When you’ve been living the nine-to-five life for a while, the last thing that you want to do is to work another two weeks for your pay check. Of course, the idea of free money is a fantasy at best – not to mention one that would destroy the economy – but by using existing assets (not always cash) you can stop working for your money and start to make your money work for you.
1. Invest in property
As with stocks, research can go a long way in investing in property. Look at factors such as immediate demand and you may find that the price that you initially thought was steep turned out to be a bargain after all. One thing, however, that cannot be stressed enough is that you need enough patience for the property to grow in value, at which point you can sell at an astronomical profit.
2. Purchase a franchise
If the stock and property market are too unpredictable or complicated for you to bother even investing, you can invest in franchises, which are essentially businesses that have stood the test of time. Look for areas that have a need, or even a want, for a certain product or service, and, if you can deliver it with the right franchise, the money, as they say, will come rolling in.
3. Rent out things you don’t need
Don’t have a spare million dollars lying around to invest in Apple? That’s okay! There are plenty of other options. While the payoff is normally proportional to the amount of start-up invested, you can have a low-budget investment that pays off at a ridiculous scale. Think of parking spaces in the city that you could rent out from your office or home: when the alternative is in an expensive, not necessarily secure parking spot, a guaranteed parking space can be a dream for most. On an even smaller scale, renting out appliances that you don’t use often can ensure that you get the most value for your money – by making more money.
4. Purchase Stocks
The volatility of the stock market can be frightening at times. Of course, the old adage to buy low and sell high is something that is more simply said than done – what price point is low? Which is high? What if you invested in something that will plummet in value the very next day and made no recovery? The key, of course, is to research. When you take a look at all the factors that surround a company’s performance, you can essentially start to make more thoughtful decisions in stock value. Of course, this is ultimately a gamble, so a willingness to take risks will help you make bold moves that could pay off in the long run. Or perhaps you’d like to skip all this and invest in a managed fund where experienced and knowledgeable people can invest on your behalf.
5. Maintain a Blog
Some of us consider ourselves to be wordsmiths – okay, that’s stretching it, but passion is the main ingredient in having a good blog. With regular maintenance and a subject to focus on, you might find your blog will attract much traffic, and with the traffic comes advertisers looking for exposure. What this means is that you can spend one hour a week on maintaining a hobby and get paid for it. Now who wouldn’t like that?
Joe Bedet is an entrepreneur who has gotten his start-up money by investing in managed funds with Clime