(This post was first published on Entrepreneur.com, but they allowed me to re-publish here on BiggerPockets because they rock!)
Nearly everyone dreams of quitting his or her day job, whether it’s tomorrow, next year or in the next decade. However, there is a wide chasm between “dreams” and “action” that many people never seem to cross — and it’s usually due to finances.
Obviously, if you want to quit, you need to find another way to make enough income to pay your bills, save for the future and enjoy life.
But what’s the best way to do this?
How can you make enough “side income” now so you can quit your job in the near future?
Here are five great ways to make side income while still working your day job:
(Before I get to the post, I wanted to take a moment and invite you to this week’s BiggerPockets Webinar — because it’s on this very topic! We’ll be talking about “How to Quit Your Job Through the Power of Real Estate Investing!” This webinar will be on Thursday, November 19th at 5:00pm Pacific (that’s 8:00pm Eastern, 7:00 Central, 6:00 Mountain). If you can make it, click here to hold your spot! And now back to the post!)
How to Analyze a Real Estate Deal
Deal analysis is one of the best ways to learn real estate investing and it comes down to fundamental comfort in estimating expenses, rents, and cash flow. This guide will give you the knowledge you need to begin analyzing properties with confidence.
1. Invest in Real Estate
My eyes were first opened to the idea of “passive income” after reading Rich Dad Poor Dad by Robert Kiyosaki. Although not a real estate book, it taught me the value of owning assets that produce income, which led me to real estate. Real estate investing is not always passive — and not always easy — but it can be highly profitable. In addition, there are hundreds of ways to invest in real estate. For example, you could:
- Flip houses
- Own rental houses
- Become a “house hacker“
- Own vacation rentals (AirBnB)
- Rent out duplexes, triplexes and fourplexes
- Buy and rent out apartment complexes
Real estate investing is my favorite way to create side income because it runs like a locomotive. It might take a little time to build up, but once it’s running, it goes a long way with less effort and is hard to stop.
2. Write a Book
Many people have dreams of writing a book, but very few ever do. They think it’s too hard, that they don’t know enough, don’t have enough time, aren’t smart enough or whatever other excuse they can come up with. But the truth is: You can write a book, and that book can help you make additional monthly income.
There are several avenues you can take when writing a book, and there is no “best route.” For example:
- You could write a series of shorter topic-specific books and publish them on Kindle.
- You could self-publish through your own website and sell to your existing customers.
- You could partner with a larger platform and sell to its audience (as I did).
- You could work to get published through a major publishing company (probably the most difficult path).
- You could record an audiobook and publish it on Audible.
Writing a book today is not as tough as it once was, as there are so many avenues with which you could publish. The keys are no longer held by elite publishing companies in New York City. The keys are now in your hands.
3. Sell a Product on Amazon
I’m slightly addicted to Amazon Prime, as my local UPS driver can attest to. It seems every day I have a package or two waiting at my doorstep — and it’s usually from people just like you. Most of them probably never touch the product that I’m buying.
That’s right: You no longer need to have a warehouse, inventory or employees to buy wholesale products and sell them at retail. Amazon has leveled the playing field, and now anyone can sell products.
A friend of mine, Chris from UpFuel.com, decided to sell products on Amazon. He researched bestselling ideas, contacted a manufacturer in China and had the perfect model designed, and then he had the product shipped to Amazon’s fulfillment center in the United States. He now sells his product on the site, making thousands of dollars a month in profit.
The best part? Chris doesn’t ever touch the product, and it largely runs on autopilot at this point.
4. Sell Your Skills
Chances are you are good at something in the business world. Perhaps it’s accounting, data entry, video production or writing.
Whatever you are good at, there are likely people out there willing to pay you good money to run that part of their business for them. Smart business owners know that they should focus on what they are good at and hire out the rest. This is where you can come in and make side income doing what you love.
In addition to freelancing, you could also become a consultant. For example, my friend Joshua Long turned his knowledge of Infusionsoft, ClickFunnels and other marketing systems into a full-fledged consulting business, where he helps CEOs identify existing opportunities in their businesses.
So what are you good at? What will other people pay you for?
5. Start a Blog
Finally, a good way to make side income can be with a blog. Although it takes time to build up a following, once you have that following, there are numerous ways to monetize the blog.
Jeff Rose from GoodFinancialCents.com uses his blog to build up his authority as a certified financial planner, driving traffic and income to his business. At the same time, his blog allows him to monetize in other more passive methods, such as affiliate marketing, online products and consulting.
To succeed at blogging, it’s important that you:
- Focus on writing quality content.
- Work hard at getting that content out there to the world.
- Build your email list from day one, so you can market to those people later.
Blogging is definitely not a “sit at home in your underwear and make easy money” kind of activity. It requires diligence, quality, and time. However, blogging can be incredibly rewarding.
There is one common theme with all of the above methods for making side income. Do you know what it is? They all take work. That’s right, you’ll never achieve the kind of lifestyle you want if you don’t work for it. So get out there today and start hustling. You’ll be able to quit that job faster than you ever imagined.
What side streams of income are you working on?
Let’s talk in the comments section!