We’ve all heard you have to spend money to make money, but it’s hard to figure out how much you can earn by spending. Obviously, there isn’t a foolproof formula to make you a multimillionaire overnight.
However, there are plenty of digital ways you can make your money work for you. If you are tired of the day-to-day grind to get a little extra cash, this guide is meant for you.
10 Ways To Spend Money to Make Money Online
It’s time you stopped worrying about your savings account and experienced the benefits of your spending by putting money back in your pocket.
Here’s a quick look at the online money-making techniques we’ll share with you today:
|Investing||Provides reliable passive income|
Easily done at home and online
Multiple investment opportunities are available
|Can take a while for results to be seen|
Requires some education about investing
|Cashback Websites||Easy to install in browsers|
Make money by doing regular online shopping
Multiple cashback companies to choose from
|Requires a lot of purchases to see income|
Income often comes in the form of gift cards rather than cash
|Cryptocurrency||As easy to do online as traditional investing|
Numerous fascinating cryptocurrencies to consider
Plenty of online information to help you get started
|Volatile source of investing|
Requires plenty of research before investing
|Creating Art Products||Phenomenal outlet for creativity|
Allows you to own and operate your own store
Set your own prices for each product made
|Ideal only for creative-minded individuals|
Will have some overhead with material costs
|Taking Educational Courses||Helps you develop your personal skills|
Can translate to benefits throughout your life
Keeps your mind engaged and will help you become a more competitive professional
|Can be costly upfront|
Won’t immediately translate to passive income opportunities
|Starting a Business||Ideal for entrepreneurs who want to work for themselves|
Wide assortment of business ideas to consider
Gives you full control over the company’s operations
|Will require an initial investment|
High risk involved with your personal finances
|Open Savings Accounts||A safe and secure way to save money|
Easily done online through your bank
Can open as many savings accounts as desired
|Could be faced with low interest rates|
Won’t generate as much income as investing
|Selling on Amazon||More efficient than owning your own business|
Amazon can manage warehousing and customer service
Many different niches to consider for selling
|Highly competitive selling environment|
Amazon can take a significant portion of your profits
|Homesharing Services||A wonderful way to repurpose unused space|
Allows you to make passive income from home
Short-term rentals are high in demand worldwide
|Could require some renovations and setup costs|
Strangers will be staying on your property
|Develop a Product||A perfect opportunity for entrepreneurs and inventors|
Endless opportunities for design and development
An engaging way to create a helpful product
|Will require a substantial initial investment|
Some work may have to be outsourced
Let’s jump into the list of the best ways to make money online by spending money:
1. Get started with investing.
Undoubtedly, investing is the most popular sure-fire way to spend money and make some in return. With sound investments, you can double, triple, or even quadruple your initial investment over time. However, you must make sound investments when putting your money into stocks, bonds, and funds.
With the wide world of investments, there are plenty of products you can explore outside of individual stock trading. From FOREX to mutual funds, you’ll find plenty of avenues to help you generate a significant profit as long as you’re patient.
2. Try cashback websites.
The popularity of online shopping has never been larger than it is now, with 2.14 billion digital buyers worldwide. Cashback sites are a fantastic way to take the average amount of money you’d spend shopping and generate more income.
With these websites, you will create an account that will collect either points or actual currency from each purchase.
What makes cashback websites even more convenient is they usually have browser plugins that you can install. With these plugins, the cashback site automatically detects your purchase when you visit an online store. They can also provide you with coupons to help you save money on your purchases over time.
Although it might sound too good to be true, cashback sites are a great way to make money off spending money. That said, it won’t be a substantial sum upfront. Rather, the more you shop online, the more points you will earn.
3. Dive into cryptocurrency.
If you’ve been on the internet for a while now, you have likely noticed the popularity of cryptocurrencies like Bitcoin or Ethereum to earn a passive income. These digital assets are often on the rise, making them an exciting place to get started with investments.
Although certain currencies such as Bitcoin and Bitcoin Cash have skyrocketed, it is still possible to start with a small number of shares. Alternatively, you can consider getting into other types of digital currency, such as Dogecoin.
If there’s one thing to note with crypto, it is that research is always best before investing your extra cash. You will want to know the pros and cons of digital assets, the risks involved, and the potential profits you could earn.
Ideally, you will want to use a safe trading platform as a first-time investor buying crypto to protect your funds while earning a passive income. Lucky for you, most online platforms such as WealthSimple make it easy to start investing in digital assets and earn extra cash. Even companies such as PayPal have dipped their toes into crypto purchasing.
4. Sell your creativity.
If you are a creative individual with an entrepreneurial mind, it’s time to combine your talents to reach your financial goals. Selling products online is undoubtedly one of the best ways to make money off your money and have financial freedom.
After your initial investment in materials, you can create something you can sell online. There is an endless list of finished products that you can sell, from upcycled clothing to candles. What’s more, you can sell prints or original copies of your artwork for a significant profit.
Although there’s less overhead selling online than in-person, some initial investments are still necessary. Outside of materials, you will also need to consider investing in a professional website.
Moreover, it’s important to gather a collection of professional photos of each of your products so that they sell themselves. Not to mention digital marketing, which brings eyes to all of the items you currently have for sale on your site.
There is a monetary investment required for creating and selling items, as well as a time investment. Since you will essentially be opening your own small business, you’ll have to put plenty of hours into the process. However, if you are successful, it could turn into a significant source of passive income for the rest of your life.
5. Invest in yourself.
Finding solid investments can be challenging, but there’s no better way to ensure success than to invest in yourself. The more skills and knowledge you have under your belt, the more profitable your future endeavors will become.
Whether you want to get a promotion to build your emergency fund or become a virtual assistant, now is the best time to start learning.
Compared to the other ways to make money while spending money, investing in yourself won’t offer an immediate return for your savings goals. Instead, it can bolster your repertoire with many essential skills needed to help you earn more money in other ways.
With the help of online skill classes, you can begin training to broaden your future prospects. Programs like Skillshare allow individuals to participate in unlimited classes, teaching them about a specific topic or skill.
You will find programs for photography, creative writing, gardening, programming, and even self-help classes. Although they will cost money upfront, they can help you explore different opportunities.
6. Start an online business.
One of the earlier points we discussed was beginning to create and sell products online. Owning a business is a fabulous way to make an investment that can double itself in the coming years. Much like selling products, starting any other type of business will require a significant time investment.
Starting a business isn’t something that will require a one-time fee; it will cost you throughout your ownership. You will need to make sure your company generates income to keep the lights on while paying your employees. Also, you will need to have enough profits to reinvest back into the business.
Approximately 8.9% of residents in the United States own an established business, which shows the prevalence of business ownership. If you are interested in getting into this niche, don’t hesitate to start as early as today.
7. Open a savings account.
Do you love the idea of investing but aren’t interested in the risk associated with it? If so, why not open a savings account?
Savings accounts might not give you as high a return as investment products, but they’re a safer alternative. The top recommendation is to find a bank that offers a reasonable level of interest that you can put to good use.
You might find that your regular bank has savings accounts with lower interest than others. Remember, the higher the interest, the more money you will make on your stored income.
Another massive benefit of opening a savings account is that it helps prepare you for any financial concerns in the future. You’ll be able to take some of your passive income and put it away for a rainy day or save up for a large purchase.
An even better idea is to start saving in a savings account and then take the lump sum to invest in a mutual fund or retirement savings plan. Overall, the most important thing to consider is ensuring you are collecting the most interest you can on your accounts.
8. Sell products on amazon.
Another top recommendation for spending money to make money is to sell products on sites such as Amazon. With their worldwide marketplace, you can find several exciting products to offer entirely online at an affordable price.
Above all else, Amazon has some of the simplest options for people looking to begin drop shipping or to become eCommerce entrepreneurs.
When you want to begin selling on Amazon, there are plenty of steps to follow. First, you will want to do market research to find what products you want to sell that are high in demand. You also need to find a manufacturer that can offer you the goods you want at competitive prices.
Ideally, you will want to work directly with a manufacturer, allowing you to make the most money off your investment. After you have the products available, you can sign up for an account and choose how you want to sell them on Amazon.
For example, do you want to manage the shipping and customer service yourself or leave it in the hands of Amazon?
There are plenty of benefits to using platforms like Amazon to sell products, one of which is traffic. There are over 300 million active users on the site, making it a remarkable way to enter your desired niche. Undoubtedly, you will have a much higher chance of selling products and generating income with the company’s help than if you were to do it solo.
9. Consider home-sharing.
Have you ever considered traveling the world and thought of where you’d like to stay? So have plenty of others, with many travelers settling on bed and breakfasts and Airbnbs. Home-sharing is a phenomenal way to generate a significant amount of income online, but it’s not without its fair share of costs.
First and foremost, you will need to decide what part of your house you’d be most comfortable renting out for passive income. As these are short-term stays (in most instances), you can rent anything from a bedroom to your entire house to visitors.
Once you know where you’d like guests to stay, you will then need to make sure the space is prepared. You will have to invest a significant chunk of change into renting your space out, but it can also help generate substantial income. There are plenty of things your visitors are going to need, such as:
- Cooking appliances
- Comfortable bedding
- Access to entertainment amenities
- Easy access to water and other essentials
- Parking spots
After putting money into the space to make it a comfortable place to stay, it’s now time to list it on a platform. There are plenty of options, with two of the most popular being Airbnb and VRBO. These apps typically offer vacation rentals, making it easier for travelers to find comfortable accommodations.
Another cost to consider when listing on these platforms is professional photographs. Remember, hundreds of properties are likely available for rent in your immediate area. You will want to make sure your property stands out from the rest, increasing your chances of getting renters.
There are also long-term costs associated with renting properties to short-term tenants. These include cleaning the property in between guests, any repairs to the property, and replenishing used cleaning supplies and other items.
10. Transform an idea into a product.
Nearly everyone has had the dream of inventing a helpful product at one point or another. If you have some great ideas in your head, why not turn them into a profitable venture? For example, if you have an idea for a mobile app or software program, there’s no better time than now to design it.
Unless you have experience designing and creating products, it can seem intimidating to some. Fortunately, this is the point where you can make your money work for you. Instead of doing all of the legwork yourself, you can always hire professional freelancers to handle the challenging parts.
If you are designing an app, why not hire a freelancer to follow your instructions to put the app together? Whether you pay them hourly or through a one-time fee, you can turn your idea into a physical product to be sold.
All that’s left is to put time into your advertising strategy, and you will have an item that can generate income for you over an extended period.
Spending Money To Make Money FAQs
1. Do I have to spend money to make money?
Earning an income online does not necessarily mean you have to spend money. That said, if you want to reach your maximum potential, the answer is yes.
Spending money allows you to unlock an assortment of opportunities you otherwise wouldn’t find for free. Plus, you have the added benefit of investing in something that can provide long-term financial stability.
2. How can I spend my money to make money?
You would be surprised at the sheer number of ways people all over the world are making money online. Whether through investing in crypto or visiting cashback sites regularly, the options are endless.
3. How does Honey make money?
Honey is a competitive platform that plenty of online shoppers use regularly. With Honey, you will earn points from every purchase from a participating retailer. Over time, you’d be able to turn your points into digital gift cards and extra cash you can use at different online stores.
4. Is running an online business easy?
What makes starting an online business for extra income exciting is that there are endless avenues that you can travel down. You can create a digital marketing agency, a talent booking agency, or even start a firm to develop apps and web-based programs. All you need to do is have the right team behind you to get started and, of course, your initial investment.
5. How can I invest with little money?
There’s a common misconception that making money off investments requires tens of thousands of dollars. In reality, anyone can start at any time.
One of the top recommendations is to take a small amount of money out of each check and invest it. Over time, you will have a larger amount you can trade with, helping you generate even more income. This is one of the best ways to spend money to make money online, and it’s also a substantial source of passive income.
Earning Money Online
With 10 ways to spend money to make money online, your dreams of being a digital entrepreneur are around the corner. You need to have enough to invest from day one and then allow your idea to generate profits for you over time. Undoubtedly, the options are endless when using the internet to generate additional cash.