How to earn extra money
5 alternative sources of income
1. Do online surveys
The rise of the internet has allowed firms worldwide to collect big data in order to better understand consumers' taste and preferences. Online survey platforms have also sprung up to collect big data for large companies and you can earn some money by doing online surveys.
Here are some online surveys which I use to earn money:
Yougov: https://sg.yougov.com/en-sg/refer/NJW-MQilE1t4no8oOEx-Yw/
Toluna: https://sg.toluna.com/referral/denzilthw
Apiarybuzz: https://apiarybuzz.com/invite (code: 57949)
What are the pros and cons of doing online surveys?
Pros
- You can kill free time by earning money, such as when you are taking public transport
- You can make your opinion known to firms
Cons
- You need to do surveys for at least a month before you start making money because most survey platforms operate using a point system
- You will collectively spend a lot of time to earn a few dollars so it is not worth to block off time to do survey, but rather you should do surveys when you have free time like while you are on the public transport or taking a dump
2. Blogging
Blogging allows you to earn money by either providing valuable content or by allowing firms to advertise on your blog. Medium is one such platform for content sharing and is a good start to earn money since it is gaining popularity currently.
Pros
- You can choose what content you want to publish (be it self-improvement, travel guides, your personal experiences, gaming guides) so you can publish what you like while earning some extra cash.
- Once you have posted a large number of articles and gathered several followers, the flow of income becomes passive, assuming you have constant viewership.
Cons
- The amount of money that can be earned in the short run is negliglible but it’s better than nothing and can be used to earn passive income in the long run if you get enough followers
3. Publishing eBooks
You can use amazon kindle to publish eBooks to earn royalties.
Pros
- Earn passive income by engaging a global audience
- Freedom to choose what you want to write
Cons
- You will need to spend a lot of time, probably several months per book, and may not earn any money so you should only do it if you enjoy writing a lot
4. Publishing videos
Youtube is a good platform for sharing knowledge and advertising. You may have an idea to start your own youtube channel, perhaps to start a gaming guide, showcasing your delicious recipes, creating your own mashup music or maybe share your knowledge with others.
Pros
- Earn passive income
- Freedom to choose what content you want to publish
Cons
- You will need a good computer, video editing softwares and basic video editing skills so some start-up capital is required
- Making and perfecting a video takes several hours or maybe even more if you are just starting, but the time taken will decrease gradually as you gain more experience
- You will take a few years to build up your portfolio and garner enough subscribers
5. Investing
If you have some spare cash lying around that you are confident you will not need to spend in a few years, you could park it somewhere that can get you higher returns than saving in the banks.
Before I get into actual investing, it is of paramount importance to note that as a general rule of thumb, we should have at least 6 to 9 months of “Emergency Savings” in our bank (depending on age and how many dependants we have) and this fund must not be used for investing because it acts as a buffer for unexpected events such as sudden medical bills or getting laid off. For example, your monthly expenditure could be as follows:
- Necessities: $1000
- Utilities: $200
- Transport: $150
- Son’s education and allowance: $250
- Loan payment: $400
In this case, the total monthly expenditure is $2000 and that we should have at least $12000 to $18000 of cash in reserve and this fund cannot be used for investment.
Low Risk
Some low risk investments include government bonds/treasury bills, money market funds and endowment plans. Due to the fact that these investment vehicles generally have lower risks than other investment vehicles, they offer less returns of about 2% to 3% on average for the past few decades (the actual rates is much lower now due to the large fiscal stimulus packages around the world).
Pros
- Low risk
- Higher returns than parking the money in a bank savings account
Cons
- There is still risk even though it is low and it is arguably higher today with ever increasing levels of government debt
- Bonds and endowment plans need to be held to maturity (usually 5 to 10 years) for the full benefits to be realised
- Low returns
Medium Risk
Some medium risk investments include using Exchange-Traded Funds (ETFs), Index Funds and Robo Advisors like stashaway. These investment vehicles are usually diversified across various sectors and can serve to hedge against a market downturn if the sectors have little correlation (gold price and stock prices are inversely related at a macro scale).
Sign up with my link:
https://www.stashaway.sg/referrals/denzilt4522
Pros
- Diversified to reduce sectoral risk
- Managed by professionals who may employ investment strategies like hedging, Dollar Cost Averaging and use quantitative strategies
Cons
- Lack of complete knowledge about how they are using your money
- Assumes the good character and sound investment method of the fund manager
High Risk
High risk investments include stock picking (usually from a top down approach) that focuses on growth and using margin accounts which increases exposure such that risk and potential returns are increased (meaning you can earn a lot more but can also lose a lot more). Some margin trading platforms include Plus500 and IG.
Pros
- Potential returns are very high
Cons
- Extremely high risk such that the probability of losing money is high (only professionals with the relevant knowledge and experience are recommended to engage in stock picking and margin trading)
- Requires a lot of time and money spent to acquire the relevant skills
- May require the purchase of new computers and softwares for high frequency trading
Now that you know a few methods to earn some extra cash, take action now!
