Editor’s note: This article was first published in June 2013. Its remark that other ways of making money are being prepared refers to the old blog’s plans at that time, and self-publishing and freelance platforms have changed since.
Since we’ve spent this whole month talking about debt and financial education, at one point we said that it can sometimes be dangerous for all our income to come from a single source. Whether it’s to pay off debts or to save even more, the ideal would be to have some parallel income on top of our job, without it taking up too much of our time. Is it possible to earn money this way?
The only way to find out is through the five questions below. I’d recommend reading this article first, but if you came here looking straight for ways to earn extra money, this other link has 38 ideas for making money online or from home.
The 5 questions to ask yourself to earn some extra money
1. What’s your main hobby?
Some people boast that their hobbies pay. Could you earn some extra money in your free time doing exactly what you were going to do in your free time anyway? Some examples:
I know a young man who went climbing in the mountains every weekend. So many amateur mountaineers asked whether they could come along that he ended up charging people a fee to teach them and take them with him.
In another case, a young woman (a sales rep by profession) whose passion was skydiving at weekends ended up making money by selling for the skydiving company: for every new customer she brought in, they paid her a commission. There’s probably a business in your hobby.
2. What are you already doing for free?
Are you someone lots of people ask for help with something specific? Do they ask you to fix a computer, design a logo, repair a phone? Are you handy at something in particular and have already done lots of favours with that skill?
See also: Key factors for business success: the vision behind a business idea
If there’s something you’re already doing for free, remember this: “Find something you’d be willing to do for free for the rest of your life, and then find a way to make money from it. That’s your perfect business.” Here we’re only talking about a way to earn some extra money. In my own case, many people ask me for investment advice. And, funnily enough, sometimes I give it even when nobody asks, although it still hasn’t crossed my mind to charge for it.
Some people love karaoke, which, when you think about it, is singing for free, and have ended up forming a band or group that plays at weekends.
(Read: 10 ideas for making money by saving)
3. What’s your most marketable skill?
We all have a talent, although sometimes our greatest talent doesn’t make us stand out. Ask yourself: what am I really good at? Some people have been working in the same field or industry for more than 20 years. They’re professionals in their field, like it or not (with some exceptions). Find a way to sell your main skill or greatest talent. Think about what it might be.
4. Do you want to leave a legacy to others?
We’re not talking about money; you’ll leave that in your will. Sometimes, even if your life seems simple, you may have a lot to tell, lessons to teach that you’d like to leave to your children and grandchildren. Now consider that, just like your children and grandchildren, thousands of people might be interested in what you have to say.
These days, writing a book no longer requires any financial outlay, nor do you depend on someone agreeing to publish it: there are many platforms that do it and only take a cut of each sale. Publishing a book gives you (if it sells) an income-producing asset for life, as long as the book keeps selling.
And if it doesn’t sell, well, there’s the legacy you wanted to leave your children and grandchildren. Few people know that Benjamin Graham wrote The Intelligent Investor not to make money from selling the book, but to show that everyone else was wrong and his method was right. And along the way, it’s still considered the best book on investing. Graham certainly left us an excellent legacy, and made a fortune from the book’s sales into the bargain.
5. Can you turn your usual job into freelance work?
Whether you work in administration, accounting or anything else, thanks to the internet there are now many sites where you can earn money as a freelancer. All you need to do is sign up on a site, list your skills in case someone is interested, or browse the demand on those same sites. There are usually plenty of ads from people looking for someone who can write, type up documents, design a logo, record a video and so on.
Likewise, there are sites where self-employed workers and professionals can bid for specific jobs. As a rule, we can make money outside our usual job.
If asking yourself these five questions hasn’t turned up any way to earn some extra money, don’t worry. These questions cover, let’s say, what’s closest to hand. As I said at the start, we’re preparing other ways of making money, some more elaborate, some less, but I think they’ll be useful and helpful.
Further reading
- 11 profitable micro-business ideas for students, the unemployed and others
- The best books on financial education
- 5 tips for turning your passion into a business
Featured image: Joshua Tree National Park, Public domain, via Wikimedia Commons.
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