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“Making money while you sleep” has a nice ring to it, doesn’t it? After all one of the goals of financial independence is to build wealth that doesn’t eat up your time, so you can enjoy life and do the things you choose to do.

The truth is that building a passive income stream usually isn’t passive at first. It requires time, money, skills or all three. But where do you start? The first step is to just build a small nest egg savings account that you can use for later. We’ll come back to this.

Building multiple streams of passive income has an additional benefit in the short term: it can make you more resilient, and better able to weather economic shocks.

Passive income is a long term choice that requires short term tradeoffs. If you’re willing to commit your resources to the steps and ideas below, you could be earning effortlessly for years to come.

You just need to know where to start and decide what resources you’re willing to expend for your passive income ideas to take flight.

I’m going to break down passive income, and show you the steps I took to create my passive income streams, but if you want to get right to the ideas, you can. Let’s dive in! 

Skip to the Passive Income Ideas

What is Passive Income?

Passive income is money earned with minimal activity through any venture that requires little daily effort or upkeep on the individual’s part.

Let’s break that down a bit more:

Passive — requiring little or none of your most precious resource, your time!
Income — generating cash inflow to you that either represents income you use in the course of daily life or that you re-invest.

A good litmus test is that you should be able to go out and get a full-time job, that takes up the majority of your working hours, and still be able to run your passive income streams.

The golden rule of passive income – protect your time.

Passive income is more about time than anything else. You could do a lot of things to make money, but not all income streams are passive. I’m all for you actively building a business or a side hustle, but for the income stream to truly be passive, it must require less and less effort to produce income, eventually requiring no effort (or very little to maintain).

For example, if it takes you 2 hours to generate $100 today, and it takes you the same 2 hours to generate $100 next week or a year from now, that income stream is not passive, because it takes the same effort (money, time, etc).

On the other hand, if I open an investing account today that takes some effort. But as that account grows and I check it 4 times a year, my returns go up, and my effort goes down.

Same if I build an online course. At first, I’m earning no money and my effort is very high. But I expend a ton of effort at first. Once the course is complete, I do some continued marketing and client support which amounts to just a few hours per week, while sales roll in month after month.

You get the picture? Now let’s talk about what passive income is not.

What Passive Income is not.

Your job.

Obviously. The whole idea of passive income is to supplement, augment or get you out of your job so you can retire, travel or spend more time with loved ones.

Side hustles.

Side hustles are great ways to make money, but not all side hustles are passive. Side hustles are usually active, and maybe with systemization, they can turn into passive income streams.
If you need to continually invest the same (or more) amount of time for the same amount of financial output, the venture is not passive. Be careful here, because remember, in the beginning, a passive income stream could require more time, money or work than it produces. You have to evaluate the passive income opportunity on its long term state for you.

Consulting.

Consulting is just another job – perfect for a side hustle, but not exactly passive. For consulting to be passive, you’ll need to build the practice with other people, and be able to step away from the work eventually.

Investing for speculation.

Here’s where I split hairs. I do not consider stock investments for capital appreciation only to be passive income. Why? Because stock appreciation is not income. On the other hand, investing in stable companies that throw off cash in the form of dividends is definitely a passive income strategy. The difference is, are you getting a cash on cash return, or will you only see return if you sell the investment?

Also, investments like cryptocurrencies and commodities are reserved for price speculation. There are many times where these investments should get some allocation of your portfolio, but investing like this is not a stable passive income strategy.

Examples: What is and is not passive income

Active Side Hustle IncomePassive IncomeConsulting by the hourA course on your area of expertise that you sell onlineFreelance computer programmingBuilding a program you can sell over and overFreelance writingWriting a bookWorking constructionInvesting in real estateDriving for UberRenting out your carPhotography sessionsBuilding your photog Instagram account

How to Start Building Passive Income

There’s no magic trick that turns your time directly into money. Instead, you plant seeds so your money will grow, even when you’re sleeping or at the park walking your dog.

The initial downtime you put into passive income can be as involved as starting a blog or as simple as logging into a robo-advisor platform and investing $100. You can earn passive income whether you’re an entrepreneur with a brilliant business plan, a talented artist, or just happen to have extra cash to invest.

1. Start building a nest egg

Remember earlier I said to create passive income you need time, money or skills? Let’s start with money. Open a high interest savings account and park even $100 dollars in it. Boom, you just made passive income! It may not be much, but you’ll earn interest on that money and many online banks even offer cash bonuses for opening accounts. Our favorite right now is CIT bank.Get up to $300 from CIT with code “Spring20”

2. Assess your skills

When I started Goodfinancialcents.com I was a Certified Financial Planner looking to grow my business and answer common client questions. I figured out that I could use these skills to create great content online, and that I could make money with this blog over time.

I have friends who were stock traders and now have communities around that skill or write for financial publications. Other friends have gotten good at management, and now are building career websites.

What are you good at? What are you passionate about? Take a quick inventory, and research the ways others have used those skills to build income streams.

3. Assess your time, money and effort. Be realistic about your commitments

Time is a tricky one, because it’s our most limited resource. Trying to make more money or create passive income can be a trap because it usually requires you to learn new topics or new skills, and that can be a time suck. Remember, you may have to bite the bullet in the short term, but in the long term your goal is to minimize your time investment.

Are you fully committed? Current work, family and social activities eat up a lot of time. If you don’t have much time, you’ll need to lean more towards investing or getting someone else to do the work for you.

In this guide, we’ve labeled each idea with an effort level (1-5, 5 requires the most effort) to help you match your current abilities to the idea.

4. Ideate and choose

The final step is to put some ideas down on paper and choose how to begin. We created the following list to help you kick off your brainstorm. To help with that, we’ve created this list of ideas to get you started. Here’s to your wealth and freedom!

28 Passive Income Ideas

Generate Passive Income With Money Investment (Effort Level: 1-2)

1. Invest In Real Estate From Your Couch

2. Peer to Peer Lending

3. High Yield Savings

4. Passively Invest In The Markets

5. CD Laddering

6. Buy a Blog

7. Invest in a Business

Generate Passive Income With Time Investment (Effort Level: 3-5)

8. Start A Blog

9. Build An Online Course or Guide

10. Sell An E-book

11. Sell Stock Photos

12. License Your Music

13. Build An App Or Product You Can Sell

14. Become A Social Media Influencer

Semi-Passive Side Hustles

15. Deliver for Instacart

16. Deliver for Postmates

17. Rent Out Your Home

18. Rent Your Car

19. Get Paid For Your Opinion

20. Network Marketing

21. Rideshare Driving

22. Advertise with Your Car

23. Sleep Studies

24. Car Detailing Service

25. E-Bay Seller

26. Drop Ship With Amazon

Easy Wins To Boost Your Income Or Start Your Nest Egg

27. Refinance Your Debt

28. Online Rebates

1. Real Estate Empire From Your Couch (Effort Level: 1)

Real estate has been a way to build wealth for a long time. Real estate investing used to take a lot of time, capital and expertise. However real estate investing apps have democratized access to this asset class – making it easier for you and me to create no-work, passive income.

Below are resources I recommend checking out if you’re interested:

Fundrise

Fundrise specializes in REITs (real estate investment trusts). If you live in an expensive city or don’t have the time to manage a property, REITs are the way to go.

REITs own and manage income-producing properties and distribute the profits to investors. Investing in REITs used to be expensive and require accreditation, but Fundrise has changed all this.

The minimum investment on Fundrise is only $500.Invest in REITs

Roofstock

Roofstock is a marketplace of turnkey single family homes for sale. The term “turnkey” means the numbers have been crunched, the home may have been rehabbed, and may already include tenants!

All you as the investor have to do is put up the cash. Once you purchase the home it is 100% yours and the rental income goes straight to you.Buy Single Family Homes

RealtyMogul

For something in between Fundrise’s REITs and Roofstock’s single family homes, I recommend checking out RealtyMogul.

Realty Mogul is a crowdfunding platform that pools together investors’ money to purchase large ticket properties (office buildings, retail space, etc.). The minimum investment is $5,000.Invest in Commercial Real Estate

2. Peer to Peer Lending (Effort Level 1)

Peer-to-peer lending, or P2P Lending, is a favorite of mine. The idea is to lend money to individuals or a business. They then pay you back, plus interest.

Let’s say someone needs to borrow $10k to consolidate their debt. They create an account with Lending Club (for example) and depending on their credit history, income, etc. are given an interest rate on the loan. The investor (you) also creates an account with Lending Club and buys the debt. When the borrower makes monthly payments, the principal and interest are paid to you in your Lending Club investment account.

There are several companies that underwrite P2P lending, some like Lending Club facilitates personal loans, while others, like Worthy, facilitate business loans (the process is the exact same).

Expected returns are in the 5% range (depending on platform and loan type). While not exactly stock returns, 5% or more is better than most national bank interest rates.

3. Invest in High-Yield Savings (Effort Level 1)

Savings accounts might be the most boring investment ever invented, but they are also the safest.

At 0.15 percent interest or lower, you’d need to exceed the FDIC-insured $250,000 account limit to see any real action.

However, online savings accounts offer rates well above typical banks. Better yet, these rates are competitive with CD rates without locking in your money for several years.

Our favorite high-yield savings account option currently is CIT bank.Open an account with CIT bank now and get up to $300 with the code “Spring20”

4. Invest In the Markets, Passively (Effort Level 1)

Investing in public stocks and bonds is the main way people build long term wealth and income through their retirement plans or brokerage accounts. The data is pretty good, however, that the average person like you and me should be passively investing through ETFs and index funds that have low fees.

There are two ways you can do this:

Set it and forget it with a robo-advisor

Letting an algorithm manage your investments is about as passive as you can get. Robo-advisors like Betterment allow you to set your willingness for risk, then sit back and let the income flow. And the fees are much lower than what you’d pay a human account manager. Below is a rundown of a few of the leading robo-advisor platforms.

I have been a long-time supporter of Betterment and even did an interview with their CEO in my Betterment investing review. Betterment is great at reducing any taxes you have to pay on your investments, and they work with you to give you the best financial advice through their algorithms.

Unlike other robo-advisors, with Betterment, you can actually talk to a human being if you want to. Betterment charges the same fees as Wealthfront but does not waive the fee on the first $10,000 you invest.Get Started with Betterment

Pick your own Dividend Stocks or ETFs with an online brokerage

By building a portfolio of high dividend stocks, you can create regular passive income at an annual rate that is much higher than what you get on bank investments.

Just as important, since high dividend stocks are stocks, there is always the potential for capital appreciation. In that way, you can earn passive income from two sources – dividends and capital gains.

You can make this process very easy and affordable by opening an account with any one of the brokerages listed below. Most brokerages these days no longer charge trading commissions which is a huge savings for us!

Online brokerages give you a bit more flexibility to choose which ETFs (and individual stocks) you want to invest in. Incumbent online brokers like TD Ameritrade and E-trade have done very well with low fees for individual stock and bond trades.

However, my favorite online broker right now is M1 Finance. They make is super easy to passively invest in ETFs, and are rounding out their portfolio of services to get you access to your money seamlessly.Get Started with M1 Finance

5. Invest in CDs (Effort Level 1)

CDs are simple, straightforward, and if I’m being honest, far from the most exciting investment strategy out there. But if your goal is to make money while you sleep, there isn’t anything more passive than CDs. Investing in a certificate of deposit is a great-low risk strategy to accrue interest risk-free.

CDs are like savings accounts with a catch. You can’t touch your funds before they reach maturity, which is based on the time frame you set when you open the account. That time period can range from months to years.

Be sure and buy your CD with an FDIC insured financial institution (up to $250k is insured), and make sure to get the best CD rates. The longer the duration of the CD, the more interest the financial institution will pay.Find the best CD rates here

6. Buy a Blog or Website (Effort Level 2)

A few years ago, my partners made a number of good investments by purchasing blogs that other people created then “monetizing” them. While it’s not as easy to get a screaming deal anymore, there are very healthy marketplaces for online businesses that do a great job of connecting buyers and sellers.

Thousands of blogs are abandoned by their owners every year. If you can buy blogs with a reasonable amount of web traffic and demonstrated cash flow, it could be a perfect passive income source.

Most blogs employ Google AdSense, which provides a monthly revenue stream based on ads that Google places on the site. There may also be affiliate programs generating additional revenue.

From a financial perspective, blogs usually sell for 24 times their monthly income. So if the site generates $250 a month in income, you can likely buy it for no more than $6,000. Translation: a $6,000 investment will buy you $3,000 per year in cash flow.

Some sites have good “evergreen content that will continue generating revenue even years after the site has gone silent, so a simple $5,000 investment can net you ongoing passive income.

Bonus tip: If you buy such a site then reinvigorate it with fresh content, you may be able to increase the monthly revenue and sell the site at a later date for substantially more than what you paid for it.

I recommend buying a blog on Flippa. Here are some quick facts on this awesome marketplace:

• Includes everything from small sites to ones that garner millions
• Currently has more than 2,000 web-based businesses for sale
• Based on a bidding system and fulfilled by Flippa Escrow program to ensure your money and business are safely secured.

My partners continue to buy web-based businesses on sites like Flippa and Empire Flippers. There are apps, blogs, saas businesses and online retailer opportunities all over those sites.

7. Invest in a Business (Effort Level 2)

If you don’t like the stock market, a better way to build passive income is to invest in tangible assets that you can see, understand and watch grow over time.

My favorite way to do this is to invest in small businesses. Entrepreneurs are a special breed and when you come across the right one with the right idea… there’s no doubt that money is in their future!

So how to jump on the bandwagon? It’s simple: Provide them the funds they need in order to grow.

Below are platforms and websites that connect entrepreneurs and businesses with investors seeking a return.

WORTHY BONDS

• Details
• Fixed 5% return by way of bonds

LEARN MORE

STREETSHARES

• Details
• Loans focused on Veteran-run business

LEARN MORE

Often, investments in private businesses are reserved for “high net worth” individuals, but there are other ways you can invest in a business. Chances are you know a local business or two that could use some capital, or help, or both. You can provide services such as social media consulting or operational consulting for a share of the cash flows of the business. If you have capital, and meet certain qualifications, you can buy a percentage of the business.

I have made both passive and active private business investments across a range of businesses including venture capital deals and local small businesses like restaurants.

8. Start a Blog – My Favorite! (Effort Level 5)

This is the main way I ultimately created passive income for my family – I started Good Financial Cents! blogs are an unbelievable source of passive income. But there’s more to making bank with a blog than just posting good content.

If you’re looking for an extremely cheap, yet highly scalable way to create a passive income for yourself, you might want to take a moment and consider starting a blog.

Did you know: you can start a blog for as little as a penny for your first month, and just a couple dollars per month thereafter?TAKE ME TO THE BLOG GUIDE!

Here’s the idea: If you can consistently use your blog and create a lot of value for a lot of people, you can generate an extraordinary amount of passive income. As you post to your blog, more and more, your site will start bringing in traffic whether you put in any additional time or not.

A blog is the most cost-effective method to creating a truly passive income stream I know of. Hour after hour, day after day, your blog is out there doing work for you.

What’s the catch? It takes time to get it rolling. That’s it. The sooner you start, the sooner an income stream can begin to grow.

You’ll also want to access our Make 1k Challenge, which is a free email course that walks through the steps to start your first blog and make your first $1,000.LEARN HOW TO MAKE YOUR FIRST $1K BLOGGING

The first step is to register a domain and select a hosting plan for your blog. I recommend Bluehost to get started.

9. Create An Online Course or Guide (Effort Level 5)

Online learning is an exploding business opportunity. You can create a course on just about anything. How to tie a fishing knot, cat grooming, how to talk to girls (or guys) – it’s all there. My friend Holly has a successful course on how to become a freelance writer.

How?

One very simple way is to produce and share your course is Teachable.com. Teachable has over three million students and is a great way to get your content in front of others.

What do you put in your online course? Good question. You can add:

• video lessons
• checklists for completing steps you recommend in your video lessons
• small ebooks to supplement the lessons
• audio files for people listening while traveling
• informative interviews with like-minded experts
• and a whole bunch more!

Pro Tip: Create several packages at different price points. Some people want everything, so you can include ‘the works’ for the highest price point and have two lower price points so you can receive the largest possible volume of orders.

If writing articles or creating videos isn’t your thing and you want to make money online, try creating an online guide. A good example of this income source comes from Pat Flynn’s website, SecurityGuardTrainingHQ.com. On the website, his map allows someone to click on any state to see the security guard requirements for that state.

By providing specific information in a guide-like format, you can make money through some of the means already addressed: Google AdSense, affiliates, and even memberships to your online guide.

It’s a fantastic idea!

10. Sell An E-book (Effort Level 5)

I wrote Soldier of Finance to help my clients and others struggling with the same financial issues over and over again. While not exactly an ebook, it’s also available on Kindle and paperback, this book still nets me passive income years after I wrote it.

11. Sell Stock Photos (Effort Level 3)

Are you a photographer or someone who enjoys snapping pictures? Put that talent to use! If you want to make some extra money for your photos, you could consider selling your images as stock photos. The easiest way to make your images available for sale as stock images is to use a third-party site, such as Adobe Stock, Shutterstock, Alamy, etc.

If you have the skills and resources to do so, you could also sell your stock images on your own website.

12. License Your Music (Effort Level 3)

Are you passionate about making music, but not passionate about performing live? Or have you tried to perform live and not made enough income? One solution would be to license your music.
Licensing your music means that in exchange for the rights to use your music in a project, people and companies pay you. Here are six different ways that you can make money licensing music:

• YouTuber
• Wedding/Videographer
• Indie Film Soundtrack
• Indie Film Trailer
• Corporate video
• Advertisement

13. Build An App Or Product You Can Sell (Effort Level 5)

If you have a skill or service that you can share with others, you can build an app or create a product to sell. For example, if you are passionate about fitness and have background in creating workouts, you could create a workout app. You could also create a physical or digital product, such as an ebook or physical book if you would rather do that instead of an app.

Hiring someone to create an app for you can get expensive. If you are willing to learn, you could create an app on your own or barter services. Creating an app or product is a great source of passive income!

Selling products that you create can also be very profitable. Sites like Etsy allow you to sell your handmade, custom and unique products. It’s simple to set up a storefront and get started!

There are also sites like Kickstarter, that help bring your creative projects to life. You can join Kickstarter to launch a project or to help back others projects. This platform is a great way to get your ideas into the world, see if there is a demand for your product and then get assistance with funding! Since Kickstarter’s launch in 2009, 18 million people have backed projects.

14. Become A Social Media Influencer (Effort Level 3)

Did you know that you can get paid for posting on social media? There are a variety of ways to earn money as a social media influencer. You can work with companies to produce sponsored posts/content which the company will pay you for. Typically rates for sponsored posts are calculated by how many followers you have and your engagement rates. You can also earn income as a social media influencer by sharing affiliate links, writing sponsored blog posts or by hosting events/attending events as an influencer. To get started earning money as a social media influencer, it is a good idea to create a media kit highlighting your social media accounts, your niche and samples of your work.

15. Deliver for Instacart (Effort Level 2)

If you’re looking for a flexible way to make extra money, Instacart is a great choice. Instacart is an online grocery delivery service that works with local grocery stores to deliver groceries to your door. As an Instacart employee, you would shop for items at the grocery store and then deliver the groceries to the door of the customer. Currently, the demand for Instacart shoppers is higher than ever.

As a shopper, you will be paid weekly, have the flexibility to choose your own hours, potentially have the ability to earn tips and be eligible for special earnings promotions.

Instacart also recently rolled out a number of new features including contactless delivery and in-app incident reporting.

16. Deliver for Postmates (Effort Level 2)

Postmates is a goods and food delivery service that allows customers to order almost anything they want such as personal items, groceries, and restaurant meals.

It is 100 percent free to sign up to deliver for Postmates and Postmates delivery drivers take home 100 percent of what they earn every time they complete a delivery.

Postmates delivery drives love the flexibility and independence to work whenever they want. Postmates offers weekly pay and a super simple onboarding process.

17. Rent Your Home

If you’re interested in making money in real estate but want more of a hands-on approach, renting out your vacation home, house, apartment, or even a single room can be a stellar way to earn passively.

Airbnb

Airbnb allows people to travel all around the world and to stay in accommodations that are a lot less expensive than traditional hotels. Their site breaks rentals into three categories: private room, shared room, and entire home.
Airbnb charges you 3% on every booking for their services, but you can set the nightly rate at whatever you want. People around the world are making impressive passive incomes through Airbnb.

VRBO

With over 2 million rental properties, most of which are entire home rentals, VRBO has established itself as a legitimate service for renters and owners alike.

VRBO charges 5% per booking, plus another 3% if the guest pays with a credit card. But again, you can set your own rate and easily make these fees worth their while.

Vacasa

Vacasa is a vacation home rental management company. In other words, you can’t rent out a spare room in your house on Vacasa like you can on Airbnb, but have an extra home in a vacation destination?

Then Vacasa is a great option to make passive income, they do all the work for you.

Pro Tip: The key to your rental success is reviews. The more 4 and 5-stars you get, the more people will rent your space (and the more money you’ll make).

18. Rent Your Car

It used to seem weird to rent out a spare room to a stranger, or to stay in a stranger’s home when you go on vacation. Thanks to the likes of Airbnb and others, these sharing economy services have shown us it’s not so scary!

So let me ask – how do you feel about renting out your car?

Think about it. Rental car agencies (Enterprise, Avis, Budget, etc.) are awful to deal with and too expensive.

A company called Turo has disrupted the industry, just like Airbnb disrupted the hotel industry. People across the country are earning money from lending their cars out to strangers.

If you aren’t using your car for a couple of days, or if you have a spare one, simply join Turo’s free platform, list the car, and charge whatever you want for the day.

19. Get Paid For Your Opinion

Did you know you can get paid to take online surveys? Right from the comfort of your couch, you could be earning money just by surfing the web. There are tons of great survey sites out there, and some of them give you a bonus just for signing up.MAKE MONEY WITH SURVEYS

20. Network Marketing

Network marketing is a business model where independent contractors buy into a company. They then earn a commission on the products that they sell. Many individuals are drawn to network marketing as this field allows them to be their own boss, set their own hours and have flexibility.

There are many network marketing companies. Some popular companies are Mary Kay, DoTerra, Pampered Chef and Rodan & Fields.

There are a few different ways to make money through network marketing. You can profit by sharing the company’s products with others, you can use products yourself and you can recruit others.

21. Become a Rideshare Driver

While it isn’t completely passive, rideshare driving makes the list due to its flexibility. You can make your own schedule with Uber and pick up extra income by driving others around when you are already out and about anyway!

I assume you’re familiar with Lyft, the ridesharing competitor to Uber. I actually find Lyft to be cheaper and have better experiences with the drivers.

Speaking of, how would you like to earn a guaranteed $1,000 to become a Lyft driver? Yup! That’s what the company is offering right now.

It’s part of a program called Earnings Guaranteed. According to the Lyft website, drivers will earn a guaranteed amount within a certain time frame. If the driver does not make the guaranteed amount within the time frame, Lyft will cover the difference!

And right now the guaranteed amount is $1,000! Easy money.Drive for Lyft

Don’t have a car? No problem! HyreCar is a marketplace for car rentals prequalified to drive with Uber and Lyft!

22. Advertise with Your Car

Carvertise: With Carvertise you could earn up to $1200 during an ad campaign and can usually expect around $100 a month, just to use your car as ad space. Check out their site to see if they’re currently advertising in your area.

Wrapify: Wrapify operates a lot like Carvertise, but differs in how you get paid. With Wrapify, you track your mileage and location. The more you drive, the more ads you qualify for, and the more money you make, which can add up to $200 a month.

Vugo: Vugo is an awesome way to earn passively alongside rideshare driving. All you do is mount a phone or tablet to your dash and play ads, games, and videos. The app is compatible with Google Maps and Waze. Drivers can earn up to $200 more a month playing the ads, and there’s a driver tipping feature built in.

23. Get Paid to Snooze With Sleep Studies

I’m not even kidding. If you’re in decent health, catch plenty of Zzz’s, and are in an area where a sleep study is being conducted, you could make the most passive income of all.

If you qualify, you could make thousands of dollars in one study. Once accepted, you’ll probably have to undergo a physical, alongside an exam from a psychologist to ensure you’re up to the task. Did I mention you get paid every step of the way?

Keep in mind, though, that these studies have their own challenges, like cutting you off from media sources and your social life and requiring you to be watched and studied for the duration of the experiment.

You might also be asked to sleep in potentially uncomfortable positions for an extended period of time. But the pay is impressive. For sleep studies and other medical and psychological studies, search ClinicalTrials.gov and filter results based on your location, age, and other factors.

24. Car Detailing Service

An employee of mine worked a couple summers in a detail shop in high school. The manager told him how he could start a side hustle easy with some cleaning supplies and a buffer! People pay up to $300 to get their cars detailed!

Car detailing businesses make money through the services they offer and are paid on a per-job basis. Car detailing is not something you have to go to school for, however you do need to know the proper methods for detailing. Then, you will need to invest in the proper equipment, such as a pressure washer, buffer, towels, buckets, sponges, etc.

After you have purchased all the proper equipment, it is time to start building your customer base. As you are getting started, it may be a good idea to reach out to local businesses, such as a hotel concierge, to see if there are any opportunities to partner.

25. Flip Goods on eBay

There is a simple equation to flipping goods on eBay and making money. That equation is: buy low, sell high and repeat.

To get started, you will need to set up an eBay store. Then you need to do research on items that you want to sell. As with everything, you don’t want to blindly purchase items to flip without any knowledge on that item. Some research that you need to do includes market price, profit margin and shipping/packaging.

You can find items to flip on the “free” section of Cragislist, your local Goodwill or on eBay! Then follow the equation above and buy the item for a low price, list and sell it for a higher price and then repeat.

26. Dropship With Amazon

According to the Merriam-Webster dictionary, dropshipping is defined as “to ship goods from a manufacturer or wholesaler directly to a customer instead of to the retailer who took the order.”

To make money dropshipping with Amazon, as a vendor you purchase the items at a discount by working directly with a wholesaler. Your profit then comes from the difference between the initial item cost and whatever price you sell the item at.

You can get your Amazon store set up and be ready to accept orders within 24 hours! Just as we mentioned with eBay flipping, it is important to do research when it comes to choosing which items to dropship. It’s best to find and start with a product that is high in demand and low competition.

27. Refinance or Pay Down Debt

The less obvious way to increase your net worth is to reduce your debt!

Mortgage Debt

Interest rates are near historic lows, so if you haven’t yet refinanced your mortgage, now is a great time to do so. If you cansave 0.50% or more on your loan, you’re potentially adding tens of thousands of dollars back into your pocket. Not many investments can beat that.COMPARE MORTGAGE RATES WITH QUICKEN LOANS

Student Loan Debt

Don’t have a mortgage? Chances are good you have student loans, so be sure and refinance if you qualify, it could save you thousands over the long run! The math when paying down debt is simple – if your loan is currently at 7% and you refinance at 3%, that’s equivalent to a 4% return on your money!COMPARE STUDENT LOAN RATES WITH CREDIBLE

Credit Card Debt

Credit card debt is slowly creeping up in America as consumers feel stretched at the end of the month. If you have credit card debt, I highly recommend putting in place a strategy to pay it off as soon as possible.LEARN MORE

28. Get Online Rebates

With Rakuten, you can get a rebate when you shop at a surprisingly wide variety of online retailers. Here’s how it works:

• Start an Rakuten account.
• Follow the directions to activate the Rakuten browser extension.
• Shop like you normally would online.

Cashback percentages range from 1 to 22 percent (occasionally higher)! Each month you’ll get a check, PayPal payment, or gift card to the store of your choice.

If you buy a big-ticket item like a refrigerator or a smartphone or do your grocery shopping online, you can earn some noticeable income.

Tools To Help Outsource Your Business

If you currently own a business, outsourcing will free up your time so you can focus on other tasks that will result in more income. If you don’t want to hire employees, consider hiring freelancers who work as contract laborers. Look for freelancers with a strong work ethic who provide quality results.

As long as the main product or service isn’t something only you can do, you can transform your business into a passive moneymaker.

Here are the companies I recommend starting with:

• CloudPeeps: CloudPeeps does an excellent job matching business in need with skilled, vetted freelancers who can manage everything from PR and marketing to web development and administrative tasks.
• Fiverr: Fiverr has it all. Much like CloudPeeps, it supplies hand-picked freelancers for all of your business needs.
• Guru: Guru offers similar services to Fiverr and CloudPeeps but emphasizes their flexible payment options, like hourly pay, recurring payments, payment by milestones, and payment by the project.
• PeoplePerHour: With an advanced AI system that matches your project needs to the perfect freelancer and features on Forbes, CNBC, and BBC, PeoplePerHour offers a legitimate pool of talented artists to outsource to.
• Upwork: Like the other freelancing networks, Upwork pairs you with freelancers in several sectors and boasts hires by companies like Microsoft, with short-term, full time, and recurring options.

How Can I Generate Passive Income?

Passive income can work for you, regardless of if you have millions of dollars to invest and no time to spare, or $0, ample free time, and a spark of ingenuity.

While they might take some funding and fortitude to get started, the moneymakers on this list will continue to earn you money long after you’ve put in the work.

So look at what you are working with: establish your financial goals and decide how much time, effort, and money you’re willing to put into your venture.

Whether you choose to invest, buy a business, outsource your own, or get paid for your daily routine, you can prosper from passive income.

What are you waiting for? Plant the seeds today with one of the ideas on the list.

Does the topic of saving money make you feel a little guilty? You have good intentions when it comes to saving money, but something always comes up. The car needs new tires, the teenager needs braces, the house needs a new roof—and just like that, saving money takes a back seat to life stuff. So you put it off. You tell yourself you’ll find ways to save money once you reach a certain milestone, like when you hit a specific age or get that raise you’re after.

But in reality, you’ll only start saving money when you learn healthy money habits and let your future needs be more important than your current wants—aka when you make saving money a priority. And you don’t need everything to magically line up perfectly before you start saving. There are plenty (and we do mean plenty) of practical ways to save money and breathe some fresh air into your budget.

With a few tweaks to your spending, you’ll be on the fast track to saving money in no time. It’s not rocket science, though. Here are 20 money-saving tips (that actually make sense).

20 Practical Ways to Save Money

1. Say goodbye to debt.

Monthly debt payments are the biggest money suck when it comes to saving. Debt robs you of your income! So, it’s about time you get rid of that debt. The fastest way to pay off debt is with the debt snowball method. This is where you pay off your debts in order from smallest to largest. Sounds kind of intense, right? Don’t worry, it’s more about behavior change than numbers. Once your income is freed up, you can finally use it to make progress toward your savings goals.

2. Cut down on groceries.

Most people—after they do a budget—are shocked to find out how much they’re actually spending at the grocery store each month. And if you’re the average American family of four (with two kids 5 and under), you’re probably spending around $929.¹ Yikes! It’s so easy to walk through those aisles, grabbing a bag of Oreos here and a few bags of chips there, and then top it off with the fun goodies at the register. But those little purchases (aka budget busters) add up quite a bit and end up blowing the budget every single month. Start budgeting with a free trial of Ramsey+ today!

Save money on groceries by planning out your meals each week and taking a good look at what you already have in your pantry before you head to the store. Because why would you want to buy more of what you already have? And if you really want to stick to your list—leave the kids at home.

Want to save money and time? Try online grocery pickup or delivery. Most major grocery stores offer it these days (sometimes even for free), and it can save a ton of money. Picking up your groceries gets rid of the temptation you would’ve had when you caught a whiff of those freshly baked chocolate chip cookies floating through the aisles. In other words, you’re forced to stick to your list and avoid those impulse splurges.

3. Cancel automatic subscriptions and memberships.

Chances are, you’re paying for multiple subscriptions like Netflix, Hulu, Spotify, gym memberships, trendy subscription boxes and Amazon Prime. It’s time to cancel any subscriptions you don’t use on the regular. And make sure that you turn off auto-renew when you make a purchase. If you cancel it and decide you can’t go without it, subscribe again—but only if it fits into your new and improved budget.

And for those subscriptions you do want to keep around, think about sharing memberships with some family or friends. A lot of streaming services, like Netflix and Hulu, let you watch your favorite shows from two or more screens (with an upgraded account). That way, everyone wins—and saves!

4. Buy generic.

Hands down, one of the easiest ways to save money is to give name brands the boot. In most cases, the only thing that’s better about brand-name products is the marketing. I mean, look at that box! The logo is so fancy! And that’s about where it ends. Generic brands of medicine, staple food items (like rice and beans), cleaning supplies and paper products cost far less than their brand-name, marked-up friends—and they work just as well too.

5. Cut ties with cable.

It’s no secret that cable prices are rising like crazy. The average monthly price for cable TV is about $107 a month—which adds up to over $1,200 a year!²Here’s the good news: Cable isn’t the only way to watch your favorite shows these days. Cut the cord and find out how to save big with alternatives to cable like network apps and streaming services. But remember—don’t go subscription service happy here. Only sign up for the streaming services you’ll actually use. If you sign up for everything out there, you could end up actually spending more than cable!

6. Save money automatically.

Did you know that you can save money without thinking about it? Yup—you can set up your bank account to automatically transfer funds from your checking account into a savings account every month. If that sounds scary to you, you can also set up your direct deposit to automatically transfer 10% of each paycheck into your savings account. Boom!

7. Spend extra or unexpected income wisely.

When you get a nice work bonus (way to go!), inheritance or tax refund, put it to good use. And when we say “good use,” we aren’t talking about adding that fancy new stamp to your stamp collection or even just putting it in the bank to camp out.

If you’ve still got debt in your life, you’ll be better off using those funds to pay off your student loans or the balance on your credit card instead of stashing that money away. If you’re debt-free, use those extra dollars to build up your emergency fund—you know, for emergencies.

Bonus tip: If you get large tax refunds every year, it’s time to adjust the withholding on your paycheck so you can bring home even more money each month. Plus, you don’t want to give the government any more of your money than you have to, right?

8. Reduce energy costs.

Did you know that you can save money on your electric bill just by making a few tweaks to your home? Start with some simple things like taking shorter showers (nope, we didn’t say fewer), fixing leaky pipes, washing your clothes in cold tap water, and installing dimmer switches and LED lightbulbs.

While new, energy-efficient appliances are a great way to save money on your electric bill, they’re expensive! But if you work it into your monthly budget, you can save up and pay cash for those improvements over time.

9. Unsubscribe from emails.

Email marketers are really good at what they do. They know the irresistible temptation of a 24-hour sale or exclusive coupon. And talk about those flashy GIFs!

If you just can’t resist shopping when you see a special offer, click the unsubscribe link at the bottom of the email. Do it! You’ll be less tempted to spend, and your inbox will be a lot less cluttered. It’s a win-win!

10. Check your insurance rates.

No, really. Did you know people save an average of $700 when they have an Endorsed Local Provider (ELP) check over their insurance rates for them? $700! You owe it to yourself to at least have them look things over for you and see what savings they can dig up.

11. Pack lunch (and eat at home).

According to the Bureau of Labor Statistics, the average household spends approximately $3,459 on food outside of the home each year.³ That’s $288 per month! Buying lunch a few times a week may seem harmless in the moment (especially when your favorite restaurant is walking distance from your office), but you can save quite a bit of money just by packing a lunch!

Not only that, a lot of times you can buy a solid week’s worth of groceries for the same price as two dinner meals out. Instead, prepare your food at home and watch your savings pile up, month after month.

12. Ask about discounts (and pay in cash).

You never know until you ask—and you should always ask. Next time you’re getting tickets at a movie theater, museum or sporting event, check to see if they have any special discounts for seniors, students, teachers, military or AAA members. If not, never underestimate the negotiating power of cash!

13. Take advantage of your retirement savings plan.

If your employer offers a 401(k) match and you aren’t taking full advantage of it, you’re missing out big time! Talk to your HR department to set up an account. But remember, you should wait until you’re completely debt-free (except your mortgage) and have a fully funded emergency fund of three to six months before you start saving and investing for retirement.

14. Lower your cell phone bill.

If your monthly cell phone bill competes with your monthly grocery budget, it’s time to find ways to cut back. Save money on your cell service by getting rid of extras like costly data plans, phone insurance and useless warranties. And don’t be afraid to haggle with or completely switch your provider! It might require a little persistence and research, but the savings are worth it.

15. Try a spending freeze.

Don’t buy any nonessential items for a week—or even a month! Think about it as a contentment challenge. While you’re at it, take inventory of what you’re grateful for each day. This should help kick your “want-itis” in the pants!

Make your spending freeze work by prepping meals with the food you already have, avoiding stores where you tend to impulse buy (did someone say Target dollar spot?), and saying no to anything that isn’t a basic necessity.

16. DIY . . . everything!

Before you shell out the cash to pay for a new backsplash, fancy light fixture or bench, think about doing it yourself! Usually, the cost of materials and a simple Google or YouTube search will save you a ton of money on your latest home project. (Plus, you won’t have to pay someone to do something you can most likely do yourself.) But if you’re the type that can’t seem to hit the nail on the head, you might want to ask a friend or neighbor for help so you don’t have to spend money on new drywall.

Oh, and when you need to do some DIY work (or any kind of work), borrow what you need from a friend or neighbor instead of going out and buying it.

17. Skip the coffee shop.

Ouch. This one is painful—we get it! But instead of spending $5 on that daily latte, you can save money by just making your coffee at home. Listen, we’re not saying you should only drink instant coffee (unless you’re into that sort of thing). But even purchasing a bag of local beans from your neighborhood coffee shop and brewing it at home will save you a lot of money in the long run.

18. The library is your friend.

Before you click “add to cart” on that brand-new book, check your local library to see if you can borrow it! Most libraries also have audiobooks and digital copies of your favorite books for rent. It’s an easy way to get your reading in without breaking the bank.

We get it, though—because we love reading too! In our National Study of Millionaires, 81% of millionaires surveyed read 11 or more books per year. Like Dave Ramsey always says, “Readers are leaders.”

Bonus tip: Check sites like Alibris and Thriftbooks for major deals on like-new or even well-loved books . . . for next to nothing!

19. Try a staycation.

When your goal is to save money now, a vacation is the worst thing you could spend your money on. Instead of whisking your family off to the Greek Isles, try being a tourist in your own city. Not only will this save you hundreds (or potentially thousands) of dollars but you can also explore your neighborhood with fresh eyes and have some fun while doing it.

20. Sell everything (that doesn’t bring you joy).

Marie Kondo has the right idea. Declutter the things in your home that you don’t need and are willing to let go of for the sake of your financial future. That vintage chair your aunt gave you? Sell it. That crystal vase you found at an antique shop? Sell it. You’d be surprised at how much clutter you have in your home (that you don’t even use or think about). And the cash you can make on those things can be the difference between living paycheck to paycheck or not.

This was going to be my year. At the beginning of 2020, I was newly married, I had a new job, and for the first time in a while, I had a solid exercise routine that didn’t zap all of my energy or leave me cursing the inventor of cardio. I had lofty goals for where I wanted to take my business, too, and I was optimistic. Most importantly, I was motivated.

Then, of course, the pandemic arrived. While I have been incredibly fortunate throughout these trying times, I’ve fallen short of what I hoped to accomplish. At first, I refused to give myself grace. I resorted to harsh self-criticism, and my biggest complaint was about motivation. Specifically, I had none, and I missed it.

But that was a mistake. It’s vital to give yourself grace, and it’s equally important to remember that motivation isn’t an elusive aspiration that is near impossible to get and even harder to sustain. Rather, motivation is all around you. It’s on your bookshelf, it’s in your past triumphs, and it’s in the relationships you have with friends and colleagues. To put it simply, motivation was waiting for me. It’s waiting for you, too.

Here are six tips for getting and staying motivated:

1. Establish mini-rewards for yourself.

This has been crucial for me. Whether you have a daunting project on your hands or a task that doesn’t excite you, creating your own reward system can be the push you need to keep at it and infuse your work with some energy and enthusiasm. For instance, when I scratch something off my to-do list, I let myself read a chapter of a book or listen to 10 minutes of a podcast I’ve been devouring. This will motivate you to take care of pressing tasks and maybe even get you excited about work you’d otherwise put off.

2. Take a break to work on a personal project.

You may have taken your time in quarantine to start a home improvement project, or pick up a new skill or hobby. If you’re feeling stuck or rudderless with your work, it could be beneficial to pause and divert your energy elsewhere. Take 30 minutes to paint, renovate or chip away at an ongoing passion project. This can give you the fuel you need for the rest of your day and provide you with something to look forward to.

3. Revisit one of your past successes and break down how you got there.

Maybe it’s the high-profile account you landed or the high-dollar sale you and your talents netted for the team. While it’s always good to be forward-thinking with your main or side hustles, it can be valuable to reminisce on your greatest achievements and remember how you obtained them. This will remind you that the impressive heights are worth the many tiny steps it takes to get there. Then, suddenly, you’ll be more motivated to take those steps again.

4. Exercise.

It’s hard enough for me to get motivated for exercise, so I rarely consider just how powerful a little cardio can be. But science doesn’t lie: A short jog will do wonders for your brain, and as long as you pace yourself, you’ll return to work with a clearer head and heightened focus. I’ll admit it—this one took some convincing from my better half. But once I acquiesced to a daily jog, I realized a monumental difference in productivity. Even more surprisingly, I started looking forward to these recurring runs.

5. Read.

This one took less convincing. I’ve always been a bookworm, and I don’t need any cajoling to crack open a mystery novel or, frankly, any well-written work that’ll keep me turning pages. Yet until recently, I didn’t realize how much reading motivates me. I recommend starting a book over the weekend because come Monday that same book will be top of mind. And if you’re still working from home, it will be subtly calling your name from its spot on the shelf or nightstand.

6. Reach out to a colleague.

We’re living in isolated times, but we still need connection. A conversation with a friend, family member or loved one is always beneficial, but next time you’re looking for some motivation, I recommend reaching out to someone with whom you don’t often connect. It could be a co-worker from a different team or a colleague in your field whose work you admire. Ask them about their work or bend their ear about a project you’ve been working on. The conversation will re-energize you, and best of all, it’ll remind you what you love about what you do.

Read next: 100 Simple Secrets of Productive People

The Paper Solution

What to Shred, What to Save, and How to Stop It From Taking Over Your Life

By Lisa Woodruff

We all have clutter—some of us more than others. But how much of it do we really need? While much has been written on how to declutter your space, home or office, little of it goes as far to focus on just one thing—paper. 

Dubbed “the Marie Kondo of paper,” Lisa Woodruff explains why we’re still so attached to the printed page, how to get rid of what you don’t need, and how to save what you actually need. Woodruff writes that instead of “sparking joy,” the benchmark for organizing paper should be: Is this paper still useful?

Some of us may deal with more paperwork than others at our workplaces, but we all deal with similar amounts at home—bills, junk mail, flyers, letters, invitations and more. Woodruff’s book offers solid advice on how to escape the mess. (August; G.P. Putnam’s Sons; $18)

You’re Not Enough (And That’s Okay)

Escaping the Toxic Culture of Self-Love

By Allie Beth Stuckey

“We’re all stunningly confident as children. We’ve yet to become fully self-conscious, and we have little concept of the potential for failure,” Allie Beth Stuckey writes.

But then something changes as we get older. “A truth that we all come to terms with at some point in our adolescence is that we don’t have what it takes for one thing or another,” Stuckey writes. “Facing our inadequacies is crucial for appropriate development.”

That’s OK, Stuckey writes. But too often we fall into a comparison trap when we see others thriving on social media, and we let ourselves get down about it. In her book, Stuckey breaks down five myths: You are not enough; You determine your truth; You’re perfect the way you are; You’re entitled to your dreams; You can’t love others until you love yourself. 

No matter where you are in life, it’s important you know that it’s OK to not feel like you’re enough and how to be OK with that. (August; Sentinel; $25)

Think Like a Monk

Train Your Mind for Peace and Purpose Every Day

By Jay Shetty

“There is no universal plan for peace and purpose,” former monk Jay Shetty, now a speaker, podcaster and creator, writes. “The way we get there is by training our minds to focus on how to react, respond, and commit to what we want in life, in our own pace, at our own time. Then, when life swerves, we return to that focus.”

The key to establishing this focus is through meditation. In this book (which was delayed by the pandemic), Shetty explains why that’s important and how to know if you’re doing it right: 1) You’ll miss it if you take a break 2) You’ll have an increased awareness of the world around you 3) You’ll view life more objectively. 

Of course, meditation takes practice, and not everything will fall into place because you do it, Shetty writes. 

“The universe isn’t going to suddenly give you green lights all the way to work,” he writes. “Understanding this will help you be prepared for whatever may come.” (September; Simon & Schuster; $27)

No Rules Rules

Netflix and the Culture of Reinvention

By Reed Hastings and Erin Meyer

How do you rule without any rules? Easy, you stop worrying about the paperwork and trust your employees, writes Netflix CEO Reed Hastings in No Rules Rules, co-written with Erin Meyer.

When you remove controls—like vacation policies, and travel and expense approvals—your employees are empowered by the level of trust you instill in them, Hastings writes. That, in turn, pushes them to work harder and become more innovative. 

“Of, course, you can’t just remove the rules and processes,” Hastings writes. “Without the right conditions, chaos will ensue.”

There’s still rules at Netflix and trainings to prevent issues like harassment in the workplace. But when you loosen controls on things like vacation days, your company can flourish, Hastings argues. Hastings compares how things are run at Netflix to jazz versus a symphony. 

In No Rules Rules, Hastings and Meyer break down how to attract that talent, how to increase candor within the workplace, ease up on controls, and how you can apply this in your company. (September; Penguin Press; $28)

How to Decide

Simple Tools for Making Better Choices

By Annie Duke

Annie Duke starts her book How to Decide by asking two simple questions: What was your best decision of the last year, and what was your worst decision of the last year? Then she asks: How did those decisions turn out for you?

She’s done this exercise with hundreds of people and usually gets the same responses. The best decision led to the best outcome, and the worst decision led to the worst outcome. But Duke says that’s just a description of the outcome. Those responses don’t explain the decision process itself. Why is the process important?

“The only thing you have control over that can influence the way your life turns out is the quality of your decision,” Duke writes. 

Duke’s new book How to Decide is packed with tips and stories about the importance of the decision-making process and she thoroughly explains how to make the best decision. 

Whether you’re the head of your company, making important business decisions, or you’re an entry-level employee trying to make your way up, Duke’s advice will lead you not just to better outcomes, but a process of better decision making. (September; Portfolio; $18)

Radical Alignment

How to Have Game-Changing Conversations That Will Transform Your Business and Your Life

By Alexandra Jamieson and Bob Gower

If you have important conversations early on in a relationship, you can avoid big blow-ups, write Alexandra Jamieson and Bob Gower in Radical Alignment.

Not only will you prevent issues from coming up, you’ll also develop what Jamieson and Gower call radical alignment, “a sense of being fully in tune with the person you’re relating to.”

A lot happens when you have a sense of alignment with someone, the husband-and-wife duo write. You learn to empathize more, recognize new opportunities, and cut down on unnecessary interpersonal friction. In their book, Jamieson and Gower explain the steps to reaching radical alignment, starting with focusing on ourselves—our intentions, our concerns, our boundaries and our dreams.

Radical Alignment is a quick read, but when its advice is used correctly, it can have a lasting impact and lead you toward better relationships at work and in your personal life. (August; Sounds True; $20)

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Trips to visit grandkids, travel adventures and family celebrations at your paid-for home. That’s the kind of retirement many Americans dream about.

You don’t have to earn six figures to turn this dream into a reality. But you do have to live and plan today with that goal in mind. Building wealth starts with proper planning at every stage of your life. You can do this!

The 4 Keys to Building Wealth 

Whether you’re 25 or 52, some things are true no matter how old or young you are. Sure, we face different challenges and priorities at different stages of life, but some truths are foundational and constant at any age.

These four keys to building wealth are like that, and they’ll help you unlock and unleash your wealth-building potential. Ready? Let’s do this!

1. Getting Out (and Staying Out) of Debt

Let’s get one thing straight: The only “good debt” is paid-off debt. The more money you send to banks in loan payments, the less money you have to save and invest for your future. Be confident about your retirement. Find an investing pro in your area today. 

And trying to save and invest while you’re still in debt is like running a marathon with your feet chained together. Get debt out of your life first. Then you can start thinking about building wealth.

2. Having a Fully Funded Emergency Fund

Whether it’s a job loss, a car wreck or a broken leg sliding into second base at a company softball tournament, life is going to throw you a curveball someday. Maybe not today. Maybe not tomorrow. But believe me, it’s going to happen!

That’s why you need to have three to six months’ worth of expenses set aside in a savings account before you start investing. And don’t touch it unless it’s a real emergency (Christmas shopping is not an emergency, people!).  

3. Investing 15% of Your Income for Retirement

Now it’s time to go on offense! Being debt-free and having money in the bank to cover emergencies gives you the foundation you need to start saving for retirement. Start by investing 15% of your gross income into retirement accounts like a 401(k) and Roth IRA.

When our team completed the National Study of Millionaires, we found that 3 out of 4 millionaires (75%) said that regular, consistent investing over a long period of time is the reason for their success. Building wealth doesn’t happen overnight!

4. Paying Off Your Home Early

Speaking of millionaires, we also found that the average millionaire paid off their home in 10.2 years, and two-thirds of them (67%) live in homes with paid-off mortgages. That’s not an accident!

Imagine what you could do if you didn’t have to worry about a mortgage payment every month . . . I’m getting chills just thinking about it! With a paid-for house, you could really build some momentum and accomplish your financial goals even faster. Who knows? You might even be able to retire earlier than you planned! 

How to Build Wealth at Any Age

Take a second to think about what your life was like 10 years ago. Things probably looked a lot different back then, right? Maybe you were still in college. Maybe you weren’t married yet and didn’t have any kids. You might have even had a completely different career and salary.

Now let’s talk about the future: What do you want your life to look like 10 years from now? That’s a lot to think about! But listen to me: A lot can happen in a decade, and what you do right now—no matter what age or stage of life you’re in—will have a huge impact on where you are 10 years from now.

Here’s a decade-by-decade look at what you can do to maximize your savings potential.

How to Build Wealth in Your 20s

You’re a millennial. What does retirement have to do with you? A lot, actually. Because you have the most to gain when it comes to retirement. There should be no stopping you when it comes to building wealth because you have the one thing other generations don’t: a lot of time.

Here’s a scenario: Let’s say you begin investing NGN200 a month at age 24. But your friends, who bought new cars and took dream vacations on credit cards, delay saving for retirement until age 34 while they pay off their debt. At age 64, you’d have around NGN1.7 million in retirement savings. However, your friends would only have NGN560,900. That 10-year head start makes you a million dollars richer!

If you’re in your 20s, you’ve got a great opportunity to create a solid foundation for your future. Don’t waste it!

Want to build wealth beginning in your 20s? Here’s how:

• Steer clear of debt. If you have debt, use the debt snowball to knock it out of your life as fast as you can—student loans included. If Sallie Mae is living in your spare bedroom, kick her out ASAP. 
   
• Live below your means. Just say no to things you can’t buy with cash! Overspending every month can dramatically impact your ability to save for retirement. 
   
• Raise your standard of living slowly. This is not the time to grow leaps and bounds in houses or cars. Paid-for clunkers and small apartment rentals will do just fine while you secure your financial footing. 
   
• Budget like your future depends on it—because it does. A monthly written budget assigns every dollar a specific purpose. Budget categories include things like food, clothing, housing, bills and savings. Plus, a budget ensures you’ll have the money for the things that are important to you, like fun money and retirement savings. 
   
• Start early. As you can see in the example above, it doesn’t take a lot of money to build a million-dollar retirement—as long as you start early! Your goal is to invest 15% of your income for retirement. And the earlier you start, the better! That’s a wealth-building habit that will pay off not just in dollars, but in opportunities for you down the road.

How to Build Wealth in Your 30s

For folks in their 30s, life is in full swing. You might have kids, a mortgage and monthly expenses that seem to eat away at your income. Saving for retirement could easily take a back seat to everyday living expenses. That’s not okay!

Here’s the truth: Life never gets less expensive, and saving never gets any easier from here on out. You’ve got to commit to carving out the money and sticking with your saving and investing habits. You can do this!

If you’re a 30-something, consider these wise moves:

• Watch your housing budget. If you’re unable to pay cash for your house, remember to spend no more than 25% of your monthly take-home pay on a 15-year fixed-rate mortgage. Don’t make the mistake of becoming house poor, especially at the expense of not being able to save for retirement. 
   
• Have your emergency fund securely in place. Keeping adequate savings on hand guards you against dipping into your retirement fund or going back into debt when an emergency happens. And it will eventually. 
   
• Max out your retirement savings options. If your employer offers a 401(k) match, contribute up to the match, and then fully fund a Roth IRA. Your goal is to save 15% of your gross household income for retirement. 
   
• Save for retirement before you save for your kids’ college. Your kids may or may not go to college, but you will retire someday. So, make saving for retirement a priority over saving for college if you can’t afford to do both.

How to Build Wealth in Your 40s

A recent study reported that Generation X workers, which includes workers currently in their 40s, have saved $66,000 across all their retirement accounts.¹ That’s not going to cut it! Realistically, you’ll likely need enough savings to replace 80% or more of your preretirement earnings to maintain your lifestyle throughout your golden years.

If you’re not where you should be with your retirement savings, you’re not alone. Many Americans are in the same boat. But now it’s time to get serious about your future.

 Here are three ways to get back on track:

• Know your portfolio. Meet with a financial advisor and make sure you’re investing the recommended 15% of your annual income in retirement accounts like a 401(k) or a Roth IRA. Automate your contributions if you’re not already doing so. Every time you get a raise, add it to your retirement savings. 
   
• Don’t borrow money from your retirement account. Find other ways to pay for unexpected medical bills, home improvements and college expenses. Raiding your 401(k) will sabotage your retirement savings, and if you lose your job and still have an outstanding 401(k) loan balance, you probably have to pay that money back very quickly. Don’t do it! 
   
• If you have a mortgage, start paying it down. If you have a $250,000 balance on a 15-year fixed-rate mortgage with a 4% interest rate and you can pay an extra $300 each month, you could pay off your home two-and-a-half years early. The goal is to create a mortgage-free retirement as soon as you can and boost your retirement savings to make up for lost time.

How to Build Wealth in Your 50s

According to a study conducted by Ramsey Solutions, 53% of working baby boomers who aren’t currently saving for retirement have no plans to save.² It’s time for boomers to wake up!

You need to take advantage of the retirement savings opportunities that come with age. If you don’t, you’ll face a financial crisis in retirement. So, if you find yourself in your 50s with little or no savings, this is the time to play some serious catch-up.

Some options include:

• Annual catch-up contributions. If you’re 50 or older, you can invest an additional NGN1,000 in your Roth IRA for a total of NGN7,000 each year.³ You can also invest up to NGN26,000 in your company’s 401(k) plan.⁴ 
   
• Think about ways to downgrade your lifestyle. With your kids getting ready to spread their wings, go to college and start their careers, you and your spouse will probably become “empty nesters” sometime in your 50s. Now might be a good opportunity to look at downgrading your house (do you really need four bedrooms?) or look for other areas where you can cut expenses so you can put more money toward retirement. 
   
• Health insurance. The likelihood of needing medical care increases with age, so be sure to keep at least basic medical insurance coverage at all times. One major health crisis could set you back financially and delay your ability to invest more for retirement.

As you reach your late 50s, you might want to start thinking about what you want to do about Social Security. You can claim retirement benefits as early as age 62 or as late as 70. Delaying your claim will increase your monthly benefits. If you can wait until your full retirement age, you’ll receive more money each month.

Where Do I Go From Here?

Ready or not, retirement is coming. How prepared will you be when you get close to retirement? That depends on you. You have the power to take the necessary steps to secure your retirement future!

You can start moving toward your retirement dreams today by reaching out to a financial advisor. A qualified professional like one of our SmartVestor Pros can help you create a plan based on your individual needs. 

https://www.youtube.com/embed/wdGjVah3JtI

How do you grow your circle of influence and become more influential around your colleagues and your friends that you currently have in your life right now? Because if we’re honest about it, having influence is big, right? Influence allows you to have more income, it allows you to have more impact, it allows you to have a better life.

We all are seeking some kind of influence in the world. It also helps us feel like we have a purpose, and a meaning, and a reason to be or do what we do. But we’re not always clear on where influence really comes from and how to look at it. So I have a unique perspective of seeing influence in three specific ways that are all tied to one concept: a house.

Now, I don’t where you live. Maybe you live in a house, but here’s the thing. Most houses, they have an interior and exterior. Almost all of them do, right? So the idea is that I want you to think about influence like this house that I’m going to picture up for you:

Imagine you walk up to a house, and you see the exterior of it. It’s got manicured grass, the bushes are shaped like elephants… I don’t know. The door looks beautiful, the paint’s great. This exterior, it makes you want to enter. It makes you want to come and be around this environment and see this place and feel the inside, because most of the time, places that have a nice interior, they mirror it on the outside with a great exterior. And by exterior, what I mean is, are you inviting? Do you have a smile? Are you presentable? Because in the world we live in, let’s be honest, the way you look matters. Not that it always has to matter, but let’s be honest, the way that you hold yourself and carry yourself, it shows us how you hold your self-respect and your self-esteem.

Sometimes people may have a kind of a look like, I’m trying to be put together, but we usually can see through a lot of that. And if the exterior is rusty and has uncut grass and looks a little funky, because you don’t have joy exuding from you, what happens is you miss out on the opportunity to even have an influence on somebody. But here’s the cool thing: If you have a great exterior and people enjoy what they’re seeing, they want to step in, they get to experience the interior. And the interior for us is the heart of who you are.

The interior is the confidence you have, it’s the joy you have, it’s what you exude. It’s the, do people come to your house and want to stay and hang around? Do they walk in and see the carpets are clean, the floors are mopped, and everything sparkles, and it smells good because the candles are lit, and it’s beautiful, and there’s beautiful food, and they get to have drinks, and they get to laugh and enjoy the space, and it feels great, and it feels inviting? If your interior is inviting, people want to hang out, and not only that, they want to bring other people around it. They want to bring their friends and say, “Hey, this place is great. There’s a party going on at so-and-so’s house. You’ve got to come check it out.” And so they bring more people, and guess what, the influence grows.

Here’s the beautiful thing, the longer they stay, the more conversations you have, the more you get an opportunity to influence somebody. If it’s business, you want to make sales. You better make them want to be around you for awhile. If you want to be able to have a great relationship, they should probably be able to be around you for awhile. No matter what it is you’re trying to influence, you need time to influence, and it happens with being settled inside.

Now, if you walk into a house and it’s cluttered and things are everywhere, everything’s strewn about and it smells like fish, and it’s just gross, you don’t want hang out there. And let’s be honest, there are some people in this world that have a great exterior, but the interior’s not so great. They’re not the greatest people of heart. And the way that you look at this interior is, are you confident? Are you clean? Are you organized? Are you stressful to be around? Are you not stressful to be around? The interior of who you are shows up in the same way it does in a house. Like, if the bedroom’s clean and organized, people want come and hang out. If the living room looks nice, they want to be around. But that is a matter of how confident, how calm, how cool, how collected, how communicative you are. And when that’s dialed in, it’s great.

There’s a third piece that nobody thinks about. The third piece is, where is that house located? What property have you taken up? What I mean by that is, where’s this house at? What city is it in? Because some cities, people love to go to, vacation. Some cities, people avoid like the plague, right? So how does this city the house is placed in matter? Well, here’s what matters: If the real estate you take up is in a space of your dreams, people want to be around that. They want to be around somebody who has this great exterior and great interior, doing great things in the world.

I don’t care how great your interior and exterior is, if you’re not in a great place in life and you’re not in a good position, if you’re not chasing your dreams, then people don’t want take up real estate in that place. They don’t want to hang out at that house. They don’t want to go to that city. But if you get real estate in an amazing area, there’s also neighbors who also have great exteriors and interiors, and you have influence on not only the people around you and the place you’re at but the people who come and visit you.

So are you taking up real estate and placing that home in a space where the world gets to see it? Because yes, it’s dream real estate, but are you going out and meeting people and networking and showing off who you are and taking your heart and your message and putting it into the world so people can see it and give the opportunity to showcase your exterior, to get them to experience your interior, so you can have influence to make anything happen, so you can actually take up real estate in your dreams?

Watch next: The Identity Shift: Who You Need to Be to Succeed

• 

The importance of personal development can’t be overstated. It’s the secret to separating yourself from the pack, the bridge that carries you toward the goals you have yet to reach.

We spend a ton of time investing in things that numb us to the reality of how short life is―things like scrolling the internet for hours on end or watching TV to the point of restlessness. Entertainment is fun, but how much time do we save for ourselves? How often do we set aside dedicated time for personal development, where we are learning and growing in a way that defines our existence?

Related: To Be Successful, Focus on Your Personal Growth

To be well rounded, find some time to invest in yourself. These 15 motivating quotes are a great way to start thinking about who you want to become.

1. “Income seldom exceeds personal development.” ―Jim Rohn

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2.  “Every moment of one’s existence, one is growing into more or retreating into less.” ―Norman Mailer

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3. “You cannot dream yourself into a character; you must hammer and forge yourself one.” ―Henry David Thoreau

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4. “Life is growth. If we stop growing, technically and spiritually, we are as good as dead.” ―Morihei Ueshiba 

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5. “Personal development is a major time-saver. The better you become, the less time it takes you to achieve your goals.” ―Brian Tracy

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6. “The only person you are destined to become is the person you decide to be.” ―Ralph Waldo Emerson

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7. “Man’s life is independent. He is born not for the development of the society alone, but for the development of his self.” ―B. R. Ambedkar

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8. “Change equals self-improvement. Push yourself to places you haven’t been before.” ―Pat Summitt

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9. “There is nothing noble in being superior to your fellow man; true nobility is being superior to your former self.” ―Ernest Hemingway

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10. “Growth is the great separator between those who succeed and those who do not. When I see a person beginning to separate themselves from the pack, it’s almost always due to personal growth.” ―John C. Maxwell

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11. “Personal development is the belief that you are worth the effort, time and energy needed to develop yourself.” ―Denis Waitley

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12. “Be patient with yourself. Self-growth is tender; it’s holy ground. There’s no greater investment.” ―Stephen Covey

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13. “One can choose to go back toward safety or forward toward growth. Growth must be chosen again and again; fear must be overcome again and again.” ―Abraham Maslow

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14. “Investing in yourself is the best investment you will ever make. It will not only improve your life, it will improve the lives of all those around you.” ―Robin Sharma

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15. “In this world you’re either growing or you’re dying, so get in motion and grow.” ―Lou Holtz

Related:https://mastermindtosucceed.home.blog/2020/07/08/everything-you-need-to-know-to-improve-your-life-2/

RACHEL CRUZE

Ramsey Personality

Want to know what makes one person successful with money and another give up? It’s simple: It’s their money mindset.

What you believe about money, yourself and the world shapes how your life will unfold. Every single day you have the power to make decisions that will move you forward financially or set you back. It’s up to you.

You guys may have heard me talk about Ramsey money principles, like you should make a budget every month, live on less than you make, and don’t use debt to pay for stuff. But none of that matters if you don’t believe it’s possible to live that way, or if you’re not motivated to live that way. So many people hit the snooze button on their finances as if they’ll just wake up one day and be able to retire. Maybe they hope to take their money more seriously later in life. Or maybe they think winning with money is only for “rich people.” Why do you handle money the way you do? Break bad money habits for good.

If that’s you, you’ve got to change your mindset. Your parents can’t make you care. Your spouse can’t make you care. And as much as I wish I could, I can’t make you care. It’s on you to change your mindset. The good news is, you can!

Jump to:

• What Is Money Mindset?
• How Is Your Money Mindset Formed?
• The Importance of Understanding Your Money Mindset
• How to Change Your Mindset About Money

What Is Money Mindset?

Your money mindset is your unique set of beliefs and your attitude about money. It drives the decisions you make about saving, spending and handling money.

People who have a healthy money mindset believe things like:

• I have the freedom to spend, but I can also tell myself no to a purchase.
• I enjoy helping others who are struggling by giving generously.
• I don’t have to compare myself to others.
• It’s possible to achieve my financial goals.

Your money mindset shapes the way you feel about debt, your attitude toward people who make more or less money than you, how easily you can give, your ability to invest with confidence, and more.

How Is Your Money Mindset Formed?

Your money mindset is influenced by many different factors, including the psychology of money itself. Obviously, the experiences you’ve personally had around money will play a big role. Things like if you had a part-time job in high school, if you’ve been at the receiving end of generosity, or how openly your parents talked about money growing up.  

Think about that last one for a moment. Now, everything that happens in your life is not your parents’ fault. (Read that again.) But more is caught than taught, so the way you saw your parents talk about money—or not talk about it—definitely influenced your attitude about money from an early age.https://www.youtube.com/embed/vYjoE3Gu7S4?rel=0&enablejsapi=1&origin=https%3A%2F%2Fwww.daveramsey.com

Thinking about how money was handled in the household you grew up in will help you understand the foundation for your beliefs about money. If you’re married, this can also help you get to the root of money fights you and your spouse may have. Their experience was probably totally different than yours, which means you guys are coming at this big (and sometimes emotional) topic of money from two different perspectives.  

The Importance of Understanding Your Money Mindset

Henry Ford said, “Whether you believe you can do a thing or not, you are right.”

Ramsey Solutions conducted a study of over 10,000 millionaires, and one of the most fascinating statistics to me was that 97% of millionaires believed . . . wait for it . . . that they could become millionaires. They believed that it was within their control. They believed they held the key to their success. And having that mindset—not an inheritance, fancy education or wealthy parents—is exactly what caused them to succeed.  

This can be true for you as well. What you believe will drive your behavior, which will lead to positive results.https://www.youtube.com/embed/VEwnQ4EAAiw?rel=0&enablejsapi=1&origin=https%3A%2F%2Fwww.daveramsey.com

You do this in other areas without even realizing it. Do you believe that making your spouse feel special is important to your marriage? Or that you need to have a job to pay rent? Or that “Pizza Fridays” are the best day of the week? 

Your behaviors will support those beliefs. That means you’ll probably send texts to your spouse throughout the day, show up to work on time, and make sure you pick up pepperoni at the grocery store by Thursday.  

How to Change Your Mindset About Money

I remember when I realized my mindset had shifted. I was fifteen years old when my parents had me open my first checking account, which meant I had to keep a budget. Note: This is not when I developed a healthy money mindset. Far from it! I actually hated having to sit down and think of every little thing I may need to spend money on a month in advance. I also hated having to sometimes tell myself no to shopping. (Spending money has basically been my spiritual gift even from a young age.)

But I did start to realize I’m really good at telling my money where to go. And if I could live within the boundaries of the budget, I could still spend money on things I wanted along the way.

Then, a few years into our marriage, my husband, Winston, and I took a dream vacation to Miami. Winston planned all the details and told me he didn’t even want me to think about the budget. He wanted me to feel free to order whatever treats I wanted and shop to my heart’s content! Ah-mazing, right? I mean, he was asking me to live in my strengths (praise hands emoji)!https://giphy.com/embed/hXORoUcEgj1XGO5kLw

But here’s what happened: I actually didn’t like being in the dark about our money. I didn’t feel relaxed about my spending at all. In fact, I begged Winston to let me see the vacation budget because knowing the limit was the only way I could truly enjoy it.

That’s when I realized that, lo and behold, after years of consistently doing a budget, my money mindset had completely changed! Because over time, and through healthy money habits, I learned that a budget doesn’t limit my freedom—it gives me freedom.    

We’re not all wired the same, so forcing yourself to do a monthly budget might not be what changes your mindset. (But you need to do it, anyway! It’s vital for your financial health.)

Here are some of the best ways to change your mindset around money:

1. Read books that will influence your mind in a positive way.

Leadership speaker Charles Jones once said, “You’ll be the same person in a year as you are today except for the people you meet and the books you read.” If you want to give your brain the chance to change and grow, pick up a book. Here are some of my favorites in this space:

• The Total Money Makeover by Dave Ramsey
• Switch On Your Brain by Caroline Leaf
• Love Your Life, Not Theirs by yours truly
• The Power of Habit by Charles Duhigg
• The 7 Habits of Highly Effective People by Stephen R. Covey
   

2. Think about your life up until now and ask yourself:

• What did I hear and see about money growing up?
• What’s one thing my parents did with their money that I want to replicate?
• What’s one thing my parents did with their money that I want to do differently?

Write down your answers in a journal. What changes do you need to make?

3. Give away some money.

Giving is the most fun you can have with money. And it’s a proven way to change your money mindset too. It moves you on the spectrum from selfish to selfless. I know you might feel apprehensive at first, or maybe you’re not taking me seriously. Just try it! Commit to giving back some money to help a person or organization in need just once a week. If you don’t feel like a new person a month from now, message me on Instagram (@rachelcruze) and we’ll talk. Go on . . . I’ll wait. 

4. Dream about your retirement.

Picture your life down the road in high definition and let that be your motivation as you plan for retirement today. My friend, bestselling author Chris Hogan, says, “If you can see your dream in every detail—if you can fix your eyes on it—then I know you can muster the effort you need to hit your numbers.”

By the way, if you’re still in debt or don’t have an emergency fund, having a vision for your retirement is still incredibly motivating. Take that dream and let it fuel your passion to get to a place where you can invest even faster!

5. Have the belief that success is possible for you.

No matter your race, religion, level of income—or, to quote some deep, philosophical lyrics from the Backstreet Boys, “I don’t care who you are, where you’re from, what you did . . . ”—you have the power to make your own success. Some people have bigger obstacles in their story than others, but simply believing is the first step. Your behavior will follow your beliefs, making it easier to stick to good habits. And over time, your entire perspective will change for the better. 

You CAN Change Your Money Mindset

Okay, you guys. This mindset stuff isn’t just pie in the sky—it’s biblical. Galatians 6:7 (NIV) says, “A man reaps what he sows.” As Earl Nightingale says in The Strangest Secret, “We become what we think about.” That’s exactly why changing your mindset about money actually has the power to change the trajectory of your life.

So, I want you to be so fired up that nothing and no one can stand in your way. Then, I want you to put your focus on the things you can control. Those are the habits that will help you pay off debt and build wealth so that you aren’t the person who gives up.

If you want to make good money habits stick, check out my brand-new book, Know Yourself, Know Your Money. Learn how to make lasting change so you can make actual progress with your money like never before. Start reading for free today!

You can become the person who believes you can win—and once you believe you’ll win, you will.https://mastermindtosucceed.home.blog/2020/07/11/7-ways-to-own-your-personal-power/