People think they’re bad at making money, but they do not know how to use it. That is basically what American politician and public lawyer Frank A. Clark said back in the 1900s. As the old saying goes, money does not grow from trees, and we all know how hard it is to earn it.
How Do I Earn More Money?
There are mainly two ways people can start making money legally. We are going to give you a brief breakdown of the matter below.
Active income is the method that we are most familiar with when it comes to money. There are different ways to earn money actively. Employment, self-employment, and time-demanding businesses wherein we have to oversee the operations on the daily.
From hard labor, busing tables, all the way to corporate 9-5 shifts, these all fall under the Employment category. It means we are working for other people’s businesses to make them money while we get a steady paycheck.
The type of business owners who employ themselves by putting in their skill or expertise belongs to the self-employed category. Examples of the self-employed would be doctors, architects, engineers, and lawyers.
Opposite to active income, passive income is the type of money you get without spending too much time to earn it. Instead of being the one to work for money, you make money work for you. You can do this by investing in other people’s businesses, buying and selling things online, and real estate.
1. Target-hitting with Dropshipping
Dropshipping is when you sell something without actually having the stocks on hand. Instead, you take orders from customers, and then once they have paid, you can use that money to order from your direct supplier. Of course, after you get the item from the supplier or manufacturer, you then ship/deliver it to the customer.
Alternatively, it is also like persuading someone to buy something from you even without the product on hand, and at the end of the day, you get a cut for yourself for selling the item. When you put it this way, it sounds easy. But looking at the bigger picture, you will see all the efforts and factors that make the day-to-day operations far from the word “easy.”
Nonetheless, approaching this method with proper and realistic expectations will help you build a successful dropshipping business. Unlike time, money or credit can be hard to find when starting a business, check creditmadesimple.com.au, to help you start a business now.
2. Earning with Thrift Store Flipping
As the saying goes, “One man’s trash is another man’s treasure,” that is how, to some extent, flipping works. Thrift store flipping is another way to earn passive income by buying an item and holding it for a short period before selling it again, which you can increase its price by then.
Starting a thrift store flipping business naturally comes with a lot of research for it to be successful. You have to investigate the current market price of the item that you are going to purchase and how you will haggle with your buyer/customer to provide maximum profit.
Once you source your items, you can sell them for 4-5 times more than the cost of buying it. That is why many aspiring entrepreneurs are starting their shop online as a way for them to earn cold cash while still enjoying the freedom of setting their schedule. Once you learn the nuts and bolts of this operation, you can make a secure income.
3. A Star at Buying and Selling Cars
Every business has its own success story, buying and selling cars revolves around the theory of “buy low, sell high.” It may sound effortless, but it is a lot more complicated than that.
Buying and selling cars involves and revolves on hours and hours of research that includes looking for undervalued cars in the market, understanding the trends for pre-owned autos, and finding the right price for your efforts. Ideally, public auctions are the best place to find cars; these cars are often in good condition because the government confiscated some of these for failure to pay taxes or credits.
You can find good bargains for cars on online platforms such as Craigslist or eBay Motors and paper postings. Additionally, making sure that you know the ins and outs of buying and selling cars will help you achieve your goal. Make sure you familiarize yourself with possible clients before investing in a car. When selling a car or negotiating for your profits, make sure you did the opposite when you bought it.
4. House Flipping
Flipping homes is another relative way of earning passive income. House flipping occurs when someone buys a property, a house, condominium, or an apartment, and holds onto it for a brief period with the hopes of gaining profit when selling it (just like thrift store flipping).
This business needs a lot of repairs and renovations, and often being the property owner until you can sell it for your goal price. It requires investing your blood, sweat, and tears as flipping homes does not happen overnight.
You have to set your budget, find the right property and location, set a timeline of when you want to finish and make sure you sell your property. Remember, flipping houses is risky, but knowing and making a smart decision will propel you to success.
The list of passive money making income is unlimited if you use your imagination and creativity. As you look for ideas that suit you and your lifestyle, make sure it shows long term track records. Do your research and make sure you never go into debt!
People have said that it is not about how much you make, but how much you save. If you already know how to save, it would not hurt to increase your savings by passively making a little bit more money on the side. Speed up your way to financial freedom by giving at least one of these methods a shot.