Every time I write and talk about personal finance, people ask me, “But how I do make more money?”
Making money is not that hard. You’re probably making your share of cash right now. That means you already know how to do it, right? That’s one of the first things I learned about money.
You have to look at making money as something you already know how to do. If you have a job or ever had a job, you know how to do it. Now, making more money on your own, that’s the next step.
Follow Ladders on Flipboard!
But if you think it’s impossible, you’ll never do it. You need to stop thinking that only the privileged or fortunate ones can earn more. That’s not only false but it’s also self-sabotage.
Start With A Reason
Also, what’s your reason to earn more? You need a real drive to make money. Why? Because it’s hard and most people give up quickly. But if you have a strong urge to earn more money, you probably will. So what’s your reason?
Want to pay off your debt? Take care of your kids, parents, or both? Want to build a big organization? Want to have more resources so you can change something about the world?
Asking yourself questions that start with a W is a good strategy. Tim Ferriss, the author of The 4-Hour Workweek, and the godfather of the “lifestyle entrepreneur” movement, said it best:
“Money is multiplied in practical value depending on the number of W’s you control in your life: what you do, when you do it, where you do it, and with whom you do it.”
When you’re conscious about making money, you won’t have the problem that money-addicts have. For some people, it’s never enough. With that in mind, let’s get into a list of 5 ways you can start earning more money. You can do these things full-time, part-time, or for only 1 hour a day.
1. Monetize Your Knowledge
You can break this category up in hundreds of smaller things you can do. But anything that requires your advice, knowledge, and skills, falls under “monetizing knowledge.”
This has everything to do with your mindset. “But I don’t know anything.” Firstly, I doubt that because almost everyone has skills and strengths. Secondly, if you think you’re not that good, get better.
It’s that simple. Once you have specific knowledge, go and help others with that knowledge. Give advice (consulting), write a book, teach a class, coach, build something for others, you name it.
You can work for yourself, or you can work with others. There are freelancing networks, teaching jobs, co-working places, and other ways you can get help to get started. Or, you can do everything yourself, as I do.
2. Don’t Lose Your Money On Stupid Things
“Wait, what? You’re supposed to tell me how to make more.” Well, call me old school, but I look at avoiding losses like money made. It’s no surprise that Warren Buffett’s #1 money rule is never to lose money.
You’ll appreciate this rule when you lose money that you easily could’ve kept. In practice, this rule is simple: Don’t be lured by get-rich-quick schemes.
Don’t blindly follow money trends; that’s how bubbles are created. Every year, there are new trends that everyone talks about.
My rule is very simple: If people talk about money making ideas on birthday parties, I’m out.
Also, when an opportunity to make money presents itself and you think, “This is too good to be true,” always walk away. Your future self will thank you for it.
3. Buy Rental Property
Got extra cash laying around? Buy rental property in a city that you know. As you know, real estate is all about location. If you find a property with a great location, chances are it will never be left without tenants.
My favorite way to find real estate is through your network. That’s why I recommend buying in your own city. Tell EVERYBODY you know you’re looking for a property. Chances are that someone will say something like, “I know someone who wants to sell.”
I wouldn’t buy a property with 100% cash. If it’s your first properly, you can get a mortgage. Otherwise, look into commercial real estate mortgages. You can also purchase something together with a family member or close friend.
If you want to get into this business, do your research. But it’s definitely possible. Most people often say, “Real estate is for the rich.” Don’t let that hold you back.
4. Create A Product In 48 Hours
I’m a proponent of ownership. That’s why I’m not a fan of affiliate marketing. It’s fine if affiliate marketing blends into your business, but I would never become a full-time affiliate marketer.
You have no skin in the game. If you create a product, you’re the owner, and that means you have to stand behind your work. You don’t want to disappoint your buyers. That’s the key to doing business.
Most entrepreneurs think too complex. They want to innovate and create new products. That’s great and all, but why not start with something simple? Something you can source from a factory somewhere close.
If you want to create a product, give yourself this limitation: What product can I design and get it produced within 2 days? You will immediately eliminate 99% of business ideas. Now, only focus on the things you can easily create and sell.
It must be valuable and useful too. When you do that, you can improve your design, sales, marketing, and supply chain skills. You can use that in your future endeavors.
5. Buy And Sell What You Know
I started buying and selling mobile phones when I was 15 years old. That wasn’t even my first side business. Before that, I sold used and ripped CDs, DVDs, and video games.
That was the stuff I knew back then. I knew which phones were in demand. I knew which albums were good, and which video games everybody played.
Buying and selling is the easiest way you can generate cash and help people get what they want. But most people think they can buy and sell anything. I don’t believe in that.
It’s all about demand. You must know what people want. For instance, vintage watches have become popular over the past few years. I like watches, but I have no idea what’s in demand and what’s rare.
But if you do, you can make money by buying and selling those watches. That’s also true for any other object in the world. If you know everything about Batman comics, Barbie, or Pokemon, buy and sell that stuff. Know all about cars? Get into that.
Whatever you decide, make sure you go all in on ONE thing. I’ve often made the mistake of trying different things at the same time. And I always failed.
The times I generated the most money and value were the times I was focused on one thing. Know everything about what you do. If you think about it, you can only do that if you focus. It’s impossible to know everything about everything.
So, want to earn more? Pick something that you like and are good at. Then, get started and don’t come up excuses like “I don’t have time.” You make time. Just like you make money.