4 ways to make money while you sleep
The idea of your money working for you with minimal input is touted by tech-entrepreneurs and millennials as the holy grail of modern financial freedom. But is it really possible to make money doing nothing? The short answer: yes. Here we share four ways to make money while you sleep.
For a low cost, highly diversified option you can’t ignore exchange-traded funds (or EFTs). EFTs are bundled security investment funds traded on stock exchanges – just like ordinary shares – that make accessing markets and assets like currency, debt, derivatives and commodities even easier.
You trade and settle EFTs just like ordinary shares, but your money is automatically diversified over specific indexes. This saves you time, lowers your risk and can make you money without even thinking!
You know those tiny amounts left over from your daily purchases? Like when you buy groceries for $67.65 instead of $70? Well, investing these micro amounts by rounding-up, or setting up automated weekly or monthly recurring investments from your spare change, has a name: micro-investing.
FinTech companies like Raiz make this process even easier by allowing customers to micro-invest the remaining round-up of everyday purchases into ETFs (see point above) via their app. You can choose between rounding up, recurring payments or lump sums that the app then invests for you. Once set up, it’s an easy way to make money – you literally don’t have to do anything.
3. Smarter savings
Automation isn’t just making investing easier, it’s making saving easier too. Some savings accounts now offer an automatic round-up option (ING, we’re high-fiving you) that allows you to automatically round-up your purchases and redistribute that money into your existing savings account or your home loan account, depending on your financial goals.
For example, if your petrol costs you $76.50, you can choose to automatically round-up that purchase to $80 and that $3.50 difference is then added to your savings or paid off your home loan. It’s a simple way to stack money without giving it a second thought.
In the world of exciting new investment technology, superannuation isn’t exactly sexy. But it is effective when it comes to forced savings and another way to make money while you sleep. Making voluntary super contributions has many benefits, including tax concessions and compounding interest. In other words, it’s an effective way to build your nest egg fast and with minimal effort.
But remember, when you invest in super your money is untouchable until retirement age, so consider that before going all in. Check out our post on 4 easy tips to boost your super.