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3 Ways to Earn an Extra $500 on the Side

3 Ways to Earn an Extra $500 on the Side

When I graduated from college in 2009 with a BA in French, I spent six weeks looking for a job.

Any job.

I needed to save money for my impending move to Paris, where I would spend a year working as a teaching assistant in an elementary school, frolicking in the City of Lights, and I needed to save money quick—$3,000 in the span of a couple months—in order to afford all of those baguettes and bottles of vin.

I don’t know if you recall, but the summer of 2009 wasn’t exactly the best time to find a job/graduate from college because of the…ahem…recession that had just hit the U.S.. Merci, economy! When June arrived and I still hadn’t found work, I started to panic. In my desperation, I posted an ad on Craigslist entitled “French Tutor: $15/hr”.

Two days later, I got an email and scheduled my first student: a Russian-American eighth grader with a deep love for David Bowie.

That, my dear reader, is how I got my first taste of how to earn money on the side. No, it wasn’t a ton of money (I eventually found a full-time job to save the money I needed for France), but I realized an important lesson: it’s just not that hard to get people to pay you to do things.

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In the four years since I graduated, I’ve become more and more obsessed with the idea that I can earn money without getting a real job. In fact, while living in Paris, I continued to grow my tutoring business and offered up my services as a nanny. I made bank. I even moved back to France in 2011 and spent eight months living off of my side hustle, earning money “under the table” or “in the black”, as the French say, by tutoring ESL, babysitting, and even continuing to tutor American students via Skype.

Now, I even teach new entrepreneurs how to land their first three clients and start earning money on the side. (My “side hustle” has become my main income).

How did I do it? More importantly: How can you start earning extra money (at least $500) on the side, too?

Lemon squeezy.

You just need to try a few of the following things (as many as you can, really). It’s fun. Just think of it like a game!

#1 – Teach someone something

You, my friend, are talented. You have knowledge and wisdom that others just don’t have. You have knowledge that they need. Stop hogging it all!

Maybe you have an academic skill, like tutoring French or Math or Biology. Maybe you’re an amateur auto mechanic. Maybe you have a knack for cooking tapas or sneaky vegan recipes that even meat lovers will love. Contact the local high school, library, etc to see if they’d refer you.

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Whatever it is, there’s someone out there who is willing to pay you to teach them how to do what you do best. You have to get over the unwillingness to earn money for doing what comes easy to you, because, well… it doesn’t come easy to them. (I, for example, would love to hire someone to teach me how to sew or do my taxes).

Make a list of 50 things that you know how to do. You don’t have to be an expert. You just have to know how to do it better than the person who hires you. (I am not the best French speaker in the world, but I know way more than my students and have diverse teaching experience, and they get an incredible value from my lessons).

Charge what you’re worth. Don’t do what I did and charge a measly $15. (My lessons are now triple that cost). If you do this right, this is the best and easiest way to make money on the side.

#2—Sell something (not your body, duh)

Don’t even try to tell me that you don’t own anything that you can sell. I’m a minimalist, for crying out loud, and I still have things lying around that I can sell.

Do you have:

  • Nice clothes that you rarely wear?
  • Shoes?
  • Furniture?
  • An instrument?
  • An old computer, phone, or other electronics?
  • A designer purse?
  • Books?

Walk around your house with a pen and paper. Make a list of items that you see that you might be able to sell. (Note: the best places to sell things are eBay, Craigslist, and at garage sales).

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I sold my piccolo from high school for $300. A few friends told me I was crazy—that I should keep the piccolo just in case. Just in case what?! The damn thing had been rotting on a shelf in my basement for eight years. Now that I’ve sold it, it’s actually going to get the love and attention that it deserves… and I made 300 bucks.

#3—Get a J-O-B.

Last spring, after my house was hit by a tornado (yeah, that happened). It was cra-zy. In the midst of the madness, I craved normality. I decided to get a part-time job at the local coffee shop (I’m actually writing this post from that coffee shop right now, sippin’ on my chai tea).

Getting a part-time job is great because (a) it’s easy (b) you get to meet new people (c) you spend your time doing something that’s earning you more money rather than spending it.

Most people complain that they don’t have enough time to get a part-time job, even for just a few hours on a Saturday morning. Or—they think that having a part-time job would suck just as much as it did in high school.

I don’t agree with either of these claims. I’m sure that you could wake up a couple of hours earlier on a Saturday or trade some of that time that you spend surfing Facebook to get out into the world. You need to think about the benefits the job gives you: more money, more freedom (eventually), and a more interesting life!

So, what’s it gonna be?

You can absolutely earn $500 a month this way, but you have to make a decision. The mailman is not going to drop the money off at your door, though. You must get up and take action to get started.

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In the comments, please do share… (I read + respond to all comments).

(1)   Do you have any other ideas for ways to earn money on the side?

(2)   What are you going to do this week to start earning some extra cash?

If you’d like some more ideas of ways to earn extra money, check out these articles:

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Published on May 7, 2019

How to Invest for Retirement (The Smart and Stress-Free Way)

How to Invest for Retirement (The Smart and Stress-Free Way)

When it comes to stocks, I bet you feel like you have no idea what you’re doing.

Everyone who’s not a financial expert has been there. I’ve been there. But, time is passing and you need to be crystal clear with how you’re investing for your retirement.

Otherwise, it’s back to work until you can afford not to. So, how can you invest for retirement when you’re not a financial expert?

You take the time to learn the fundamentals well. If you do, you can grow your wealth and retire happy. The best part is that you don’t need to be a financial expert to make smart investment decisions.

Here’s how to invest for retirement the smart and stress-free way:

1. Know Clearly Why You Invest

Odds are you already know why should invest for retirement.

But, maybe you know the wrong reasons. It’s time you get clear on why you’d like to retire. Here are some questions to help you get started:

  • Will you spend more time with your family?
  • What does retirement mean to you?
  • Are you looking to launch that business you’ve been holding off for years?

Everyone wants to retire but not for the same reasons. Once you’re clear for why retirement is important for you, you’ll focus on making it happen.

Investing in the stock market allows you to take advantage of compound interest.[1] All this means is that your money earns money on top of its interest. A reason why investment in the stock market is one of the best ways to plan for retirement.

2. Figure out When to Invest

“The best time to plant a tree was 20 years ago. The second best time is now.”– Chinese Proverb

It’s true if you’d had started investing when you were 10 years old, you’d have a lot more money than you do today.

The reality is that most people don’t start investing until it’s too late. So, if you’re currently waiting for the perfect time to start an investment, it would be today. Open your calendar and block out 2 to 3 hours to choose how you’ll invest for retirement.

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A quick way to get a snapshot of where you stand is to use Personal Capital. Input all your personal information and spend some time setting your retirement goals. Once completed, you’ll know where you stand with your retirement.

Having a savings account for retirement isn’t planning for retirement. Why? Your money loses value when you factor in US inflation.[2]

3. Evaluate Your Risk Tolerance to Create the Perfect Portfolio

Investing your money well depends on your emotions.

Why?

Because when the market drops most people panic and withdraw their money. On average, the US stock market yields an annual 6% to 7% ROI (return on your investment.) But, this won’t happen if you’re worried about short-term loses.

Before you invest your next dollar, know your risk tolerance.[3] Your risk tolerance determines the number of risky and safe investments you’d have.

Regardless of your investing style, you need to view investing for retirement as a long term game. Know that some years you’ll lose money but recoup this in the long-term.

Avoid watching market-related new. Also, create a double authentication to log in your investment account. This way you’re less likely to withdraw your money.

4. Open a Reliable Retirement Account

Depending on your circumstance, you may need to open a new brokerage account. This is the account is where you’ll invest your money.

If you’re currently working for a company, odds are that they offer a 410K investing account. If so, here’s where you’ll invest most of your money. The only problem with this is that you’re limited to the stock options that are available.

You do have the option to open a separate IRA (individual retirement account.) Here are some of the best brokers:

  1. Vanguard
  2. TD Ameritrade
  3. Charles Schwab

5. Challenge Yourself to Invest Consistently

Committing to invest for retirement is hard, but continuing to do so is harder.

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Once you’ve started investment for your retirement, you run at risk from stopping. Often you’ll want to contribute less, so you’d have more money in your pocket.

That’s why it’s important that you create a budget that allows you to invest each month. If you’re working for a company, you can set a percentage for the amount you’d like to contribute each month. Most people by default contribute 1% but aim to contribute 10% to 15%.

Be the judge for how much you can afford to contribute after covering important expenses. To stay motivated, use Personal Capital to view your net worth.

A benefit to contributing money to your retirement account is not taxed. For example, if you earn $100 and invest 10%, you’d contribute $10, then get taxed on the remaining $90. As of 2019, the most you’re able to contribute towards your 401K is 19K but this can change.

6. Consider Where to Invest Your Money

The most common way to invest your money is in stocks, but it’s not the only way. Here are other ways to invest:

Robo Advisors

Robo-advisors[4] are fancy algorithms that’ll choose the best investments for you. Sites like Wealthfront make it easy for first-time investors to invest their money. You’d input information about yourself and set your risk tolerance.

Then, set your monthly contribution amount and your robo-advisor would do the rest. Robo-advisors charge a fee to manage your money, but less than regular advisors.

Bonds

Think of bonds as “IOUs” to whomever you buy them from.

Essentially, you’re lending money and charging interest. Like stocks, not all bonds are equal. Some will be riskier than others depending on their rating.

Here are the different types of bond categories:[5]

  1. Treasury bonds
  2. Government bonds
  3. Corporate bonds
  4. Foreign bonds
  5. Mortgage-backed bonds
  6. Municipal bonds

Mutual Funds

Picture a group of people dumping all their money in a jar that’s managed by a professional. This is how mutual funds work. The fund manager manages the money looking to earn capital gains (interest.)

One of the best types of mutual funds is index funds. Since these funds don’t try to beat the market and instead follow it, they need less research. Because of this they often charge the lowest fees and yield the best long-term results.

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Real Estate

Yes, buying a home is an investment when done correctly.

Imagine buying a home and using it as a rental property. After repairing it, you receive a monthly surplus check of $100 to $200.

This may not sound like a lot, but repeat this process enough times and you’d earn a large amount of passive income. That’s why real estate is one of the best investments to not only retire but become wealthy.

But, it requires a lot of money to start and you should expect losing money along the way as you learn the process.

Savings Accounts

Your money can still grow in a savings account. Nowadays most online banks offer a 2% annual return. Although the average inflation is higher your money will be available when you need it.

7. Master Disincline to Dodge Short Success

Investing for retirement is a long-term strategy. That’s why you need to master delayed gratification. All this means is delaying short-term pleasure for something bigger in the future. Research shows that those who have delayed gratification are more successful.[6]

So how can you master delayed gratification?

By building your discipline.

Think back to what retirement means to you. A clear purpose will help you avoid withdrawing your money during a market downturn. It’ll help you contribute more towards retirement when you’d want to waste it instead.

Your journey towards retirement will be long, so reward yourself along the way. Choose a reward that’s relevant and meaningful, so that you reinforce positive behavior. For example, after contributing more towards retirement, treat yourself to dinner.

8. Aggressively Invest on This One Investment

I’ve mentioned several types of investments but haven’t covered the most important one.

It sounds cliche but here’s why you’re your best investment towards retirement. The more you know, the more money you’ll be able to make. The more good habits you adopt, the more secure your retirement will be.

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More importantly, investing in yourself is an investment that no one can take away. There’s no market downturn nor tragic circumstance that’ll wipe your knowledge and experience.

But, how can you invest yourself?

Reading books, blogs, and anything that’ll help you learn new topics daily. Listen to podcasts and audiobooks on your commute to/from work.

Save money to buy courses and hire coaches. I used to believe hiring coaches was a waste of money when I could learn the subject alone.

But, coaches see your blind spots and hold you accountable. Hiring the right coach will help you achieve your goals faster than you would’ve alone.

Retire Happy with Excess Money

The key to a secure financial future doesn’t only belong to financial experts.

It’s possible for you and I. What if you were able to retire earlier than most people and weren’t a financial planner? What if you were able to focus on what you enjoy doing the most while your money was working hard for you?

I know this sounds impossible now, but the truth is you’re capable of taking charge of your retirement. I’m not a financial expert but I’ve learned how to invest my money by reading books and learning from others.

Investing your money is scary. So start small and invest a small amount of your money with a robo-advisor. Feel your money drop and rise for a month or two. Then, invest more and keep this up until you’re aggressively saving for retirement.

One day, you’ll wake up with a net worth you’re proud of – confident about your retirement. You now know a few strategies you can use to invest in your retirement. Will you take action to retire happy?

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Featured photo credit: Matthew Bennett via unsplash.com

Reference

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