Back to Basics: 5 Fundamental Ways To Make More Money
One sure way to put yourself in the poorhouse is to spend much more than you earn. Obviously, spending less ensures that you have more wealth, but that’s just one side of the savings coin. You can do to increase your savings even further by making more money. Short of asking for a raise or promotion (although those work too!), here are five things you can do.
Sell Off Your Stuff
In my mind, there’s something wrong with discarding an item that’s perfectly usable. I’m aware I’m teetering dangerously close to being a hoarder though, so I’m organizing a yard sale, albeit online.
The benefits of selling off unwanted items are two-fold – you’re freeing up space in the home (for more stuff!) and making money to set aside for that holiday/more stuff. You can do it the old fashioned way and advertise with flyers, but be prepared for mayhem, or (like me) would opt for cyberspace. Ebay and Amazon are just two places that come to mind.
Get Another Job
Previously, working part-time was the domain of students or those who weren’t “good enough” to qualify for a full-time position. Now, of course, working more than one job is more a rule than the exception, given how the price of living has increased drastically and salaries show no signs of following suit.
Despite any misgivings, you are not “taking away” someone else’s job. There’s nothing wrong with doing what it takes to make ends meet! A job, part-time or otherwise, exists until someone fills it based on their qualifications, commitement and acceptance of the wage offered (http://www.forbes.com/2010/07/12/second-job-extra-money-part-time-work-forbes-woman-net-worth-supplemental-income.html). All is fair in the job market, and unless you’ve stolen someone’s identity and accepted a job really meant for them, there’s no such thing as “poaching” someone else’s job.
Profit From Your Hobby
A hobby is something done in your free time to relax. The thing about making a hobby profitable is to be careful not to suck the joy out of it and turn it into just another job (http://www.wisebread.com/make-your-hobby-pay-its-way). Identifying a profitable hobby is as easy as defining what you’re good at and improving on it in order to provide value to customers.
The most visible examples of profitable hobbies are those that involve food. I’ve lost count of the people I know who bake to make extra cash, and it’s not just small change either. I can barely boil rice myself. Whatever your skill set, you need to figure out how to make it pay, not just for itself, but also to ensure you make a profit. One sign that a hobby could be profitable is when someone says, “I bet you’d make a mint if you sell this!”
Start A Side Business
This could be the next big step after profiting from a hobby. However, running a business involves more commitment (broadening an existing skill set, building up a network, sourcing clients/customers), but has more flexibility (money and time) due to it being a small business.
It’s not a prerequisite for a business to originate from the owner’s hobby; you could identify a niche to which your skills are a good complement (http://entrepreneurs.about.com/od/becominganentrepreneur/a/StepsToStartingYourOwnBusiness.htm). For example, a copy editor can maintain her own freelance editorial assistance service during the weekends, while a teacher could provide private tuition in the evenings.
In a best case scenario, it becomes so profitable that the owner can afford to quit the “day” job. The responsibilities can become more palpable as the business becomes the sole means of income, so be prepared for the stress that can accompany being a full-fledged entrepreneur.
Make the Most of Your Investments
Slow and steady tends to triumph when it comes to investing. In the short term, gaining an extra percentage doesn’t look like it will make much impact on profits for your investments. On the other hand, time and compound interest will eventually prove to be your two best friends, especially where index funds (http://www.fool.com/60second/indexfund.htm) are involved.
These have a long-term advantage over most other investments and managing them takes a small amount of time. Ensuring proper allocation of assets and periodic re-balancing of your portfolio (http://www.emarotta.com/periodic-portfolio-rebalancing/) are also small steps that enable you to gain the most from your investments.
To reiterate, spend only on the essentials if accumulating wealth is important to you, but don’t stint to the point where you compromise your health and quality of life. Aside from eliminating debt, you can also sell your junk, products and/or skills as well as invest wisely to make more money.
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