America is experiencing a cost of living crisis, and many are feeling it in their wallets. The Department of Labor reported that the average cost of household goods rose by 6.2% in the last year, with energy prices rising nearly a third and gas prices rising by as much as 49%. As a result, many are looking for ways to create extra income to compensate – but what are the best ways to earn money, outside of your day-to-day work?
Starting Up Your Own Business
Starting a new business has quickly become one of the more popular ways for Americans to generate some extra cash; average quarterly business start-ups in the US leaped from 225,000 per quarter to 300,000 between 2019 and 2021. Sole proprietorships are the easiest way to self-start a business, requiring little in the way of legal documentation – but registering as an LLC can protect your personal assets should your business fail. The beauty of starting a business is the complete control you have over your pace of growth, and working arrangements. You might even grow your business enough to make it a primary source of income!
Investing Your Savings
One of the most attractive ways in which to earn extra money is passive – and at one point, savings resting in savings-oriented bank accounts would do just that. But now you have to work harder to grow the same money, which is where investing comes in. You may already be familiar with the 401(k), whereby money is automatically deducted from your account and invested tax-free on your behalf. Despite the generous tax break, this can still be diminished by taxation when withdrawn – and there may be ways you can beat it. Seeking out your own investment fund, where money from you and other investors is pooled and invested, can create greater returns, albeit with greater risk.
Trading
If you want to generate money more actively than trusting it to an investment fund, and you don’t mind a little more risk, trading could be the better option for you. There are different kinds of trading in which you can participate, whether you want to diversify your portfolio or find a market that works for you. When people talk about trading, they are often talking about the trading of shares in companies on the US stock market – a practice with which good business acumen, and understanding of certain industries, can become quite lucrative. Forex trading is the buying and selling of currencies, where riding fluctuations in currency value can generate serious profits. This might be preferable if you have a keen eye for world events.
Social Media Blogging
Blogging has changed a lot over the years, from earnest accounts of daily life to multimedia giants with huge commercial potential. Social media is a major motivation for this shift, as content creators leverage platforms such as Instagram and YouTube to grow their audience and show their lifestyle or passion. Blogging, vlogging, or influencing can be a powerful way to make money on the side, whether from pre-roll and banner ads on videos or from product placement in photos and footage. You don’t even need to make it big, or ‘go viral’, to make your money; finding a small, dedicated following can create steady income just fine.
Rent Your Unused Property
Renting out a property that you and your family do not use can be beneficial. For example, you can rent your backyard to other people for a celebration. However, not so many people realize there are other opportunities, like a cell tower lease. When a tower company wants to upgrade its infrastructure, it can approach a property owner and offer a contract. A cell tower is then installed on a landowner’s property, and they can get a lump-sum payment or regular monthly payments, depending on the contract. After the contract expires, a landowner can renew the cell tower lease and may improve its terms.
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