We’ll show you how to make money with a little money, it’s not rocket science and it doesn’t take great effort.
We’re now living in a digital age on the internet and perhaps it’s time to use a new phrase, that is; “It only takes a little money to make more money”.
In this article I’ll explain how to make money with a little money by leveraging any small amount you may have.
Table of content
Basics of ROI and passive income
Types of investments
Passive
Investing
Content creation
Renting unused spaces
Active
Freelancing
Monetize a website
Create and sell crafts
Entrepreneurship
SEO
Consulting
E-commerce
Workshops
Bottom line
Basics of ROI and passive income
Return on investment (ROI) is a ratio between net income over a period and investment costs resulting from an investment.
Its formula would look like this:
ROI = Net income / Investment
(Where Net income = gross profit − expenses)
An example of this would be putting money in to a fixed term account at your local bank and the bank pays you a percentage of your deposited amount over a time period in return for having it there.
Without going too much into details pertaining to the economy field, ROI can be used to approximately compare investments and find the more profitable ones.
As we are going to leverage little money to make more money, we need to look for investments with high ROI values and types of passive income.
Here are those I found the most interesting.
Types of investments
In this article I’ll use the word “investment” for any sum of money that is being committed to make more money. Time is also accounted for as another saying goes: “Time is money”.
I’ll also divide different types of investment according to how much effort it takes to make a venture profitable, namely:
- Passive, high ROI with only an initial effort and thus a great income potential.
- Active, more effort and not very high ROI when accounting for the time you spend but with a great potential to evolve into a passive income stream.
- Entrepreneurship, high ROI and higher investment needed but also higher potential.
Passive
In this category, these are all ventures that require a single initial investment in terms of money, time and/or assets to keep earning recurring profits.
Once upon a time the investment needed to see a tangible return might have needed to be high but these days you can start with absolutely minimal effort, time and money and see really good results in terms of passive income. Passive income can be considered like a supplement to other types of income.
Some types of investments that require little money to get you started are:
Investing
If that seems a field that requires extensive research and study before getting started with, thanks to the internet and the many investing apps available today, investing in stocks, dividends, ETF, and real estate has never been easier.
There are many applications available to get you started in investing with as low as $50 and see returns as high as 10% annually. While the last thing anyone wants to see in reality is a 10% return on a $50 for the year. That’s not great passive income but at least you should get the drift of what we mean.
Maybe a friend is starting a business and you think you might like to be in on it because you can see its potential. Some people have made small investments into start-ups that have provided huge returns, you could as well.
Content creation
Digital content like e-books, videos, podcasts, online courses and also graphics can provide you with good income.
Electronic content can be a great way to make a profit while giving something useful and creative to your audience.
Thanks to several digital platforms you can share your books, pictures, videos, art and courses without the need to create your own website (more on that later). Content creation is helping many creative people today work from home and be their own boss.
Renting unused spaces
If you have a room, a garage or a loft you don’t use, now it’s time to rent it out through Airbnb or to spread the word around, if you prefer the old methods. Maybe a seasonal worker or student is looking for a single room to stay while working or studying in town.
If having strangers in your house doesn’t appeal to you, consider renting the garage as a storage unit or even as a workshop.
Even a spare car parking space can provide a passive income on a regular basis.
Active
With “active” investments I define investments that require little expenses or expenses you sustain once to get a software or the equipment needed to carry out a business. Active types of investment require very little money (sometimes just a monthly subscription or one device) and have the potential to be either a side hustle or grow into a profitable business in the passive income or entrepreneurship areas.
Freelancing
Freelancing is continually growing as more people find themselves online searching for the things they need and as more individuals choose to work remotely
If you have some knowledge or expertise in a field like writing, video rendering, graphic design, translating, transcribing or picture editing or tutoring there are many freelancing platforms that will put you in touch with people in need of your services. A laptop will be enough to get you started on most of these gigs.
Gigs can be easy or difficult and you can choose what you want to take on. Many freelancers have found themselves taking on more work once the ball has started rolling and have employed others to help fill the demand. It’s a nice easy way to build a business that can be managed remotely or by an employee.
If you have any of these skills don’t waste time searching classified ads, go to any of the platforms providing such skills and enlist your services.
Here’s some useful websites but it’s by no means a complete list, Fiverr, Upwork, Freelancer, LinkedIn. Dribble
Monetize a website
Although creating a website is part of the content creation category, in order to keep it on the first page of Google and earn through ads and affiliate links you need to create high quality content constantly, thus requiring an ongoing effort.
The potentiality of having a website and growing it into a profitable business are so big that it can be numbered among the entrepreneurship efforts.
With online platforms providing drop and drag building blocks it’s never been more easy to create professional looking websites that sit among some best websites and most popular businesses in the world.
Some more well known and trusted platforms for creating purposeful entrepreneurial or business websites are, Shopify, WordPress, Wix, Weebly, Wealthy Affiliates.
Create and sell crafts
Do you love going to the markets and the buzz of all those creative and alternative things that people have on sale? You could find yourself with your own ware selling at the local markets or you could even do it online.
We have friends that sold scented soaps they made and others sold pure wool blankets as well as some friends selling their own clothing brands and art.
If you have a hobby like knitting, crafting jewelry or decorating, consider selling the fruit of your labors through some many local markets or internet platforms available for that purpose. They will provide professional support for logistics, and bureaucracy so you can focus on doing what you love.
Have a look at, Etsy, Pinterest EBay, Amazon, Bonanza, Ruby Lane, Poshmark, Craigs list and see if it’s your type of fit
Entrepreneurship
Furthering your efforts in passive and active types of investment, you can reach a point where it will become natural to run business related to some areas we touched above. Decision making and ability in directing the efforts are compensated with potentially huge ROI
Here there are some examples:
SEO
SEO or Search Engine Optimization is something that will always be in demand. Businesses continually aim to have their sites rank highly so they can be viewed and to do that they search engine optimize.
Many have studied Google’s free courses to stay on top of this game. If you like tech and have a penchant for satisfying people and their needs you could find yourself making good money with an inexpensive start.
Consulting
If you have professional knowledge in a certain field or if you gained it through freelancing, you might now be considering to start consulting or even start a consultancy firm thus becoming an entrepreneur.
E-commerce
Different from all other types of websites, owning an e-commerce is a great way to be an entrepreneur in the digital era. You can take care of the market research, marketing strategies, and products’ promotion yourself or you can ask a freelancer to do so. Some people started an e-commerce as a side gig and ended up building an empire!
Workshops
If you enjoy working with your hands and you’re good at it, besides selling your crafts on the internet as mentioned above, you might consider open a workshop and teach others to do the same.
YouTube is a great place for doing this by creating a group you could find yourself with customers paying you on a monthly subscription
Bottom line
You probably noticed that some types of investments mentioned above can combine to create more profit, or ease the burden of the initial investment by creating profits along the way.
A well-thought plan that combines all the characteristics of passive income, active earnings, and entrepreneurship efforts is the one most likely to have success in the long-term and also yield a higher ROI over time.
We’ve just dropped a few ideas in here but hopefully some of you might be able to be inspired to go for it and make it on your own. We wish you all the success needed to make the grade and start making money with a little money
Please feel free to leave a comment below on what you specifically like or how we could add something more or even improve.
Much Thanks 😀