Side hustlin’

Foreign Money, where we show you how to pay your home loan off in up to half the time of a normal bank loan. Welcome to the Crown Money Podcast. I'm Jessie Edge and I'm joined by Scott Parry. How you going?

You're good, J Train. How are things?

Yeah, good. Really good. We've had some interesting questions from our clients recently. Just wondering, you know, during these times where things are getting more expensive, how can they earn a little extra money on the side? So we just wanted to talk about side hustles. Today we're just gonna rip through it. We've come up with a, you know, pretty extensive list. Some of these might be a little bit of a stretch, but hopefully some of them spark a little bit inspiration for, for you guys. All right, let's go for it.

Okay, so number one, investing in dividend paying stocks. So some of you may not know when you buy a stock or a share in a company. Call that Woolworths or Coles or Telstra, any of those. These banks make profits and as a result of that, every year they give you a percentage of those profits back based on how much of the company you own or how many shares you own. So investing dividend paying stocks, definitely something long term play. It's not going to change your life, but it's going to create an income stream off that.

Yep. Love it. I also really like this second one. I think this is a good one. So rent out a spare room on Airbnb. I know for a lot of people having somebody in their space might seem a little bit challenging, but it's one of those things that you can do. It's only short term, so you could do it just for three months if you wanted to, just to build up a bit of extra cash. Just have a really nice room set up and people will rent out just an individual room. They don't have to rent out your whole house. So that's a fantastic option as well.

Great YouTube videos and earn money through ads and sponsorships. I mean, we always say the YouTubers these days, every kid wants to be a YouTuber. I mean, some of the money. Like there's a dude called Mr. Beast who's like making hundreds of millions.

Of dollars much money. What does he actually do?

He just gives away money. Like he gives away cars money, like all these games. So creating YouTube videos just do something you're really passionate about and you love and as a result of that, you create the art once and it gets viewed and that's for decades at a time. Like it doesn't go anywhere. So that's a really good ongoing revenue stream if you crack that niche market, which you just have to do something that you find interesting to yourself.

Yeah, awesome. Love that. All right, write and self publish an ebook. So this one's actually quite interesting with the emergence of Chat GPT because you can literally pick out and it's all about a niche, it's all about going, okay, if you're interested in something that's really kind of unique or just really kind of, there's not that huge of a community around it so far, then that's a, that's a wonderful opportunity for you to, to write some content on that. And, and, and writing and self publishing an ebook is the perfect opportunity. So what you jump on Chat GPT, say, I'm interested in this particular topic. Here are some bullet points of some things that I want to cover. Can you please write an outline of the book for me and then can you please write some of the book for me if you're not kind of comfortable writing yourself? So there's big opportunities there and then you can self publish through platforms like Amazon, Kindle, that sort of stuff. So that's a really cool one.

Love that one about your car while you're not using it. This is, I mean, a lot of people working from home these days, they've still got two cars or even one car. So you can actually rent out your car when you're not using it. I think Uber have even created a new sort of vertical for this. So if your car is sitting in your driveway, there are a lot of people out there who don't want to buy a car because of all expenses, but they do want to rent a car. And so you can actually be the person who rents out your car while it's sitting in your driveway. And if you do do that, that means that your car thereby is income producing. And if you do carry any debt on the car, it could be potentially tax deductible. So it could turn your car loan into an investment if it's generating income. Another sort of flip on this is renting out caravans we had.

So, yeah.

Oh, during COVID I'm getting a caravan. Of course you are. Everyone's getting caravans. So my friend really aced it. He started a caravan business in January 2020 and Jesus, what. How much money he's made has been life changing. I've never seen anything like it in my life. So right place, right? If you have a caravan you can rent it out on, I think it's Camplify where you can actually put the. Jess, you got a caravan? Talk me through.

I do, yeah. So you just put it up there, you just say what, what it is and specify what sort of car that the person has and then you can rent out your caravan. This is something that my husband and I are actually planning on doing next year. So I think it's a fantastic. You can actually earn quite a bit of money doing it. You just gotta be making sure that your insurances are up to date and things like that and you're covered for other people having it. And it's interesting because the secondhand caravan market at the moment has like everybody is now selling their caravan so there's a heat kind of flooding the market a little bit. But all those people that are selling their caravans might still want to go away on caravan trips and they don't have their caravan anymore. So I think it's a really, really good opportunity to pop your caravan on camplify and see if you can earn a little extra passive income from it.

Love it. People buy and sell real estate, but digital real estate and domain. So www.news.com for example, is a domain. All these different websites are domains. You can actually buy those domains for certain prices. There's domain brokers out there where you can look at the price of those Single words are really, really valuable. And so you can start basically buying and selling domains and flipping them. I know one guy who paid $400,000 for a domain name and then two years later sold for over 1.3 million. So like you can play at that end of the scale. We can buy something for 300 and sell it for 1200. So there's always different domains have got different demand versus supply and you can really crunch it if you get it right, but you can just literally land bank these domain names.

Yeah. Especially if you can pick up on some kind of trends that are happening. So if you've got a kid that watches a lot of TikTok to say, oh, what is everyone talking about right now? Anything that's a trend, try and jump on that as a domain name because it's something that potentially could turn into a product or a service and somebody's going to want that domain. So trying to think of it in that sort of sense and kind of jump ahead of the curve if you can.

Next we've got investing in peer to peer lending. So a lot of you guys heard me speak about this before. So peer to peer lending is basically you become the bank and so you may have $20,000 that you lend out to Mary. These peer to peer lenders will do all the credit checks on Mary, assess her income, make sure she's got a good repayment history and then they will lend your 20,000 out to Mary. Mary will make repayments on your on a platform for that $20,000 loan. It can be over one year or three years or five years. The rates are so far, so far above what a term deposit is. And the risk isn't in my eyes as too much, it's a little bit more risk in terms of deposit. But what you're getting for a peer to peer lending, I mean we're getting clients who are getting like 8% returns right now. So they're putting 20 grand into a peer to peer lending platform and that is returning 20% per annum and they're actually reinvesting the repayments. So it's growing and compounding out there. So do some research on P2P lending. I really like that as a passive income stream, just the yield you're getting is actually greater than what you're paying on your mortgage. And so we've had some clients pull money out of their mortgage and put into a P2P lending platform and actually make the arbitrage or the spread between those two rates nice.

Yep, that's fantastic. This is one I really like. So create an online course or educational content. There are so many platforms available now, they are very cheap if not free where you can put an online course up. And one of the biggest things that I learned when I was first looking into this is that your, the video, if you're doing a video course, it doesn't have to be perfect like people think that it has to be perfect, but just start somewhere and just start selling it at a lower price point. And yeah, just really get out whatever, you know, whatever you specialize in something that you're passionate about. Maybe you're a really good gardener. Like do do a course on how to set up your own backyard veggie patch. For a lot of people they actually don't know how to do that. And you could sell that for something like, you know, $10, $15, people are going to pay that. And, and what it is is, is you're setting it up and it's a set and forget you're setting it up. It's out there. You don't have to keep re recording it, you don't have to add content. It's just there and it's something that you can con continue to sell for a period of time. So really like that.

That is a good one. Another one is renting out or buying and renting out vending machines or ATM machines. And so this probably requires a little bit more upfront capital. But you can buy ATM machines. You know how you go to those ATM machines, they charge like $2.50 or $3.50 every time. That's what someone's done. It's their business, they've bought that and then they've placed in different businesses, give the business a cut of the fees. But as passive, you know, you buy the machine once and you're getting that $3.50 each and every time someone pulls cash out. So rent vending machines. ATM machines is a nice play. A little bit more upfront capital required, but well worth investigating.

Yeah, that's cool. This is what I hadn't thought of before, which was quite interesting, is renting out part of your house as storage. So you might have a back shed that's got, you know, X cubic meter meters that you can actually rent that out as storage. So that's a nice easy way to earn some income and potentially a parking spot. So if you're in a, in an area that might have transport nearby, like a train nearby where people need to park and it's often full, or you're near a city or a major kind of business hub, you can actually rent out one of your, like your driveway in effect as a car park. So that was pretty cool one as well.

This next one, investing in real estate and then passive income through rental payments. So I just want to preface this. No real estate or very, very few real estate properties that you're looking at will actually give you a passive income from the start. You need that property to be at least 5 to 10 years old for your rent to increase to a level where it's covering your interest payments. And so in the US it's different. You can buy a rental property from the get go. It's positive cash flow. Here in Australia, no rental properties are positive cash flow from day one. The rent is never enough to cover the mortgage, especially with the rates that are and where they are today. So that there is more of a long, long term one. It's definitely a great one because you're getting capital growth at some point on the other side of the fence as well. But your passive income stream is going to come in the years ahead. So it's a real long burn one.

Yeah, no, for me, I like this one. So you could become a social media manager for A business. Now, Scott, you didn't necessarily love this one and I get where you're coming from, but for a lot of people, especially a lot of our younger clients, they have a lot of experience with social media. So if you're relatively confident with your Facebook, Instagram, that sort of stuff, you can go to a company, it might be a friend's company, so somebody in a social group or whatever it may be, they might be absolutely terrible at social media. So anything you do is going to be better than that, let's be honest. And you can go through and do some pretty basic things to get them set up, get their online presence looking, presence looking pretty good and just getting some content out there without having to know too much yourself. So definitely worth looking into. It's a really interesting kind of one to do and a great. It's something that you could do quite quickly and easily on the side. I like that one.

Yeah, well, you've sold me. I also like investing in index funds for long term passive income. And so we talked about investing in stocks or shares for passive income. An index fund is a basket of shares or a basket of stocks. And so there are index funds which have been created specifically for high yield. And what yield is, is really, it's that income stream that comes off that investment. And so you can do some due diligence and research and find out what actual index funds are there. And you can, don't have to just do this for Australia. These are global. What index funds are there that pay higher returns? Or they could high income funds or high yielding funds and so those ones that we own the stock. But you also, it's really been tilted to generate as much income as opposed to just focusing on the growth of those basket of shares there. So index funds, long term passive income, really good strategy long term.

Yeah.

And you don't have to put a huge amount of money upfront like you can just $500 a month, $5 a year, whatever it may be, just contributing to that on an annual basis or a monthly basis or a weekly basis, your dollar cost averaging into that index fund. It's a really smart way over time to, to build a nice asset base.

All right. And this, this last one, I, I think this is quite a common one. This is probably something that people think about a lot. If you have any sort of crafting or you know, hobby that you have that you really enjoy and you're passionate about and you produce kind of these goods, obviously selling those on Etsy or Facebook Marketplace, it's a Quick and easy way to kind of get your product, something that you're already familiar with and confident with out there to try and earn a little bit of income out of them. So that, that's kind of everything for today. Look, lots of little ideas there. There is so many opportunities available nowadays to people to earn a little bit of extra income on the side. So yeah, hopefully there was something in there that was a little bit inspiring for you.

Yeah, that last one where basically a lot of people are these days sort of buying something and flipping it and so they're buying it on Amazon and flipping it on ebay, or buying it on ebay, flipping on Amazon. So they're actually sort of buying cheaper products somewhere, finding a discount and selling it on Facebook Marketplace. So those flipping is basically just a little bit of a carry on from what you're just finishing with there. I think that's definitely got some. It takes some time. Obviously all these take a little bit of time to set up. But if you're that keen, I mean, you can go and work somewhere else and get a second job or you can do this from the creatures of your own couch or roam.

And that's the thing, like that's your options kind of thing. If you're really desperate and it's kind of like I need to earn a little bit of extra passive income income, there's nothing I can do about that. I need to do this then, you know, it's worth just setting aside a period of time. It might be one night a week or one day on the weekend. And I know that's hard with little kids running around and everything else, but just invest a little bit of time and try to set up some of these passive income streams so that it just takes the burden off that financial burden for you.

Yeah, I love it. Thank you so much, Jerry.

Thank you.

Hopefully you guys out there got some value out of that. Not saying all of them are winners, but maybe just one golden nugget will be enough to put some more money in your bank account.

Thanks, Scott.

Go.