In today’s world, it’s not uncommon for young adults to work more than one job. Some may work two or more part-time jobs, or maybe a full-time job paired with a side hustle, such as driving for a rideshare service or rent out their room/home while they’re on vacation. There are several ways to earn extra money on the side, and some of these ways can even turn into a secondary income or passive income. Passive income allows you to make good money without having to work as hard at it as you would with your primary job. Here are some for young adults to earn extra money, whether it’s just some cash or another form of income.
#1: Start an Online Business
For those with an entrepreneurial spirit, starting an online business is a simple, yet profitable way to make some extra money. The COVID-19 pandemic has shown us that almost anything can be purchased online, so there’s a niche for everyone when it comes to an online business. The great thing about an online business is that you don’t always have to sell a physical, tangible product— you can sell your services/knowledge. Some examples of online businesses that your young entrepreneur can start include:
- Affiliate marketing: where companies pay you to promote their products on your social media accounts.
- Data entry
- Ebook writing
- Fitness training
- Freelance work, such as designing, photography, researching, writing
- SEO consulting
Anyone can easily start an online business, as there are many resources available to help you get started.
#2: Start Investing in Stocks
People have been investing in and trading stocks for decades as a way to earn extra money and save for retirement. Some of the most successful stocks today include Amazon, Apple, Netflix, Google, Tesla, and Facebook. Though a single share of these stocks can be pretty expensive, it’s still worth the investment and taking the time to research other stocks that can become just as profitable in the long run.
Today it’s pretty rare to see up-and-coming investors working with a stockbroker— most people use online trading platforms instead. Still, it’s a good idea to consult someone with experience in trading stocks before you start investing.
#3: Buy Rental Property
Another industry that was strongly impacted by the COVID-19 pandemic is the real estate market. The prices of real estate, both residential (1-4 family properties) and commercial (5+ family properties and businesses) real estate have seen a decrease in prices. Purchasing real estate and then renting it out to tenants is a great way to make money, and even earn a steady stream of income. Depending on your interests and goals, you can choose to purchase a single-family home or duplex and rent it out to tenants, or you can go the commercial property route and rent an office building to professionals looking for a location.
The key to being successful in investing in rental property is to ensure that someone will rent your property. Whether you choose to invest in residential or commercial real estate, the location of your property is key. Choose a location where there is a lot of economic growth, that way you’ll know that people will be moving their business there or looking to buy a home there. And just like when buying your own home, there are rental property loans available for both residential and commercial properties. Many people have seen success when renting their property out to tenants, and some have even made it their career.
It’s also not uncommon for people to turn their hobby into a business. This is pretty much the same thing as an online business, though your business doesn’t always have to operate solely online. When looking for ways to make extra money, make sure you do all of your research on what it takes to run that type of business; and most importantly, make sure it’s something you know you have the time and passion for.