Simple interest is the money earned after investing or depositing a principal amount, and compound interest refers to the interest accrued on that principal amount and the interest already earned. While interest is typically earned or accrued in a savings account, it can play a role in an investing portfolio, as certain types of investments (CDs, bonds) may involve interest payments, adding to overall investing returns. Note, though, that interest is different from investment returns.
Further, Albert Einstein is reputed to have said that compound interest is the eighth wonder of the world. It’s easy to see why. Continuous growth from an ever-growing base is the fundamental reason investing is so compelling a practice. Compounding has the potential to grow the value of an asset more quickly than simple interest. It can rapidly increase the amount of money you owe on some loans, since your interest grows on top of both your unpaid principal as well as previous interest charges.
What Is Simple Interest?
In basic terms, simple interest is the amount of money you are able to earn after you have initially invested a certain amount of money, referred to as the principal. Simple interest works by adding a percentage of the principal — the interest — to the principal, which increases the amount of your initial investment over time.
When you put money into an average savings account, chances are you are accruing a small amount of simple interest.
APY is the annual rate of return that accounts for compounding interest. APY assumes that the funds will be in the investment cycle for a year, hence the name “annual yield.” If your interest rate is low, you might be missing out on cash that could otherwise be in your pocket. And it may be worthwhile to look into other types of accounts that could earn you more interest.
Simple Interest Formula
Calculating interest is important for figuring out how much a loan will cost. Interest determines how much you have to pay back beyond the amount of money you borrowed.
The simple interest formula is I = Prt, where I = interest to be paid, r is the interest rate, and t is the time in years.
So if you’re taking out a $200 loan at a 10% rate over one year, then the interest due would be 200 x .1 x 1 = $20.
But let’s say you want to know the whole amount due, as that’s what you’re concerned about when taking out a loan. Then you would use a different version of the formula:
P + I = P(1 + rt)
Here, P + I is the principal of the loan and the interest, which is the total amount needed to pay back. So to figure that out you would calculate 200 x (1 + .1 x 1), which is 200 x (1 + .1), or 200 x 1.1, which equals $220.
Example of Simple Interest
For example, let’s say you were to put $1,000 into a savings account that earned an interest rate of 1%. At the end of a year, without adding or taking out any additional money, your savings would grow to $1,010.00.
In other words, multiplying the principal by the interest rate gives you a simple interest payment of $10. If you had a longer time frame, say five years, then you’d have $1,050.00.
Though these interest yields are nothing to scoff at, simple interest rates are often not the best way to grow wealth. Since simple interest is paid out as it is earned and isn’t integrated into your account’s interest-earning balance, it’s difficult to make headway. So each year you will continue to be paid interest, but only on your principal — not on the new amount after interest has been added.
What Is Compound Interest?
Most real-life examples of growth over time, especially in investing and saving, are more complex. In those cases, interest may be applied to the principal multiple times in a given year, and you might have the loan or investment for a number of years.
In this case, interest compounds, meaning that the amount of interest you gain is based on the principal plus all the interest that has accrued. This makes the math more complicated, but in that case the formula would be:
A = P x (1 + r/n)^(nt)
Where A is the final amount, P is the principal or starting amount, r is the interest rate, t is the number of time periods, and n is how many times compounding occurs in that time period.
Example of Compound Interest
So let’s take our original $200 loan at 10% interest but have it compound quarterly, or four times a year.
So we have:
200 x (1 + .1 / 4)^(4×1) 200 x (1 + .025)^4 200 x (1.025)^4 200 x 1.10381289062
The final amount is $220.76, which is modestly above the $220 we got using simple interest. But surely if we compounded more frequently we would get much more, right?
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More Examples of Compound Interest
Let’s look at two other examples: compounding 12 times a year and 265 times a year.
For monthly interest we would start at:
200 x (1 + .1/12)^(12×1) 200 x (1 + 0.0083)^12 200 x 1.00833^12 200 x 1.10471306744 220.94
If we were to compound monthly, or 12 times in the one year, the final amount would be $220.94, which is greater than the $220 that came from simple interest and the $220.76 that came from the compound interest every quarter. And both figures are pretty close to $221.03.
Notice how we get the biggest proportional jump from one of these interest compoundings to another when we go from simple interest to quarterly interest, compared to less than 20 cents when we triple the rate of interest to monthly.
But we only get 18 cents more by compounding monthly instead of quarterly, and then only 9 cents more by going from monthly to as many compoundings as theoretically possible.
What Is Continuous Compounding?
Continuous compounding calculates interest assuming compounding over an infinite number of periods — which is not possible, but the continuous compounding formula can tell you how much an amount can grow over time at a fixed rate of growth.
Continuous Compounding Formula
Here is the continuous compounding formula:
A = P x e^rt
A is the final amount of money that combines the initial amount and the interest P = principal, or the initial amount of money e = the mathematical constant e, equal for the purposes of the formula to 2.71828 r = the rate of interest (if it’s 10%, r = .1; if it’s 25%, r = .25, and so on) t = the number of years the compounding happens for, so either the term or length of the loan or the amount of time money is saved, with interest.
Example of Continuous Compounding
Let’s work with $200, gaining 10% interest over one year, and figure out how much money you would have at the end of that period.
Using the continuously compounding formula we get:
A = 200 x 2.71828^(.1 x 1) A = 200 x 2.71828^(.1) A = 200 x 1.10517084374 A = $221.03
In this hypothetical case, the interest accrued is $21.03, which is slightly more than 10% of $200, and shows how, over relatively short periods of time, continuously compounded interest does not lead to much greater gains than frequent, or even simple, interest.
To get the real gains, investments or savings must be held for substantially longer, like years. The rate matters as well. Higher rates substantially affect the amount of interest accrued as well as how frequently it’s compounded.
While this math is useful to do a few times to understand how continuous compounding works, it’s not always necessary. There are a variety of calculators online.
The Limits of Compound Interest
The reason simply jacking up the number of periods can’t result in substantially greater gains comes from the formula itself. Let’s go back to A = P x (1 + r/n)^(nt)
The frequency of compounding shows up twice. It is both the figure that the interest rate is divided by and the figure, combined with the time, that the factor that we multiply the starting amount is raised to.
So while making the exponent of a given number larger will make the resulting figure larger, at the same time the frequency of compounding will also make the number being raised to that greater power smaller.
What the continuous compounding formula shows you is the ultimate limit of compounding at a given rate of growth or interest rate. And compounding more and more frequently gets you fewer and fewer gains above simple interest. Ultimately a variety of factors besides frequency of compounding make a big difference in how much savings can grow.
The rate of growth or interest makes a big difference. Using our original compounding example, 15% interest compounded continuously would get you to $232.37, which is 16.19% greater than $200, compared to the just over 10% greater than $200 that continuous compounding at 10% gets you. Even if you had merely simple interest, 15% growth of $200 gets you to $230 in a year.
Interest and Investments
As noted previously, interest can play a role in an investment portfolio, but it’s important to note the distinction between investing returns and interest – they’re not the same. However, if an investor’s portfolio contains holdings in investment vehicles or assets such as certificates of deposit (CDs) or certain bonds, there may be interest payments in the mix, which can and likely will have an impact on overall investing returns.
It can be important to understand the distinction between returns and interest, but also know that there may be a relationship between the two within an investor’s portfolio.
The Takeaway
Simple interest is the money earned on a principal amount, and compound interest is interest earned on interest and the principal. Understanding the ways in which interest rates can work both for and against you is an important step in helping to secure your future financial stability. Interest is typically earned in a bank account, but it can also play a role in an investment portfolio, to some degree.
Interest is typically earned in a bank account, but it can also play a role in an investment portfolio, to some degree.
If you’re interested in investing and making your money work harder for you, then identifying interest types and finding ways to earn as much interest as possible could be the difference in thousands of dollars over the course of your life. The bottom line, though, is that the longer you invest, the more time you have to weather the ups and downs of the stock market, and the more time your earnings have to compound.
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Inside: Are you looking for a remote job? This guide will help you find the best remote jobs for college students, with information on industries, pay, hours, and more.
The internet has made it possible to work from anywhere in the world.
This is great news for college students who want to earn some money while they study.
Back when I was in college, working remotely wasn’t even considered a possibility. But, now, there are a number of online jobs available that are perfect for college students.
In addition, remote jobs are one of the best ways for college students to make money and gain experience.
With a remote job, you can work from anywhere in the world, which is perfect for students who want to travel or live at home with their parents while transitioning to and from a college campus.
There are many different types of remote jobs available, so there is sure to be something that suits your skillset and interests.
In this article, we will explore the best remote jobs for college students.
How can a college student make money remotely?
Remote work has become increasingly popular among college students and for good reason.
Many students today have grown up with technology and possess the skills necessary to excel in remote jobs.
Not only does remote work provide a flexible schedule that can be easily adjusted to accommodate class schedules, but it also offers numerous benefits such as the ability to work from anywhere, reduced transportation costs, and the opportunity to contribute to environmental sustainability by reducing carbon emissions.
Additionally, remote work allows students to earn extra income, potentially reducing their reliance on student loans and minimizing post-graduation debt.
Can I work remotely in college?
Yes! Working remotely in college can be a great way to earn some extra money and gain some work experience.
Remote work has gained immense popularity across the globe, with its adoption nearly doubling since the pandemic.
As college students, you often possess the necessary tools for remote work, such as a laptop, making it a convenient option for them.
This is a great idea if you are looking at how to pay for college without loans.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
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The 15 best remote jobs for college students
Working remotely is a great way for college students to earn money and gain experience in their chosen field.
Whether you are looking for a way to make some extra money, or maybe you need a flexible job that will fit around your studies. Whatever the reason, there are plenty of remote jobs out there that could be perfect for you.
Also, you can review these non phone work from home jobs for more ideas.
Here are 15 of the best remote jobs for college students.
1. Virtual Assistant
A virtual assistant is one of the best remote jobs for college students due to its versatility and learning opportunities. Plus there are plenty of virtual assistant jobs with no experience out there.
As the demand for remote administrative support services continues to grow, virtual assistants play a crucial role in helping companies and individuals with various tasks. Working from a remote location, virtual assistants provide administrative assistance by handling phone calls, scheduling appointments, managing emails, and more.
By finding a position as a virtual assistant in their desired industry or with a respected professional, students can make their side hustle more beneficial to their future.
Benefits:
Provides an opportunity to gain professional experience and develop essential skills such as communication, time management, and resourcefulness.
Requires quick thinking and the ability to switch between diverse tasks, which enhances cognitive flexibility and adaptability.
Allows students to learn about different industries and gain insights into their chosen career paths.
Pay: Most virtual assistants average about $20 an hour.
2. Online Tutor
Online tutoring is widely regarded as one of the best remote jobs for college students. With its flexibility and convenience, it offers students the opportunity to work from anywhere at their own pace.
Whether they excel in a specific subject or want to gain teaching experience, online tutoring provides a platform for college students to share their knowledge and help others succeed academically.
Benefits:
A high degree of flexibility it offers.
Freedom to choose their own hours, instruction topics, and the number of students they want to work with.
Balance their tutoring responsibilities with their academic commitments, ensuring they can effectively manage their time.
Pay: Although the reported median hourly wage for tutors was $17 an hour. The actual pay can vary depending on factors such as the subject being taught, the level of expertise required, and the platform through which tutoring is conducted.
3. Proofreader
Proofreading is a crucial role in the final stages of the written content production process, making it one of the best remote jobs for college students. A proofreader possesses a keen eye for detail and a strong command of the language, allowing them to identify and rectify errors that may have eluded the writer or editor.
They play a vital role in ensuring the accuracy, clarity, and coherence of written materials across various industries.
Benefits:
Offer the flexibility to work from anywhere, making it ideal for college students who need to balance their studies with work.
Enhances skill development such as language skills, attention to detail, and critical thinking abilities, which are valuable in various fields.
Networking opportunities to build professional connections and expand one’s network.
Pay: The average pay for proofreading jobs is $22 per hour, providing college students with a valuable source of income.
4. Social Media Manager
In today’s digital world, social media has become an essential tool for businesses to connect with their target audience, build brand awareness, and drive engagement. With the increasing importance of social media, businesses are in need of skilled professionals who can effectively manage their social media presence.
This makes the role of a social media manager one of the best remote jobs for college students, providing them with the opportunity to earn money while gaining practical experience in online promotion.
Benefits:
Enjoy being paid to be on your favorite social media apps.
Ideal remote job for college students due to its flexibility.
Gain practical experience in online promotion, which can be valuable for those studying marketing, journalism, or communications. Benefits:
Pay: The pay for social media management can vary significantly, but you can expect $15 an hour to $25 an hour.
5. Freelance Writer
Remote writing jobs are an excellent option for college students looking to earn extra income while honing their writing skills.
As writers, college students have the opportunity to create a wide range of written materials that can be distributed through various channels, such as articles, blogs, website copy, and more.
The demand for remote freelance writers is high, making it a popular choice among college students seeking flexible work options.
Benefits:
Freelancers can work on short and long-term projects.
As long as you have a computer and internet connection, you can work from anywhere.
Showcase writing skills and earn income.
Pay: The pay for freelance writers is by the word (.01-$1.50 per word). With most freelance writers averaging about $29 an hour.
6. Social media influencer
Social media influencers have become a prominent and lucrative career option in today’s digital age.
For college students, becoming a social media influencer can be an excellent remote job opportunity that allows them to leverage their online presence and pursue their passions while earning money.
To stand out as a social media influencer, it’s essential to create content that is visually appealing and captures the attention of your audience. Experiment with different types of content, such as photos, videos, stories, and live streams, to keep your followers engaged.
Benefits:
Be creative, and authentic, and share valuable information or entertainment that aligns with your niche.
Foster a sense of community.
Monetize your social media presence with sponsored posts, brand partnerships, and affiliate marketing.
Offers flexible working hours, allowing you to manage your studies and other commitments effectively.
Provides opportunities for personal branding and networking, which can open doors to other remote job opportunities in the future.
Pay: Potential for high earnings. This is more passive income than an hourly job.
7. Website or App Tester
Website and app testing is a highly sought-after remote job option for college students due to its flexibility and the opportunity to gain valuable experience in the tech industry.
As designers and developers strive to create the best user experience possible, they often hire individuals to find bugs and issues in their websites and apps. The role of a website or app tester is crucial in ensuring the functionality and usability of these digital platforms.
This feedback is invaluable for designers and developers as it allows them to make necessary improvements and optimize the performance of their websites and apps.
Benefits:
Excellent opportunity for college students to develop and showcase their skills in a professional setting.
Gain practical experience in the tech industry while balancing their academic commitments.
The flexible hours offered by these remote positions allow students to work at their own pace and manage their time effectively.
Pay: Platforms like UserTesting offer a payment of $10 per website tested. You can also find remote hourly wages ranging from $12 an hour to $16 an hour, with potential bonuses based on quality and productivity goals.
8. Video Editing
With the increasing demand for video content across various platforms, video editors play a crucial role in creating engaging and impactful visuals. This profession offers the opportunity to work from anywhere, making it ideal for college students who may have limited availability or prefer a flexible work schedule.
By adhering to the overall video brand messaging strategy, you can shape the final product and captivate the audience. This creative aspect of video editing allows college students to explore their artistic talents and develop their skills in storytelling and visual communication.
Benefits:
One of the key advantages of video editing as a remote job is the ability to work from any location.
Provides a platform for creative expression.
Video editing is a profession that is in high demand.
This high demand translates to a wide range of job opportunities and the potential for steady work, even for college students.
Pay: When it comes to money, beginner video editors can typically charge up to $45 an hour. However, it’s worth noting that rates can vary depending on factors such as experience, the complexity of the project, and client’s budget.
As college students gain more experience and build a strong portfolio, they can potentially increase their rates and earn a higher income from video editing projects.
9. Remote Research Assistant:
Many professors and researchers hire remote research assistants to help with data collection, literature reviews, and other research tasks. This type of job requires strong research and analytical skills, as well as the ability to work independently.
As a research assistant, you will have the opportunity to delve deeper into a specific subject or area of interest.
This can be particularly beneficial if you are considering pursuing further education or a career in that field. By immersing yourself in research projects, you will gain a comprehensive understanding of the topic and develop expertise that can set you apart from others.
Benefits:
Opportunity to work closely with experienced researchers and professionals in your field of interest.
Gain valuable insights, knowledge, and skills that can enhance your academic and professional development.
Learn research methodologies, data analysis techniques, and critical thinking skills that are highly transferable to future career opportunities.
Hands-on experience in conducting research projects.
Build a network of professional contacts in your field.
Depending on the nature of the research projects you are involved in, there may be opportunities to contribute to academic publications or presentations. This can be a significant achievement that adds to your academic portfolio and demonstrates your research skills to potential employers or graduate school admissions committees.
Pay: Compensation for remote research assistant positions varies depending on the project and the level of responsibility. This is a great way to be paid to go to school.
10. Audio Transcription
Audio transcription is a popular remote job for college students that involves listening to audio files and accurately transcribing the spoken content into written form. Additionally, it provides an opportunity to develop valuable skills such as speed and accuracy in typing, excellent listening skills, and efficient time management.
Determine the type of transcription work you want to specialize in, such as technical legal transcription or educational podcast transcription. This will help you target specific clients and tailor your skills accordingly.
Benefits:
Offers flexibility in terms of scheduling, allowing students to work around their classes and other commitments.
Opportunity to develop valuable skills such as listening, typing, and time management, which can be beneficial in various professional settings.
Create a portfolio showcasing your transcription skills and experiences.
Pay: Transcription can be a well-paying job, with freelancing gigs offering up to $0.36 per minute of transcribed audio.
11. Data Entry
Data entry is a popular remote job option for college students due to its flexibility and convenience.
This role involves managing electronic data by entering and updating information in computer systems. It is a job that can easily be done remotely, allowing students to work from the comfort of their own homes or dorm rooms.
However, it is important to be cautious when seeking data entry jobs online to avoid scams.
Benefits:
Minimal specialized skills are required.
Data entry skills can also be beneficial for future career opportunities.
Employers often value individuals with data entry skills, as it showcases their ability to handle and organize large amounts of information accurately and efficiently.
Valuable experience in working with digital documents and databases.
Pay: The average pay for data entry is $18 an hour.
12. Virtual Recruiter
A virtual recruiter is a professional who is responsible for posting online job advertisements and searching for potential candidates to fill various positions.
This remote job opportunity can be particularly beneficial for college students as it offers flexibility in terms of working hours and allows them to gain valuable experience in the field of recruitment while still pursuing their education.
Benefits:
Collaborating with hiring managers and clients to understand their specific requirements and preferences for potential candidates.
This role provides hands-on experience in recruitment, which can be beneficial for your future career in HR or related fields.
Building relationships with candidates, hiring managers, and clients can expand your professional network and open doors for future opportunities.
Pay: The average pay for virtual recruiters is around $20 to $30 per hour, providing the potential for a lucrative income.
13. Blogger
College students can create their own blogs and build an audience by regularly posting content in a unique niche.
While this may not be the easiest route to make money fast, it provides an opportunity to showcase writing skills and develop a cohesive writing style. Once a blog gains a solid stream of visitors, it can be monetized through ads and affiliate links.
However, you will be starting a small online business which has its perks.
Benefits:
This is 100% passive income.
Works as much as you want or as little as you want on your site.
A simple way to help your readers while making money.
Your site can grow as you graduate college until you decide to sell it.
Pay: Various based on traffic and monetization. But it is an easy way to invest $100 to make $1000.
14. Course Creator
As a course creator, you have the chance to teach others about a topic or course that you are passionate about while earning a steady passive income. This job allows you to create online tutorials or how-to videos to educate and engage students from all over the world.
You will be responsible for creating and managing the content on your website and other online platforms. This includes developing blog posts, videos, podcasts, and other educational materials to enhance the learning experience for your students.
Make use of hosting platforms like Thinkific, Teachable, or Kajabi to facilitate easy access to course-related information for your students. These platforms offer features such as course management, student progress tracking, and payment processing, making it convenient for both you and your students.
Benefits:
Opportunity to earn a steady income while pursuing your passion and sharing your knowledge with others.
Working remotely offers flexibility in terms of working hours, allowing students to manage their time effectively and balance their studies with their job.
Gain valuable experience in content creation, marketing, and online teaching, which can greatly enhance their resume for future career opportunities.
Pay: This is a passive income job where you will put the work in upfront and have less ongoing maintenance to run your course.
15. Stock Trader
Stock trading is a lucrative and dynamic field that offers college students the opportunity to work remotely and earn a substantial income. With the rise of online trading platforms and the increasing popularity of investing, stock trading has become a highly sought-after skill in today’s market.
Honestly, I know more and more high school students waiting to turn 18, so they can start life as a stock traders.
As a stock trader, you will be responsible for buying and selling stocks, bonds, and other financial instruments for your own portfolio. This role requires a combination of analytical skills, market knowledge, and the ability to make quick decisions under pressure.
Continuous learning and staying updated on market trends and strategies are crucial to staying competitive in this field. I highly recommend taking the Trade and Travel course to learn the basics of stock market investing.
Successful traders can earn substantial profits, but it is important to note that trading also involves the risk of financial losses.
Benefits:
Stock traders have the potential to earn significant income through their trading activities. Learn how fast you can make money in stocks.
Flexibility to trade before class and work from anywhere with an internet connection.
Opportunity to work independently and be your own boss, setting your own schedule and goals.
However, it is important to acknowledge the challenges that come with being a stock trader. The stock market is highly volatile and unpredictable, requiring constant monitoring and adaptation to changing market conditions.
Pay: Various significantly with your profit /loss ratio. But, a great way to make $1000 a day.
16. Customer Service Agents
Customer service agent remote jobs are a great option for college students looking to gain work experience while studying. These jobs allow students to provide excellent customer service from the comfort of their own homes, offering flexibility and convenience.
Remote customer service agents interact with customers through various communication methods such as phone, chat, and email. They answer customer questions, solve problems, and direct customers to the appropriate resources when needed. These jobs can be done part-time, making them ideal for students with busy schedules.
Benefits:
Require little experience or education.
Develop valuable skills such as communication, problem-solving, and time management.
Showcase their communication skills to future employers, which is a highly desirable quality in any job.
Pay: Earnings can range from $10 to $25 per hour, depending on the role and experience.
17. Photography
Photography is a form of artistic expression that allows college students to showcase their creativity.
You can experiment with different styles, compositions, and subjects to capture unique and visually appealing images. This creative aspect of photography can be fulfilling and enjoyable for college students who have a passion for visual arts.
Benefits:
Choose when and where to take photos, giving them the freedom to balance their academic and personal lives effectively.
Build a portfolio of their best work. A strong portfolio can open doors to more significant opportunities in the future, such as exhibitions, collaborations, or even full-time photography careers.
Earn income while honing their skills in product, stock, or event photography.
When stock images are licensed, earn passive income from the sales.
Pay: When it comes to pay, the average rate for a photographer is $24 per hour. However, it’s important to note that pay can vary depending on factors such as experience, location, and the type of photography gig.
18. Virtual Internships
Virtual internships provide valuable work experience and allow you to gain industry-specific skills while working remotely. Many companies offer virtual internships in fields like marketing, finance, and technology.
Having an internship in the field you want to pursue is an invaluable opportunity to gain practical experience and enhance your career prospects.
Additionally, virtual internships can provide you with a unique perspective on the field you want to pursue (and if you still want to pursue it).
Benefits:
Gain relevant work experience in your desired career field.
Practical experience will not only enhance your understanding of the industry but also demonstrate your competence and dedication to potential employers.
Greatly strengthen your resume.
Build a network of contacts in your desired field.
Pay: These internships may be paid or unpaid, but the experience and connections you gain can be invaluable for your future career.
Looking for Online Summer Job?
There are a plethora of online summer temporary jobs available for college students. You just have to decide what is interesting for you to do.
Also, think about ways you can build your resume for future employment after graduation.
If I could go back to college, I would focus on learning how to make your money work for you. That is one of the best life skills you can truly understand.
This list above has plenty of options for you to consider.
Are you passionate about words and reading?
If so, proofreading could be a perfect fit for you, just like it’s been for countless of readers! Learn how you can create a freelance business as a proofreader.
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FAQ
Many colleges and universities have career centers or job boards that specifically cater to remote job opportunities for college students.
Networking is crucial for college students when it comes to finding remote job opportunities. Reach out to your professors, classmates, and alumni who may have connections or knowledge of job opportunities.
This is smart if you want to know how to move out at 18.
Remote work requires a unique set of skills that allow individuals to effectively perform their job duties from a distance. In order to succeed in a remote job, college students should possess the following skills:
Time management: Remote work often provides flexibility in terms of scheduling, but it also requires individuals to manage their time effectively. College students need to be able to prioritize tasks, set deadlines, and stay organized to ensure they meet their work obligations.
Communication skills: Since remote work involves limited face-to-face interaction, strong communication skills are essential. College students should be able to effectively communicate through various channels such as email, instant messaging, and video conferencing.
Self-motivation: Working remotely requires a high level of self-discipline and motivation. College students need to be able to stay focused and productive without direct supervision. They should have the ability to set goals, stay on track, and meet deadlines without constant oversight.
Adaptability: Remote work often involves working with different tools, technologies, and platforms. College students should be adaptable and willing to learn new software or applications that are necessary for their role.
Problem-solving: Remote work may present unique challenges and obstacles that require critical thinking and problem-solving skills. College students should be able to analyze situations, identify potential issues, and come up with innovative solutions. This skill is particularly important when faced with technical difficulties or communication issues.
By honing these skills, college students can position themselves as valuable assets to remote employers and increase their chances of securing remote job opportunities.
When you’re applying for remote jobs, most of the time your potential employer will want to see some kind of portfolio that showcases your skills and experience.
You can create a portfolio by using a free online portfolio builder or by creating your own website.
With a visually appealing and user-friendly portfolio, you can make a lasting impression and increase your chances of landing your dream remote job.
Which Online Jobs for College Students Are Interesting To You?
There are a lot of great remote jobs for college students out there!
With a little bit of research, you can find the perfect job for your skills and interests.
Be sure to consider the pay, hours, and industry when you are looking for a remote job as well as career advancement.
For many students, working in college is a must! Because you know how to pay for college without parents is hard.
So, use these ideas to find the right job for you whether it is part-time or full-time.
And if all else fails, check out this list of low-stress jobs that pay well without a degree.
Know someone else that needs this, too? Then, please share!!
Investing in a 401(k) account offers the potential for long-term growth and financial security. However, it’s crucial to understand that this retirement savings vehicle is not immune to losses. Your 401(k) is investing in the stock market, so it’s possible to lose money over time. Here is how it works and how the markets have performed over the decades. You may want to consult with a financial advisor for your unique situation.
Can Your 401(k) Lose Money?
A 401(k) account invests in stocks, bonds and mutual funds, which are volatile assets. Therefore, your account can lose money if the companies whose stocks you hold perform poorly or a market downturn occurs. These occurrences result in a decrease in your account’s value.
Remember, investing always carries some risk and the potential for loss is inherent in any investment. However, 401(k) accounts are long-term retirement savings vehicles. So, while they can experience temporary losses, they generally have the potential for growth over the long term.
How Markets Have Performed Over Decades
The performance of the American stock market over the decades has shown a general upward trend, despite experiencing periods of volatility and market downturns. That said, past performance does not indicate future results and a wide range of factors can influence the stock market.
Historically, the U.S. stock market has exhibited long-term growth, as major indices such as the S&P 500 or Dow Jones Industrial Average represent. Over several decades, the stock market has experienced periods of significant gains and periods of decline.
For example, in the mid-20th century, the stock market experienced steady growth, with the Dow Jones Industrial Average rising about 4,000 points from 1950 to 1960. Market volatility and economic challenges, including the oil crisis and high inflation, characterized the 1970s. The 1980s and 1990s saw substantial growth, driven by technological advancements and financial deregulation. During the dot-com bubble of the late 1990s, stock prices reached unsustainable levels, resulting in a subsequent market correction.
Then, the bursting of the dot-com bubble and the events of 9/11 led to a market decline in the early 2000s. However, the stock market gradually recovered and by the mid-2000s, it reached new highs. The financial crisis of 2008 resulted in a severe market downturn, but the market rebounded in subsequent years, leading to an extended bull market that lasted until 2020.
In 2020, the COVID-19 pandemic caused a global market downturn, but central bank interventions and government stimulus measures contributed to a relatively swift recovery. The market continued to show resilience and reached new record levels in subsequent years. This trend matches the historical pattern of the stock market, which has provided about a 10% annualized return to date since its inception.
What to Do If Your Balance Drops
Experiencing a loss in your investment portfolio can be disheartening, but there are several steps you can consider taking if this happens:
Stay Cool: It’s essential to remain calm and avoid making impulsive decisions based on short-term market fluctuations. Remember, your 401(k) investments are typically long-term commitments and temporary losses can be part of the established market cycle.
Assess The Situation: Evaluate the reasons behind the loss. Is it a result of a market downturn, a specific event (such as corporate malpractice or bankruptcy), or a poor investment choice? Understanding the underlying causes helps you decide between riding it out or jumping ship if the asset will likely depreciate further.
Review Your Investment Strategy: Assess your investment strategy and determine whether it aligns with your financial goals and risk tolerance. Consider consulting with a financial advisor to evaluate your portfolio and make any necessary adjustments to your investment plan. Doing so can involve diversifying your portfolio across different asset classes, industries and geographic regions. Diversification reduces the pain when your balance takes a hit.
Consider Long-Term Prospects: Evaluate the long-term prospects of your investments. A temporary loss may not necessarily impact the fundamentals of a well-managed and fundamentally strong investment. Assess whether the reasons you invested in those assets still hold true.
Stay Invested And Avoid Panic Selling: Timing the market is a pipe dream and panic selling can often lead to missing out on market recoveries. Successful long-term investors generally stay invested, especially if their investment strategy suits their goals well.
How to Minimize Risk in Your 401K
To minimize risk with your 401(k) account, consider the following strategies:
Diversify Your Investments: Spread your investments across asset classes such as stocks, bonds, real estate and cash equivalents. Diversification mitigates the impact of any single investment’s poor performance on your overall portfolio.
Regularly Rebalance: Periodically review and rebalance your portfolio to maintain your desired asset allocation. This way, you’ll sell investments that have performed well and buy more underperforming assets to restore your desired balance. Your 401(k) automatically rebalances itself if you select a target-date fund. These funds change and mature according to your time horizon and allocate more money to conservative assets as you near retirement.
Understand Your Investment Options: Familiarize yourself with the investment options available within your 401(k) plan. Consider their historical performance, risk levels and investment strategies. Then, you can choose a mix of investments that align with your risk tolerance and long-term objectives.
Review and Adjust Contributions: Regularly review your contribution levels and consider increasing them over time if your financial situation allows it. Increasing contributions can help you take advantage of dollar-cost averaging, where you invest a fixed amount regularly, buying more shares when prices are lower and fewer when prices are higher.
Stay Informed: Keep yourself informed about market trends, economic conditions and any updates or changes to your 401(k) plan. This knowledge can help you make informed decisions and adjust your investment strategy if necessary.
Seek Professional Advice: If you are unsure about how to handle your investment losses or need guidance in adjusting your portfolio, consider consulting with a financial advisor. They can provide personalized advice based on your specific financial situation and goals.
The Bottom Line
Investing in a 401(k) account carries risks and the account can experience losses due to poor company performance or market downturns. However, historical trends have shown the American stock market to exhibit long-term growth despite periods of volatility generally. When your investment portfolio loses value, it’s important to remain calm, assess the situation, avoid panic selling and seek professional advice. These strategies can help minimize risk and optimize your 401(k) savings for long-term growth and financial security.
Tips for Minimizing 401(k) Losses
Allocating assets and choosing between fund types can be challenging. Fortunately, a financial advisor can develop a retirement plan and help you find assets that match your priorities. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Having a 401(k) is an ideal foundation for a retirement plan. However, knowing how much you should contribute to your 401(k) can be unclear.
Ashley Kilroy
Ashley Chorpenning is an experienced financial writer currently serving as an investment and insurance expert at SmartAsset. In addition to being a contributing writer at SmartAsset, she writes for solo entrepreneurs as well as for Fortune 500 companies. Ashley is a finance graduate of the University of Cincinnati. When she isn’t helping people understand their finances, you may find Ashley cage diving with great whites or on safari in South Africa.
I know I’m taking a risk by starting an article by defining a term from economics. But please, stick with me. It’s not a hard concept to understand, and it directly relates to your financial success.
Utility is a term used in economics to describe how much value or happiness one derives from a good or service. Marginal utility refers to how much additional value/happiness is derived from one additional unit of the good or service. Most goods and services are said to have “decreasing marginal utility.”
“Decreasing marginal utility” sounds like gibberish, but it’s actually pretty easy to understand:
First slice of apple pie: “Yes, please!”
Second slice of apple pie: “Well…OK…one more piece.”
Third slice: “Oh, I couldn’t. I’m stuffed.”
Each slice of pie provides less happiness (“utility”) than the previous slice. The same thing holds true with nearly every good or service.
In fact (or perhaps, as a result), this idea holds true for money as well. For many of us, an extra $500,000 in cash could accurately be described as life changing. But what if you already had a liquid net worth of several million dollars? An extra $500k would still be nice, but I doubt it would change your life meaningfully.
Get Rich Slowly has practically been a real-time case study in this concept. J.D. used to be deeply in debt, at which point he had a high marginal utility of wealth. That is, every extra dollar he earned and saved made a big difference to his well-being.
However, as he climbed out of debt, built his income, and built his wealth, his marginal utility of wealth has slowly declined. J.D. recently put it this way:
“Debt used to be my biggest source of money stress. Then it became an obsession with frugality, which led me to cross the line to cheap bastard. Now my biggest problem seems to be an obsession with income: I want more money all the time. I’m beginning to see, however, that if I relax on my drive for a higher income, I can have more of other stuff, like time with friends — and travel.”
Marginal Utility and Risk Aversion
Because most us have a decreasing marginal utility of wealth, a loss of a given amount has a greater impact than a gain of the same amount. For example, would you be willing to accept a wager of $10,000 on a coin flip? If you win, you get $10,000 — but if you lose, you owe me $10,000?
I sure as heck wouldn’t take that bet.
The idea of winning $10,000 is exciting, but the idea of losing $10,000 in an instant is downright sickening. Fifty-fifty odds just aren’t good enough to get most people to put a meaningful amount of money at risk.
In economic jargon, we say that we’re “risk averse”. That is, we’re unwilling to take a risk unless the probability is good that we’ll come out ahead as a result of taking that risk.
Eliminating Risk Where Possible
If you’re like most people, you’re more afraid of running out of money than you are excited about being filthy rich. And if that’s the case, why not eliminate as much risk in your investment portfolio as you possibly can?
For example, have you checked to see if you’re saving enough each year to meet your goals by investing entirely in TIPS? (TIPS — Treasury Inflation-Protected Securities — are bonds that provide protection against inflation.) If so, why take on stock market risk? With TIPS, you know exactly what inflation-adjusted return you’ll be getting. It’s hard to have less risk than that!
Or, if the modest return from TIPS isn’t going to be enough to meet your goals — and you therefore need the higher expected return that comes with stocks — why not try to make the stock portion of your portfolio as safe as possible? For example, if you’re saving enough each year to get the job done with index funds, why take on the additional risk that comes with picking individual stocks?
Alternatively, if you’re in (or near) retirement and you’re worried that you’re going to outlast your portfolio, why not minimize that risk by purchasing an annuity that can provide predictable income for the rest of your life?
When it comes to investing, rather than asking how much risk you can stomach, try asking how little risk you can get away with. After all, is it worth jeopardizing your goals for a shot at that third slice of pie?
BlackRock, one of the world’s largest financial firms, says three key moves can sharply boost retirement income. Most people focus on building up their savings when they make retirement plans. However, by also focusing on the drawdown phase, the duration of the nest egg that you have accumulated can be significantly extended, BlackRock says in a recent report.
Consider working with a financial advisor as you develop a long-term retirement plan for yourself.
Add Guaranteed Lifetime Income via an Annuity
Annuities have become a hot topic in recent years, as financial professionals have increasingly debated their pros and cons. On the upside, they hedge against longevity risk. A lifetime annuity can guarantee, aside from catastrophic failure on the part of the insurance company, that you will receive a minimum income for life. On the downside, annuities can sometimes post weaker growth than even the standard S&P 500 index fund.
BlackRock argues that the benefit of hedging against longevity risk, though, is quite powerful. By putting up to 30% of your portfolio savings into a retirement annuity, you can create a strong base for the future of your retirement income. Alongside Social Security, this gives you an income that never draws down and will not fade.
Shift to an Aggressive Asset Allocation
There’s a catch to an annuity plan, though. Perhaps the biggest risk with annuities, as noted, is their low rate of return. In fact, Fidelity says that in recent years annuities often return one-eighth the amount of a simple S&P 500 index fund. That’s a recipe for low, slow growth.
So, BlackRock suggests balancing your annuity investments with a more aggressive market portfolio. In other words, leverage the security that you have with your annuity to rebalance your portfolio toward higher-return assets like stocks, if even just a stock market index fund, like the S&P.
By doing this, you’re more protected against loss by the guaranteed income of the annuity, while also boosting your overall spending power in retirement with the projected growth of the equities. This lets you retain a strong equity portfolio later in life, when many investors would otherwise start shifting their investments in favor of more stable, fixed-income assets, like bonds or CDs.
“Adding guaranteed lifetime income combined with a more aggressive asset allocation generates 29% more annual spending ability from one’s retirement savings (excluding Social Security) and reduces downside risk by 33%,” BlackRock states in the report.
Retire (and Take Benefits) Later in Life
Finally, BlackRock recommends delaying retirement by two years. The firm suggests delaying retirement, along with Social Security benefits and annuity payouts, from age 65 until age 67. This is not, however, a delayed retirement. For anyone born after the year 1960, the goalposts have been moved back and full retirement age is set at 67.
The firm’s basic analysis still stands though. As the firm writes, “[a]mong all retirement decisions, the choice of when to retire and claim Social Security often has the single greatest impact on one’s financial security.”
Putting this off even by just two years can significantly boost your Social Security benefits. It will also give your annuities time to continue growing, making their lifetime benefits stronger, while allowing your portfolio to accumulate extra years of high-value growth as well.
BlackRock finds that pushing back retirement by two years can boost a retiree’s lifetime spending power by 16% and reduce downside risk by an additional 15%. In combination with the 29% retirement increase gained by getting an annuity and having an aggressive, stock market-based asset allocation, retirees can sharply extend the duration of their retirement income.
Bottom Line
For many investors, the good news here is that BlackRock probably recommends a version of what you are already pursuing: diversification. This approach suggests that you should balance high-security assets, in the form of lifetime annuities, against high-return assets, such as stocks. It recommends delaying retirement as a way of boosting your lifetime Social Security benefits and maximizing your late-in-life portfolio returns. For the average investor and saver, this is all very doable.
Retirement Savings Tips
A financial advisor can help you build a comprehensive retirement plan. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Longevity risk is the possibility that you will live too long, and that’s a perverse way of looking at life. So start making plans right now to celebrate your hundredth birthday in style.
Eric Reed
Eric Reed is a freelance journalist who specializes in economics, policy and global issues, with substantial coverage of finance and personal finance. He has contributed to outlets including The Street, CNBC, Glassdoor and Consumer Reports. Eric’s work focuses on the human impact of abstract issues, emphasizing analytical journalism that helps readers more fully understand their world and their money. He has reported from more than a dozen countries, with datelines that include Sao Paolo, Brazil; Phnom Penh, Cambodia; and Athens, Greece. A former attorney, before becoming a journalist Eric worked in securities litigation and white collar criminal defense with a pro bono specialty in human trafficking issues. He graduated from the University of Michigan Law School and can be found any given Saturday in the fall cheering on his Wolverines.
That’s something you hear a lot these days, and with good reason. The Standard & Poor’s 500 sits at around 1060, a threshold it first crossed in the beginning of 1998. In other words, that index of stocks in 500 industry-leading American companies — companies like ExxonMobil, Johnson & Johnson, Coke, and McDonald’s — has gone up and down a lot over the past 12 or so years, but has ended up in the same place where it started.
So you might think that if you invested $10,000 in the S&P 500 through something like the Vanguard 500 index fund back in the spring of 1998, you might still have just $10,000. But actually, you’d have approximately $12,000 — not great, but better than nothing.
How is that possible? Permit me to explain with a metaphor.
If money grew on trees Let’s imagine that you could buy a plant that grew money. That would be one valuable shrub, so it wouldn’t come cheap. In fact, let’s say a plant that produced $2 a year costs a hundred bucks. Still, you buy a whole bunch of them because:
Each one produces $2 today and will provide a little more money each year as the plant grows, perhaps $4 in a decade, and
In the future, another gardener might pay you more than $100 each for these plants.
What do you do with the cash your plants are providing? Buy more money-growing flora, so you can use the greenbacks they produce to buy, yes, more plants. When the market decides that they’re worth more than $100, you get fewer of them. When the market thinks they’re worth less, you’ll be able to buy more.
By the time you retire, you’ll own a whole lot of plants and, as they mature, they’ll each produce more money each year — perhaps $10 or more apiece. You may opt to sell some when the market catches on and offers a price higher than what you paid. But even when you retire, you should still own many of these shrubs because you’ll need to harvest the cash to pay your bills.
Stalks for the long run Okay, we all know that money doesn’t grow on trees. But most stocks pay dividends; plus, historically, over the long term those dividends increase. When you reinvest those dividends — as most people do — you’re automatically dollar-cost averaging (that is, buying more shares when prices are low and fewer when prices are high). You gradually accumulate more shares, which gradually pay bigger dividends, which are used to buy more shares, which pay bigger dividends…and so on.
The same goes for mutual funds that invest in stocks. In fact, let’s look at the real-life example of the aforementioned Vanguard 500, which attempts to mimic the performance of the S&P 500 at very low costs. (I own the fund myself.) Not every company in the S&P 500 pays dividends, but this will provide an illustration of how dividend reinvestment can pay off.
Had you invested $10,000 in the Vanguard 500 Fund on 31 March 1998, you’d have bought 97.84 shares, according to numbers provided to me by Vanguard. Over the subsequent year, the fund paid out $1.06 per share in dividend distributions.
Technical note: Mutual fund shares also pay out capital-gains distributions, but not as consistently. So, for simplicity’s sake, we’ll focus mostly on dividends.
Fast-forward to July 2010. You now have 121.15 shares — almost 24% more than you started with. That’s because you were accumulating more shares with all those fund distributions. But the news gets a little bit better. For the past year, the Vanguard 500 paid out $2.08 in dividend distributions. Over the past 12 years, the dividend almost doubled. Plus, you have 24% more shares paying that bigger dividend, which will buy more shares…well, you know the drill.
“Big deal!” I know what you’re saying: “Making a 20% total return over 12 years is lame! I know this blog is called Get Rich Slowly, but that’s ridiculous.”
I agree. As I said in the title of this post, investing in stocks hasn’t been quite as bad — but it’s still been bad. In fact, the last decade or so has been the worst period for blue-chip U.S. stocks since 1926, including the period encompassing the Great Depression (according to data from Ibbotson Associates).
I bring all this up to illustrate a few points:
Indexes can be misleading. Stock barometers such as the S&P 500 and the Dow Jones Industrial average are price indexes; they just measure the change in prices of the underlying stocks, and don’t factor in dividends or their reinvestment. That’s unfortunate, because…
Over the long term, dividends matter. Historically, dividend reinvestment has accounted for approximately one-third of the total return of stocks. That said, yields on stocks are pretty low these days, which means stocks aren’t a great bargain. But for my long-term money (I don’t plan to retire for another 30 years) I’m betting that the 2% to 3% yield on a broadly diversified portfolio of stocks — along with some capital appreciation — will beat the alternatives, namely, low-yielding cash and bonds (though I own some of each for diversification’s sake). This brings us to our third, final, and perhaps most important point…
Don’t invest in just one type of plant stock. Over the past decade or so, large-cap U.S. stocks — the type you find in the S&P 500 — have been the just about the worst type of investment to own. Name another type of stock (small-cap stocks, international stocks, real estate investment trusts) and chances are, as a group, they beat the S&P 500. As I explained in this video (just in case you’re dying to hear my nasally voice or see my hair while it still exists) and touched on in this previous GRS article, a properly diversified portfolio holds stocks of all types, sizes, nationalities, and flavors, with bonds or cash thrown in to suit your risk tolerance or financial needs (e.g., a retiree should have five years’ worth of income that is expected to be covered by saving sequestered from stocks and in something super-safe, like cash, CDs, or short-term bonds).
I have no crystal ball. I don’t know whether U.S. stocks or international stocks or cash or plants will be the best-performing asset class over the next decade or few. If you think the stock market is a sucker’s bet, I’m not here to argue with you. Just taking a look at the Japanese stock market — which is still down 70% from its 1989 peak, despite being the second-biggest economy in the world — should make anyone appreciate the risks of stock investing.
But if you’ve decided to make stocks a part of your long-term portfolio, I think that understanding the role dividend reinvestment plays will give you a little more confidence to hang in there.
J.D.’s note: Robert’s “stalks for the long run” pun above made me die laughing. I realize it’s an esoteric personal-finance writer joke, but it’s a funny one all the same.
The other day, a dear friend of mine in her mid-20s told me she was saving up to buy a house in her 30s.
Her plan for amassing a down payment was to simply make a big withdrawal from her 401(k) when the time was right.
When I reminded her that the combined taxes and penalties could be as much as 30% (meaning she’d lose $15,000 out of a $50,000 withdrawal), she frowned.
“Well, I can’t just put the money in a savings account. Interest rates suck these days – the highest I’ve seen is 1%, and that doesn’t even cover inflation!”
She had a point. So why not invest the money, I asked?
“Well, I don’t know much about stocks, I don’t have the patience for real estate, and crypto scares me.”
That’s when I told her she was the perfect candidate for a lazy portfolio.
“A what? Look, buster…”
Once I backpedaled and explained the concept, she understood that I wasn’t calling her a bum, but rather, keying her into a lesser-known but highly effective investment strategy.
In this piece, I’m going to clue you in, too!
What’s Ahead:
What is a “lazy portfolio”?
A lazy portfolio is a bundle of stock market investments that requires little to no active maintenance by you. They’re most commonly made up of between one and five index funds, which are like big bundles of stocks, bonds, and other investments that you can buy just like shares of a regular stock (more on those later).
Aside from the occasional deposit or gentle asset reallocation, lazy portfolios don’t require any work.
You can buy $5,000 or $10,000 worth of index funds today and literally do nothing but watch them for 10 years. Doing this means you’ll have a successful lazy portfolio that will, hopefully, generate good rates of return.
But wait – don’t you have to be constantly buying and selling stocks to make money in the stock market?
Not at all – in fact, it’s better if you don’t. Unlike with day trading, you don’t mess with your lazy portfolio – through thick and thin, you let it sit and generate compound interest for years.
You can think of a lazy portfolio like a baby 401(k) that you design yourself and withdraw from much earlier.
Here’s why being “lazy” is a good thing
I love the movie The Wolf of Wall Street and the investing madhouse r/WallStreetBets, but both entities continue to perpetuate a common myth about the stock market: that you need to day trade to make money.
Nothing could be further from the truth.
In truth, multiple academic studies have found that the overwhelming majority of retail investors end up losing money.
“Don’t be misled with false claims of easy profits from day trading,” Burton Malkiel, Princeton professor and Chief Investment Officer of Wealthfront, told CNBC.
The harsh reality of investing in the stock market is that unless you’re a highly trained wealth manager with decades of experience and a team of analysts, you’re probably going to lose money day trading (and even they tend to struggle to pick winning stocks).
That’s why it’s better not to day trade, and be lazy instead. Rather than researching, buying, and selling stocks every day for the next 10 years, you’ll be better off buying index funds in the next 30 minutes and going about your day (or decade).
What are lazy portfolios made up of?
Lazy portfolios are most commonly made up of a small mix of index funds. Here’s a breakdown of what those are and why they’re so effective for passive investing.
Index funds: the building block of lazy portfolios
Index funds are a form of ETF, or exchange-traded fund, which are like big bundles of stock and other investable assets. When you buy shares of an ETF, you’re effectively buying up shares of dozens or hundreds of companies at once.
Each ETF must be individually approved by the SEC and have an appealing “theme” to it. For example, there are blockchain ETFs; ETFs that track the oil industry; and even quirky, unique ETFs that contain shares of companies trying to appeal to Millennials.
So, while stocks let you invest in a company, ETFs let you invest in an entire industry, concept, or strategy.
Now, what makes index funds as unique as ETFs is that they’re designed to reflect the performance of an entire market index, such as the S&P 500 or the U.S. bond market. To illustrate, here are two of the most popular index funds for building lazy portfolios:
The Vanguard Total Bond Market Index Fund (BND), which reflects the performance of the total U.S. bond market.
The Vanguard Total Stock Market ETF (VTI), which, big surprise, reflects the performance of the overall stock market.
So by buying shares of VTI and BND, you’re essentially investing in “the stock market” and “the bond market.” I know – the idea of investing in the whole stock market all at once sounds meta and maybe a little ridiculous, but bear with me.
Index funds are extremely popular for one simple reason
If you’re new to the stock market, you should know that pretty much every investor dabbles in index funds. Everyone from Warren Buffet to your grandparents has a stake in them – in fact, here’s how Mr. Buffet himself feels about index funds:
“In my view, for most people, the best thing to do is owning the S&P 500 index fund,” he told CNBC.
Index funds are popular among amateurs and pros alike for one simple reason: they reliably produce around 3% to 10% APY year after year. Index funds that track the S&P 500 are particularly high-performing, which is why many actively-managed mutual funds will say they “beat the S&P 500” as a benchmark for success.
Between 3% and 10% APY may not sound like a ton of interest but lemme tell ya, it’s plenty. Compound interest is a powerful ally, after all. Take a look at MU30’s Compound Interest calculator below to get a sense for yourself:
So to illustrate, let’s take a look at what happens if you opened a “one-fund lazy portfolio” today by buying $10,000 shares of the Vanguard S&P 500 ETF (VOO).
How much money would your lazy portfolio be worth in 10 years?
The answer is about $40,000. As I said, it literally pays to be lazy!
Now, most investors choose to put multiple index funds in their lazy portfolios for added diversity, but even one-fund lazy portfolios like 100% VOO are common and highly effective (clearly).
Why index funds are better than mutual funds or robo-advisors for building lazy portfolios
To start, mutual funds and robo-advisors are both excellent tools for smart investing. I’m not knocking them, but there’s a reason many investors don’t use them for lazy portfolios.
For the uninitiated, mutual funds are like ETFs, but they’re actively managed – there’s a team of professionals constantly mixing up the assets in the fund in an attempt to maximize returns for investors.
Similarly, robo-advisors are AI programs that take your money and build a portfolio for you, which, depending on your risk parameters, may contain a mix of ETFs, mutual funds, stocks, bonds, and more.
But lazy portfolio builders tend not to use either resource for one simple reason: fees.
Both mutual funds and robo-advisors will charge you a fee of between 0.25% and 2% to cover their costs of managing the fund – and since lazy portfolios are fire-and-forget, many passive investors would rather pick the index funds themselves and just avoid the fees.
To be clear, index funds and ETFs in general charge fees as well, but they’re typically less than a fifth of what a mutual fund charges (usually under 0.40%).
How to Build The Right Portfoilio – 3 popular lazy portfolios to consider
There’s a saying in the personal fitness community that there are 100,000 personal trainers with 100,000 “perfect” workout regimens.
The same applies to lazy portfolios in the investing world – there are (at least) 100,000 institutional investors with 100,000+ ideas on how to build the right lazy portfolio. After all, there’s a lot of flexibility in designing lazy portfolios – they may only contain a few index funds at most, but there are over 1,700 index funds to choose from!
Before you get overwhelmed, here are three solid examples to consider:
1. The basics: Rick Ferri’s Lazy Three Fund Portfolio
Author and CFA Rick Ferri literally wrote the book on index funds and publishes simple, yet effective, lazy portfolios for amateur investors to use. Here’s his bread-and-butter, the Lazy Three Fund Portfolio:
40% Vanguard Total Bond Market Index Fund (BND).
40% Vanguard Total Stock Market Index Fund (VTI).
20% Vanguard Total International Stock Index Fund (VXUS).
2. For a little more diversity: David Weliver’s Fidelity Portfolio
For a little added diversity, MU30’s very own David Weliver designed an everything-but-the-kitchen-sink portfolio touching four different markets:
20% iShares Core S&P Total US Stock Market (ITOT).
20% iShares S&P Small Cap 600 Value (IJS).
40% iShares Core MSCI Total International Stock (IXUS).
20% iShares Core US Aggregate Bond (AGG).
3. If it ain’t broke: Warren Buffet’s 90/10 Portfolio
For maximum gains and minimum effort (you know, the very essence of a lazy portfolio) you really can’t go wrong copying the best. Warren Buffet’s 90/10 portfolio is one of the highest-performing, yet simplest, lazy portfolios in existence.
But perhaps the best part of the 90/10 portfolio is that Buffet specifically designed it to stick it to fund managers who charge high management fees.
According to author and investor Rob Berger, Buffet claimed this fund…
“will be superior to those attained by most investors – whether pension funds, institutions, or individuals – who employ high-fee managers.”
And the portfolio has outperformed those actively managed funds, year after year. If you need any final endorsements, Buffet advised his trustees to place his and his wife’s money into this portfolio after his death.
90% Vanguard S&P 500 ETF (VOO).
10% Vanguard Short-Term Treasury Index Fund ETF (VGSH).
What platform should I use to build a lazy portfolio?
You can build and monitor a lazy portfolio on pretty much any trading platform that lets you buy ETFs, but some are better suited for hosting lazy portfolios than others.
Here are just two options:
M1
Unlike most popular trading apps, M1 is tailor-made for passive investing. It’s easy to buy a few ETFs, build a lazy portfolio, and monitor it over time without the temptation of selling or day trading. If you choose to lean on robo-advisor support, it’s also available.
But the best part about M1 is the community. There are thousands of passive investors on the M1 subreddit ready to lend their strategies and support.
Webull
Many investors like to keep their active and passive investing portfolios on separate apps so they don’t accidentally or impulsively sell their index fund holdings – but if you’re confident you can juggle both on one platform, check out Webull.
Unlike its rivals, Webull offers an advanced trading dashboard and detailed analytics for free. Plus, you’ll get complimentary shares just for joining, making it a great landing pad for short- and long-term investors.
Summary
Lazy portfolios are made up of a handful of index funds that you buy once and let sit and mature for at least 10 years. The healthy and consistent annual performance of index funds like Vanguard S&P 500 ETF (VOO) makes lazy portfolios a 100% viable investing strategy, one used by amateur and institutional investors alike.
If you’re looking for a way to invest money so you can buy a house or pay off your student loans in 10 years, don’t overthink it: get lazy.
Just when you thought things were cooling off, home prices surprised us with yet another killer year.
Tomorrow, Zillow will release the November edition of their Real Estate Market Reports, which will show that home prices increased 6.5% in November from a year earlier, the best year-over-year gain since 2006.
Yes, you heard that right. It might be a seasonal blip, but still, best 12 months since 2006…that’s impressive.
I Was Wrong
I’ll be the first one to admit I was wrong about sustained, stellar home price appreciation. I actually thought things were overheating a couple years ago, yet home prices continued to defy expectations.
I suppose we can thank low mortgage rates and scant inventory for that. The good news is I’ve learned something from all of this.
Whenever you think things are about to top out, they’ve probably got a lot more time to keep going higher. This is probably even more true when you watch things really closely.
The same thing happened in the stock market. It looked frothy a couple years ago, but now we’re on the cusp of Dow 20,000. And probably Dow 21,000 if history is any indication.
Not long after, it might be time to worry, or least get slightly less bullish.
The takeaway is that market tops take a long time to reach, just like market bottoms, and you’ll doubt yourself along the way.
I’ve been hearing chatter lately about how we probably have another good year or so, maybe less, depending on who you ask, in both real estate and the stock market.
The sentiment seems to be that we can squeeze a little more out of this rally, but it’s clearly coming to an end. Everyone seems to agree on that, at least in private.
Does that mean the bottom is going to fall out once we all realize we’ve gotten ahead of ourselves? That part I’m not sure of, though history does tend to surprise us over and over again with the same exact outcome (think about it).
We’ll Never See Another Crisis Like We Did
The chart above (I annotated it) shows the Case-Shiller Home Price Index (red) versus the S&P 500 (blue) since 1987.
I discuss this stuff with my wife sometimes, who always tells me I overthink everything. She’s probably 100% right. But what struck me recently was her telling me something like, “Things will never be as bad as they were a few years ago.”
When I heard her say that I thought to myself, “famous last words.” The second you hear that kind of stuff, it conjures up memories of the dot-com bust or simply the most recent housing crisis, and fears of impending doom.
Back in early 1999, the Dow hit 10,000 for the first time…and it wasn’t long before it hit 11,000. In fact, it was less than two months later that it climbed above that next key threshold.
Interestingly, it wasn’t until 2006 that the Dow surpassed 12,000 for the first time. Does that mean the Dow is going to hit 20,000 soon, then 21,000 shortly after, then tank? Or at least stall for five years? Maybe, who knows?
There’s certainly a lot of uncertainty in the world at the moment. If you want to talk about geopolitical tension, you’ll have plenty of material to fuel days, if not weeks of conversation.
Should You Buy a House in 2017?
Now let’s talk about real estate. Home prices are no longer on sale. Whether they’re still cheap is perhaps a more complicated question.
Most pundits will tell you that Americans are spending less on housing historically, but that’s mainly because of near-record low mortgage rates.
Still, home prices have increased as mortgage rates have risen, so there’s no clear correlation there, as many might expect.
But there will come a time when wages won’t be able to keep up with home prices, at which point they’ll need to fall, or at a minimum, gains will need to moderate as incomes catch up.
The question is when will that actually happen? When the dot-com bubble burst around the turn of the century, home prices pulled back around 10% in the Bay Area.
Before that somewhat modest decline, home prices had risen about 60% from 1997 to 2000.
In San Francisco, the median home value increased from $670,000 in 2012 (most recent bottom) to $1.12 million as of early 2016, a gain exceeding 67%.
History is starting to sound pretty familiar, isn’t it?
Of course, home prices in the Bay Area bounced back between 2003 and 2006, before tanking again. Regardless, the trajectory is always up.
The question then is clearly a matter of timing. As I’ve said before, time heals all real estate wounds, but there are better and worse times to buy. There are also those who tell you not to time the stock market, and probably the housing market too.
For me, 2017 doesn’t seem like a particularly good year to buy real estate. There’s just too much uncertainty in the world at the moment, and with home prices at new, fairly pricey all-time highs, I’d rather watch how things play out.
Pull Back More Likely Than Another Crisis?
Fortunately, the mortgages originated over the past few years (and still today) are of the utmost quality. CoreLogic launched a new quarterly report this week featuring its Housing Credit Index (HCI), which claims mortgage credit risk continues to be low.
In fact, it fell in the third quarter of 2016 from a quarter earlier and a year before that. You can thank rising credit scores, falling DTI ratios, and lower LTVs for that.
But it might be set to change direction as mortgage rates begin to rise, finally. Chances are borrowers will begin to assume more risk to deal with the higher rates and home prices in place, perhaps in the form of ARMs and smaller down payments.
Before long, we could be back in a familiar situation, though as my wife said, not as bad as it was before.
If you wait, maybe you’ll see a pullback of 10% or so, it’s just unclear when that’s going to happen, and also where mortgage rates will be at that time. And with rents expensive too, it’s not an ideal situation for anyone to just sit around and wait. But at some point, something’s got to give.
Inside: Are you looking for ways to make money quickly and easily? This guide has a variety of tips and tricks to help you make 1000 a day.
Making money is something that everyone is interested in. And why wouldn’t we be? Money gives us the ability to buy the things we want, travel, and live a lifestyle that most people can only dream of.
But what if I told you that it was possible to make $1000 a day? Would you believe me?
Well, in this blog post, I’m going to show you some of the best ways to make money really fast.
So if you’re looking to make some quick cash or consistent income, then this is the post for you!
In this post, I will share with your some of the best ways that I know of to make money $1k a day on a regular basis.
So if you’re ready to learn how to make 1000 a day, then let’s get started!
Is it possible to make $1000 a day?
Yes, it is possible to make $1000 a day.
In fact, this is something I regularly do (see picture to prove it).
However, achieving this goal requires commitment, hard work, and a solid plan. Factors that contribute to achieving this goal include finding a method that works for you, sticking with it, and putting in the necessary effort.
Additionally, having a unique skill set and interest in a particular method can increase the chances of success.
How to make $1000 a day?
Making $1000 a day is an appealing goal for many people, whether it’s a one-time need or a consistent source of income. Fortunately, there are several ways to achieve this goal.
Here are the top ways to make $1000 a day:
Start a high-paying job: Some jobs pay over $300k a year, and while they may require advanced degrees and education, there are also a few that don’t require a college degree.
Offer high-value services: You can offer services such as pet-sitting, tutoring, design work, or writing to make money.
Start a business: You can start a business that generates $1000 a day, such as a digital marketing agency, freelancing, or a service-based business.
Sell items you no longer need: You can sell items on eBay, Craigslist, or other online marketplaces to make quick cash.
Let your money work for you: You can invest in stocks and shares, real estate, or property to earn upwards of $1000 a day.
While each method has its own advantages and disadvantages, with the right strategy and dedication, making $1000 a day is achievable.
So, get started today and see how much money you can make.
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Best ways to make 1000 a day
We’ve compiled a list of our favorite ways to make money really fast – specifically $1k a day!
Many times, you will have to invest 100 to make 1000 a day.
If you’re looking for ways to make some extra cash, or even earn a full-time income, this post is for you.
1. Freelance Writing
Freelance writing is a great way to make extra money or even replace your full-time job. There are various types of content that freelance writers can specialize in, such as long-form content or shorter direct-response copywriting.
With freelance writing, you can earn over $.50 or even $1 per word, which means that a 1,000-word article could net you $1,000 quickly.
To start, you need to establish a portfolio of your work to pitch to new clients. This portfolio should include links to any relevant articles or copy you’ve written that’s related to the client you’re pitching. If you don’t have a portfolio yet, you might need to do some work at lower rates to get your foot in the door.
Even if you don’t consider yourself a writer, don’t strike it off the list just yet. With the right approach and mindset, anyone can become a successful freelance writer.
2. Crafting
Crafting offers many benefits beyond just making extra cash. It allows for flexibility in your schedule, creativity in your work, and the ability to turn a hobby into a lucrative business.
If you are creative and have a talent for creating handmade items, then starting a crafting business is the perfect way to monetize that skill by doing something you enjoy. There are plenty of crafts to choose from and you may even become an instructor!
The most difficult side is you are trading your time for money and it may be difficult to scale.
3. Day Trading Stocks
Day trading stocks is a high-risk, high-reward investment strategy that involves buying and selling stocks within a single trading day. It requires a great deal of knowledge, discipline, and risk management to be successful.
However, there is a large group of us who have made the $1000 in a day club.
Successful day traders use a combination of technical analysis, risk management, and discipline to make profitable trades.
This choice requires discipline, a proper trading education, knowledge, and risk management.
Trade and Travel with Teri Ijeoma is a popular course that investors can take to learn about trading stocks and options and begin their journey to making $1,000 a day.
4. Trading Options
Trading options can be a lucrative way for seasoned investors to make money.
With options, investors can speculate on different stocks with only a fraction of the investment capital needed to buy the stocks outright.
Investors who are familiar with investing in individual stocks can take the next step in the process by trading options. While options may seem exotic on the surface, they are a common tool used by seasoned investors and are especially valuable during volatile activity in the stock market.
To trade options successfully, investors need research skills, investing knowledge, discipline, and patience.
Trading options can be a high-risk option, especially for those who lack expertise in the area. However, it can be extremely lucrative for those who have experience and knowledge in the stock market.
Investors should consider taking courses to learn more about trading options.
5. Youtube
YouTube can be a great source of income for those who are willing to put in the effort to create quality content. It offers multiple ways to generate revenue, including sponsorships, affiliate marketing, and Google Adsense.
With the right approach, it’s possible to make $1000 or more per day on YouTube.
Remember, success on YouTube takes time and hard work, but the potential rewards are significant.
6. Selling on Amazon
Selling products on Amazon can be a highly profitable business opportunity.
Amazon FBA, or Fulfilled by Amazon, is a business model where you send your inventory to Amazon warehouses and they handle the rest, including storage, shipping, customer service, and returns.
This makes it a great option for digital nomads and those looking to scale their business quickly.
With an average profit margin of $20 per sale, it’s possible to make $1,000 per day by selling just 5 units per day of 10 different products.
7. Sell Printables Online
Selling printables online has become a popular way to make passive income.
With the rise of digital products, creators can sell anything from coloring pages to budget spreadsheets on platforms like Etsy. Thousands of creators make a living selling digital products, and it’s easy to see why.
Learn how these sellers got started.
The key is to pick a topic you’re knowledgeable in and passionate about, so you can create high-quality products that people will want to buy.
8. Dropshipping
Dropshipping is one of the best ways to make $1000 a day, especially for those looking to start a business with minimal initial investment.
This business model allows entrepreneurs to sell products to customers without ever holding a single piece of stock.
Dropshipping is a viable and profitable business model that can generate high profits without the hassle of managing inventory. With the right niche, platform, supplier, and marketing strategy, entrepreneurs can make $1000 a day or more with dropshipping.
9. Consulting
Consulting is one of the best ways to make $1000 a day!
It’s a lucrative career option that allows you to provide expert advice to clients and help them solve problems.
The first step to becoming a consultant is to determine your area of expertise. This could be anything from personal finance to marketing to human resources. Your expertise should be something that you have significant knowledge and experience in.
One of the most important aspects of becoming a consultant is building your network. This includes reaching out to potential clients, attending networking events, and connecting with other professionals in your field.
10. Become a Virtual Assistant
Being a virtual assistant can be a great way to make money while setting your own hours.
As a virtual assistant with no experience, you can work from home and typically on your own schedule. You can choose to work part-time or full-time based on your availability and the workload of your clients.
The tasks that you are asked to perform as a virtual assistant can vary widely, but commonly needed skills include administration, accounting and bookkeeping, marketing, communications, customer service, and many other capacities.
You don’t need special skills or training for this job, as most clients will bring you up to speed on what they need to do. However, having organizational, communication, and time-management skills can be helpful.
Check out the checklist to get started as a virtual assistant.
11. Side Hustles
Side hustles are a great way to earn extra income and supplement your regular income. With a little effort and some creativity, you can make up to $1000 a day with certain side hustles.
Here are some of the best side hustles that can help you achieve this goal:
Deliver food: You can make good money by delivering food with these apps. You can choose your own hours and work as much or as little as you want. DoorDash is a great option.
Drive with ridesharing apps like Uber and Lyft: If you have a car and some free time, you can earn money by driving people around. You can make up to $1000 a day, depending on how much you work.
Pet sit or walk dogs: If you love animals, you can make money by pet sitting or dog walking through Rover.com. You can earn up to $50 per day, depending on the services you offer.
Babysit or tutor: If you have experience with children or are good at a particular subject, you can offer your services as a babysitter or tutor through Care.com. You can make up to $50 per hour, depending on your qualifications.
Side hustles are a great way to make extra money and reach your financial goals.
12. Start a Business
Starting a business is one of the most effective ways to make 1000 dollars a day on a regular basis. However, it requires careful planning and execution to succeed.
The first step is to research the market and identify a profitable business idea and build it to profitability.
Challenges may arise, such as competition, financial setbacks, and marketing difficulties, but with persistence and determination, you can overcome them and achieve financial success.
The potential for significant financial gain from starting a successful business is immense, making it a worthwhile endeavor for anyone willing to put in the effort.
13. Yard Work
Yard work is an excellent way to make $1000 a day, especially if you have some extra time and don’t mind getting dirty.
If you want to get up and running quickly, there is nothing better than a local side hustle to earn extra money such as mowing lawns in your neighborhood.
Mowing lawns is not only a great side hustle for adults but also for teens. For an average size lot, you could expect to make at least $35. If you could line up a few lawns each weekend, you could easily make an extra $1000 each month.
Landscaping, leave pickup, and bush trimming are all simple tasks that you can complete quickly if you have the right equipment. You can choose to set an hourly rate or get paid for the entire job, depending on the task.
You may have to start hiring crews in order to hit $1k a day.
14. AirBnb or VRBO Rentals
Airbnb or VRBO are popular platforms for renting out your property to travelers.
Many successful hosts have earned $1000 or more per day because they have accumulated more than one property.
One tip for success is to garner excellent reviews that people want to come back time and time again.
15. Affiliate Marketing
Affiliate marketing is a lucrative way to make money online and has the potential to earn you $1000 a day.
This works well for influencers who have a reach of thousands of people. Another way is creating a niche website that focuses on a specific product or market segment.
It’s essential to promote products effectively to generate revenue. Successful affiliate marketers have earned six figures or more per year.
16. Flip Products or Retail Arbitrage
Retail arbitrage is a popular business model that can help you make $1,000 per day or more. The premise is simple – buy or find things cheap and resell them for a higher price.
This is a great example of how to flip money.
To be successful, you’ll need to have an eye for the right product and do product research to choose products that will sell.
Here is a list of the most popular items to flip.
17. Pickup Services
Pickup services refer to businesses that provide transportation and delivery services for goods, furniture, or other items. These services are in high demand, especially in urban areas where people are always on the move and need help with moving heavy or bulky items.
Starting a pickup service business requires some equipment, such as a truck or van, and marketing strategies to attract customers.
So, if you are looking for a new side hustle or business opportunity, consider pickup services as a viable option.
18. Casino Gambling
While casino gambling is not a recommended way to make $1000 a day, it is still worth mentioning as a potential option.
However, it is important to note that gambling should always be done responsibly and within one’s means.
If you are considering casino gambling as a way to make quick money, it is essential to understand the most profitable games and their strategies. Here is an ordered list of the best casino games to play to make money:
Blackjack: This game has one of the lowest house edges, making it a popular choice for professional gamblers. The objective of the game is to beat the dealer’s hand without going over 21. The key to winning at blackjack is to use basic strategy, which involves making the mathematically correct decisions based on the dealer’s upcard and your own hand.
Craps: This game has a low house edge and offers a variety of betting options. The objective of the game is to predict the outcome of a roll or series of rolls of the dice. To win at craps, it is essential to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
Baccarat: This game is easy to learn and has a low house edge. The objective of the game is to bet on the hand that will have a total of 9 or closer to 9. The key to winning at baccarat is to understand the different bets and their odds and to follow a betting strategy that suits your playing style.
When playing these games, it is important to practice good bankroll management by setting a budget for yourself and sticking to it. It is also crucial to know when to quit to avoid losing money.
A winning streak can lead to making $1000 a day, but it is important to be cautious and not get carried away.
19. Freelance Graphic Design
Graphic designers create visual concepts using computer software or by hand to communicate ideas that inspire, inform, and captivate consumers. They work on various projects such as branding, marketing materials, website design, and more.
Freelance graphic design is a lucrative option because there is always a demand for graphic design services, and businesses are willing to pay top dollar for high-quality designs.
By building a strong portfolio, staying up-to-date with the latest design trends, and providing excellent service to your clients, you can earn a substantial income as a freelance graphic designer.
20. Make Money Flipping Items
Flea market flipping is a great way to make some extra cash on the side or even turn it into a full-time business. It involves buying items for a low price and reselling them for a profit.
One couple, Rob and Melissa Stephenson, have become full-time flea market flippers and even host their own website, Flea Market Flipper, to help others find success in the venture. They offer several courses to help individuals turn this into a serious side hustle or even a full-time business earning six figures.
Learning from successful flea market flippers like Stephenson’s can be a great way to get started. They have the skills and knowledge to help individuals find valuable items, network, and use social media and photography to their advantage.
21. Photography
Photography is a lucrative career option that has the potential to generate high income or as a side hustle.
There are different types of photography that one can explore to make money, including wedding photography, family photography, real estate photography, and stock photography.
By building a strong portfolio, networking, finding clients, investing in high-quality equipment, and constantly improving your skills, you can become a successful photographer and make a great income. Don’t underestimate your potential in this field.
22. Rental Income
Passive income through rental properties is a great way to generate consistent long-term income. Here are the steps to follow in order to make $1000 a day through rent income:
Find a suitable property: Look for properties that are priced reasonably, require minimal renovations, and are located in areas with high rental demand. You are likely to start making $1000 a month.
However, the earning potential is dependent on the ability to scale multiple properties, keep them occupied, and increase monthly income streams.
Investing in rental properties can be a lucrative and rewarding experience for those willing to put in the effort.
23. Amazon Merch
Amazon Merch is a platform that allows you to create and sell your own merchandise on Amazon. It’s an excellent way to make money because Amazon handles all of the heavy lifting, such as printing, shipping, and customer service.
Using Amazon Merch, you can sell a variety of products from t-shirts to phone cases, and best of all, you don’t need to invest in inventory or equipment.
All you need to do is create the designs.
Successful Amazon Merch sellers include graphic designers, artists, and entrepreneurs who have created unique and appealing designs that resonate with their target audience.
24. Creative Skills like Video Editing
Creative skills can be a valuable asset when it comes to generating income. Video editing is another skill that can be monetized.
With the rise of video content, businesses, and individuals are always in need of skilled video editors. One can offer video editing services for YouTube creators, and businesses, or even edit personal videos for clients.
Freelance platforms like Upwork and Fiverr are great places to find video editing jobs.
25. Fashion Design
Fashion design is one of the most lucrative ways to make money, and it’s an industry that’s always in demand.
Whether you’re interested in starting your own fashion label, working for a fashion house, or becoming a freelance designer, there are plenty of opportunities to make a living in this field.
Marketing yourself is also key to success in fashion design. Use social media platforms like Instagram and Pinterest to showcase your work and build a following.
Networking is also an important part of building a successful career in fashion design. You must stay up-to-date on industry trends, make valuable connections, and potentially land new clients or job opportunities.
Create a website or blog where you can share your designs, offer fashion tips, and connect with potential clients.
Pay attention to industry trends, stay creative and original, and focus on developing your skills and building your brand. Then, there are plenty of opportunities to make a living in this exciting and dynamic industry.
26. Start a Blog
Many people say blogging is dead. But, it’s not.
Starting a blog can be a great way to share your interests, skills, and experiences with others while also creating a new income stream for yourself. The flexibility of blogging allows you to turn your current job or passion into a successful blog.
However, starting a blog can be challenging, and it requires technical knowledge, writing ability, social media skills, and topical expertise.
Once you have started your blog, it’s essential to treat it like a business and monetize your content.
27. Self-Storage Business
Self-storage business is a lucrative venture that involves renting out storage units to customers who need extra space for their belongings. These businesses are in high demand, especially in urban areas where living spaces are often small and cramped.
In fact, the self-storage business is expected to bloom to $64.17 billion by 2026.
Starting a self-storage business can be a profitable venture if done correctly.
28. Invest in Cryptocurrencies
Cryptocurrencies have gained popularity as a potential source of significant income. Bitcoin, Ethereum, and Litecoin are some of the best cryptocurrencies to invest in.
To invest in cryptocurrencies, one must first set up a digital wallet and choose a reputable exchange such as Coinbase or Bitstamp.
It is important to research the market and understand the volatility of cryptocurrency before investing. While the potential for high returns exists, it is important to approach cryptocurrency investing with caution.
29. Invest in Real Estate
Investing in real estate can be a lucrative way of making money.
To make $1000 a day through real estate investing, there are several steps you can take.
First, set aside a few hundred dollars each month to invest in real estate over time.
Second, consider the different types of real estate investments available, such as rental properties, commercial properties, and fix-and-flip properties. Each investment type has its own advantages and disadvantages, so it’s important to research and choose the one that fits your financial goals.
Third, consider investing in real estate investment trusts (REITs) or crowdfunding platforms like Fundrise, which allow you to invest in real estate without purchasing a property.
Remember that investing in real estate carries a degree of risk, so it’s important to do your research and seek advice from successful real estate investors.
30. Make Money on the Internet
Making money online has become a popular option for those looking to earn a substantial income. The internet provides a wealth of opportunities for anyone with an internet connection and a bit of creativity.
You need to learn how to make money online for beginners.
There are so many options today and you never have to leave your house!
When it comes to making $1000 a day online, it’s important to acknowledge that it’s not a quick or easy process. It takes time and effort to build a successful online business or generate significant income through freelance work or other online opportunities.
However, with dedication and hard work, it is possible to achieve your financial goals.
How to make $1,000 really fast?
If you’re in a financial bind and need to make $1,000 quickly, there are several options available to you.
Here are the top ways to make $1,000 a day quickly:
Sell items on eBay or Craigslist: If you have items that you no longer need, consider selling them online. This could include clothes, furniture, or electronics. This is a quick and easy way to make money fast.
Offer freelance services: You can offer services such as tutoring, design work, or writing. If you have a specific skill or talent, you can find customers online who are willing to pay for your services.
Do odd jobs for people in your community: You can offer to mow lawns, rake leaves, or shovel snow for a fee. This is a great way to make money quickly, especially if you live in an area with a lot of homeowners.
Participate in paid focus groups or surveys: This is a great way to make money quickly without leaving your home. Companies are always looking for feedback on their products and services, and they are willing to pay for it.
Rent out a room in your home on Airbnb: If you have a spare room in your home, you can rent it out on Airbnb and make money quickly. This is a great option if you live in a popular tourist destination.
Manage social media accounts: Many businesses need help managing their social media accounts, and they are willing to pay for them. If you have experience with social media, this could be a great way to make money quickly.
Start a blog: If you have a passion for writing or a specific topic, you can start a blog and sell advertising space or products/services to your readers. This takes some time to build up, but it can be a lucrative way to make money in the long run.
Sell handmade crafts or goods online: If you’re crafty, you can make items and sell them online, such as on Etsy. This is a great way to turn your hobby into a money-making opportunity.
Borrow money from friends or family: This is not an ideal option, but if you’re in a bind and need money quickly, consider asking for a loan from someone you trust.
Pawn items for cash: This is a last resort option, but if you have items of value, you can pawn them for cash quickly.
Don’t be afraid to try different methods and see what works best for you.
This is the perfect side hustle if you don’t have much time, experience, or money.
Many earn over $10,000 in a year selling printables on Etsy. Learn how to get started by watching this free workshop.
If you’ve ever wanted to make a full-time income while working from home, you’re in the right place!
This intensive training combines thousands of hours of research, years of experience in growing a virtual assistant business, and the power of a coach who has helped thousands of students launch and grow their own business from scratch.
FAQ
Passive income is a form of earnings that is generated without active involvement.
It is a way to make money while you sleep and can provide financial stability and independence.
This is one of three types of income and the one you want to strive towards building.
Ultimately, the best side hustle for making $1000 a day is one that meets your needs and interests while providing a good return on investment.
Here are several factors to consider before choosing the best option.
Think about your skills, interests, and availability. If you have a full-time job, you may want to consider a side hustle that allows you to work flexible hours.
Next, consider the earning potential of the side hustle you are considering. Some side hustles pay more than others, and you want to choose one that will give you the highest return on investment.
Additionally, consider the start-up costs associated with the side hustle. Some require significant investment, such as buying a car for ride-sharing apps or purchasing an online course.
Most importantly, choose a side hustle that aligns with your passion and expertise. This will make the work more enjoyable and increase your chances of success.
There are many ways to make money from your expertise.
You can start a consulting business, offer services such as coaching or speaking, create and sell information products, or build a following and sell advertising or sponsorships. The possibilities are endless.
What’s important is that you start somewhere and then take action to turn your expertise into cash.
Ready to Make 1000 in a Day?
There are many ways to make money quickly and easily.
The best way to make money fast is to find a way that best suits your skills and interests.
Whether it’s graphic design, content creation, photography, or trading stocks, there are plenty of opportunities to turn your passions into profit. So, start honing your skills and explore the endless possibilities of the gig economy.
Learning how to make quick money in one day is possible. You just need to be determined and disciplined.
So, which method do you choose on how to make $1k a day?
Know someone else that needs this, too? Then, please share!!
Retiring at 40 may sound like a dream come true, but even with $4 million in your bank account, it’s important to have a plan for the future. You’ll need to plan out the next half of your life with a clear financial picture in order to truly retire at such a young age. Here are some of the most important questions to ask yourself before you clock out of work for good. If you’d like individualized help planning for retirement, consider working with a financial advisor.
Is $4 Million Enough to Retire at 40?
As of 2023, the life expectancy for the average American was 76.4 years—73.5 for men and 79.3 for women, according to the CDC. Let’s say that you live to the age of 80. Even if you don’t invest your millions to generate any returns, you can spend $100,000 a year for 40 years before your money runs out.
Of course, you don’t want to run out of money at 80 with years ahead of you. With a well-planned investment portfolio, you may very well be able to live quite comfortably off the returns generated by the principal. This means that your $4 million can sit untouched and you can live off the interest and earnings.
For instance, the stock market’s S&P 500 Index has returned an average of 6.5 to 7% per year after inflation for the past 200 years, according to McKinsey. If you invested your $4 million there, 6.5% returns would mean $260,000 per year—like a comfortable sum for most to live on in retirement.
Of course, stock market crashes, poor budgeting and other issues can decimate millions of dollars quicker than you might think. Here are some of the biggest factors you should consider if you’re planning to retire at 40 with $4 million.
1. Plan Wisely for the First Few Years
If you leave the workforce at 40, there are some things to be aware of in the first several years of retirement. First of all, people often spend more in early retirement, then spend less over time as they age, according to a Fidelity analysis of data from the Bureau of Labor Department.
This period of higher spending coincides with an age when government programs won’t be available to you. The earliest age at which you can begin to receive Social Security benefits is 62 and Medicare won’t kick in until age 65. You’ll need to plan to cover your insurance and medical costs without government assistance for 25 years and plan to live without Social Security income for at least 22 years.
Additionally, many of the most popular retirement savings vehicles will also not be available to you without penalty. Penalty-free withdrawals from 401(k) plans and IRAs are available after the age of 59 ½, meaning you should plan to pay 20 years of expenses without touching those accounts.
2. Prepare for the Unexpected
As mentioned above, stock market returns on average can generate a healthy retirement income, but you’ll want to be prepared for events outside of your control. In a market crash, a large portion of your portfolio may essentially disappear and take a long time to reconstitute itself.
According to Morningstar data, the average time it takes for an asset class to recover can vary widely, with many bouncing back after six months. However, others take much longer, with some taking as many as 13 years to fully recover their value.
This is just one of many market pressures that can create challenges for you in retirement. Inflation can also wreak havoc on your retirement savings. According to an inflation calculator, $50,000 in April 1993 had the same buying power as about $105,000 thirty years later. That means in 30 years, the value of your savings could essentially be halved. This is a good argument to be more conservative than you think might be warranted when planning your retirement.
3. Prioritize Diversification
One straightforward solution to the above challenges is a diversified portfolio. If you only invest your money in stocks, the good times may be very good, but the bad times will likely be very bad. If you invest your money in a wide variety of assets, you can mostly insulate yourself from the vagaries of the market.
Think about your ideal asset allocation. You can use a tool like SmartAsset’s asset allocation calculator to get an idea of what your investment breakdown should be based on your risk tolerance and other factors. You should consider different asset types, such as stocks, bonds and mutual funds and holding onto some cash.
You should also diversify within each type—instead of just one company’s stock, you should own multiple stocks in multiple sectors and regions. Instead of just owning 5-year bonds, you should own bonds of multiple durations. Also consider investing in assets that are more immune to inflation, such as real estate investment trusts or Treasury Inflation-Protected Securities.
The idea is that by spreading your money around, you can mitigate the risks of investing while still generating healthy returns. And when you have enough cash and conservative investments on hand, you will be better able to ride out the ups and downs of the market without having to sell assets at a loss.
4. Budget Well
Perhaps the easiest way you can run out of money far too soon is with flagrant spending. While a wisely-invested $4 million should provide you with a six-figure income for the rest of your life, lavish vacations, expensive hobbies or multiple homes can quickly deplete your savings.
You can use SmartAsset’s budget calculator to make sure you have a sound plan for your spending in retirement. There’s no reason you can’t enjoy the finer things in life, but you’ll need to make sure it fits into the big picture of your financial situation. Make a plan for how you’re going to spend your retirement income and stick to it to ensure the coffers don’t run dry.
The Bottom Line
Retiring early with $4 million is very possible, but requires some planning. Make sure you enter your retirement with a diversified investment portfolio, a smart budget and a plan for how to navigate the years before many traditional retirement benefits are available to you. Consider careful planning with a professional to make sure you’ve thought about everything before retiring early.
Retirement Savings Tips
A financial advisor can help you take care of your finances when you’re retired. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can have a free introductory call with your advisor matches to decide which one you feel is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
How much do you need to save to fund your eventual retirement lifestyle? If you’re scratching your head at the question, consider using SmartAsset’s retirement calculator.