earning money

5 Reasons Getting Rich Quick Is Unlikely and Always Will Be

Denise Hill — Wed, 20 Jun 2018 09:00:26 +0000

We've all dreamed about it: Winning the lottery without even playing. Inheriting millions from a wealthy, great-uncle you never knew existed. Pitching the perfect business idea to the perfect person at just the right time.

But chasing quick riches and instant wealth is an exercise in futility. It's like trying to capture a purple unicorn that lives outside of the castle just beyond the end of the rainbow; it's impossible. It doesn't exist. Movies, books, and social media have sold the idea that getting rich quick is possible. But that is a lie.

The allure of fast, easy money is a mirage that can lure you down a dark path. You risk emotional and financial devastation, as well as wasted energy and resources. And yet, people can't seem to let go of searching for ways to skip work and go straight to the wealth. It is impossible — always has been, and always will be. Here's why.

1. The law of equity (what you put in is what you get out)

The human mind, body, and soul is built for efficiency. Think about what happens when you decide to start exercising. At first, your movements are awkward. You lack coordination and you wear yourself out quickly. But a funny thing happens over time — you adapt. You not only get better at performing the exercises, but your body also adjusts and finds ways to perform the movements more efficiently in order to conserve energy.

The same thing is true when it comes to building wealth. It is natural to look for ways to get as far as you can with as little effort as possible, but there will always be a limit. Working out physically allows your body to adapt by building muscle memory, strength, and endurance. Similarly, as you build wealth, you develop patience, mental strength, and the stamina you need to sustain your money over time. And just like with exercise, getting rich is generally an equitable endeavor — at least initially. You only get out what you put in.

The bottom line is obtaining wealth — or anything of value — is usually attached to hard work, patience, and growth over time. Wealth without work is similar to using crash diets to lose weight. The results are not sustainable and you haven't learned how to properly maintain the changes. You need to consistently work hard and see your progress increase over time.

2. Easy come easy go

There are countless stories of people who come into a tremendous amount of money only to find themselves back where they started shortly thereafter. According to the National Endowment for Financial Education, 70 percent of people who win the lottery or get a big windfall all at once go broke within a few years.

Getting money and keeping it are two entirely different things. When you get something quick — without having to work and sweat for it — you don't value it as much. And what you don't value, you won't protect. One of the biggest problems financial advisers deal with when people get a sudden windfall is that they give too much away to family and friends. And they fail to properly keep track of what they get. When you get money quickly but haven't learned how to properly manage the little you had before, you simply repeat the same cycles but on a much larger scale.

When you aren't used to having, tracking, and managing large sums of money, it's really easy for you to lose it. There are people out there waiting for an opportunity to separate someone like you from your cash. Just like you want a quick buck, so does everyone else. And while your value system may only allow you to go so far to get it, others are far less scrupulous. (See also: Stop! Don't Make These 6 Dumb Mistakes With Your Financial Windfall)

3. A fool and their money are easily parted

Get rich quick schemes are never advertised as such. They are shrouded in mystery and secrecy. And who doesn't love a good secret? Especially one that can make you rich and elevate you above the rest of us mere mortals?

Most get rich quick schemes play on your desire for lopsided outcomes. Again, looking for a way to maximize impact and to gain ground quickly is completely natural and strategic. It doesn't make you a bad person. But it can make you a target.

The best approach to take when it comes to investment pitches and business propositions is to keep it simple. You are not a financial expert nor a business mogul. Don't pretend to be one. If you don't know, you don't know. Not knowing or understanding an investment or proposal is a key indicator that you need to back away from the table.

If it seems to good to be true, it is. If it sounds a little off, run. If it skirts the lines of legality, skip it. You have an internal gut feeling that causes you to pause; pay attention to that feeling. Don't let greed and/or arrogance push you into falling for fool's gold. Scam artists do what they do for a living. It's not a game for them. Humbly admitting that you don't understand the venture and gracefully bowing out can save not only money, but time and headaches as well. (See also: 3 Ways Millennials Can Avoid Financial Fraud)

4. It requires wisdom to build wealth (wisdom takes time)

Luck has very little to do with becoming wealthy. The ability to recognize and capitalize on a good opportunity is not happenstance. It takes wisdom to build and keep wealth. And building wealth slowly and experiencing the highs and lows of money management is what helps you gain wisdom.

You have to be diligent in order to truly be rich. You have to read, study, ask questions, and be willing to learn from others who are where you want to be. Being able to sniff out a con and spot a diamond among rocks takes keen senses, experience, and time. (See also: 5 Surprising Ways the Rich Get Richer)

5. Wealth is not a destination

One of the top reasons that getting rich quick isn't possible is because the concept itself is misguided. What is rich? When is enough, enough? And how do you know you are actually rich? Are you "oficially" rich when you reach millionaire status? Are you rich when you can buy whatever your heart desires? There are famous athletes, actors and actresses, singers, doctors, lawyers, scientist, etc. that make hundreds of thousands of dollars — millions even — but still are broke.

Wealth is a journey, not a destination. It is more than money in the bank and possessing expensive trinkets. You will gain money and you will spend it. You will earn it and lose it. Being rich is when you arrive at a place where you are able to be content with and manage what you have — no matter how much or how little. Being rich is a state of mind and a place of peace that is not greedy and constantly reaching for more. It's a journey of contentment. And that journey doesn't happen overnight. (See also: 5 Reasons Being a Millionaire Is Overrated)

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This article is from Denise Hill of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

12 Easy Ways to Wake Up Richer Tomorrow Than You Are Today

Tim Lemke — Tue, 14 Jun 2016 10:30:06 +0000

Here at Wise Bread, we like to talk about building wealth over the long term. But what if you want to be worth more tomorrow than you are today?

There are plenty of ways to make a quick buck, but more importantly there are easy ways to build your overall net worth in a single day.

Here are a dozen ways that you can bolster your financial situation in quick order.

1. Buy a Stock

This is not a guarantee. But on any given day, the stock market is more likely to go up than down. In the last decade, there have been about 2,500 trading days. Of those, the S&P 500 — the index that tracks the performance of the biggest companies — has finished up more than 1,300 times. So about 55% of the time, if you invest in a fund that mirrors the S&P 500, you'll make money in a single day.

2. Spend No Money

One of the nice things about having some money in the bank is that you can make money by simply doing nothing. If you manage to get through a day without spending a dime — no runs to Starbucks, no impulse buys on Amazon — you'll have increased your net worth simply because your cash is earning interest.

3. Sell Stuff

These days, it's relatively easy to find buyers for things you don't need. Consider using Craigslist or eBay to sell your unwanted items. You'd be surprised how many people have made decent side incomes just by selling things online. If you don't want to go the Internet route, you may be able to get cash for your items at consignment shops or used book stores.

4. Earn Cash for Doing Quick Tasks

There are a number of websites that will pay you money to do things like fill out surveys, play online games, or even just surf the web. Check out InboxDollars and Swagbucks, which have proved fairly popular. There's also TaskRabbit, which connects people with quick jobs like running errands, picking up groceries, or performing handyman work. You won't get rich this way, but you might make a few bucks and have more money in your bank account tomorrow than yesterday. (See also: Effortless Ways to Make Money Online That Don’t Require Skills)

5. Refinance Your Mortgage

With interest rates still historically low, it may be a good time to examine whether you can save money on your house payments. A lower interest rate means more money available to pay off the house earlier, or invest. Any money that's not being used to pay back the bank is money that can be used to make you wealthier.

6. Pay Off a Debt

There are two ways to boost your net worth. One is to increase your income. The other is to cut down on the amount you owe. So if you can reduce or eliminate a debt, your net worth will be immediately higher, even if you don't earn any more money.

7. Watch a Pet

If your neighbor is going out of town for a day or two, offer to watch their dog, cat, or pet parakeet. If you're lucky, the pet may only need to be fed once or twice a day and taken for a short walk. (I got paid once simply to drop by and throw some food into a tank of tropical fish.)

8. House Sit

Here's another way to make a quick buck or two: When a friend or neighbor goes out of town, offer to water their plants, keep an eye out for mail and packages, and generally make sure their house is okay.

9. Claim Lost Cash

Did you know that there are billions of dollars in unclaimed property? It's often things like insurance claim money, or perhaps even an inheritance from a long-lost relative. Most states keep a database of such items, or you can also check MissingMoney.com or NAUPA.

10. Buy Insurance

Your wealth and assets are worth more if they are protected. Being properly insured means that you can financially withstand everything from lawsuits to landslides and medical emergencies.

Having a solid homeowners policy will protect you from financial ruin if your house gets hit by a tornado, volcano, or run-of-the-mill thunderstorm. Auto insurance will protect you if you crash your car. Health insurance will keep you from going bankrupt due to the injuries from that car crash. Life insurance will ensure your family is okay if you pass away unexpectedly, and some life insurance policies also have a cash value and will contribute to your net worth.

11. Sell Your Body

Relax, I am not talking about the world's oldest profession. But you can make a few bucks by donating your plasma, your hair, or taking part in medical trials. Check with your local Red Cross headquarters for blood donation information, and also go to sites such as ClinicalConnection. (See also: How to Sell Your Hair for Cash).

12. Donate to Charity

Wait, you can become richer by giving something away? It may not have an immediate impact on your bank account, but most charitable donations are tax-deductible, meaning that you can reduce your taxable income and keep more of your hard-earned cash. Look to donate big ticket items like used cars or even real estate.

What are you doing today to become richer tomorrow?

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

7 Ways to Make Amazon Pay YOU!

Kyle James — Mon, 02 Nov 2015 17:15:27 +0000

Let's face it, Amazon is brilliant at making it incredibly easy for you to make a purchase. This is especially true with their one-click purchasing via their mobile app, and their tempting free shipping offers. Wouldn't it be nice, for a change, if you could figure out how to make them pay you on a regular basis? Here are six ways to make the online retail giant do just that.

1. Join the Amazon Affiliate Program

If you own a website, blog, or even moderate a discussion group, you have the opportunity to join the Amazon Associates program and earn revenue by directing visitors to Amazon products. Depending on the product, you'll earn anywhere from 4%–10% if the click results in a qualifying sale. It works by Amazon giving you a unique referral url that you post on your site or blog. Then when someone clicks on the embedded url, the referral is tracked, and results in you getting paid if it ends in a purchase.

As with any affiliate program, your mileage will vary depending on how "ready to buy" the people you send to Amazon actually are. The key is to provide value on your site or blog and a reason to make a purchase. For example, if you run a blog dedicated to photography, start by doing a weekly in-depth product review of new digital cameras and accessories and include Amazon referral links in your review. The review should always be an honest assessment and provide content that is better than anything else on the subject. If you oversell, or come off as fake and commercialized, your readers will see right through the facade and click elsewhere.

2. Sell Items on Amazon "Handmade"

The braintrust at Amazon recently launched Amazon Handmade, a service that allows you to sell your handmade wares to the Amazon audience. Currently, for a 12% referral fee, you can sell your handmade jewelry, home products (artwork, baby bedding, bath, bedding, furniture, home décor, kitchen & dining, lighting, patio, lawn & garden, storage & organization), party supplies and stationery on their platform. While Amazon hopes this new service will eventually become an Etsy killer, it currently offers artisan sellers a large number of potential buyers for a reasonable cost. If production capabilities have you concerned, don't fret, as you can set your own production time (up to 30 days) on every product you make. Also, it's worth noting that product UPCs and professional photos are not required to get started.

3. Publish an eBook

By registering for free with Kindle Direct Publishing, you can have your ebook published on the Kindle platform within five minutes and appear in Kindle stores worldwide within 48 hours. Gone are the days of cut-throat book publishing where rejection letters are the norm. You can now publish your novel or amazingly helpful "how-to" guide online and earn up to a 70% royalty on your sales. Plus, you get to keep complete control of your publishing rights and have the ability to set your own pricing. Amazon will even help you format your ebook to optimize it for Kindle users. Also, you can opt into the Kindle Owners' Lending Library so Prime members can borrow your ebook, and in turn, help you gain even more exposure.

4. Become a Third Party Seller

If you shop at Amazon regularly, you've probably noticed that while the majority of items are fulfilled directly by Amazon, some items are actually sold by third party sellers. If you have a niche product for sale, or perhaps are an artist and have artwork you're trying to move, becoming a third party Amazon seller provides an excellent opportunity to reach the masses.

You have the option of signing up for the individual plan, which is great if you plan on selling 40 or less items per month, or the professional plan if you plan on selling more. With the individual plan, you pay a flat $0.99 selling fee per item sold, plus a referral fee in the 8%–15% range of the product's selling price. With the professional plan, you pay a flat $39.99/month with no per item selling fee, but still have to pay the referral fee.

While the 8%–15% referral fee may seem steep compared to other online selling programs, the large customer reach you'll have by listing your items on Amazon can easily make up for the higher fees. If you really want to step up your game, you can have Amazon fulfill all of your orders by having them store, pick, pack, and ship on your behalf. This is a fantastic way to let potential customers utilize Amazon's customer service department as well as have your items become eligible for Prime two-day shipping.

5. Sell Your Original Content

Another smart way to get paid by Amazon is to sell your original content like DVDs, books, MP3s, CDs, and video downloads directly on their site. This is done via CreateSpace, an Amazon-owned company, and it works by paying royalties whenever your product is sold on the Amazon platform.

For example, if you've produced your own music and designed your own artwork to go with it, CreateSpace will turn it into a "retail-ready" CD with full-color inserts, jewel case, and printed disc face. They'll even assign a free universal product code (UPC) to your CD and sell it directly on Amazon.com, which means it'll be eligible for Prime two-day delivery and incredible consumer exposure. Royalties vary by product category, and range between 40%–60% of the retail price.

6. Get Paid for Small Tasks via Mechanical Turk

By completing small online tasks via Amazon Mechanical Turk, you have the potential to earn a decent chunk of change. Examples of popular tasks include looking at an image and describing it in 10 words or less for a 10 cent payment, and a semi-detailed product review for a quick $2.50. While many of the tasks are low-paying, they can add up fairly quickly if you have the patience to wade through the riff-raff to find the better paying tasks. If you work at a job that has regular short delays — a customer service rep jumps to mind — Turk could make for a great way to fill those breaks with tasks that pay.

7. Score Discounts for Amazon Reviews

Another cool way to essentially let Amazon pay you is to create an account at Snagshout. The site is completely free, and works by giving you access to a large marketplace of extremely discounted Amazon products, in exchange for an honest review of the discounted products you buy. We're talking discounts that range from 50% to 90% off the original retail price. Surprisingly, some of the items are actually free or only cost 99 cents. You simply shop like you normally would, then after the item arrives, you'll be asked to leave an honest review of the product. By doing so, you'll gain access to another plethora of highly discounted items. If used correctly, you'll be getting "paid" via huge discounts on items you'd hopefully be purchasing anyways.

While some of these tips require more up-front work than others, they all have the potential to be lucrative. This is especially true if you have a blog in place and can incorporate affiliate links into your content, or have inventory ready to sell directly to Amazon customers. In any case, the time has come for the folks at Amazon to start paying you on a regular basis.

Have you used any of these tips to earn money from Amazon? Did we miss any?

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This article is from Kyle James of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

13 Surprising Things You Can Rent for Extra Cash

Kim Owens — Thu, 10 Sep 2015 21:00:26 +0000

Okay. So you're intrigued by the whole idea of renting your stuff to make some extra money. But what exactly should you rent and how exactly do you rent it? The list of stuff you can rent for cash is so vast that your imagination is your biggest limitation. From the ordinary to the outlandish, here's what you should know about what to rent — and how to rent it successfully.

What Should You Rent?

It depends. What do you have? Where do you live? How much are you charging? Like everything else, your success as a "stuff renter" will depend on supply and demand. For instance, renting your parking spot or driveway will work better in densely populated areas like cities, college towns, or during special events. Renting a high-end baby stroller can work well in tourist areas, because people prefer to not lug theirs on a plane.

But no matter how great your product, no one will rent if it's not priced right. Why would someone rent your private vehicle when a better price can be had at the auto rental place?

How to Rent Successfully

The biggest peer-to-peer marketplace is probably Craigslist, where people have had successful and lucrative experiences. Facebook is up there too with groups dedicated to connecting owners with people who want to rent their stuff. However, if you're looking to widen your scope and increase your options, you might try one of the websites below. Most of them are free to join. Some are even free to use, while others earn a commission when a rental transaction is completed.

Rent Anything

These marketplaces cast a wide net.

1. Craigslist

Craigslist is a huge market for renting anything and everything. It's free to list, there are no commissions to pay, and you set all of the parameters. Since there is no intermediary, take extra precautions when it comes to meeting prospective renters, and developing rental agreements to cover yourself against theft or damage.

2. Loanables

Loanables, like Craigslist, offers the opportunity to rent things from multiple categories. Also like Craigslist, people post what they want to rent, decide on the price, and how the payment transaction is handled. Loanables does provide both parties with a rental agreement. While it is free to post a listing, Loanables takes a 10% fee for any transaction completed.

3. Zilok

Zilok, which originated in France and has expanded to the U.S. (among other countries) is another site where people can list and rent items across multiple categories. While some locations are hot and have a lot of listings, others are non-existent. It is free to list your items, and Zilok is paid a commission when your stuff is rented.

Rent Your Vehicle and Parking Space

Your car can be a twofer — rent your car and then rent the space you park it in.

4. Getaround

Getaround is a peer-to-peer carsharing service that is available in California (Berkeley, Oakland, San Francisco) Portland, OR, Washington, D.C., and Chicago, IL. They will be coming to NYC soon. Getaround has safeguards in place like insurance coverage and identity verification processes to help you feel secure. They also offer 24/7 support. You set the rental amount and the dates that your vehicle will be available for rent. There are no membership fees and it is free to list your vehicle. Getaround receives 40% of the rental fee and you keep a 60% cut. They advertise some users earn hundreds a month and thousands per year using their service.

5. ParkingSpotter

ParkingSpotter is an app that lets you list your parking space for extra cash. You can rent your space short term or longer term. You choose your price, though there is a guide with suggested rates. It's free to list your space and ParkingSpotter is available in multiple big cities across the U.S.

6. RelayRides

RelayRides is another peer-to-peer system that helps owners rent their vehicles for extra money. Their market is much larger than Getaround's as there are literally hundreds of cities across the country available for owners to rent their vehicle. Listing your ride is free with their app and when your vehicle is rented, you take home 75% of the rental fee. You decide the length of time it will be available to rent and the rental price. Payment is received three days after a reservation is completed.

Rent Your "Residence"

The term "residence" is sometimes used loosely based on some of the sleeping arrangements available. Think tricked out van or a tent in someone's backyard. Whether yours is eccentric or more traditional, consider one of the sites below to make some extra cash.

7. Airbnb

It's free to list your space on Airbnb. It's probably the most liberal site out there in terms of the type of space you can rent (igloo or van with a bed anyone?). They do charge a 3% service fee when your space is rented and guests pay a guest fee. Reservations and payments are made through the site. While the site does not provide rental agreements, individual renters can supply their own if they wish. Airbnb also offers a $1,000,000 "Host Guarantee" against property damage.

8. HomeAway

HomeAway specializes in "whole spaces," so think in terms of entire houses, apartments, boats, barns, etc., not rooms. There are three listing choices. List for free and pay a 10% commission when your space is rented, pay a $349 annual fee and pay nothing when your space is rented, or pay a professional to list your space for you and pay a 13% commission when your space is rented. Owners provide their own rental agreement and payments can be handled through their website. HomeAway also owns other websites including TravelMob (for people who live in Asia), VRBO (Vacation Rentals Only), and VacationRentals.com.

9. Roomorama

Roomarama is for people who are interested in renting out a room, apartment or condo, or house. It's free to list your space and Roomorama does not earn a commission when someone books it. Instead, Roomorama collects a fee from the guests. Roomorama collects the rental fee and sends it to you through PayPal, which deducts a 3% transaction fee.

Rent Your Photography Equipment

Camera and gear gathering dust? Put it to work.

10. Cameralends

Are you a photography buff with lots of equipment that you wouldn't mind renting to others? Well even if you only have a few pieces, you could turn your equipment into passive income. Cameralends specializes in connecting owners with people who want to rent everything from cameras to lenses, lighting, video recording equipment, and more. It is free to join the site, and they take 10%–30% of the profit from successful rentals. Payments are handled online, and security measures are in place to ensure the safety of your equipment.

Rent Yourself

You are your most valuable resource.

11. Bridesmaid for Hire

I suppose we shouldn't be too surprised that this is an option, but it is. Bridesmaid for Hire is a newish option that lets those in need hire various bridesmaid services such as virtual support and wedding planning, all the way up to acting as a bridesmaid or maid of honor on the big day. Prices start at $199 to over $1000. The business is expanding and they are looking to add more bridesmaids (mother of the brides, etc.) to their network. If you think you'd enjoy renting yourself out as a bridesmaid consider applying!

12. RentAFriend

RentAFriend is a "strictly platonic website that allows you to rent friends from all over the world." The type of friends available range anywhere from dinner/movie companions, to being a tour guide for out of town visitors, teaching a language, sharing art or cooking skills, and more. It is free to list a profile and set your own hourly rate, which is usually between $15–$50 an hour. The site claims that some people earn several hundred per week and keep 100% of the proceeds. RentAFriend earns money through membership fees paid by those who want to rent friends.

Rent Your Wedding Dress

You looked great in it — and the money it earns will look good in your savings account.

13. Borrowing Magnolia

Borrowing Magnolia is a website is for people who want to make some extra cash by renting their wedding dress to others. It's an easy and stress-free way to make an extra buck because the staff does all of the work for you. Interested parties will complete a "submit a dress" application which consists of question about the dress, along with some pictures. If your dress is accepted, you'll work directly with the staff regarding the rental price and how much you'll earn per rental. Shipping, cleaning, and maintaining the dress is taken care of by them.

Renting your belongings can be a great way to bring in some extra income. You can do it around your schedule, control what you rent and to whom, and set the price and length of time. But first, take a little time to conduct some due diligence about rental guidelines, laws, and of course taxes in your area. Once you know, you'll be limited only by your creativity. Good luck!

Have you rented out your stuff before? What was it like? Let me know in the comments below.

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This article is from Kim Owens of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: