Do you need more cash flowing through your household? Cash flow is the heart of any relationship and home; therefore, we must make growing our income a top priority?
We have many options to increase our income, but we also want to keep our time. Time is the most valuable resource on Earth, so delivering pizzas or driving Uber may not be the best long-term solution.
Options galore. We can choose to invest in dividend-paying stocks. Dividends will give us the most passive form of income; however, it takes a large amount of money to generate a decent stream.
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Becoming a content creator doesn’t require much money, but it does require a great deal of time. I recommend content creation for those with a long-term mindset.
Today, I want to compare two readily available options to everyone: house hacking and online businesses. With these, you can generate great returns and control your time. But, which is the best for making money from home?
My favorite is house-hacking. I am an avid house hacker while also running an online business. I love house hacking more than anything, and I believe sharing our homes is the solution to the housing crisis.
To house hack successfully, you will need to learn many skills. First, you need to maintain a clean home. Second, ensure you offer plenty of amenities that will allow you to charge a higher rent.
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The higher the rent, the higher the quality tenant pool you can tap. Trust me; I learned this the hard way. You’ll also need to know how to advertise, take good photos, and write enticing copy (a good description).
I would recommend reading a book on property management. I read “The Book on Managing Rental Properties” after two years of renting rooms. I should have read that before renting my first room.
Take a deep look at your personality. Will you make a good landlord? If people tend to run over you, avoid becoming a landlord. Human nature is to take advantage of people we deem weaker than us.
Finally, house hacking gives you an infinite return immediately. Getting started doesn’t take much ($200-$800). You need a new mattress, sheets, blankets, refrigerator, curtains, microwave, etc.
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If you need to earn $600-$1,500 a month today, read a book, and get started. Ensure you screen the tenants the best you can or join a roommate finding website. You don’t want a nightmare tenant (trust me).
Online businesses grow exponentially. If house hacking prints money so quickly, why start an online business? First, you don’t want to have a roommate for the rest of your life.
However, it is good to know how to rent rooms quickly. You can always open your doors to generate immediate revenue if things get tough. It’s a skill set worth learning.
An online business will grow exponentially due to the power of compounding. You can serve 1-2 roommates at a time. With an online business, you can reach the world.
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Even though your online business will grow exponentially, it starts very slowly. I mean, very slow. You will begin with no traffic and slowly work your way up by gaining authority.
There are many online businesses you can start. You can aim for active income, passive income, or both.
For example, take an online consulting business. You can create blog posts, videos, and podcasts around consulting, which will generate passive income. Additionally, you can use your reach to find new clients to serve actively.
I wrote a series on online and home businesses that will come in handy. What Type of Home Business Should You Start (Intro, Outside, Online, Content, Consulting)?
Mortgage Positive: Earn Cash Flow from Your Primary Residence
No matter what online business you start, you’ll need a blog. A blog is your primary source of organic traffic. Big companies like Google, Amazon, and YouTube want you to advertise on their platforms.
If you don’t have content (in particular words in a blog), you’ll depend on advertising to grab views. Creating successful adverts is a job on its own. Here is my experience running Facebook ads (hint: it didn’t go well).
Why not do both? I like to combine my passive income streams. This insulates me from issues in various markets like business, real estate, cryptocurrencies, and stocks.
If you need money now, start renting rooms. However, don’t rest on your laurels. You’ll be printing money by renting rooms, but how will you use this additional income?
You can start by paying off debt immediately—doing what my wife and I did with our rental income. Then you can start investing for dividends and income.
You’ll Need $20,000/Month in Passive Income
Start your business now. You’ll want to start your business the day you start renting rooms. An online business may take years to produce fruit. The sooner you jump in, the sooner you will see profits.
Each business starts differently, but they all have the same underlying principles. Add value, be consistent, and give away without expecting anything in return. Remember, nobody owes you anything.
Conclusion. So which one is more achievable for the average person: house hacking or online business? House hacking is the winner.
The average person (say 95%) does not have the discipline or fortitude to stick with an online business for 2-3 years while not seeing a massive return for their time.
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House hacking is simple, as long as you have a clean, respectful tenant. Hint: finding this tenant is the hard part.
You can parlay your house hacking career into much more essential things like a dividend portfolio, rental properties, or cryptocurrencies.
If you use your house hacking income to pay expenses, you’ll always stay behind the power curve. Pay down debt, save an emergency fund, and start investing. Eventually, you’ll have the option to keep or remove your roommates.
If you have the willpower, you can make so much more online. However, it will take 2-3 years to gain traction on the internet. Are you prepared to grind your life away for 2-3 years? It is worth it: trust me.
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