effort. Remember that it is very easy to get started using these platforms, but that they are part of the travel industry. Any fluctuation in regional or national travel will affect your business. We are witnessing this now with the Covid-19 pandemic: while travel forecasters are optimistic about late summer and fall 2021, many investors with short-term AirBnB like rentals have lost a lot of money because people are not traveling as often.

With the internet, many side businesses are possible if you’re willing
to put in a little work to get things started. Once you’ve set the
foundation and are consistent, the rest will follow. The cash will come
rolling in as you continue to build your path to a consistent income
stream. Now that you are aware of the many ideas out there, do some
further research into what you are capable of handling and get started
today. Please do not wait on it; the money’s out there waiting on you.
Good luck!