I spent years managing money for wealthy individuals who have a net worth of at least $25 million. One of the main differences between the wealthy and everyone else is how they think about income. Watch today's video to find out what I'm talking about.
In the video, I ask you to do a little homework and think of ways to generate more income. To jump start your thought process, here are a few things that members of the Invibed Nation are currently doing to boost their income.
- Investing – High dividend stocks and peer-to-peer lending are two types of investments that can generate income for you in the short-run.
- Freelancing – Are you great at writing, graphic design, or something else? Start charging for it. Listing your skills on a site like Fiverr is a great way to start building a portfolio while making money. Then you can go after even bigger clients.
- Create an Online Store – Make something and sell it on Etsy, Shopify, or other sites. For example, our Executive Producer here at Invibed owns part of a clothing line he helped start called Dapper Sam.
- Get a Side Job – Drive for Uber, deliver items for Postmates, bartend or become a dog walker in your neighborhood. Pick something that's flexible and works with your existing schedule.
- Rent Out Your Space – Got an extra room? Going on vacation? Rent out your place using Airbnb for extra cash.
- Coach, Teach or Tutor – Are you a great dancer? Did you crush the SATs? People are trying to improve in areas that you've already excelled in. Help them reach their goals and make some money while you're at it.
Ultimately, you want your passive (unearned) income and portfolio (investment) income to exceed your active (paycheck) income. In fact, many wealthy people who don't work actually live off of their passive and portfolio income.
But you typically need some seed money to start earning passive and portfolio income. For example, you need to buy the rental property or the investments before you can start generating rental income or stock dividends.
How do you get that seed money? Earning some additional active (paycheck) income via a side hustle is a great way to come up the extra cash you need to get started. So take a few minutes and figure out what your ideal way to generate more income would be. Then get started!
For all of you newcomers who are just joining us, this video is part of a series called #BrokeUniversity where we break down the most important personal finance basics in 90 second videos.
Did you miss the first four #BrokeUniversity classes? Check them out!