Make Money

Before funding any investment or purchasing any property, one must first have money to invest (or know where to source money to invest). An income is required to unlock pretty much anything you need or want in life. This pertains to necessities and hard assets, not spiritual or emotional needs and wants. The good news is that there are many ways to make money. The other good news is that you can use more than one method at a time to make money. You can build multiple income streams.

Here are the common ways that people make money:

Have A Job

Individuals work for a company or public organization that pays them for their time. Workers in this category complete tasks day in and day out to help the organization sell products and services to customers. The employee gets paid from a portion of the revenue the company receives for its goods and services. I work a job as a sales professional at a startup where part of my compensation is based on how much revenue I generate for the company. The variable portion of the pay can be inconsistent but there is a higher possibility of upside.

Benefits to working a job for income

1. Regular salaried or commission based jobs provide stability and strong benefits. When starting out with a business venture, having to pay for medical insurance, fund retirement accounts, and take time off all on your own can be tough, especially if a business is making under $5k per month when starting out. There are alot of entrepreneurs who speak negatively about working a 9-5 job but for many, it is the first step on the path to freedom. The key is to use the money you make to make more money elsewhere.
2. Some jobs can teach you valuable skills while getting paid to be there. There are many examples of employees who took what they learned in corporate to start a venture of their own. The visibility for myself into marketing, sales, operations, and management has been helpful in my journey. I was also able to experience a few different flavors of it from working at different organizations in the first 10 years of my career.
3. A W-2 income is a tool to getting your first couple of properties under your belt. Lenders prefer this type of income, as they view it as stable and less risky for banks. 1099 income requires more documentation and processing to gain the banks confidence. This can be a significant challenge when buying real estate before a business is well established.

Own A Business

People can start a business where they are responsible for all aspects of the income. Businesses can consist of just one person or be run with the help of hundreds or thousands of people. Owning a business gives you a lot of control but its on you to keep it running smoothly. The sky is the limit for business owners as to how much money they can make.

I had a small landscaping business when I was younger which allowed me to make a decent amount of money while having the flexibility of scheduling work whenever I wanted. One thing I learned is that businesses relay on systems to reliably and efficiently operate day after day. Businesses without standard operating procedures and systems in place can become more work for the owner. I want to be able to work on the business rather than work in the business.

Types of businesses

The best type of business for me to start is not necessarily the best type of business for you. Everyone has different goals, values, skillsets, and life structure. That being said, I do believe there is a model out there that works for everyone.

Provide a service physically

Providing a physical service can be anything from mowing lawns to cleaning out garages. These services get tasks and projects done for the client. Some service providers, like a skilled tradesperson or real estate agent, require proper licensing and protections in order to do their job properly. Others such as home or business cleaning services, automotive detailing, and driveway sealing do not require proper licenses and certifications.

Provide a service digitally

Providing a digital service has become more popular over the past couple decades. Digital services can be done primarily with the use of phones, computers, and an online presence. Some examples of digital services include social media marketing, project management, a remote virtual assistants, affiliate marketing, content creation, and video editing. There are too many to list but this space is becoming more and more saturated with entrepreneurs that love the flexibility of limited overhead and location freedom.

Sell a physical product

Have an idea for a product that would solve someones daily pain or inconvenience? This could be the basis for starting a physical product business. Physical products can be lucrative but they require sourcing, production, and distribution of the item to scale the business.

Sell a digital product

Digital products are great because for many people, including myself, we have projects sitting in our Google Drive that others would pay to access and use. Digital products can be art work, guides, templates, books, software tools, course media, and much more. These types of products are created once and sold multiple times over.

Sell your knowledge, skills, and experience

With pretty much any skill or expertise on a particular subject, what you know holds significant value. People will pay to learn from others’ so that they can learn from someone who has already done it.

Provide Housing And Commercial Space

Owning property such as rental houses, commercial buildings, land, and more can generate income from those who are leasing the space. Being a landlord is not as passive as people say it is but with the right systems in place, it can be less active than many other sources of income.

I have a couple of rental properties that generate cashflow each month. These payments are a form of income on my bottom line. Although most of the payments are used to pay the mortgages on the homes, the loans are slowly being paid off from the rental income which is increasing my overall net worth.

The government needs private investors to manage real estate on a national level. Everyone needs shelter, so those who can provide housing, rehab uninhabitable properties, develop vacant land, and keep houses clean and presentable are rewarded in various ways.