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Hobbies That Make Money – Earn Extra Money To Go Towards Debt, Retirement Or Fun Stuff!
Having a hobby is great. Hobbies are an awesome way to enjoy something you love, meet other people, and learn new and interesting things. What can be even better is having a hobby that has the potential to actually MAKE money.
Some people only choose hobbies that have the potential to be profitable. They get to do something they enjoy with the added benefit of possibly making some extra cash on the side.
That extra cash can be put towards all kinds of financial goals. Paying down debt. Saving for retirement. Saving for a special vacation. Or just fun stuff in general.
Over the years I’ve had a number of hobbies that would make extra money. In total I’ve made over $50,000 from my personal hobbies. Some are more profitable than others. The important thing is that they’ve all been fun. This extra money has gone straight into investments where it can grow further thanks to the power of compounding.
The Simple 50-30-20 Budget
I like simple.
Simple is easy. Simple is efficient. Simple means I can spend more time on what matters.
When it comes to budgeting, I want things to be simple. I love personal finance but I don’t want to spend hours budgeting.
The problem with budgeting is that it’s pretty easy to get lost in the weeds. It’s easy to start tracking every transaction and then budget for it. It’s easy to get lost in the nitty gritty of budgeting and forget what the true purpose is, to manage your spending.
If you can manage you spending with a three-line budget then that works, right?!? It serves its purpose. Why go into more detail?
The 50 30 20 budget is the simplest budget there is. You split your income into three categories. Essentials, 50%. Personal, 30% Saving, 20%. That’s it!
Reduce Your Investment Risk (For Little To No Cost)
Investing is risky. That’s the price you pay in exchange for higher returns.
If you wanted zero risk you’d put your money in high interest savings account. But then your returns wouldn’t even keep up with inflation. Over the long run, a no risk investment is essentially losing money because its worth less and less each year.
Buying bonds offer a slightly higher return, usually above inflation, but that comes with additional risk. Bond prices are sensitive to interest rates and the economy. There is also the risk of default.
Equities provide an even higher return. This is exchange for much higher risk.
So how do you go about reducing your risk for little to no cost? First let’s discuss exactly what we mean by risk.