As an entrepreneur, you may be aware that you can get financially unstable at times due to the market’s condition and other factors. So, consider ways to get income on the side that will help alleviate some of the financial stress. Try these 5 ways…
1. CAR FOR RENT
Rent your personal vehicle to others in need. You may post an Ad for free at Gumtree or spread the word through self-printed flyers. Get acquainted with the user first to have a firm and trusting agreement regarding the car’s usage. This will allow you to focus on your business while your car is making money on its own.
2. RENT YOUR GUEST ROOM
If you are okay with sharing your house with other tenants then rent out the empty room/s. Once again, get to know the tenants first (i.e., personality or cleaning habits) and set some ground rules because you might be living with them for more than a month. In an event that you need to go overseas for business, then you may rent the whole house to them and charge them more.
3. TRY ONLINE OUTSOURCING
Some online websites allow users to outsource their skills on a freelance basis. If you can do website development, clerical jobs, writing an essay, video editing, or any other skill…try signing up for Odesk to get decent extra income. Salary payment in Odesk is painless because Credit Cards, PayPal accounts, and Bank Accounts are accepted.
4. INVEST IN REAL ESTATE
There are a lot of methods for making money in real estate that do not require your full-time effort so you can focus more on your growing business. You can consider purchasing properties and resell them for profit (flipping houses) or real estate wholesaling. If this area is unknown to you, find your friends or people in your area with the expertise that you do not have and partner with them.
5. CREATE A NETWORKING EVENT
Image Credits: Image Credits: Cydcor Offices via Flickr
Organize networking events to help young professionals interact with the environment. You not only help others to make valuable connections but you also make money by charging the participants for the food or the registration fee.
Read and understand materials about self-empowerment, investment, and money management. Here are four books to get you started with:
“The War of Art” by Steven Pressfield
“Why Stocks Go Up and Down” by William Pike
“The Intelligent Investor” by Benjamin Graham
“Turning Pro” by Steven Pressfield
2. CONNECT AND DISCONNECT MORE.
Networking is very important especially if you will be dabbling in the field of business. Meeting people with shared interests will not only bring a life of fun but also a life of opportunities. Your network may refer you to your first job or even challenge you to be a business partner. On the other hand, you must disconnect with the distractions such as excessive amounts of alcohol or other vices that are harmful to your body.
IN YOUR 30s
3. BEGIN NOW.
The sooner you start, the more money you part with. In order to retire on 80% of an income, a 30-year-old must save 10% of his or her salary.
4. INVEST IN STOCKS.
Even if the economy suffers badly, your account will have time to recover. For instance, The Fidelity Select Software and Computer fund has yielded more than 11% a year since 1996. Keep it basic with a low-cost index fund.
IN YOUR 40s
5. PUT VALUE TO YOURSELF.
You may want to put your retirement savings into hold because of your child’s college fund. But, keep in mind that you cannot load for retirement yet you can loan for college fees or even get a scholarship.
6. SEEK THE EXPERT’S ADVICE.
To reach the maximum level of your retirement savings, sit down with a financial planner. Create a financial goal together and learn how to save more, spend wisely, and invest to reach it.
IN YOUR 50s
7. STAY WITH STOCKS.
You may increase your percentage of savings by investing in bonds but do not totally quit on stocks. To battle inflation, you must lean on the stocks’ higher growth potential.
The aged old question of “Does Money Buy Happiness” has been puzzling the minds of many over the past decades. A current research by University of British Columbia and Michigan State University showed that while more money decreases sadness, it might not increase joy.
The researchers named Elizabeth Dunn, Kostadin Kushlev, and Richard Lucas said: “having more money provides more options for dealing with adversity”. Hence, wealthier people may feel a greater sense of control on a difficult situation that poorer people.
1. MONEY RELATIVELY INCREASES HAPPINESS FOR SOME PEOPLE
Princeton researchers released a study in 2010 showing that happiness increases as the income increases until US$75, 000. After this certain point, it plateaus. It is due to the fact that stress and financial difficulties get harder and harder as your income descends in the five-figure realm.
Image Credits: Aaron Patterson via Flickr
For those who are struggling to make ends meet, making more money generally increases happiness. But, once a person has enough money to provide for the family and oneself, more money doesn’t lead to increased happiness.
2. YOU CONTROL THE EFFECT OF MONEY ON YOUR HAPPINESS
Having a balanced life, being able to practice your hobby, and volunteering certainly increases happiness. If you apply these ideals to money, you can generate happiness.
Studies show that you will get more satisfaction if you spend your cash towards memorable experiences such as vacations than towards material things such as a new table. Likewise, lending out possessions can help you enjoy the material things that your money bought.
3. DOES OWNING MORE AND ACHIEVING MORE MAKE YOU HAPPIER
If more money comes at a cost of more responsibility and heightened stress in the workplace, then that person will not experience added happiness. Owning more or shopping more only increases happiness for a short run. Spending more on others generates more happiness than splurging on you.
Mutual funds are investments that gather the investors’ money into a pool to make multiple types of investments, known as the portfolio.
Professional money or investment managers, who invest the fund’s capital and attempt to produce capital gains for its investors, operate the mutual funds.
The investment manager’s compensation relies on how well the fund performs. In this way, you can be assured that they will work hard to make sure the fund grows well.
Image Credits: Steve Jurvetson via Flickr
As a mutual fund investor, you become a “shareholder” of the mutual fund company. When there are profits you will earn dividends. When there are losses, your shares will decrease in value.
Mutual funds are diversified or are made up of different investments to lower the risk of loss.
Advantages of Mutual Funds
1. Mutual Funds give small investors the access to professionally manage, diversified portfolios of equities, bonds and so on. This is difficult and nearly impossible to create with a small about of money.
2. Each shareholder participates proportionally in the gain or loss of the funds.
3. The experts handle your money professionally…so even if you have little knowledge on stocks, you may learn as time goes.
Three Categories of Mutual Funds
1. EQUITY FUNDS. Equity funds are made up of common stock investments alone. Although this can be riskier, this can earn more money than other types of funds.
2. FIXED-INCOME FUNDS. Fixed-income funds are made up of government and corporate securities. Since the government and corporate securities provide fixed return, the risk of the investments are low.
3. BALANCED FUNDS. Balanced funds combine both stocks and bonds in the investment. It offers a moderate to low risk. So before investing to mutual funds, you will have decide how much risk you are willing to take.
Do you know the feeling when walking from the closest MRT station towards your house and it simply takes forever? Driving around the island of Singapore is a true pleasure. One hardly ever encounters a traffic jam and generally gets quickly to any desired place. There isn’t any problem with pollution or a high car density. However, driving and owning a car in Singapore can be a costly undertaking. It is not only the car and its license that is expensive, but also the car insurance can weigh heavy on one’s finances. No matter how much money one has – there isn’t any chance that one can lower the government-imposed charges for the usage of the car. Therefore, it is even more important that one finds a beneficial deal for the car insurance.
The first trick to safe money is the oldest one in the book – drive safely. However, many people are not aware of the system that car insurances around the world use. If one has a car accident, the rate one has to pay monthly or yearly is instantly increased. If you are driving safely around Singapore over a long period of time, your car insurance will remain the same or even shrink slightly. Those people, who tend to crash their car, will not only pay for the reparation, but also for the continuously increasing car insurance. Many car insurances offer a no-claim discount (NCD). This allows for a 10% discount for every year in which you haven’t claimed anything. If you for example have only a minor dent in the car, you may want to consider not claiming it from your insurance, as you can possibly save more with the discount. The NCD can reach a maximum discount of 50%, with which one can safe potentially thousands of hard-earned dollars.
Not only being a safe driver, but also being a law-obeying driver can help you with the insurance. Fancy and fast cars are extremely attractive in Singapore, but even if you have one of those racecars, you are still subject to the speed limits. If you have a clean license over an extended period of time, you can earn a further discount instead of another ticket. After three years driving without committing a traffic offence, you can get the Certificate of Merit (COM), which brings you a further 5% discount on top of NCD. Using all this saved money, one can buy a ticket for the Formula 1 Race in September and enjoy proper racing.
When you are arranging a new car insurance policy, then pay attention to what you actually commit. Many policies often include unnecessary points. Go through them and use your commonsense. It can be that your car insurance also covers you for something that you are already covered for. A personal injury policy within your car insurance is very good, but a total waste of money if your health insurance already takes care of you in the case of an accident. Being covered twice for the same cause will not bring you double money and doesn’t mean you can claim it twice. Furthermore, one should check exactly what policy covers what points. When renting a car, one might be already covered in the case of an accident through another insurance. Different policies might have different names, but cover actually the very same thing. A rental-car insurance might include the same points as a collision policy. Therefore, it is very important, if one wants to save money, to double check the covered points in a insurance. Furthermore, one should eliminate all unnecessary points.
Car and accident statistics aren’t the best friends of young drivers. Unfortunately, an inexperienced young driver has the tendency to crash a car more often than older and more experienced drivers. This results in a higher insurance policy for younger drivers in general. Even if you are driving perfectly, you are paying more by default. Therefore, it is advisable to let your experience on the road be reflected in your policy. If you have been driving for more than ten years without any accident, then you should make a point of it in your new insurance. Not everybody has the possibility to do so, but there is another trick. One can for example insure the car on another person or include a driver with more experience into the policy. Mixing a high risk and a low risk profile will in most cases reduce the insurance. Therefore, one should check who is a low risk profile. Statistically older or female drivers will fall in this category. Listing such as the main driver in one’s car insurance policy, can save some money.
Each car is categorized with a certain amount of insurance money that the owner has to pay. It is generally known that the bigger the engine of the car, the higher is this amount. The reasoning of the car insurance companies is the higher risk. Statistically cars with a higher engine are more likely to crash. For obvious reasons insurances are all about statistics. So if you can beat the statistic, you will save some money. Most people will not modify their car, however there are car enthusiasts that do. A simple engine tweak or any other car modification can quickly become very expensive. What seems like a body shop bargain, can become a killer within the insurance policy. Therefore, it is worthwhile to check with your car insurance whether an upgrade is necessary.
Of course one could say that the insurance company doesn’t have to know. This is however an extremely risky undertaking. In case you do have an accident with your modified car and you haven’t notified your insurance about it, you can loose your cover immediately. Even if you haven’t caused the accident, the insurance company can refuse to pay anything. Hence, one shouldn’t modify outside the regulations of the Land Transport Authority (LTA) and definitely not keep it a secret. Handling your car insurance correctly doesn’t take too long and can award you with some extra cash.
