As we head into 2022 at a breakneck pace, you may be thinking of ways to earn some extra money This year. With inflation showing no signs of stopping and the COVID-19 pandemic still in full swing due to the omicron variant, now is the time to save, invest and find other forms of income.
First identify your level of risk tolerance
Financial specialists usually start by analyzing the level of risk their clients can tolerate. I’ve taken a similar approach here and ranked my favorite strategies accordingly. In this guide, I will introduce you to different lucrative low, medium and high risk strategies.
Low Risk Currency Strategies
When you’re starting to think about ways to increase your net worth, these low-risk strategies are a great place to start.
today only 24% of millennials demonstrate basic financial literacy. Reflecting on your own financial knowledge and skills and using some of these strategies can pay huge dividends in the long run. Low-risk strategies are perfect if you’re on a tight budget, approaching retirement, or are already retired and financially strained.
Reduce your expenses and save more money
The first low-risk strategy you should consider is to save money wherever you can. A simple way to do this is to spend less on coffee. According to Yahoo, women spend about $2,327 per year on coffee drinks, while men spend about $1,934 per year. Cutting your daily Starbucks trip by $5.00 could potentially save you thousands of dollars.
If you’re not a coffee drinker, you can still save money in other ways. An alternative is to buy store brands rather than name brands. In many cases, house brands are identical to known brands. For example, Costco, one of America’s best-known retailers, frequently sells products under its Kirkland label, but they are identical to other well-known reputable brands.
By cutting out unnecessary expenses and looking for cheaper alternatives, you can save money and keep more of it. for retirement or a rainy day fund.
Find a side gig
The second low-risk strategy you can use is to find a side gig. A side gig can be anything from picking up hours at your local grocery store to using a website like Fiverr or Upwork. If you have a skill worth selling, Fiverr and Upwork are probably the best choice for you. Both of these websites allow you to charge fees for different types of services and can be a great way to earn extra money. Many graphic designers, coders, writers or artists use these platforms to increase their income.
Medium Risk Currency Strategies
These strategies will require you to invest more resources and have a greater potential for loss. Medium-risk strategies are best for people who are in their mid to early career, young or middle-aged, and financially stable.
Search for a promotion
Looking for a promotion can be a great way to earn more money. It may seem like a low-risk strategy at first, but it may be harder than you think. Often, a promotion may require you to take on greater responsibilities at work. This means you may be working more frequently, limiting your options for finding a side gig. Greater responsibilities may also mean that you will have to do more at work. Increasing demands in the workplace are no joke and can wear you down.
Finally, there is no guarantee that you will get the promotion for which you are applying. Often, higher-level positions require professional certifications or degrees. In any case, promotions are certainly accompanied by a salary increase, and you can then start putting that money proper use, as in a 401(k).
Invest more money
No lucrative strategy would be complete without investing. Despite COVID-19 and the pandemic, the stock Exchange continued to climb. And there is a wealth of information available on how to grow your money and what types of investments are available. However, choosing to invest ultimately means saving more of your money and putting it into some type of investment account.
High Risk Currency Strategies
Finally, we come to high-risk strategies. These strategies can yield huge long-term gains, but they obviously carry the greatest risks. With high risk strategies, there is no single recommendation. Anyone can use these strategies, but you need to keep in mind whether or not you can afford the potential losses that may result.
Find a new job and change industry
Changing careers can be a great way to earn more money. If you find yourself trapped in a job that doesn’t pay you enough, you might consider looking for a new industry. This strategy can pay off big.
For example, the average annual salary for computer programmers was over $95,000 in 2020. Switching to a new career can be a great but risky way to make more money.
Consider investing in cryptocurrency
Public awareness of cryptocurrency is growing more and more every year. However, these types of investments (if they can be called that) carry an incredible amount of risk. For example, the price of crypto is highly volatile, often experiencing huge swings within a day or even minutes. Crypto is also frequently used by scammers and other online criminals. Additionally, many of these digital tokens are of dubious value. Keep in mind that you will need a secure way to store your cryptocurrency too much.
That said, the rise of Bitcoin and Ethereum definitely demonstrates that cryptocurrencies are here to stay. If you’re willing to take the risk, there’s no reason crypto trading shouldn’t be part of your money-growing strategy.
Start this year by learning more about ways to gain financial literacy and how to earn more money in 2022. When thinking about how to increase your income, be sure to consider your financial situation current and how much risk you can assume. No matter what you choose to do, the path to greater financial independence is sure to be beneficial.
The post Which money making strategy is best for you in 2022? appeared first on Due.