Making your money work for you has become a cornerstone of financial empowerment, as you can see in the lives of the world’s wealthiest individuals. Whether you’re looking to bolster your savings, invest for the future, or simply explore new avenues for financial growth, there are numerous ways to earn extra cash beyond the traditional 9-5 grind.
This article discusses ten ways to earn extra cash by making your money work for you. But before we get to that, let’s examine why you need to make your money work for you.
Why It’s Important to Make Your Money Work for You
Making your money work for you is a great way to grow your wealth, secure your financial future, and achieve independence beyond relying solely on earned income.
While having a full-time, well-paying job feels safe, real wealth often comes from diversifying your income sources and proper financial management. Sound financial management skills involve cutting costs, cultivating a savings habit, and investing your money in the right projects.
By investing your money, you’re putting it to work to earn extra income, allowing you to achieve your financial goals and attain independence. You can earn even while you sleep when your money works for you.
The key benefits of earning extra cash from your money are the financial independence and security it offers. You’ll also be able to have a more comfortable retirement.
10 Ways to Earn Extra Cash from Your Money
Here are ten ways you can earn extra cash by making your money work for you:
1. Invest in the Stock Market
The stock market is a place where financial independence is built. While investing in stocks carries inherent risks, it’s one of the most profitable ways to put your money to work. With a carefully diversified portfolio, you can reduce risks while maximizing your earnings.
Research and invest in individual stocks, exchange-traded funds (ETFs), mutual funds, and Real Estate Investment Trusts (REITS), with less risks and good potential for profitable returns.
The Australian stock exchange market is made up of three stock exchanges, which are the Australian Securities Exchange Group (ASX), the National Stock Exchange of Australia (NSX), and the Asia-Pacific Stock Exchange (APX). With the ASX being among the top 10 exchanges in the world based on equity market value, it’s clear to see why stock investment is one of the key ways Australians earn extra cash from their money.
Also Read: Mutual Funds: Definition, Types and Benefits
2. Make Real Estate Investments
Real estate investment is one of the oldest forms of investment, yet its profitability has remained the same or even better. If every other investment fails, you’re sure to make something out of your real estate investments, and the reason is quite apparent.
The world population is exponentially rising, and the demand for real estate properties has never been more intense. Despite its slow growth, the Australian population, which was 26 million in 2022, is expected to reach between 34.3 and 45.9 million in 2071.
You can see a good profit potential in the Australian real estate market as the demand for residential houses, commercial offices, and other real estate properties will continue to increase.
3. Keep Your Money in High-Yield Savings Accounts
If you have some money, you can’t find immediate use for but are sure you’ll need it in the next year or two, keeping it in a high-interest savings account is a step in the right direction.
A high-yield savings account earns you more money than a traditional savings account. Some banks like the Great Southern Bank, Rabobank, Me Bank, etc., pay interests as high as 5-6% on high-yield savings accounts, which is more than the 2% most banks pay on basic savings accounts.
While you’d have to pay taxes on these interests, you’d still make more money than a regular account. And your interest compounds even more as you keep your savings longer.
Also Read: Certificate of Deposit: Definition, Advantages & How to Invest in CD
4. Create a Side Business
Businesses like laundromats, elderly care homes, fiber-optic installation firms, cleaning, warehousing, or pharmaceutical firms are popular in Australia. Having any of these side businesses can be excellent ways to grow wealth.
With the increasing Australian population, there’s a huge market for these side businesses to thrive. All you need to do is conduct extensive market research, discover a starving market, and create a business to meet their needs.
5. Explore Peer-to-Peer Lending
People are always in need of loans, either for personal or business reasons. And oftentimes, seeking loans from banks or other lending platforms can be stressful and unnecessarily time-consuming. Therefore, people resort to peer-to-peer (P2P) lending platforms for their money needs.
You can explore hundreds of peer-to-peer lending platforms in Australia to put your money to work.
6. Advertise on Your Car
Businesses are willing to pay you to advertise their products and services on your car. This is a good way to make extra money for your car’s monthly maintenance, taxes, auto loans, and other expenses.
You can make as much as $1000 a month by just driving your car around. This is huge, especially when you consider you’re not required to do anything extra besides driving your car to your regular, daily activities.
Companies offering “advertising on car” services in Australia are Wrappli, CarAdds, Ads on Wheels, and AdOnCar.
7. Rent Out Your Car
Renting out a car you don’t use often is another great way to make extra cash. Instead of letting your car rot in the garage, you can list it on car rental directories. Alternatively, you can register it with a popular car rental company.
You can earn between $350 and $1750 per month, depending on the worth of your car. Rental companies like DriveMyCar ensure you make good money on your car while covering its insurance and maintenance costs. They also have a strict verification process that ensures only cool-minded people with clean driving records can rent cars.
Also Read: Microlending Across the Globe: Fast Facts and Statistics
8. Start an Antiques and Vintage Business
The antiques and vintage industry is lucrative, especially for people who know how to pick a raw value and refine it into something worth having. Some people are willing to pay a fortune for beautiful ancient materials or vintage cars, estates, and more.
You can buy, refine, and resell these properties at your rates, earning mouthwatering returns. Pick a niche, learn about it, and start small, building your customer base. Profitable niches in this industry include furniture, jewelry, art and prints, glassware, and more.
9. Trade Forex
If you have a good knowledge of the financial markets, especially regarding foreign exchange transactions, you can make good money trading forex.
Forex is a high-risk, high-return money marketing opportunity for individuals and businesses. To excel in this and ensure you don’t throw your savings away, you must master emotional discipline and have a good understanding of how economic, political, and geopolitical factors affect currency volatility.
10. Drive for Uber or Ola
If you’re retired or have lots of free time, you can make extra money with your car by driving for Uber or Ola. This enables you to make as much as $1,500 to $2,000 weekly, enough to take care of many bills.
The good thing about driving for these ridesharing companies is that you decide on your work hours and days. You’d also meet great people and probably potential business investors or partners.
Conclusion
Diversifying your income is always a great idea, as it enables you to become financially independent. You can do this in many ways, from investing in real estate, forex, stock market or starting a side business.
Hopefully, this article has given you valuable insights into the different ways you can make your money work for you.
