Monday, February 2, 2015

How to make money

how to make money
There are many unusual ways to make money.  For most of us, however, what comes first to mind is getting a job.  That is certainly not a bad way at all if you have any abilities or skills at all.  It is a step up from nothing at all.

The pay may not be that great.  What you have to do may not be exciting, but the money usually comes in on a regular basis.  It is predictable and it does not stop like selling your stuff does when it runs out.  The skills you have acquired, you will always have.

The downside is that you kind of become dependent on that steady flow of income.  It begins to become a routine.  The joy of getting up every morning begins to fade.  Perhaps the colleagues begin to get on your nerves.  If you decide to stay home, the income also stops.  You could try to get another job, but chances are that pretty soon you will be back to looking for another and another and another.  Wouldn't it be nice to shed the shackles of a job?

For most people, that goal is within reach.  Most of the strategies involve making an investment of time up front and expect the rewards to come later.  Therefore, the key is to start early, preferably long before the urge to leave sets in.  Here are some options:

Become Self-employed:  Maybe you can continue to do what you always did.  Instead of just one employer, you will have many.  We call them customers.  This means that, in addition to doing what you do best, you will also have to be the salesperson, do some marketing and some bookkeeping.  If that does not appeal to you, look for another way or treat it as just another step towards financial independence.  The earnings potential is also somewhat limited by the amount of time you have available.  Could you sell the business to someone else or would it stop existing if you stopped?

Own a Business:  Owning a business is different from being self-employed in that business owners delegate.  That's their job.  They do not get involved in the details of the every day operation. Employees handle that for them.  Earnings potential is essentially unlimited.  If you are good with people and are able to attract really good employees, you also have the potential for significant flexibility in your life while building wealth on autopilot.

Passive Income:  We have already discussed how to make money with affiliate marketing in a previous post, but there are others.  Renting things is one.  Renting houses, rooms and apartments come first to mind, but there are even more options.  You may be surprised at what people choose to rent, TVs, furniture and computers just to name a few.  If you like to interact with people, this sounds like a lot of fun.  The tasks can be delegated and the business could eventually be sold for cash.

Investing: You might think that you need large amounts of money to make this work and that only rich people can make this work.  Due to the concept of compound interest, this option is the one where getting an early start really pays off in the end.  According to The Millionaire Next Door, it is possible to build significant wealth even with a modest income.  Saving and investing small amounts over a really long time is the number one strategy for financial independence.

No comments:

Post a Comment