Disclosure: This post may contain affiliate links. Read the disclosure for more info. Originally published November 24, 2020. Updated December 23, 2020.
How to Invest and Make Money Daily in 2021
When it comes to the world of investing, you’re probably looking to make money quickly or save for your future. Sometimes within the same day. While it can be difficult to find these investments, there are some other options if you want to make money daily.
Let’s start by defining what it means to make money every day. To me, this means your investments will either increase in value or provide you with a cash return. But for you, it might mean something slightly different.
Whenever investing your money, it’s important to consider the risks involved, especially for some of the more speculative investing strategies. You’ll also want to consider the length of your investments. It’s much more likely that you’ll make money by holding your investments for longer than one day.
Keep reading to learn various ways you can make money daily by investing in appreciating assets!
Invest in a Side Hustle, Business, or Brand
You might not think of starting a side hustle as an investment, but they certainly can be. There are literally hundreds of side hustles that you can make money daily with, making it a perfect investment for your goals.
Not sure where to get started? Give some of these side hustles a try:
- Furniture Flipping
- Start a Candle Business
- Make Money Using a 3D Printer
- Start a Blog to Make Money Online
- Start a Pressure Washing Business
Starting a business or side hustle can help you make money within the day, some of which may not require your time at all. For example, if your side hustle is blogging, you can easily profit every day from affiliate marketing and display advertising. Whenever someone clicks on your ad or purchases through your links, you’ll receive a small commission.
Another great investment opportunity would be growing a brand online and promoting affiliate links to make money.
Invest in ETFs or Mutual Funds
The stock market can be a great way to grow your money and increase your passive income. Index funds, or a fund that is meant to follow a broad market like that S&P 500 or Dow Jones Industrial Average, can be a great option to easily invest and keep your portfolio diversified. While your daily returns might not be very large, they will add up over time helping you to make money daily.
How much can you make investing in ETFs or mutual funds? Historically, it’s typical to receive a ~7% return annually on your investment for a well-diversified portfolio. The stock market can be extremely volatile, so you’ll want to ensure you can handle the ups and downs that come along. By holding your investments for longer than 1 year, you’ll have a large chance of accruing positive returns on your money while simultaneously lowering your tax bill if you plan on selling your investments.
There are many different investment platforms you can use to open a brokerage account and invest no matter the amount of money you have. If you’re looking to save for the long term, some investors will instead opt to fund their retirement accounts like an IRA or 401k to invest. These accounts will limit the amount of taxes you’ll pay on any profits from your investments.
Not sure what to invest in? I love the Motley Fool Stock Advisor program. It guides me on which stocks they think have potential for growth with research done from professionals. And if you don’t like it – you can get a full refund. So why not give it a try? Sign up here!
Invest in Real Estate to Grow Your Money
Investing in real estate can be an excellent way to grow your wealth. But there’s one problem. Many new investors aren’t sure where to get started.
That’s why I recommend Fundrise. With this real estate investing platform you can easily start investing in a variety of offerings stress-free.
While this method could be combined into the previous section, I believe it needs its own. Dividend investing involves purchasing dividend-paying stocks and reinvesting your income to purchase more shares. This method allows your money to grow exponentially without any work required. There are many stocks that pay dividends, so you’ll want to do some research to find a company that has consistently paid a dividend and has a bright future.
It’s common that dividend-paying stocks will pay out their profits to investors once per quarter. However, this is not always true. There are some dividend stocks that pay monthly dividends which can give your daily returns a boost. This can increase the rate your money will grow and is an awesome investment strategy.
Make Money Daily with a High Yield Savings Account
In the past few years, high yield savings accounts have become mainstream as people look to grow their money faster than traditional savings accounts. These accounts are commonly online but pay as much as 25 times a traditional savings account.
While the interest rates are still somewhat low, they are also extremely safe investments for your money. You can find accounts that compound monthly or even daily to maximize your returns.
You can also earn interest on a checking account. That’s right, SoFi will pay interest on a standard checking account with no fees. Sign up for a SoFi Checking Account for free here. As a bonus, they’ll give you $50 if you deposit $500 into the account. That’s free money!
Invest in Peer to Peer Lending for a Daily Profit
Peer to peer lending is an easy way for individuals to lend money to others for an agreed-upon amount of interest and maturity date. The length of the loan can be just about any amount and sometimes as little as one day. While your returns might be minimal, it’s a great way to make money passively.
There are many different peer to peer lending options available. Some of the most popular are listed below:
Invest and Make Money with a Money Market Account
Similar to a high yield savings account, a money market account can be an excellent way to make money daily from your investment. A money market account allows you to invest with relatively low risk but the returns can be subpar. The main difference between a money market account and a high yield savings account or CD is that you are typically able to write checks from your account. It is extremely simple to open an account and get started making money daily.
Invest in Bonds
Bonds are traditional investments with a fixed interest rate and maturity date. There are several types of bonds including:
- Savings Bonds
- Treasury Bonds
- Corporate Bonds
- Government Bonds
Bonds can be a great method to invest and make money daily although the returns can be minimal. If you choose to invest in bonds, you can sleep at night knowing your money is in a safe place making it a great way to invest.
Related: Best Compound Interest Investments
Consider Investing in Cryptocurrency to Make Money
Warning: Trading cryptocurrency can be extremely speculative and is by no means guaranteed to make you money. With that said, cryptocurrency has gained popularity over recent years and its value has increased significantly. Some cryptocurrency owners have made tens of millions of dollars investing in cryptocurrency over the years.
It is common for the value of cryptocurrencies to swing massively from day to day, giving you the chance to profit on uncertainty. You should expect swings of anywhere from 2-10% daily for your portfolio.
What Cryptocurrencies Should I Invest In?
When it comes to crypto, there are a few main contenders and then all of the others. The most popular, Bitcoin, is perhaps the best option for new investors because of its rapid adoption. Two other cryptocurrencies to consider are BitcoinCash and Ethereum. BitcoinCash was built on the same framework as Bitcoin although slightly “better” in the fact that transactions are confirmed much faster and the cost of transactions is much less than Bitcoin.
How to Trade Cryptocurrency
Just as investing in the stock market will require you to open a brokerage account, purchasing cryptocurrency will require you to do something similar. The easiest and most simple way to get started is by purchasing through an exchange like Coinbase. You’ll need to provide some personal information to have your account verified before making your purchase. Once verified, you can purchase and sell a wide assortment of coins on the platform.
Day Trade Stocks
Similar to investing in cryptocurrency, day trading should be carefully analyzed before deciding whether it’s right for you. Even the most seasoned day traders find it extremely difficult to make money trading stocks throughout the day, so you’ll want to ensure you have the funds to become a day trader.
Whenever opening a brokerage account, you’ll also need to mark your account as a day trading account to meet federal regulations. These accounts will require you to keep a certain amount of cash in the account.
There are multiple strategies when it comes to day trading. Some investors will choose to invest in futures contracts which allows you to “bet” the price of a holding at a future date.
Utilize Micro Investing Apps to Make a Daily Profit
Looking for an easy way to invest money automatically? Luckily there are several apps available that will automatically round-up change for every dollar spent using a credit or debit card and invest that money for you. While it may seem trivial, the amount you can save and invest can add up significantly over the course of the year. The money that is saved and invested is typically allocated to different index funds and stocks that provide a safe investment for your money.
Some of my favorite micro-investing apps include:
Related: M1 Finance vs Stash
Invest in a Certificate of Deposit (CD)
CD’s can be a safe way to grow your money without having much worry about losing your investment. While the returns can be minimal when compared to other investments, they are a great worry-free method of investing. Similar to bonds, CDs have a maturity date in which your money can be withdrawn penalty-free. If you choose to withdraw money before the maturity date, there might be a penalty assessed. You can often find CDs with maturity dates from 5 months to over 3 years.
How to Invest and Make Money Fast
Okay so maybe you don’t need the money today, but you still want to make money fast. Give some of these investments a try if you want to invest and make money fast. But you’ll need to be careful. Whenever attempting to make money fast from investing, you’ll face increased levels of risk, making it easier to lose money as well.
Real Estate Investments
While it’s possible to make money quickly in real estate, this will require large sums of cash. There are several investment options to consider:
- Purchasing a rental property
- Purchasing a REIT (Real Estate Investment Trust)
- Renting out part of your home
Some forms of real estate are not as liquid as other investments, so you’ll want to consider when you’ll need the money before investing.
PeerStreet allows you to invest in real estate completely hands off. Invest your money and they’ll do the rest. You can register for a PeerStreet account here.
CrowdStreet allows you to invest in commercial real estate which can be an excellent option for investors looking to make money in real estate. You can register for a CrowdStreet account here.
Starting a Business
One of the fastest ways to make money is by investing in or starting a business. However, this also means that it is the riskiest investment. For that reason, it’s wise to only invest a portion of your portfolio into these risky assets.
Starting a business that you are both passionate about and has a proven business model is a safe way to increase your likelihood of success as an entrepreneur.
Purchase an Existing Business
If you’re looking to invest and make money fast, purchasing an existing business can be a great way to do so. When purchasing any business, you’ll need to do your due diligence before signing any contract to ensure the company is operating as expected.
The downside of purchasing an existing business is that you’ll pay a premium if the company is already earning consistent money.
For example, many websites and online businesses sell for 30 time their monthly revenue. So if you plan on purchasing a business that currently makes $1,000 per month, you can expect to pay around $30,000.
For most people, you should aim to purchase a business in an industry that you have previous knowledge in. This will better your chances of being capable of growing the business and help it become a more profitable business.
Invest in Yourself
“An investment in knowledge pays the best interest.” – Benjamin Franklin
Investing in yourself can be one of the most effective ways to grow your income in a hurry. If you’re looking to invest and make money fast, learning a new skill or expanding your knowledge base can be one of the best methods available. There are many different ways to invest in yourself including learning a new skill, becoming more productive, or networking with colleagues.
For example, if you can learn how to build small websites for local businesses, you can be capable of making a few extra thousand dollars per month. By networking with colleagues, you might be capable of landing a position at your dream job or getting promoted to a new position with a higher salary.
Invest in a 401(k)
If you’re looking to make money fast investing, funding an employee matched 401(k) can be an excellent choice. While this money cannot be touched until you reach the age of 55, it can be a great and safe method of growing your money.
Some companies might offer a 100% match on any money you contribute to the plan. This is a fast way to double your investment. Other companies might offer a 50% match on your contributions, which is still a great investment. Best of all, the money you contribute is invested with pre tax income in addition to growing tax free.
How Much Money Can You Make Investing in Stocks?
Some of the richest people in the world have made tremendous amounts of money by investing in the stock market. Your earnings potential is inherently unlimited, making it a no brainer for those looking to grow their money. Warren Buffet, George Soros, and Carl Icahn have all made millions investing in stocks.
Let’s take a look at how much money you can make if you invest your money in stocks. Let’s start by investing $10,000 into the market and never investing another penny. We’ll assume a market average of 7% annual return rate. After 30 years, your initial $10,000 investment will be worth $76,122.55. That’s a $66,000+ profit without working a minute! This makes it one of my best ways to invest your money.
Making a lot of money in the stock market is all about long term returns and limiting expenses. If you choose to hire a financial advisor, this can cost you a few percentage points, eating into your gains which can cost thousands of dollars annually. That’s why I prefer a simpler investment like index funds.
Other Circumstances to Consider When Investing
Before you invest a penny, it’s a good idea to ensure you don’t have any high-interest debts such as credit cards, personal loans, or student loans. These debts can cost you thousands of dollars over the course of a year and crush your dreams of financial freedom. What’s considered high interest? If any debts have an interest rate above 7%, it’s wise to pay off these debts before investing.
If you’re struggling with these debts, you might try to start a side hustle to earn money and use the additional cash to pay off debt and start investing
Unfortunately, the money you make from investing will be taxed. If you hold the investment for shorter than one year, your gains will be taxed as short-term capital gains, which can be significantly more than taxes on long term capital gains for investments held longer than 1 year. If you buy and sell stocks frequently, you’ll be faced with a larger tax bill at the end of the year.
Invest in Your Strengths
There are different investment opportunities that come up all of the time, but that doesn’t mean they’re for you. You should always take into account your strengths and weaknesses before making a decision about growing your money. For example, if you’re not comfortable investing in real estate, it’s okay to avoid it altogether and lean towards something more simple like the stock market.
Conclusion: Make Money Daily Investing
No matter what your financial goals are, you should always ensure you have the funds available and an emergency fund set aside before investing in any business or fund. Investing with credit is NEVER a good idea. With any investment strategy, you should consider long term goals and invest wisely.
Making money from investing is a great way to get ahead on your financial journey and will certainly aid your ability to reach retirement quicker.
The amount of money you can make if you invest wisely is limitless so there’s no reason to wait!
Do you have a favorite investment? Tell me in the comments below!