What is easy money? Is there such a thing? Part 1

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What is easy money? 

Is there such a thing?

How do you get hold of easy money?

Let’s look and come to a conclusion (if we can).

“Easy money” usually refers to money earned with little effort, often by leveraging favourable opportunities or passive income streams. The concept might imply minimal hard work, but finding genuine “easy” money requires a level of understanding, strategy, and sometimes initial effort or investment. It would be lovely if you could snap your fingers and the money appeared instantly.

 

1. Passive Income Sources

• Investing: Dividend stocks, real estate, or bonds can provide a steady income without much day-to-day management.
• Royalties: If you have a creative asset (e.g., a song, book, or patent), royalties can generate passive income.
• Affiliate Marketing & Content Creation: Creating an online presence (blogs, YouTube, or social media) can eventually bring in money through ads or affiliate partnerships, though it requires upfront work.

1. Low-Effort Side Hustles

• Gig Economy Jobs: Options like becoming a delivery driver require minimal setup if you have your own transport.
• Freelancing: Once established, freelancing can allow people to pick flexible and high-paying projects with lower time commitments.

1. Leveraging Financial Systems

• Interest and Dividends: High-interest savings accounts or dividend-paying investments provide a form of “easy” growth on existing money.
• Arbitrage Opportunities involve buying low and selling high with low-risk products or assets like resale items, but they require market knowledge.

1. Automation

• Businesses and Side Projects: After the initial setup, you can generate income with less day-to-day work with platforms or services that automate.

While the idea of “easy” money can sound enticing, genuine methods require a mix of patience, knowledge, and often some upfront work.

As with any idea of making easy money, it is not as simple as some think. It will be challenging if you have not been “born” into cash and have generous handouts each month.

You will be correct. The notion of “easy money” can be misleading, especially for those who don’t have a financial cushion or inherited wealth. The reality is that without an established base, “easy” money isn’t truly easy. Building wealth or a steady income stream requires knowledge, hard work, and often even some initial sacrifices for most people.

Financial systems like investment portfolios, real estate assets, or even family business profits are often already in place for those born into wealth. This cushion provides resources and the freedom to take calculated risks. They can “afford” to explore more accessible or speculative options because they have the financial safety net if something doesn’t pan out.

For others, creating this foundation is critical—and it generally starts with working hard to build savings, learning to invest, and possibly even budgeting stringently to free up resources for future opportunities.

So, where do you start assuming you don’t have a generous monthly handout?

First off, you need an idea. It sounds simple, but it is not. That’s your first problem.

Do you need cash for your idea? Yes, more than likely you will. What if you don’t have ready money or savings? That’s problem one. So how are you going to get the cash?

Rob a bank? It’s not a good idea; the chances are that you will get caught and end up worse off than you are now. (we would not recommend anything illegal). 

You could always ask a friend to invest in your idea. This might work if you have a very, very, very good friend willing to lose money should that happen. Ask your friend to put up, let’s say, half, and you the rest.

Problem. How much do you need for your business idea? Have you costed it?

The problem is that we are back to the earlier question: how will you get the cash?

Getting started requires cash, and you’re already facing one of the biggest hurdles without ready funds. Let’s break down a few realistic ways to overcome the cash problem without resorting to anything risky or putting friends in uncomfortable positions.

Bootstrap and Start Small

• Begin with a scaled-down version of your idea that requires minimal funding. This allows you to test your concept and potentially generate revenue that can be reinvested. Many businesses started small and grew over time—think of it as laying the foundation for more significant growth.
• For instance, if you’re starting a product-based business, consider selling on online marketplaces before moving to a storefront or full-scale production.

 

• .Grants and Small Business Loans

• Look for local government grants, low-interest loans, or even competitions for entrepreneurs. Many communities have startup resources for people with solid ideas but limited capital.
• Microlending platforms or government-backed small business loans offer accessible funding for small startups without requiring massive credit histories.

Crowdfunding

• Platforms like Kickstarter or others allow you to pitch your idea to the public in exchange for early products, perks, or a share of your vision. This method helps raise capital and builds interest in your product or service before it launches.

  Partnerships and Skill Swaps

  • Partner with someone who brings value in areas you lack. For example, if you’re short on cash but have marketing skills, find a partner with access to resources but needs marketing expertise.
  • Skill swaps, like helping someone with marketing or branding in exchange for a discounted service or product, can help reduce costs significantly.

  5. Sell or Monetize Existing Assets

  • Look at ways to free up or monetize assets, like selling items you no longer need or renting out extra space. For example, many people fund early business expenses by offering services or selling items online until they’ve saved enough.

  6. Freelancing and Side Jobs to Build Cash

  • Working freelance or a temporary side job can help build up funds to reinvest in your business idea. It’s not glamorous, but it’s realistic and can provide some immediate financial momentum.

  7. Pre-Sales

  • If your idea is product-based, pre-selling can allow customers to pay upfront, giving you the funds you need to produce or deliver. This can be tricky to pull off but can also provide validation that people are interested in your idea.

  Each step does require thought and planning—there’s rarely a fast track. But with these methods, you can build up the initial funding without risking your relationships or getting into debt you can’t handle.

In our next blog, we will give you some ideas for businesses that you can start. For some, you can start with no investment at all. Others will need some investment and do not need your family to own a large investment bank.