Content of the material
- Why I wrote this guide:
- Do you want more from life — more money, more freedom, more security, and more time for the activities you love?
- …or you can negotiate ONE raise at your job that pays you thousands more a year for the rest of your life.
- 7. Money-making strategy: Flip real estate contracts
- 24. Money-making strategy: Rent a spare room on AirBnB
- Residential Real Estate: Paths to Profits
- Buy and hold
- Airbnb and vacation rentals
- Save More Money. Faster
- Pros and cons of making money on the side
- What’s great about making money on the side?
- What are the potential downsides?
- What service could you offer?
- Offline Side Hustling Ideas
- More People Making More Money Than You Think
- People Are Agitated And Jealous
- The Bottom Line
Why I wrote this guide:
Do you want more from life — more money, more freedom, more security, and more time for the activities you love?
If you’re like me, hearing another expert tell you to save a few bucks by cutting back on lattes makes you want to jump out of a window. Please, stop with the frugality. Is saving a few bucks really going to change your life?
While you’re scrimping on the things you love, you see other people enjoying the financial freedom to do the things they love… and they never have to choose between paying bills, automatically saving for their future, or living a Rich Life.
If you’re ready to stop saying “no…no…no” and start living the life you want, you need to embrace this financial truth:
You can spend hours a week clipping coupons to save a few bucks…
…or you can negotiate ONE raise at your job that pays you thousands more a year for the rest of your life
You can switch from two-ply to one-ply to save a few pennies…or you can use skills you already have to start making $1,000 a month on the side (or more).
Yes, making money is only one part of living a Rich Life, but it can help us do things we love and free us up to pursue our dreams.
I’ve spent over 10,000 hours and a million dollars discovering and refining the three best strategies for making extra money — and I’m going to walk you through them in this guide.
7. Money-making strategy: Flip real estate contracts
Ir you’re thinking this is cost prohibitive, it’s not. You can flip real estate contracts without ever taking possession of the property. This isn’t a fixer-upper endeavor, just securing a contract and selling it to an interested party. That’s it.
You can do this with just a few hundred dollars in most cases to open up escrow. There are companies dedicated to teaching how to do this like REWW. It’s good for making a little bit of money, but is also potentially something more long term as well.
24. Money-making strategy: Rent a spare room on AirBnB
AirBnB can be a terrific platform for renting out a spare room. You can make some good money, especially if you live in a tourist destination. If you don’t mind the neighbors, then this is definitely an option. You can crash with friends and family and rent out your entire house if you’re really desperate.
Residential Real Estate: Paths to Profits
Here is a closer look at some of the many ways that you can earn income from residential properties.
Buy and hold
This is one of the more traditional ways of earning income from real estate. There are a number of ways to accomplish this: You can buy a single-family home and rent it out; buy a multi-family home and live in one of the units while renting the others—ideally to cover the mortgage and your own housing expenses; or purchase a multi-family home and rent all of the units—either managing the property yourself or hiring a management company to handle renting units, collecting rent, addressing needed repairs, and so on.
Property flippers specialize in adding high-return fixes to houses in a short time and then selling them. Flipping can be lucrative if you know how to find properties to fix up, you have the necessary skills to do the renovations yourself or oversee a crew to carry them out, and you have a sense of a property’s underlying costs and potential value.
Airbnb and vacation rentals
The demand for home-away-from-home rentals had taken off in recent years as many travelers preferred this option to staying in a hotel. Homeowners could earn income by renting out a house or even just a room on a short-term basis, especially if the property is in area that's a well-known tourist destination. It's unclear when that market will return. But should it reappear, keep in mind that short-term rentals are regulated and sometimes even banned in certain cities. Check your city's bylaws before listing a property on a website such as Airbnb, VRBO, or HomeAway. And also figure in what additional deep cleaning and sanitizing between guests will add to the costs.
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Pros and cons of making money on the side
What’s great about making money on the side?
- It’s easy to get started — and you don’t have to be the world’s best, just better than most people.
- Standard rates for most jobs make it easy to price your work.
- Work ➞ income is very clear and easy to follow.
- You choose when you want to work, and who you want to work with.
- You can eventually go full-time and leave your 9-to-5, if you want to because you’re in control.
What are the potential downsides?
- It takes testing (and time) to find out which of your skills people will pay you for.
- Raising hourly rates can be difficult, if you don’t know how to approach the conversation.
- Earning money on the side is easier than many people think, but you still have to invest your time.
- You have to find out how to get consistent clients and steady income.
I’ve helped thousands of students make money on the side using skills they already have. One of the most common problems they have is figuring out what profitable skills they have.
What service could you offer?
Most of us are experts in at least one area, or we’re at least better than most other people. Think about the last time you’ve helped your parents with a computer problem. You may think you’re just so-so at computers, but to them, you’re a magician. And weeks later, they’re still telling their friends that you’re a “computer whiz.”
Offline Side Hustling Ideas
Sometimes, working offline when you side hustle is a more lucrative prospect – especially depending on your skill set. However, these gigs don’t mean you’ll never touch a computer. You might still need to list your side hustle project online or market it online to get leads and customers.
Making money online can help you earn some extra side hustle money, but it can also help you escape your 9 to 5 job so you can become a full-time entrepreneur. By brainstorming online business ideas and choosing to start an online business, you gain more financial freedom, improve your financial security, and inch closer to living life on your terms.
If you're looking for more online money making ideas, don't forget to check out Shopify's post on 25 Easy Ways to Earn Money From Home.
It really is possible to earn a living online if you work hard and stick with it. So, which side hustle will you try out first?
More People Making More Money Than You Think
Professional blogger with 5 years experience: $50,000-$200,000. Anybody can start their own website for next to nothing nowadays compared to before. Here’s a step-by-step tutorial on how you can brand yourself online and leverage the 3 billion+ people on the web.
Software sales rep at Oracle, Salesforce.com and the like with 5 years of experience: $300,000 +.
Strategy consultant 5 years out of undergrad: $100,000+.
Hedge fund manager partner: $500,000-$20 million depending on performance and assets.
Google / Facebook employee with 5 years experience out of undergrad: $100,000+ with potentially millions in stock.
The list goes on and on. As you can see, practically everybody makes over $100,000 a year with enough experience and many make much, much more.
People Are Agitated And Jealous
People who do well are afraid of the government, the media, and bitter people all around. They are afraid they will be hunted down by organizations who will tie you up and burn you at the stake.
You don’t know how many conversations I’ve had with people who are just so agitated they can’t spend because that would mean they’d be spending $50,000-$150,000, which is fancy by “normal” standards but is absolutely whatever by their standards!
Instead, they spend 1/20th to 1/50th of their income on a car because anything more than a $28,000 Honda Accord will be frowned upon.
Just the other day, I got a ride home from a tennis buddy who works at a hedge fund. Jack drives a common Ford Explorer and on our way back we started talking about real estate.
He mentioned he and his wife are looking for a new house having recently relocated from Florida. He mentioned his house in Florida costs just under a million, but is nicer than so many $3-4 million dollar houses in San Francisco. So then I suggested instead of spending $3-4 million on a house in San Francisco to perhaps rent for a while.
He responded, “Actually Sam, I’m seriously looking at buying this unlisted house asking $8 million. $8 million just seems like a lot though. I’m thinking it’s worth no more than $6 million. I haven’t rented since I was 25, so renting feels foreign to me.“
Boy were my price estimates wrong, I thought to myself. “Yeah, I wouldn’t spend more than $1,200 a square feet on the house either. Take your time! Houses are like stocks. If you miss one, there’s always another that comes along.“
“Yeah, you’re probably right Sam. But I wonder though, b/c I bid on a smaller house at $1,200/sqft and got outbid. I wonder if there is just that much money out there?“, my buddy vented in frustration.
“There definitely seems to be. Just wait until Facebook goes public!” I responded.
The Bottom Line
There are several proven strategies for making money in real estate. Appreciation, inflation, and income rank high on the list but several alternative real estate investments also exist. Understanding your investments, risks, and whether the overall process is worth it or not is up to you.