The challenge when looking to make an extra income is that most people earn a living by trading the most precious resource of all, their time in return for money; which means that whether you stack shelves in a supermarket or perform open heart surgery – in both instances, you are swapping your time for money and there’s an intrinsic limit to how many hours there are in each day; which is why all truly wealthy people utilise the power of leverage in order to get rich.
Leverage, in this context is building a system or an asset that can then be leveraged multiple times (e.g. a popstar creates a hit song and gets a small royalty on each download) as this way they are not trading their time for an hourly amount.
The amount you are able to trade your time for is contingent on the value you provide; an attorney will often charge more for an hour of their time than a janitor – because the service they provide has a higher perceived value; which is not to say they have more value as a human – it just means they are creating more value in the sense of the outcome they are providing.
The challenge, even if you are a highly paid attorney, is that if you want to earn an extra income there are only so many hours in the week that you can trade your time for money – and there’s also a ceiling that people are willing to pay. Similarly, presuming you value your life beyond work – you need time to enjoy life.
Here are three ways you can start to have your money work for you – rather than you having to work for it.
INVEST IN BITCOIN
The recent boom in the value of bitcoin has seen many people wishing they had invested, or at least taken bitcoin a bit more seriously a few years back. Investing in currency that’s likely to appreciate in value is a great strategy to start having your money work for you – rather than you working for it.
INVEST IN THE STOCK MARKET
Just like there are companies that offer secure data transfer software there are a number of tools that facilitate algorithmic trading, which can help you make a decent income by playing the stock market in a way that is lower risk than conventional trading. There are a number of stock market trading courses you can take to get your head around the logistics, but in reality, it’s reasonably simple when using credible software – and there are plenty of low risk strategies to protect your downside. The hardest part is managing your own psychology and emotions within the highs and lows of investing.
HIGH INTEREST BANK ACCOUNT
Admittedly, you need money to start with but if you were to have $100,000 in a high interest bank account, some of which will pay up to 20% interest in countries such as Turkey and India – that would be $20,000… which is a decent yield given the money invested is not at risk; unlike in the two options above.
In summary, there are ways you can start making your money work for you – meaning you are leveraging the money you have as an asset that starts generating passive income; rather than having to trade your time for money.