How to Work Less and Earn More
As more and more people are working at home people are turning to new ways of doing business and thinking about their money.
One of the best ways to gain financial security and enjoy the good life is to know how to be good with money, how to build passive income, and how to create multiple streams of income. There are many different ways to get there, but here are a few.
Getting To Know The Numbers
The first thing to know about how to be good with money is to track spending. Yes, it’s a little boring but necessary. Creating a budget will highlight where the money is going.
Before I started tracking my spending and making a budget I always used to say, “I make a decent living, yet I always seem to come up short.” Then, I started writing down all of the things that I was spending money on.
Only then did it become clear that there was a lot money going to things that I didn’t need (e.g. cable sports package) and small things that ate a lot of money (e.g. my morning raspberry triple shot frappuccino and scone from the coffee shop).
Getting a handle on these small, seemingly inconsequential, numbers lays the foundation for how to be good with money and managing businesses and investments better.
Help Me Help You
One of the most popular trends in the internet is the use of affiliate marketing.
Affiliate marketing is like befriending a local store, except it’s on the internet. Here, Bob posts flyers all over town. A few people see the flyers and come in and buy something from the store. So, the store owner pays Bob some money because he brought in extra business.
Affiliate marketing works in a similar way. Bob can create attention-getting websites and post ads on search engines and social media pages.
When people click Bob’s website or ads they are taken to the product page of an online store. If people then buy the product, the online store recognizes that Bob drove those customers to the store and in return pays Bob money.
For example, let’s say Wigglie Footies are becoming popular. So, Bob decides to write a word ad for the Boogle search engine. Now, every time someone searches for Wigglie Footies on Boogle Bob’s ad for Wigglie Footies comes up.
If Jane clicks that ad, it’ll take her to an eMazone page, where she can buy a pair of Wigglie Footies. If Jane buys Wigglie Footies from eMazone, eMazone sends Bob a check.
Now, getting a couple of bucks from the sale of a pair socks may not sound like a big deal, but the key is scaling.
What if Bob could drive hundreds or thousands of people to eMazone to buy those socks? Then, Bob would get thousands of dollars in checks from eMazone. That’s how to get passive income from affiliate marketing.
As Safe As Houses
Another form of passive income is through Real Estate. Here, we can buy property and rent the house. The renters living there collectively produce enough money to cover all of the bills associate with the property and the rest goes to us as income.
Let’s say there is a good 5-unit apartment building located in a nice area.
Alice gets a loan from a bank to buy the building. She spends some of the loan on cleaning, repairs, and painting the building and some on advertising to renters in the newspaper.
Alice can, then, lease each of the apartments and earn about $5,000 each month in collected rent. That is enough to cover the mortgage payment, property tax, and maintenance expenses, and still leave Alice a nice amount of money every month.
The idea of renting property is not limited to residents. We can also buy commercial building and rent to businesses or buy plots of land and rent to farmers.
Quill and Ink
Here is another way on how to build passive income – become an author. There are many fields out there that are of interest to many people. It’s possible to place ourselves as experts in an area that we have a fair amount of knowledge.
We don’t have to be Hemingway and the book doesn’t need to be sophisticated. A simple How-To can become very popular and add to your sources of income.
All of Joe’s life he was fascinated by bees. And, although he doesn’t know everything there is to know about butterflies, his personal collection of bees, library of bee books, and years of studying the subject can bestow upon him expert status.
With that he can write a book, perhaps, an introduction to bees for the beginner. Or, maybe, he could write a bee coloring book to introduce children to the subject or write a book about the types of equipment, their care, and which are the best quality. Or he could write all three and more.
The subject of the book will be at an intersection of a few things:
What does Joe do well?
If he’s not good at it, he shouldn’t be writing a book about it.
What interests Joe?
Writing a book is not easy; the more he likes the subject the easier it’ll be.
What do people value?
Joe could be an expert on vacuum tubes, but the book won’t sell because there’s simply no interest.
What if we are restless or too busy to sit down and hammer out chapter after chapter on a computer?
Luckily, there’s an answer. Many (famous) people don’t actually write their own books.
They have ghostwriters do it for them.
The Jane makes an audio recording of everything she wants in the book, or the she gives the ghostwriter all of the lectures, previous books, speeches, materials, etc… she wants to make a book out of. Then, the ghostwriter pieces together the Jane’s book.
All Roads Lead to Rome
Now, that we covered three major ways of how to get passive income let’s talk about how to create multiple streams of income.
The idea is that instead of getting all of our money from one source (e.g. a job) we earn money from many different sources.
For example, Ace decided to put up websites and place ads on Boogle for Wigglie Footies and a few other products in affiliation with eMazone. And, he manages a five-unit apartment complex. He’s, also, written a book on the essential tools and how-to’s of beekeeping.
Now, Ace’s income is coming from several places: eMazone every time a customer buys after going thru our ads, the apartment complex when the tenants pay rent, and book sales.
Now, if something goes wrong and people stop buying Wigglie Footies, Ace isn’t worried; he still has money coming from our other sources to keep him thriving.
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