Yahoo Finance Graham Stephan: 10 Best Side Hustles for Making Extra Money
There’s no shortage of side hustles available to work for some extra money. With so many to choose from, including driving for a rideshare, pet sitting and becoming a mystery shopper, how can you pick the side hustle that generates the highest return of investment back to your bank account?
Money expert Graham Stephan has personally tried almost every side hustle himself and discovered while some hustles flopped, others made a lot of money and were highly lucrative. In a video on side hustles for making extra money.
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Dividend Income
Wait, isn’t dividend income passive income? Technically, the answer is yes, but Stephan said the purpose of a side hustle is to create multiple sources of income.
If you need to generate income right now, one of the easiest ways to go about it is through dividend income. The way it works is anytime you buy a stock, you buy into a small piece of ownership in that company. When the company posts a profit, sometimes they will pay you back a small portion of what they make in the form of a dividend.
Stephan uses the example of utility companies, which pay back 3.9%. If you, for example, invested $100 into this stock, Stephan said you can make anywhere from $2 to $4 a year from doing nothing besides clicking a few buttons on your phone.
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Capital Gains
Capital gains is what happens when you sell your investment, like a dividend stock, for a profit. The amount you pay tax on is known as capital gains.
Stephan uses the example of someone who buys a stock for $10 and sells it for $25. This person would pay tax on the $15 profit. This gets reported to the IRS as another source of income. Unlike dividends, where you have to pay tax every year no matter how much money you make, Stephan said you won’t be taxed on the value of the stock going up until you sell.
Rental Income
If your home has an unused bedroom or an empty garage, Stephan said to consider renting it out to make extra money.
Sell Stuff You Already Own
Almost everyone has things they don’t use that are collecting dust and could be sold for extra money.
Consider listing gently used items on platforms like Facebook Marketplace, eBay or Craigslist and selling through these platforms. In the worst case scenario, Stephan said you wouldn’t be down any money and could keep the things you already own.
Get a Part-Time Job
If you want to earn a little extra money, don’t knock the traditional option of working a part-time job.
“Working for someone else gives you guaranteed income, predetermined hours and zero risk of not getting paid,” said Stephan.
Start a Business
According to Stephan, starting a business is one of the most underutilized sources for making extra money.
Working a side business separate from your full-time job helps diversify your experience in the event you need something to fall back on. If you want to get ahead, consider dedicating the window from 6 p.m. through midnight to focusing on starting your own business.
Focus Groups
Stephan said he did focus group work in his early twenties and made anywhere between $5 to $500 for a few minutes to a few hours’ worth of work.
Focus groups work by providing you with the opportunity to offer feedback to companies that want your opinion on their upcoming products or services. They receive unbiased feedback from focus groups on what they have to offer and make adjustments accordingly. The payout for a focus group tends to vary, but if you qualify, Stephan said it’s worth it to do it.
Flipping Items Online
As an example, Stephan said if you go to Craigslist and visit the “for sale” section, you’ll see the word “free” underneath. Click that, and you’ll see free items people are giving away in your area. If you look long enough, you’ll find items of value.
If you can pick up these free items, store them and properly advertise them to the right buyer, you can make some money from flipping these items.
Credit Card Churning
In this hustle, Stephan said you sign up for a credit card and meet the minimum spend to receive the sign-up bonus. These offers can range from $300 to $1,500 or more. To make this work, Stephan said to put your normal spending on the credit card, pay it off in full by the end of the month and get free money for items you would be purchasing anyway.
Monetize Your Skills
If you’re good at something, learn to turn this skill into a business, such as offering piano lessons if you can play the piano well or tutoring if you’re skilled in different subjects.
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