Eight Ways to Make More Money

The pandemic has left many young people in one of two scenarios – gainfully employed, but working from home with lots of downtime or suddenly without a job (or hours and income significantly reduced) and trying to make ends meet. And whether you have more time by choice or not, you may have found yourself wondering how to make a bit more money in these unique circumstances. Let me share eight income-producing ideas you can take action on today.

Active vs. Passive Income

Before we dive in, let’s review the two types of income you can earn: active and passive.

Active income refers to money you earn for sacrificing your time, energy or both. This includes your 9-5 job and any “side hustles” you’ve started.

Passive income refers to money you earn after little sacrifice of time or energy. Generally, you take one or two actions that continue to pay you for months or even years.

Alright, now to the good stuff. 

Four Active Income Sources

Your first active income source is to rent your space or stuff. AirBnB is a great option if you have a spare room or second home. Not comfortable sharing your home during a pandemic? What about your car? Turo gives you the option to rent it instead. I don’t know about you, but my car barely leaves the driveway twice a week so renting it out wouldn’t be much of an issue.

Ready to part with stuff permanently instead of temporarily? Sell extra clothing, furniture and home decor on online platforms such as Facebook Marketplace and Craigsllist. Found yourself creating things and running out of room or people to gift them to? Start an Etsy store!

Have the flexibility to take on some extra tasks? Remember that car that’s been sitting in your driveway? Sign up to be an independent contractor as an Uber driver or Postmates delivery person. You only work when and how often you want. Uber is even providing PPE to its drivers to keep them safe.

Maybe leaving the home isn’t an option (#momlife) but making things isn’t really your talent. Do you have a passion for web or graphic design? Or have you picked up coding in the past few months? You can freelance on websites like Upwork and Freelancer. Not sure if you have a skill that you can freelance? Check out this list of the Top 100 In-Demand Skills for 2019 from Upwork. 

Four Passive Income Sources

The dream is making money in your sleep right? Or getting paid for something you already do? I have four ideas that do just that.

Open a cash back credit card. Keep in mind, this is only a good idea if you A) are responsible with credit cards and B) have the credit score to reflect that. For example, we have a credit card that gives us 2% cash back on every single purchase, which really adds up when you put most of your necessities on it (gas, groceries and insurance to name a few).

Speaking of being responsible with your money, do you have a savings account? Odds are it’s only earning .1% interest, and that’s if you’re lucky. While the interest rates have dropped pretty significantly, opening a high yield savings account is still a great way to earn at least 10x the interest you’re earning at your traditional bank. You’ll need to do your research to find which one works best for you, but the return is worth it.

Speaking of savings, perhaps you’ve set money aside in the stock market. A good way to diversify your portfolio is to purchase stocks that pay quarterly dividends. Not only do you get to take advantage of any gains on the stock itself, but they also cut you a check every three months as they share a portion of their earnings with you.

Finally, another way to diversify your investment portfolio is to participate in peer-to-peer lending. This option is a bit less liquid (meaning you can’t access your funds if you need them in an emergency) but the interest rate range of 6%-36%  is much higher than the other three passive options. But there are risks involved. Check out this article for an easy-to-understand overview. 

Ultimately the decision comes down to how much money and time you have and how much you want to earn. Evaluate the options and start with the one that works best for you now. Save this article (or this infographic) to revisit when you’re ready to take on another one!

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