Thursday, December 27, 2012

The Art of Making Money Introductory: Different ways to make extra income made simple

For the last year I have been telling people how to save money. It came to me it is time to help I need to educate on how to make money as well. It sounds simply but the truth some people may not be aware of all the different way to make money.

Every one knows that a job is the most common way to make a living. The down fails for this is you have to trade freedom for security. And the government taxes earned income at the highest rate compared to portfolio divided income from stocks, and passive income from real-estate. Lets not forget the a business owner or corporation has a host of taxes deduction that a employed person does not.   

What should a working class person do? Answer to think out side of the box. How can you improve your situation without quitting your day job? One way to do this to start a part time business with Internet marketing, and it can cost just a few dollar or hire a student to do the hours of boring data entry on free online classifieds, directories, blogs, and social media. The alternative to this is use a rented program to do this for you, there are many services that will auto submit to all of these services for you from a month to month, or a one time submission. The best way to find these type of services in search engine 

So, what if starting your own business is not your dream? What else, the simply way to bring in extra income is purchasing stocks that offer a dividend, or EFT (EFT are like mutual funds, that they hold  a portfolio of many stocks, but have tax advantages over mutual funds, and can be purchased or sold like stocks in dividend classification). When is the best time to purchase these stocks after a major crash or issues when the market is low. You can pick companies that you know and trust and will feel will be there for the next 100 years.     

One of the best investments is the rental business, buying home or apartments and renting them out. This is a win win situation in the tax code. You only need a 20% down payment and can get a loan which is tax deduction, and you can also get a deduction on devaluation of the property at 100% not the 20% percent which you own, What if you do not want to be called at 3 am about problem? Simply,  One can  hire property managers to do all the dirty work. This is a life time of income. And when the investment goes up in value you can refinance the property and take out the equality to purchase additional property. This will require a lot of time to research and find the correct investment. If you are willing to put in the time you can make a big return.   

Author: Derek P. Bliedung
Columbus Financial Coach.
The Art of Saving & Making Money