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Can your kid make money? Does he or she want money? Do you want him or her to stop asking you for money?
I’m guessing your answers to these questions are yes, yes and yes. Luckily, we’re sharing over a dozen ways your kid can make money.
Why You Should Teach Your Kids to Make Money
As a mom of four, I have a LOT of experience with kids asking for money. We operated as a one-income family when the kids were younger – that meant the budget was tight.
However, the kids still wanted things. Of course, we supplied their needs. But when it came to wants they had two choices:
Ask for your “want” for your birthday or Christmas
Earn the money for your “want” on your own
Putting this rule in place when the kids were young taught them two very important lessons.
First, it taught them that money doesn’t grow on trees. Second, it taught them that if they wanted something, they needed to work for it.
These two very important life lessons have stuck with my kids. Sure, sometimes I feel I’m not playing the “keeping up with the Joneses” game when I make my kids buy their own wants.
However, I know I’m teaching them some MUCH more valuable lessons than I would by simply buying stuff for them.
For instance, the first “want” my oldest daughter bought was a bow for archery lessons. We paid for her archery lessons, and the archery store had bows the kids could use for free.
However, Maddie was 8, and the store was selling a gorgeous pink camo bow – to the tune of $250.
Maddie REALLY wanted that bow. So she began saving money for it. Sort of.
A Valuable Lesson
In order to teach her another lesson, I told her I’d borrow her the money for the bow so she could get it “right away”. She would pay me back with the money she earned for doing chores each week.
8 months later Maddie had her bow all paid off. Her response to me telling her it was paid off?
“Thank GOD. I am never borrowing money again. I hated having to give you so much of my chore money each week.”
Not only did Maddie pay for her own bow, she learned of the burden of having debt at the same time.
Today Maddie works a decent job, saves a portion of every paycheck, and pays for stuff with cash.
I can’t tell you how thrilled I am that she learned this lesson at such a young age. And I’m hoping she’ll carry that memory (and her good money habits) with her till she’s old and gray.
Fortunately there are many ways how can kids make money these days if they are willing to put the energy into it. I personally think it’s great to see small children and teenagers earning money. Not only does it teach them the value of a dollar, but it gives them real life lessons about independence and really testing the limits of their own abilities.
Below is a list of a few of the ways kids can make money. As a parent, I must remind you that even if your child does engage in any of these money making ideas to please use your guidance and supervise their safety along the way.
How Can Kids Make Money – Things to Try:
1. Allowance for Chores
Especially when kids are young, helping out around their own house is always the first place they should look. You’re teaching them that work equals pay.
That’s not to say I didn’t (and don’t) have chores they do for free. I simply have some chores they must do because they’re a member of this family. Like emptying the dishwasher or picking up the living room.
However, there are other chores I pay them for. I usually pay them for “extra” chores such as:
organizing a room
doing a major clean, like the garage
washing and vacuuming the car
You get the idea. You can pay them for whichever chores you want. The goal is to teach them that if they want money, they have to work for it. And to help them find the joy in earning money. And to help you get some stuff done around the house.
2. Part-Time Job
Once they finally get old enough, having a part-time job in retail or the food industry can serve as a great introduction to money management in the real-world.
They’ll learn the basics like working with coworkers, respecting a boss, and showing up on time. And they’ll get the blessed benefit of learning how to respectfully deal with not-so-nice people (i.e. the customer is always right).
Most businesses won’t hire kids until they turn age 16. However, some will hire kids at 14 and 15. Smaller, private businesses like non-chain cafes, stores and restaurants are best for hiring younger kids.
3. Help Out the Neighbors
At any age your neighbors will always need some kind of help with the housekeeping, yard, etc. Your kids can solicit them for a variety of jobs such as:
mowing the lawn
housework such as vacuuming and dusting
assisting with decluttering and organizing
Have your kids ask the neighbors if there’s anything they could do to help them and earn money. The kids could even design and distribute flyers if they wanted to.
I can remember babysitting all ages of kids starting at age 12. If your kids like kids, babysitting can be great experience AND great pay.
Pro Tip: Interact with the kids. Play with them. Have the house clean when the parents get home. All of these moves will get you more likely to be hired again.
Advertise on social media or reach out to family and friends with younger kids.
5. Walking Dogs (or Cats)
The other day a group of young girls came to our house to ask if we needed our dog walked. I was pretty impressed.
Not only was this a money making venture for them, but I’m sure they also all loved dogs and were going to enjoy them every step of the way.
If your kids can find neighbors who want their dogs walked, they can get exercise and make money at the same time. And yes, some people walk their cats too!
6. Pet sitting
My second oldest daughter makes a hefty amount of cash taking care of the neighbor’s dog. This couple takes great care of their dog and has Emily come and play with her/take her out if they’re having long days at work.
The dog gets some fun time with someone outside of the immediate family. And the pet parents take comfort knowing Fido isn’t left alone for too long.
Along with dog sitting, lots of people want cats and other pets cared for when they go on vacation or out of town.
Pet sitting jobs can amount to simply feeding an animal once or twice a day or caring for it (or them) more extensively.
Have your child (with your help) negotiate pay before a job begins.
7. Wash Cars and/or Bikes.
No automated car wash beats the integrity of a hand-washed car wash. If you’ve got a hose and a dirty car, there’s money to be made.
The nice thing about this job is kids will typically use the car owner’s water and hose. Your kid supplies a bucket, soap, window cleaner, rags, etc. And if they can bring a portable vacuum, all the better.
Bonus: If they do a great job, they’ll likely be asked back. People love having their car cleaned without having to leave their driveway.
8. Hold a Garage Sale
When my kids were little I used to hold annual garage sales. I’d always let the kids participate by selling their own unwanted items.
You could have kids sell their own toys and games at a garage sale. Another option is to tell them they can have the proceeds for selling your stuff if they’ll help declutter and clean out drawers, closets and cabinets.
Not only is this one way kids can make money in the traditional sense, but the entrepreneurial ones can too by selling lemonade, cookies, treats, etc.
Every time I go to a garage sale and I see young kids doing this, I’m always sure to spend a dollar or two to encourage their spirit. And during the times my kids have sold treats at my garage sales, they get lots of business.
9. Lawn Mowing and Lawn Care
If your child is old enough to operate a push gas lawn mower, why not have him or her mow lawns for some extra cash?
It’s not uncommon to get $20 or more for mowing lawn at a house on a city lot. Have your child practice their lawn cutting skills at home to get good enough to offer their services to the neighbors.
Bonus: With some practice, they can add trimming bushes, raking leaves and other services to their business.
10. Shovel Sidewalks and Driveways
When it snows and the lawn business goes cold, trade in the lawnmower for a snow blower or shovel. I remember buying my first CD player after a whole winter of clearing out drive-ways.
Advertise with neighbors and take this tedious task off their hands.
11. Take Online Surveys
As the kids get older and you can trust them online better, online surveys are another good way how for kids to earn some easy money. With just a few clicks they can earn several dollars at a time.
Different companies have different rules about when kids can start taking online surveys. However, Swagbucks lets kids start at just 13 years old.
12. Sell Stock Photography
Does your kid have a gift for photography? Maybe they’re a natural at it. Or, say your child has taken some photography classes in school or through community ed.
They might be able to license those photographs (under your supervision of course) to people online that are looking for photos for websites and blogs.
Is your teenager is crafty and good at making unique decorations or other items? Why not help them setup an account on Etsy to sell those creations for real money? Here’s how to get started.
Did you know that most of the content published on the Internet and popular media is written to a sixth grade level?
Keeping that in mind, if your teenager can research and write about a topic, then they could probably complete a number of job postings that can be found online. Check Upwork or Fiverr for potential job opportunities.
Hint: This can work for artists as well!
15. Sports, Music or Art Lessons
Even at an early age young people can teach younger kids about sports, art or music. Have your kids hold weekly lessons in your home.
Another idea would be art or kids day camps during the summer. Simply use your child’s current skills to help them teach others in a fun and exciting way.
When you think of how can kids make money, tutoring is always there. Why? Because all kids have to go to school. And at some point most need help with their academics.
If you have a kid that’s say, 12 or older, and really good at certain subjects like math, why not have them help other kids who may be struggling?
Find jobs through parents or social media, and be sure to agree upon terms beforehand.
The truth is that there are many jobs kids can do to make money. It’s all about using their talents, skills and interests to find the best money making jobs for them.
Has your kid ever worked for money? If so, share what they did and how it went in the comments section.
I know exactly what it’s like. You’d like to make extra money. You’ve really thought long and hard about it.
But there’s one thing that gets in the way – your job! Your job is an all-time consuming thing that you, as a responsible grown-up with a family to provide for and bills to pay, have to continue to do.
So with that in mind, when exactly are you supposed to find or make time to do anything in addition to the job you’re already doing now?
Fortunately for you, there are a lot of people that are in your same situation and have figured out how to make their spare time just as profitable or more than their working hours.
They’ve accomplished this by learning how to make extra money on the side during their off hours when they are not at work. And believe it or not, there are actually any number of ways to earn an extra income that won’t require you to have to give up your day-job or consume your life completely.
Easy Ways to Make Extra Money at Night
Here are a few of best ones that could start tonight.
1. Take on freelance writing jobs
Do you like to write or have a lot of knowledge about certain topics? If you do, there’s a huge need for freelance writers to produce content. And the since the work is by contract, you can work on it at night or whenever suits you. Be sure to check out our list of places to find freelance writing jobs.
2. Invest Your Extra Money
Investing is the all-time classic way to make some extra money on the side. Afterhours you can research potential companies and then decide which kinds of stocks to pick. If you’re really savvy, you’ll pick dividend stocks that pay you a cut of their earnings every quarter.
3. Taking paid surveys online
Filling in paid surveys online is about the easiest and most mindless way to earn some extra money. It’s something that can absolutely be done on your schedule and at your leisure. Your earning potential is really only limited to how many survey’s you can complete. Try this website here for a huge list of legitimate paid survey sites.
4. Record music and license it
This is one I used to do all the time at night just because that was when it was quiet in my house! If you’ve got a computer and microphone, then you could record the songs you write and upload them for advertisers to use. A site like istockphoto.com could help you reach thousands of potential buyers.
5. Get Paid to License Your Photos
Just like how advertisers need music for their projects, they also need plenty of good stock photos to choose from for their campaign. No matter if you’re an amateur or professional photographer, your digital photos could be uploaded whenever you have time for it, and they could be earning you money. Here are a few photography stock sites for you to work with.
5. Do a Critique of a Website
Do you work with websites or know anything about search engine optimization (SEO)? If you do, then you could help out any number of the amateur sites by critiquing them. Look for work on sites like Elance or oDesk. Usually you have a few days, so you can make your observations on your own time.
6. Create an eBook
Writing an eBook has become a popular way how to make extra money on the side. Talented writers can take their time producing pages of content and then self-publish it when it is ready. Using a major outlet on Amazon, your product could reach the hands of thousands of potential buyers every day.
7. Teach an online class
With the growing acceptance of classes being taught over the internet, there is a demand for more and more instructors that are tech savvy as well as qualified to teach the material. Fortunately a lot of these classes can be taught at night or pre-recorded, and right from the leisure of your own home in front of a webcam.
8. Sell Crafts
People are always willing to pay for things by creative people when they need them for parties, weddings, celebrations, etc. By setting up a shop on a site like Etsy, you could create an offering for people to order from you. Then in your off-time you could make those items and ship them.
9. Sell Advertising on Your Blog
Having advertising on your website is by far one of the simplest ways of creating passive income today. The reason this works for people who are busy is because you can add the advertising to your site at night or basically any time you want. And once the advertising is up for readers to see, it will earn you money without your interaction. A few popular advertising providers to try are Google Adsense, Amazon Affiliates, and BuySellAds .com.
10. Promote Affiliate Marketing
Does your blog or website have an email list? At night you could research a good affiliate product and then draft a helpful email to send out your readers. Depending on how relevant the product is to your audience, those clicks could turn into a sudden revenue stream.
Then you need to know about investing in dividend-paying stocks.
Investing in these hidden gems couldn’t be easier. Literally – you don’t have to do anything to earn the money except own the stock! How simple is that?
But before you can own them, you have to learn the right way to invest in dividend stocks if you want to take advantage of the rewards they bring.
How to Invest in Dividend Stocks
Just like any type of security, there are good and bad dividend stocks to purchase. In this post, we’ll talk about how you can screen the various dividend stocks and select the best ones for your passive income portfolio.
After that, I’ll share how and where you should purchase your dividend-paying stock shares.
Believe it or not, you can start building a dividend stock portfolio no matter what your income. But in case you’re just starting out in dividend stocks, let’s start with some basics.
What is a Dividend Stock?
So, what exactly is a dividend stock?
A dividend stock is a type of common stock that periodically pays its shareholders (i.e. you) a small payment; usually every quarter (3 months).
Where does the money for these dividend payments come from? Generally it comes from the profits that the company has generated.
Think of dividend payments as a way for the company to reward its shareholders for investing and believing in the company.
This will be a very important detail to remember as you’re doing your research. Why? Because as you research you will come across many companies that seem to offer high dividend payments despite making little or even no profits.
Be Wary of Investing in Companies that Seem Shaky
If that’s the case, it could be a red-flag warning that the company is having financial trouble. They could be trying to inflate their dividend yield in an attempt to attract new shareholders.
While there might be some possible short-term gain to be had, use caution with these types of companies. A company that doesn’t make profits won’t be able to sustain very high (or any) dividend payments for very long.
Another “Don’t” for Dividend Stocks
Another common mistake for dividend stock investors is to be too sector-heavy.
In other words, don’t buy all of your dividend stock shares in the energy industry. Instead, buy some in energy, some in manufacturing, some in food, etc.
As with all investing, diversification is vital to overall financial health. As the old saying goes, don’t keep all your eggs in one basket.
How to Research Dividend Stocks:
There are many different ways to research dividend paying stocks before you invest in them. For example, a quick Google search will quickly put you into contact with a number of blogs and websites ran by dividend stock enthusiasts.
Personally I like to invest in relatively safe and stable companies. For that reason, the first two places I look are at the stocks that compromise the major indices: The S&P 500 and the Dow Jones Industrial Average.
You can easily punch in the ticker symbol into your favorite stock screener website and get all the details you’ll ever need about the company and its finances. My favorite ones to use are CNN Money and Yahoo Finance.
Here are some things you’ll want to look for to see if the stock is a good opportunity or not:
This metric is a comparison of the dividend payment divided by the price of the stock. Stocks with yields between 3 and 5% are considered pretty high (but not too high that you should be concerned).
Dividend Payout Ratio
The dividend payout ratio is a metric is a comparison of the amount of dividends per share against earnings per share.
For example, a ratio of 100% would indicate that the company is turning all of its profits into dividend payments.
That type of scenario would be in instable and couldn’t continue for very long. Generally stocks in the 30 to 70% range are normal. However this will vary depending on the type of industry the stock is in.
PE Ratio (Price to Earnings Ratio)
The PE Ratio is a classic stock metric that compares the market price against earnings.
A stock’s PE Ratio is determined by dividing a company’s current stock price by its EPS (earnings per share). Generally stocks with lower PE Ratios are thought to be better opportunities.
This is because generally, the lower the PE Ratio, the quicker a company will be able to earn enough money to buy back its share.
Lower PE Ratios don’t always guarantee a smart stock purchase, but they are one factor. Therefore price should be considered as you decide which stocks to purchase.
You might be wondering at this point “Well, what is a good P/E ratio then?”
That’s a great question. As you can see from the example below, the PE Ratio for Johnson & Johnson at this time was 17.66.
According to Investopedia, the current average market PE Ratio hovers around 20 to 25.
This is a good metric to consider when deciding which dividend stocks to purchase.
There are many other metrics you could consider. Every stock enthusiast in the world has their own opinions about what other metrics you should watch out for.
Which Dividend Stocks Should You Choose?
A quick shortcut I like to use to keep my risk modest is to select good blue chip dividend stocks from two famous groups called the Dogs of the Dow and The Dividend Aristocrats.
The Dogs of the Dow are the top 10 stocks among the 30 stocks in the Dow Industrial Average with the highest dividend yields.
Some people like to invest in this group because a high dividend yield indicates the price is likely below market average and a good opportunity.
The Dividend Aristocrats are a group of companies that have not decreased their dividend payouts in over 25 years; despite any financial hardships or market conditions (like bull markets or recessions).
Imagine that – steady and increasing dividend payments for over 25 years despite the market price of the stock itself!
The dividend stocks you choose to buy is solely at your discretion. You might be a risk-taker that wants to take advantage of bargain basement purchases.
Or, like me, you might prefer to stick with proven dividend-paying companies such as:
Proctor & Gamble
You get the picture. These are companies that have been strong for decades, and will likely continue to be strong.
Purchasing Your Dividend Stocks:
Once you’ve got your list of purchases together, the last step to investing in dividend stocks is by far the easiest one:
Go to your favorite discount, online broker (I use Fidelity), setup and fund your account, and then start making your purchases!
The online discount brokers are nice because they’ve set up easy, do-it-yourself systems – AND they charge less in fees than traditional brokerage firms do.
Bonus: You can buy shares in blue chip stock mutual funds with many of these brokerages too.
That’s really all there is to it.
A lot of people think that buying stocks is more complicated than that – as if you have to make several trades per day or time the market.
But truthfully it is a much simpler process than that. Just make sure your funds are ready to go and then make your purchase.
Once I purchase my dividend stocks, I like to give them at least a year before I make any changes to the portfolio.
This is mostly due to tax reasons. In the U.S., if you hold a stock for less than a year, then it counts as a short-term capital gain and will be taxed at a higher rate.
By waiting over a year to sell the stock (if I choose to do so), the stock then becomes a long-term capital gain and gets taxed at a lower rate and can be calculated using a taxcaster’s tool.
As time goes on and you begin to receive dividend payments, the money will passively collect in your core brokerage account. You can decide if you’d like to withdraw these dividend payments or use them to make future stock purchases.
One cool thing most online brokers will let you do with your dividend income payments is to setup a DRIP (dividend reinvestment plan).
What this does is automatically take your dividend payments and use them to purchase more shares of the same stock.
The advantage is that you can usually do this at no cost and you can purchase fractions of shares instead of whole ones.
Buying dividend stock shares is a great way to build a passive income portfolio. Whether you reinvest the paid dividends to build your portfolio, or take them as regular income, they’re a surefire way to add growth to your financial picture as a whole.
Do you invest in dividend stocks? What are your favorite choices? If you don’t, are you planning on adding them to your portfolio at some point?
If you want my advice, the solution is simple: Purchase a group called the Dogs of the Dow.
The Dogs of the Dow are not only among some of the best blue chip dividend stocks available, but they also offer a very strategic advantage for market value growth as well.
What Are the Dogs of the Dow?
Simply put, the Dogs of the Dow are the top 10 highest dividend yielding stocks among the 30 companies in the Dow Jones Industrial Average.
Here’s how it works.
An investor will buy up equal shares of each of the 10 companies and then hold on to them for at least one year.
Every year at the beginning of January, the composition of the group changes. The changes are based on the current market stock price and dividend payout for each company.
After one year you can switch up your portfolio by changing it to the latest members of the Dogs of the Dow.
An easy way to know which stocks are in the group is to look them up on the website The Dogs of the Dow. Not only does this website keep useful year-to-day stats of all these stocks but it also offers quite a bit of useful knowledge and back-history as well.
Secret Trick: Though we won’t cover it here, there is an alternative version of this strategy called The Small Dogs that uses only the top five highest dividend yield stocks (as opposed to the top 10).
Why the Dogs Are the Best Blue Chip Dividend Stocks:
There are a few key reasons I like to stick to using the Dogs of the Dow dividend stock strategy:
It’s easy to implement
Above-average dividend yield
Consistent market growth
Stability with blue chip companies
1. You Want Easy? This Strategy is Easy to Implement
With this strategy the 10 stocks you’re going to buy is pretty cut and dry. There’s no need to do hours of research or analysis of any kind. You simply just buy the top 10 highest dividend yielding stocks from the beginning of the year – it’s that simple.
2. Beat the Market with Above Average Dividend Yield
On average the dividend yield for the 10 stocks in the Dogs of the Dow is usually between 3 and 4%. Now compare that to the average dividend yield of the S&P 500 at somewhere around 2%.
That’s almost 2% more per year in your pocket! Though that may not seem like an incredible amount of money, an extra money stream of 2% year over year can really add up!
Not only do you have the opportunity for the market share price of the stock to increase in value over time, but you also get to receive a semi-guaranteed income stream of dividends.
This helps create a nice “buffer” against bad market conditions. For example, if the market is down 10% one year but you made 4% in dividend payments, then you’ve really only lost 6% as opposed to everyone else who also lost 10%.
Now compare that to stocks that do not pay dividends. With those types of stocks, the only thing you have to rely on is the market price.
So, again, if the market goes down 10%, you just lost 10% of your investment. There is no buffer to offset that loss.
4. Blue Chip Companies Give You Stability
The last thing I like about using the Dogs of the Dow is the fact that I’m only investing with stable, blue-chip stocks.
Though small and medium sized companies may pose the possibility of attractive double-digit gains, they also can stand a greater likelihood of failure as well as complete loss of investment.
The same is generally not true for the types of large-cap multi-billion dollar types of companies that are considered to be blue chip.
Because of their size, experience, and established product lines or services, these types of companies generally grow at a much more consistent pace.
They also know how to weather any economics storms or temporary financial hardships. This helps to eliminate the chance for loss.
How to Purchase the Dogs of the Dow
I like income. I LOVE passive income. In addition, I also like saving money, and I’m betting you do too.
For this reason, I suggest buying your Dogs of the Dow at an online discount broker. Online brokers like Fidelity or Ameritrade let you buy stocks and mutual fund shares for just $4.95 or $6.95 a trade.
In today’s do-it-yourself environment, you don’t need to pay a broker. Instead, use automated investment tools and suggestions to build your own portfolio for less.
You can buy individual stocks, mutual fund shares and more. And that without leaving your home office.
Did you know you can make money selling other people’s products?
There’s a surprisingly easy way you can earn passive income simply by linking to products that other people create.
This article will show you all you need to know to potentially make big passive income selling other people’s products.
How to Make Money Selling Other People’s Products
People all over the world create products such as instructional DVD’s, eBooks, or software programs that provide value to someone who needs them.
Online products are an outstanding passive income idea because they can be sold anytime and anyplace without you actually having to be there to make the sale.
But there’s a problem – You don’t have a product to sell! You don’t have any DVD’s, eBooks, or software programs, and you certainly don’t have the time or technology to develop any.
Guess what? That’s NOT going to stand in your way! You can do what everyone else does by selling OTHER people’s products for them.
That’s how to make money with ClickBank, an online affiliate service that lets you earn a cut of other people’s products for promoting them online.
That may seem unbelievable, but it’s true, and it’s a win-win for both people involved. In addition, it’s a popular source of passive income.
How to Make Money with ClickBank Offers
ClickBank makes making money online simple. Here’s how it works:
Other people (merchants) need help selling their items online. They realize that if they work cooperatively with other bloggers and webmasters, they will be able to reach a much wider audience than they would have ever reached before. So they register their products online for others to promote.
You (the publisher) register your website and then look for products you’d like to promote. These are usually products that will be a great value to your audience as well as provide a handsome commission for you.
Each time someone buys a product via your website, both you and the merchant get a cut. That’s how you make money!
Your job is to find the right products to promote. In addition, you’ll want to promote your blog posts and your site in general.
After all, the more readers you have, the higher your chances of affiliate sales.
How to Promote ClickBank Offers the Right Way
Just like any affiliate marketing program, there are a number of things you can do to make money with ClickBank.
Place an ad for the product on the sidebar or top of your website. Visitors will visually see the ad and click on it if they are interested in learning more.
Talk About Products In-Content
Another sales option is to share products in content you write. While describing a particular problem or solution you may have, you could mention the ClickBank link within your post and link to it.
If someone is interested, they will follow the link to the sales page where they can learn more about it.
Share Products in Your Email List
The best emails from websites always come in the form of a “how to help you with a problem you’re having” format.
And if you’ve got a ClickBank item that can fulfill that problem, all the better. Add the link to the item in your email and wait for client response.
Publish a Devoted Page or Website
Do you strongly believe in a product/service you see on ClickBank? Do you happen to know a lot about the product or service?
If so, you could always publish an entire page devoted to the product. You could even start a niche website that promotes the product.
It is well documented that the more benefits you can share with people about how good an item is, the more likely you are to make a sale.
Promote with Integrity
Always remember that with anything you sell online, whether it’s yours or not, it’s important to promote with integrity.
That means to never promote anything from any affiliate that you wouldn’t use yourself or recommend to a close friend.
Even with lucrative payouts or commission rates on the line, it is still unethical to push something onto others that you can’t personally get behind.
If you do, you’ll potentially damage your reputation with readers. In addition, you could damage your chances of long-term affiliate income because people will lose trust in you.
In addition, promote products in a way that feels natural and not salesy. Here’s an example:
Salesy: If you’re interested in a surefire way to online income success, you need this course!
Non-salesy: This course has valuable tools that can show you how to maximize your chances at online income success.
Notice that the first version sounds a bit like you’re watching a late-night infomercial. However, the second version sounds professional and authoritative.
When promoting online products through ClickBank or any other source, your goal is to share information about items that will truly benefit your readers.
Not sure if you know whether a product is good? Sometimes if you reach out to merchants on ClickBank and ask for a free trial or demo of the service, they will give you one so that you can better promote the item in its entirety.
Making affiliate income with ClickBank can be an easy way to get passive income. By carefully choosing and promoting the right products, you can give readers access to powerful products and services.
In addition, you can create an easy passive income source for yourself.
What do you think about making passive income by selling other people’s products? Have you ever tried doing so on your website?
Have you ever bought a product or service recommended on a blog or website? Share your experiences in the comments section.
How would you like to get free money fast? Several companies are giving away free money to people just like you every day. Interested? It’s easy.
How? By taking advantage of online shopping rewards programs. Similar to credit card rewards and airline mile programs, online shopping rewards are another extremely easy way to get cash and prizes simply for making your everyday purchases.
Ebates vs Swagbucks: Which is the Best Rewards Program for You?
However, not all shopping here are two online rewards sites that I’d like to focus on: Swagsbucks and Ebates.
Although neither site actually sells anything themselves, they do network with thousands of online retailers and offer a multitude of good deals.
Here are a number of great tips and tricks for how to get free money fast from Swagbucks and Ebates.
Getting Free Money from Swagbucks
Swagbucks is a free service that was started in 2008. They’ve paid out over $365 million to members so far.
There are a number of ways of ways you can get free stuff from Swagbucks:
trying products and services
While the other activities do pay, shopping online through the Swagbucks portal will make you the most money.
Whenever you shop online through Swagbucks, they’ll give you cash back on the purchases you make. Here are some ways you can maximize your shopping rewards with Swagbucks.
You can buy literally ANYTHING on Amazon. So before you make your next purchase of whatever you need, why not do it through Amazon via Swagbucks?
You’ll earn 4 Swagbucks points for every dollar you spend. In a short amount of time you’ll accumulate the minimal 450 points you need to get your first $5 Amazon.com Gift Card.
Bonus: Swagbucks offers shopping cash back for thousands of store, including popular ones like Target, Walmart, Best Buy, Walgreens and more.
2) Search Through
Swagbucks works like any other search engine, if you log into your account everyday searching for items and products or information, you get points rewards. The more you search using your account, the more your points accumulates, you can redeem the points later on as cash or otherwise.
3) Take Daily Poll
Once you log into your account via toolbar, you can take daily polls and win yourself 1 buck’s worth of points daily. These points are transferable to cash through free Amazon.com Gift cards.
4) Complete Profile Quizzes
If you are a new member, you need to log into your account and head to where they post trusted surveys. Complete anyone of the surveys and you get 100 points in every completed survey.
5) Qualify then Complete a Survey
There is a chance to complete six surveys daily. If you qualify for a survey, the owners of the survey may call you to go and give your opinion about their products. That opportunity could be worth up to $100 of cash or more.
You can earn points if you print coupons every day. For every coupon redeemed, you get 12 Swagbucks points. All coupons redeemed from your account are credited every 12 weeks.
Whenever you refer your friends or loved ones, you are credited 150 free Swagbucks points immediately.
8) Playing Games
Wheel of Fortune. Deal or No Deal. Bejeweled. If you like any of these games or playing apps on your portable device, then you also have the opportunity to build up your Swagbucks points account as you do.
Make Some Quick Cash with Ebates
Very similar to Swagbucks, Ebates is another wonderful shopping site that offers free money and rewards for literally everything you can buy under the sun.
The main way you earn points and rewards are to shop. Search for literally store you can think of and they will have some sort of cash back percentage for you in their catalog of 2,000+ partners.
In fact, Ebates will pay you up to 40% cash back at over 2,500 stores.
On top of earning cash back, Ebates will also offer you multiple coupon codes to make the deals even sweeter.
Bonus: Ebates also lets you earn cash back on travel and vacations. It’s not uncommon to earn up to 5% cash back when you book your hotel stays through the Ebates portal.
That can add up to a lot of cash back when you’re traveling. And you can put your earned cash back toward your next vacation too.
Other Ways to Earn with Ebates
You can also earn cash by referring your loved one or friends. For every sign up that happens through your promotional link, you get $5 provided he purchases the value of at least $20 onward.
In fact, sometimes they have special offers where you can earn $30 for 3 new users or more.
Ebates pays you all accumulated cash back every quarter. They’ll write a check and mail it to you.
Ebates does not offer quite as many opportunities to get free credits as Swagbucks does (such as through the games, surveys, questions, etc.).
For that reason, there is some advantage to signing up for both rewards programs. Every time you can’t find a good deal on Swagbucks, you can check Ebates and see if they offer you a better opportunity to get free money.
Only Buy What You’d Buy Anyway
The key to earning serious money on these sites is to only buy what you’d buy anyway. If you start buying extra stuff just to get shopping cash back, you’re negating the benefits of the cash back bonuses.
Use Ebates and Swagbucks to get discounts on online purchases you’d planned on making anyway.
After all, the point is to earn more money, not to spend more money.
No matter which site you use, both Swagbucks and Ebates can be a great way to make some income on the side without really having to do more than buy the things you were going to buy anyways!
Take advantage of the free money offered by these companies. Use your cash back bonuses to reach financial goals such as debt freedom or saving for a dream vacation.
Have you used Swagbucks or Ebates cash back shopping programs? What did you think of your results?
Have you considered taking advantage of p2p lending as a passive income source?
This exciting source of passive income is growing portfolios everywhere. It’s also helping borrowers get out of debt faster.
We’ll show you the best ways to use p2p lending for passive income or for reducing debt faster.
How to Use P2P Lending to Pay Off Debt
P2P lending rates are often lower than bank loan rates. The reason for this is largely due to low operating costs.
P2P lending companies don’t have to deal with oodles of bank locations or thousands of employees. Their funding comes from investors, and their processes are usually managed by a smaller team in one location.
As a borrower, you can take advantage of these lower rates. You can use them to pay off higher rate interest cards and loans and save yourself thousands of dollars in the process.
Asking for Small Personal Loans
P2P lending starts when you need a loan for something. You might want an alternative to the traditional bank.
Or, you may simply be looking for the lowest interest rate.
The loan can be for anything: A new business, getting out of debt, a new construction, etc. Once you sign up with a peer to peer site and ask for a loan, you become the “borrower”.
You agree to pay the loan back at a certain rate of interest and in a certain period of time.
On the other side of things are the “investors”. The investor (or investors) basically acts as a bank. They will sponsor the loans with their own personal money as if they were a bank.
Depending on the p2p company and your loan details, your loan might be funded by one investor or by several investors.
Once the money is lent, you pay back the loan based on the terms you agreed upon, just like with a bank.
The only difference is that when you pay the lending company, they pay the investors the principal amount they contributed, as well as interest.
The P2P site makes its money by taking a small percentage of the interest on each loan. This is their fee for brokering the transaction.
Your Interest Rate May Vary
Like we mentioned, each loan will carry a set amount of interest that will be charged, just like a bank loan would.
The interest rate of your loan will largely depend on your credit rating. As you might guess:
Borrowers with great credit will pay the lowest interest rates (say around 6%)
As a borrower’s credit becomes worse, the interest rate they pay becomes higher (sometimes over 30%)
Do you have high interest debt you want to pay less interest on? Or do you need to borrow money for another purpose?
If so, consider p2p lending companies like the ones we’ll talk about below. But for now, let’s talk about how p2p lending can help you create a passive income source.
How to Use P2P Lending to Get Passive Income
As I talked about earlier, when you put money into p2p lending companies, you lend money to borrowers.
Each time a borrower makes a payment, you as an investor get a portion of your investment back – including interest earned.
It’s the magnitude of these interest rates that are really attractive for your portfolio. P2P lending returns can be significantly higher than CD and bonds returns.
Because of that, investors will risk sponsoring such loans optimistically hoping they can capture a slice of these returns. And because p2p borrowers have their credit reputation at stake, it’s typically important for them to pay the loans back.
Since its inception, peer to peer investing has often been quoted as producing anywhere between 5 and 12% returns! When you compare that figure to the 10% average growth rate of stocks, P2P investing qualifies as an attractive investment!
The scheduled payments of interest and principal have been hailed by many passive income enthusiasts as a fantastic alternative to traditional forms of investing.
For example, while stock market returns may fluctuate day to day, p2p loans will on average provide consistent and steady returns. This is because the loan interest rate paid by the borrower remains the same throughout the return.
Reducing Risk By Diversifying Borrowers
As is the case with any loan, there is the risk that the borrower could default. This would mean that they fail to pay back the principal and interest that they owe.
If this happens, the P2P site typically sends the borrower to claims to try to recoup the money that is owed. However because this personal loan is unsecured, it can be the case that the money is simply lost.
This is why it is important for you as an investor to pay attention to the credit rating of the borrower. For example, borrowers with good credit produce the lowest returns.
However, they do have the highest probability of paying back their loans in full. Investors with poor credit have the highest chance of failing to meet the obligations of their loans.
However, those loans also produce the highest rates of return for you as an investor – IF they pay their loan back.
One strategy to combat investment loss in p2p lending is to diversify the number of investments you make.
For example, let’s say you find a borrower that needs $10,000. Don’t fund the entire $10k for that borrower.
Do what many p2p lending investors do and contribute only some of the $10,000. When a borrower asks for money, typically they will not receive the entire $10,000 from just one investor.
The money for that loan will come from many investors in the form of $500, $1000 or $2000 increments. By spreading your deposit investments across many different borrowers, you can minimize risk of loss.
Diversify by Borrower Credit Ratings
Another option for diversifying in p2p lending is to borrow to those with varying credit ratings.
For instance, you might invest 50% of your allocated funds in loans with borrowers who have top-tier credit ratings. Then you’ll invest the other 50% in borrowers who have lower credit ratings.
This is similar to if you were investing in high-risk and low-risk mutual funds at the same time.
Diversification in p2p lending from an investor standpoint is important – especially if you have a lower risk tolerance.
Next, let’s talk about some of the top peer to peer lending platforms for investors and for borrowers.
Here are some of the favored p2p lending sites for your borrowing and investing needs.
Prosper was the first site in 2005 and has been helping borrowers and investors by brokering over $15 billion dollars in loans.
Prosper for Borrowers
Prosper offers loans between $2,000 and $40,000
You can get personal loans, debt consolidation loans, home improvement loans and more
Your interest rate depends on your credit history
A one-time origination fee and late payment fees apply
The online application with Prosper is simple to use. You should receive your loan funds within five days of accept your Prosper loan offer.
Prosper for Investors
When you invest with Prosper, you can expect a rate of return that varies based on the investments you choose. However, Prosper says nearly 84% of their investors received a higher return on investment than they’d expected.
Prosper offers the following benefits for you as an investor.
7 different loan risk ratings categories to choose from
A low $25 minimum investment
An all-ratings category return average of between 3.5% and 7.2%
1% annual fee for maintenance and the potential to pay fees for collection agency services on defaulted loans
Prosper has a long-term, solid history of providing steady average returns for investors. Note that your investment choices with Prosper will affect your return on investment.
Upstart was founded in 2012 and has originated over $3.8 billion in loans. Their website says that 60% of their loans are fully automated. That means fast, fair results for you as a borrower.
Upstart for Borrowers
Upstart offers loans between $1,000 and $50,000
Loans for debt consolidation, education, home improvement, business and more
Rates from 4.68% to 35.99%, depending on credit, education level and more
Fees aren’t disclosed on the Upstart website
Upstart says you can get your loan funds as fast as the next business day after accepting your loan terms.
Upstart for Investors
When you invest with Upstart, you can take comfort in the fact that, as of this writing, 87% of their issued loans are either current or paid in full.
Investing with Upstart offers you:
Individual accounts or retirement accounts
Over 77% of borrowers are college educated
Annual fees of 0.5%, plus collection fees for defaulted loans
Minimum investment amount of $100
Accredited investors only
Although younger than Lending Club and Prosper, Upstart has a solid foundation from which investors and borrowers can use to springboard their financial goals.
However, they only allow accredited investors. Accredited investors must have an annual income of $200,000 ($300,000 for joint accounts) for the last two years, with an expectation that the income level will continue.
Conversely, they can have a net worth of $1 million or over, either alone or with a spouse.
Have you ever wondered why so many people are obsessed with making money from the stock market or other similar investments?
If so, you should become acquainted with the power of continuously compounded interest, or compounding income.
Compounded income and compounded interest can make your money to grow beyond any sum you could ever hope to achieve yourself. Here’s how.
The Wonder of Compound Interest and its Brainchild, Compounding Income
Albert Einstein has been credited with calling compound interest “the greatest mathematical discovery of all time”. And he is absolutely right when it comes to practical applications; especially regarding your finances.
Compounding interest is a phenomenon that occurs when the earnings from your investments combine with your original investments (called the principal) to build up larger and larger earnings as time goes on.
As you’ll see in the example below, eventually the earnings growth becomes so large that they surpass the original principal contributions and begin to explode at an exceptional rate.
What does this mean for you? Compounding income – with little to no work on your part.
Compound Interest: the 8th Wonder of the World
Compound interest is a financial benefit you absolutely want in your passive income portfolio. In fact, Albert Einstein called it the eight wonder of the world.
Compound interest income provides a very unique opportunity for you because once your portfolio reaches a certain threshold, you could theoretically live off of the residual income that your money earns each year.
Unlike some other strategies for building passive income, living off the earnings from your investments can be a 100% passive process if you choose to use a good investment such as a stock market index fund.
2 Options – Which One Makes More Money?
To really illustrate the benefits of compound interest, let me start by asking you a question. How much money would you make if you were to invest $10,000 every year for 40 years using one of two options for investing:
A) Under your mattress?
B) In a stock market index fund?
The second option results in almost 6.5X more money than the first? Why is that? That’s the beauty of continuously compounded interest over time.
It can result in the potential for ridiculously more money over longer and longer periods of time.
A Closer Look at How Continuously Compounded Interest Works:
So to understand how we were able to get such a higher number harnessing the power of compound interest, let’s dissect this process just a little bit to see how it works and benefits our efforts at becoming rich.
Option A is easy to understand. You simply take $10,000 each year and put it under your mattress literally (just like they used to during the Great Depression).
Because your investment earns absolutely no interest (since your mattress is not the same as bank and doesn’t pay you interest), the math for this scenario is very simple to understand:
$10,000 x 40 years = $400K
Even though mathematically that’s what you’d have, the truth is that your money would be worth even less than that. This is due to the losses from inflation over that time.
In fact, using the rule of 72 and an inflation rate of 3%, your money would be worth half as much after 72 / 3 = 24 years. So after approximately 40 years, the money you chose to keep “safe” by stuffing it under a mattress would be worth about a quarter of the purchasing power it has today! Yikes!
That’s a massive hit to your portfolio!
Option B is best understood using an illustrative process.
For the sake of simplicity with this example, let’s assume that your investment earns a straight 8% every year. (This of course never really happens in reality but it will help show how compound interest works in this lesson).
To begin at the end of Year 1, we invest $10,000 and earn no interest.
At the end of Year 2, we invest another $10,000 to have a total of $20,000. The 8% return on our $10,000 is $800 (red), and so that gets put on top of our principal investment (blue).
Now continue this process for 3 more years and we come to the end of Year 5. We’ve invested $50,000 (5 x $10,000) and return on investment has grown to $8,666 ($800 + $2,464 + $5,061).
Notice how as our total portfolio amount increases, so does our return on that investment.
Now fast forward to the end of 20 years. Now the amount of money we earn from our total investment (red) actually starts to surpass the total amount of money we initially invested each year (blue).
By the end of Year 40, the power of continuous compound interest has resulted in the returns actually contributing more into the total portfolio way beyond what we originally put into it.
WOW! That’s freaking amazing, don’t you agree?
So How Does This Result in Big Passive Income?
How does a portfolio of almost $2.6M help you financially? How about by allowing you living passively off of just over $100,000 each year?
If you follow traditional financial planning tool of using the 4 percent withdrawal rule for retirement, you could allow yourself to take out 4% from your portfolio each year (and then adjust for inflation each year after that).
$100K each year in passive income is no small accomplishment!
To contrast this point, how much money could you withdraw each year using the “under the mattress” saving technique? $16,000 each year – a number that qualifies you for poverty. Which option would you have rather gone with?
Smart Investors Always Take Advantage of Compound Interest
Every successful investor, from Warren Buffett to Peter Lynch to John Bogle, all rely heavily on the power of compound interest.
This is why smart financial planners almost always recommend starting your retirement savings early and investing as much as you can afford.
How You Invest is Important Too
Note that it does matter how you invest. Nearly all investing involves some level of risk. However, successful investors don’t take unnecessary risks.
For example, it’s common for smart investors to invest in blue chip stocks that pay dividends. However, they stay away from riskier investment options like day trading, where very few investors make money.
As someone who’s searching for passive income via investing, it’s vitally important to educate yourself. Read books from experts like John C. Bogle who share investing tips and secrets.
Use their successes – and failures – to get more information to help you make investment decisions that work for you.
The better your investments perform, the more compound interest you’ll earn.
The powerful results of continuously compounded interest and returns can help you increase your portfolio by a great deal more than you would be able to without it.
An essential part of discovering the best passive income sources for yourself is seriously considering the power of compound interest. Personally, I use it as a primary source of my passive income portfolio.
My crowdfunded real estate account with Rich Uncles is one of my best performing passive income accounts. And compound interest (since I currently reinvest my dividends) is a big part of that performance success.
Take advantage of compound interest for your passive income portfolio. Use it to create a lot more money for you to passively live off of.
Though the two are very closely related in definition, there is a very subtle difference. In this discussion we’ll ask the question of what is residual income and how does it differ from the meaning of passive income.
First a Review of What is Passive Income
Before we look at residual income, let’s first review the definition of passive income. The actual definition of what is passive income comes straight from the IRS:
Passive activity income includes all income from passive activities and generally includes gain from disposition of an interest in a passive activity or property used in a passive activity
The amount of income that an individual has after all personal debts, including the mortgage, have been paid. This calculation is usually made on a monthly basis, after the monthly bills and debts are paid. Also, when a mortgage has been paid off in its entirety, the income that individual had been putting toward the mortgage becomes residual income.
As you can tell this definition is off topic and out of context from our definition of what is residual income as it applies to earning passive income.
In these modern times, it is very common for aspects of our lives to be polluted by synthetic chemicals. This is the case for our food, furniture and clothing. Many people would prefer to live as naturally as possible. However, it can be very expensive to do so. Organic food, for example is usually much more expensive than regular food. This can be a problem for people who are living on a tight budget. Do not despair though! You do have the ability to live organically and affordably. There are a few key ways that you can achieve this, which we will be discussing in the article below.
Buy from Farmer’s Markets
When you are buying organic food from the supermarket, the prices are inflated. You are spending a lot of money for the same food you can buy elsewhere. One place that you can buy organic food is at a farmer’s market. The food will be very fresh and tasteful. This is because they are newly picked instead of remaining in a grocery store for hours or days. Farmer’s markets are very common in certain areas. Usually they run throughout the summer and into the fall.
Choose a New Mattress
Many people are unaware that there are many chemicals that go into the making of mattresses. The toxicity of these chemicals is minimal. However, they are not completely insignificant. The best thing to do is to obtain a mattress that is made out of natural materials. A natural mattress is usually made up of components such as wool and cotton. These are great because there are no harmful gases being emitted from them. They are better for your health and also the environment. Natural materials are usually quite durable and last a long time. This means that you can go a longer time without having to buy a new mattress. Natural mattresses are often necessary for children who suffer from allergies. The natural components do not trigger allergic responses that would otherwise have kept them up throughout the night.
Grow Your Own Food
Even better than buying from farmers is growing the food yourself. You can create an organic garden in your own yard. There will be a few steps that you will have to follow before your garden will thrive. You must prepare the soil and remove any synthetic chemicals that remain. Afterwards, maintaining the soil is required. Compost will be a good source of nutrients for your plants. Choosing the right plants is important. The key is picking plants that will thrive in the environment where you live and will react well to the elements and temperature.
Store Your Home-Grown Food
Going organic often means a trip to the store every other day. Because of the lack of pesticides, the food goes bad faster. So, most of us opt to grow our own food but this often results in an abundance of fresh produce, too much even. The best way around that problem isn’t by growing less, but by storing it properly. Peel and chop vegetables and freeze them in freezer bags. Most fruits and berries can also be frozen or turned into jams. Look into pickling for your cucumbers, asparagus, garlic and onions. There’s tons of options out there!
Make Your Own Cleaning Products
There are easy ways that you can combine natural ingredients to make cleaning products. Baking soda, vinegar, soap, lemon and cornstarch are some popular ingredients that can be used for household cleaning. Using these are much better for everyone in the long run. You can save money by not purchasing the expensive chemical cleaners from the store. Your health will not be negatively affected by toxins and by-products as well. Natural cleaning products are popular among parents who have small children at home. Children will be safer if there’s less chances of them ingesting harmful toxins into their bodies. Also, they are closer to the ground, so the synthetic products would affect them more than adults.
Living naturally is a great goal to have. You will be healthier and happier for doing so. It does not have to be a burden on your wallet to switch your lifestyle. There are many different ways that you could choose to change how you go about life. Eating organically is a big part of living naturally. You could either buy your food from farmer’s markets or grow your own. This will save you money and you will be able to know exactly what goes into your food. Another way to live naturally is buying a new mattress. Natural mattresses are healthier for you and they are still comfortable to sleep on. Finally, making your own cleaning products can be a great change in your life. You and your family will not be exposed to any more dangerous chemicals. And they clean just as well as any synthetic products.